I first heard something similar in a book by Bill Gates but he set it up so well that he could say it in a concise way. (Paraphrasing to the best of my memory)..I have repeated this particular observation many times. My first contact with it was working with DP/IT departments in large, old companies. Since they started in the mainframe days, when no one was really an expert in business computing, they would “promote” someone to head of the department for whatever reason other than knowledge and experience of computers.
If the person was a poor manager, not understanding their role as manager, believed they had to be the smartest computer guy in the room to keep their job, they’d hire people who knew a little (or a lot) less than they did. This made them feel safe.
If the person was a good manager, understanding that unit success was their success and hiring experts would make the department a more competent, successful group, they’d look for people that know a lot more than they did to contribute to it. They knew they were there to do the work a manager does (which did include being conversant in the technology so they could make good decisions based on expert staff advice).
Over the decades the former organization would decay and through attrition the manager would get worse and worse at both managing and computing. They would repeat the mistake of their predecessor for the same reasons and competence would reduce with every generation of staff. This type made me a lot of money as a consultant but were very unpleasant to work with and considered consultant “wizards” who knew secrets they could never divine as a mere mortal.
The latter type were extremely competent, and grew in competence over the decades. They were a pleasure ot work with because not only weren’t their systems a messy patchwork of guesses and workarounds, they only called me after they’d already worked out everything they could, and being competent it meant that I was handed a package of good documentation and troubleshooting, etc., simplifying my work and making it more interesting.
I usually tell this story to the one-level-up management in an organization whose IT infrastructure is in peril because of scared, gormless managers using technical obfuscation to cover for lack of skill and knowledge. A few times it was possible to reorient the manager and group to pursue competence and rigor—usually not. We’d solve the current problem only to be called back after the cruft had crushed the original solution.
In any case, I endorse @MrSalts short version of this idea, it‘s very important if it can be gotten across.
"A" quality managers hire "A" quality candidates. "B" quality managers hire "C" and "D" quality candidates.
In addition to the obvious Management Lesson in Gates's statement, a the hidden message is, "don't be a B-candidate - you'll never get a job."