[Did I send this already?] > https://hbr.org/2004/01/narcissistic-leaders-the-incredible-pros-the-inevitable-cons > > <https://hbr.org/2004/01/narcissistic-leaders-the-incredible-pros-the-inevitable-cons> > > Narcissistic Leaders: The Incredible Pros, the Inevitable Cons > > When Michael Maccoby wrote this article, which was first published in early > 2000, the business world was still under the spell of the Internet and its > revolutionary promise. It was a time, Maccoby wrote, that called for > larger-than-life leaders who could see the big picture and paint a compelling > portrait of a dramatically different future. And that, he argued, was one > reason we saw the emergence of the superstar CEOs—the grandiose, actively > self-promoting, and genuinely narcissistic leaders who dominated the covers > of business magazines at that time. Skilled orators and creative strategists, > narcissists have vision and a great ability to attract and inspire followers. > > The times have changed, and we’ve learned a lot about the dangers of > overreliance on big personalities, but that doesn’t mean narcissism can’t be > a useful leadership trait. There’s certainly a dark side to > narcissism—narcissists, Freud told us, are emotionally isolated and highly > distrustful. They’re usually poor listeners and lack empathy. Perceived > threats can trigger rage. The challenge today—as Maccoby understood it to be > four years ago—is to take advantage of their strengths while tempering their > weaknesses. > > There’s something new and daring about the CEOs who are transforming today’s > industries. Just compare them with the executives who ran large companies in > the 1950s through the 1980s. Those executives shunned the press and had their > comments carefully crafted by corporate PR departments. But today’s > CEOs—superstars such as Bill Gates, Andy Grove, Steve Jobs, Jeff Bezos, and > Jack Welch—hire their own publicists, write books, grant spontaneous > interviews, and actively promote their personal philosophies. Their faces > adorn the covers of magazines like BusinessWeek, Time, and the Economist. > What’s more, the world’s business personalities are increasingly seen as the > makers and shapers of our public and personal agendas. They advise schools on > what kids should learn and lawmakers on how to invest the public’s money. We > look to them for thoughts on everything from the future of e-commerce to hot > places to vacation. > > There are many reasons today’s business leaders have higher profiles than > ever before. One is that business plays a much bigger role in our lives than > it used to, and its leaders are more often in the limelight. Another is that > the business world is experiencing enormous changes that call for visionary > and charismatic leadership. But my 25 years of consulting both as a > psychoanalyst in private practice and as an adviser to top managers suggest a > third reason—namely, a pronounced change in the personality of the strategic > leaders at the top. As an anthropologist, I try to understand people in the > context in which they operate, and as a psychoanalyst, I tend to see them > through a distinctly Freudian lens. Given what I know, I believe that the > larger-than-life leaders we are seeing today closely resemble the personality > type that Sigmund Freud dubbed narcissistic. “People of this type impress > others as being ‘personalities,’” he wrote, describing one of the > psychological types that clearly fall within the range of normality. “They > are especially suited to act as a support for others, to take on the role of > leaders, and to give a fresh stimulus to cultural development or damage the > established state of affairs.” > > Throughout history, narcissists have always emerged to inspire people and to > shape the future. When military, religious, and political arenas dominated > society, it was figures such as Napoléon Bonaparte, Mahatma Gandhi, and > Franklin Delano Roosevelt who determined the social agenda. But from time to > time, when business became the engine of social change, it, too, generated > its share of narcissistic leaders. That was true at the beginning of this > century, when men like Andrew Carnegie, John D. Rockefeller, Thomas Edison, > and Henry Ford exploited new technologies and restructured American industry. > And I think it is true again today. > > But Freud recognized that there is a dark side to narcissism. Narcissists, he > pointed out, are emotionally isolated and highly distrustful. Perceived > threats can trigger rage. Achievements can feed feelings of grandiosity. > That’s why Freud thought narcissists were the hardest personality types to > analyze. Consider how an executive at Oracle describes his narcissistic CEO > Larry Ellison: “The difference between God and Larry is that God does not > believe he is Larry.” That observation is amusing, but it is also troubling. > Not surprisingly, most people think of narcissists in a primarily negative > way. After all, Freud named the type after the mythical figure Narcissus, who > died because of his pathological preoccupation with himself. > > Yet narcissism can be extraordinarily useful—even necessary. Freud shifted > his views about narcissism over time and recognized that we are all somewhat > narcissistic. More recently, psychoanalyst Heinz Kohut built on Freud’s > theories and developed methods of treating narcissists. Of course, only > professional clinicians are trained to tell if narcissism is normal or > pathological. In this article, I discuss the differences between productive > and unproductive narcissism but do not explore the extreme pathology of > borderline conditions and psychosis. > > Leaders such as Jack Welch and George Soros are examples of productive > narcissists. They are gifted and creative strategists who see the big picture > and find meaning in the risky challenge of changing the world and leaving > behind a legacy. Indeed, one reason we look to productive narcissists in > times of great transition is that they have the audacity to push through the > massive transformations that society periodically undertakes. Productive > narcissists are not only risk takers willing to get the job done but also > charmers who can convert the masses with their rhetoric. The danger is that > narcissism can turn unproductive when, lacking self-knowledge and restraining > anchors, narcissists become unrealistic dreamers. They nurture grand schemes > and harbor the illusion that only circumstances or enemies block their > success. This tendency toward grandiosity and distrust is the Achilles’ heel > of narcissists. Because of it, even brilliant narcissists can come under > suspicion for self-involvement, unpredictability, and—in extreme > cases—paranoia. > > Productive narcissists have the audacity to push through the massive > transformations that society periodically undertakes. > > It’s easy to see why narcissistic leadership doesn’t always mean successful > leadership. Consider the case of Volvo’s Pehr Gyllenhammar. He had a dream > that appealed to a broad international audience—a plan to revolutionize the > industrial workplace by replacing the dehumanizing assembly line caricatured > in Charlie Chaplin’s Modern Times. His wildly popular vision called for > team-based craftsmanship. Model factories were built and publicized to > international acclaim. But his success in pushing through these dramatic > changes also sowed the seeds for his downfall. Gyllenhammar started to feel > that he could ignore the concerns of his operational managers. He pursued > chancy and expensive business deals, which he publicized on television and in > the press. On one level, you can ascribe Gyllenhammar’s falling out of touch > with his workforce simply to faulty strategy. But it is also possible to > attribute it to his narcissistic personality. His overestimation of himself > led him to believe that others would want him to be the czar of a > multinational enterprise. In turn, these fantasies led him to pursue a merger > with Renault, which was tremendously unpopular with Swedish employees. > Because Gyllenhammar was deaf to complaints about Renault, Swedish managers > were forced to take their case public. In the end, shareholders aggressively > rejected Gyllenhammar’s plan, leaving him with no option but to resign. > > Given the large number of narcissists at the helm of corporations today, the > challenge facing organizations is to ensure that such leaders do not > self-destruct or lead the company to disaster. That can take some doing > because it is very hard for narcissists to work through their issues—and > virtually impossible for them to do it alone. Narcissists need colleagues and > even therapists if they hope to break free from their limitations. But > because of their extreme independence and self-protectiveness, it is very > difficult to get near them. Kohut maintained that a therapist would have to > demonstrate an extraordinarily profound empathic understanding and sympathy > for the narcissist’s feelings in order to gain his trust. On top of that, > narcissists must recognize that they can benefit from such help. For their > part, employees must learn how to recognize—and work around—narcissistic > bosses. To help them in this endeavor, let’s first take a closer look at > Freud’s theory of personality types. > > Three Main Personality Types > > While Freud recognized that there are an almost infinite variety of > personalities, he identified three main types: erotic, obsessive, and > narcissistic. Most of us have elements of all three. We are all, for example, > somewhat narcissistic. If that were not so, we would not be able to survive > or assert our needs. The point is, one of the dynamic tendencies usually > dominates the others, making each of us react differently to success and > failure. > > Freud’s definitions of personality types differed over time. When talking > about the erotic personality type, however, Freud generally did not mean a > sexual personality but rather one for whom loving and above all being loved > is most important. This type of individual is dependent on those people they > fear will stop loving them. Many erotics are teachers, nurses, and social > workers. At their most productive, they are developers of the young as well > as enablers and helpers at work. As managers, they are caring and supportive, > but they avoid conflict and make people dependent on them. They are, > according to Freud, outer-directed people. > > Obsessives, in contrast, are inner-directed. They are self-reliant and > conscientious. They create and maintain order and make the most effective > operational managers. They look constantly for ways to help people listen > better, resolve conflict, and find win-win opportunities. They buy > self-improvement books such as Stephen Covey’s The 7 Habits of Highly > Effective People. Obsessives are also ruled by a strict conscience—they like > to focus on continuous improvement at work because it fits in with their > sense of moral improvement. As entrepreneurs, obsessives start businesses > that express their values, but they lack the vision, daring, and charisma it > takes to turn a good idea into a great one. The best obsessives set high > standards and communicate very effectively. They make sure that instructions > are followed and costs are kept within budget. The most productive are great > mentors and team players. The unproductive and the uncooperative become > narrow experts and rule-bound bureaucrats. > > Narcissists, the third type, are independent and not easily impressed. They > are innovators, driven in business to gain power and glory. Productive > narcissists are experts in their industries, but they go beyond it. They also > pose the critical questions. They want to learn everything about everything > that affects the company and its products. Unlike erotics, they want to be > admired, not loved. And unlike obsessives, they are not troubled by a > punishing superego, so they are able to aggressively pursue their goals. Of > all the personality types, narcissists run the greatest risk of isolating > themselves at the moment of success. And because of their independence and > aggressiveness, they are constantly looking out for enemies, sometimes > degenerating into paranoia when they are under extreme stress. (For more on > personality types, see the sidebar “Fromm’s Fourth Personality Type.”) > > Fromm's Fourth Personality Type > > Not long after Freud described his three personality types in 1931, > psychoanalyst Erich Fromm proposed a fourth personality type, which has > become particularly prevalent in today’s service economy. Fromm called this > type the “marketing personality,” and it is exemplified by the lead character > in Woody Allen’s movie Zelig, a man so governed by his need to be valued that > he becomes exactly like the people he happens to be around. > > Marketing personalities are more detached than erotics and so are less likely > to cement close ties. They are also less driven by conscience than > obsessives. Instead, they are motivated by a radarlike anxiety that permeates > everything they do. Because they are so eager to please and to alleviate this > anxiety, marketing personalities excel at selling themselves to others. > > Unproductive marketing types lack direction and the ability to commit > themselves to people or projects. But when productive, marketing types are > good at facilitating teams and keeping the focus on adding value as defined > by customers and colleagues. Like obsessives, marketing personalities are > avid consumers of self-help books. Like narcissists, they are not wedded to > the past. But marketing types generally make poor leaders in times of crisis. > They lack the daring needed to innovate and are too responsive to current, > rather than future, customer demands. > > Strengths of the Narcissistic Leader > > When it comes to leadership, personality type can be instructive. Erotic > personalities generally make poor managers—they need too much approval. > Obsessives make better leaders—they are your operational managers: critical > and cautious. But it is narcissists who come closest to our collective image > of great leaders. There are two reasons for this: they have compelling, even > gripping, visions for companies, and they have an ability to attract > followers. > > Great Vision. > > I once asked a group of managers to define a leader. “A person with vision” > was a typical response. Productive narcissists understand the vision thing > particularly well, because they are by nature people who see the big picture. > They are not analyzers who can break up big questions into manageable > problems; they aren’t number crunchers either (these are usually the > obsessives). Nor do they try to extrapolate to understand the future—they > attempt to create it. To paraphrase George Bernard Shaw, some people see > things as they are and ask why; narcissists see things that never were and > ask why not. > > Consider the difference between Bob Allen, a productive obsessive, and Mike > Armstrong, a productive narcissist. In 1997, Allen tried to expand AT&T to > reestablish the end-to-end service of the Bell System by reselling local > service from the regional Bell operating companies (RBOCs). Although this was > a worthwhile endeavor for shareholders and customers, it was hardly > earth-shattering. By contrast, through a strategy of combining voice, > telecommunications, and Internet access by high-speed broadband > telecommunication over cable, Mike Armstrong has “created a new space with > his name on it,” as one of his colleagues puts it. Armstrong is betting that > his costly strategy will beat out the RBOC’s less expensive solution of > digital subscriber lines over copper wire. This example illustrates the > different approaches of obsessives and narcissists. The risk Armstrong took > is one that few obsessives would feel comfortable taking. His vision is > galvanizing AT&T. Who but a narcissistic leader could achieve such a thing? > As Napoléon—a classic narcissist—once remarked, “Revolutions are ideal times > for soldiers with a lot of wit—and the courage to act.” > > As in the days of the French Revolution, the world is now changing in > astounding ways; narcissists have opportunities they would never have in > ordinary times. In short, today’s narcissistic leaders have the chance to > change the very rules of the game. Consider Robert B. Shapiro, CEO of > Monsanto. Shapiro described his vision of genetically modifying crops as “the > single most successful introduction of technology in the history of > agriculture, including the plow” (New York Times, August 5, 1999). This is > certainly a huge claim—there are still many questions about the safety and > public acceptance of genetically engineered fruits and vegetables. But > industries like agriculture are desperate for radical change. If Shapiro’s > gamble is successful, the industry will be transformed in the image of > Monsanto. That’s why he can get away with painting a picture of Monsanto as a > highly profitable “life sciences” company—despite the fact that Monsanto’s > stock has fallen 12% from 1998 to the end of the third quarter of 1999. > (During the same period, the S&P was up 41%.) Unlike Armstrong and Shapiro, > it was enough for Bob Allen to win against his competitors in a game measured > primarily by the stock market. But narcissistic leaders are after something > more. They want—and need—to leave behind a legacy. > > Scores of Followers. > > Narcissists have vision—but that’s not enough. People in mental hospitals > also have visions. The simplest definition of a leader is someone whom other > people follow. Indeed, narcissists are especially gifted in attracting > followers, and more often than not, they do so through language. Narcissists > believe that words can move mountains and that inspiring speeches can change > people. Narcissistic leaders are often skillful orators, and this is one of > the talents that makes them so charismatic. Indeed, anyone who has seen > narcissists perform can attest to their personal magnetism and their ability > to stir enthusiasm among audiences. > > Yet this charismatic gift is more of a two-way affair than most people think. > Although it is not always obvious, narcissistic leaders are quite dependent > on their followers—they need affirmation, and preferably adulation. Think of > Winston Churchill’s wartime broadcasts or J.F.K.’s “Ask not what your country > can do for you” inaugural address. The adulation that follows from such > speeches bolsters the self-confidence and conviction of the speakers. But if > no one responds, the narcissist usually becomes insecure, overly shrill, and > insistent—just as Ross Perot did. > > Even when people respond positively to a narcissist, there are dangers. > That’s because charisma is a double-edged sword—it fosters both closeness and > isolation. As he becomes increasingly self-assured, the narcissist becomes > more spontaneous. He feels free of constraints. Ideas flow. He thinks he’s > invincible. This energy and confidence further inspire his followers. But the > very adulation that the narcissist demands can have a corrosive effect. As he > expands, he listens even less to words of caution and advice. After all, he > has been right before, when others had their doubts. Rather than try to > persuade those who disagree with him, he feels justified in ignoring > them—creating further isolation. The result is sometimes flagrant risk taking > that can lead to catastrophe. In the political realm, there is no clearer > example of this than Bill Clinton. > > Weaknesses of the Narcissistic Leader > > Despite the warm feelings their charisma can evoke, narcissists are typically > not comfortable with their own emotions. They listen only for the kind of > information they seek. They don’t learn easily from others. They don’t like > to teach but prefer to indoctrinate and make speeches. They dominate meetings > with subordinates. The result for the organization is greater internal > competitiveness at a time when everyone is already under as much pressure as > they can possibly stand. Perhaps the main problem is that the narcissist’s > faults tend to become even more pronounced as he becomes more successful. > > Sensitive to Criticism. > > Because they are extraordinarily sensitive, narcissistic leaders shun > emotions as a whole. Indeed, perhaps one of the greatest paradoxes in this > age of teamwork and partnering is that the best corporate leader in the > contemporary world is the type of person who is emotionally isolated. > Narcissistic leaders typically keep others at arm’s length. They can put up a > wall of defense as thick as the Pentagon. And given their difficulty with > knowing or acknowledging their own feelings, they are uncomfortable with > other people expressing theirs—especially their negative feelings. > > Indeed, even productive narcissists are extremely sensitive to criticism or > slights, which feel to them like knives threatening their self-image and > their confidence in their visions. Narcissists are almost unimaginably > thin-skinned. Like the fairy-tale princess who slept on many mattresses and > yet knew she was sleeping on a pea, narcissists—even powerful CEOs—bruise > easily. This is one explanation why narcissistic leaders do not want to know > what people think of them unless it is causing them a real problem. They > cannot tolerate dissent. In fact, they can be extremely abrasive with > employees who doubt them or with subordinates who are tough enough to fight > back. Steve Jobs, for example, publicly humiliates subordinates. Thus, > although narcissistic leaders often say that they want teamwork, what that > means in practice is that they want a group of yes-men. As the more > independent-minded players leave or are pushed out, succession becomes a > particular problem. > > Poor Listeners. > > One serious consequence of this oversensitivity to criticism is that > narcissistic leaders often do not listen when they feel threatened or > attacked. Consider the response of one narcissistic CEO I had worked with for > three years who asked me to interview his immediate team and report back to > him on what they were thinking. He invited me to his summer home to discuss > what I had found. “So what do they think of me?” he asked with seeming > nonchalance. “They think you are very creative and courageous,” I told him, > “but they also feel that you don’t listen.” “Excuse me, what did you say?” he > shot back at once, pretending not to hear. His response was humorous, but it > was also tragic. > > In a very real way, this CEO could not hear my criticism because it was too > painful to tolerate. Some narcissists are so defensive that they go so far as > to make a virtue of the fact that they don’t listen. As another CEO bluntly > put it, “I didn’t get here by listening to people!” Indeed, on one occasion > when this CEO proposed a daring strategy, none of his subordinates believed > it would work. His subsequent success strengthened his conviction that he had > nothing to learn about strategy from his lieutenants. But success is no > excuse for narcissistic leaders not to listen. > > Lack of Empathy. > > Best-selling business writers today have taken up the slogan of “emotional > competencies”—the belief that successful leadership requires a strongly > developed sense of empathy. But although they crave empathy from others, > productive narcissists are not noted for being particularly empathetic > themselves. Indeed, lack of empathy is a characteristic shortcoming of some > of the most charismatic and successful narcissists, including Bill Gates and > Andy Grove. Of course, leaders do need to communicate persuasively. But a > lack of empathy did not prevent some of history’s greatest narcissistic > leaders from knowing how to communicate—and inspire. Neither Churchill, de > Gaulle, Stalin, nor Mao Tse-tung were empathetic. And yet they inspired > people because of their passion and their conviction at a time when people > longed for certainty. > > In fact, in times of radical change, lack of empathy can actually be a > strength. A narcissist finds it easier than other personality types to buy > and sell companies, to close and move facilities, and to lay off > employees—decisions that inevitably make many people angry and sad. But > narcissistic leaders typically have few regrets. As one CEO says, ”If I > listened to my employees’ needs and demands, they would eat me alive.” > > Given this lack of empathy, it’s hardly surprising that narcissistic leaders > don’t score particularly well on evaluations of their interpersonal style. > What’s more, neither 360-degree evaluations of their management style nor > workshops in listening will make them more empathic. Narcissists don’t want > to change—and as long as they are successful, they don’t think they have to. > They may see the need for operational managers to get touchy-feely training, > but that’s not for them. > > There is a kind of emotional intelligence associated with narcissists, but > it’s more street smarts than empathy. Narcissistic leaders are acutely aware > of whether or not people are with them wholeheartedly. They know whom they > can use. They can be brutally exploitative. That’s why, even though > narcissists undoubtedly have “star quality,” they are often unlikable. They > easily stir up people against them, and it is only in tumultuous times, when > their gifts are desperately needed, that people are willing to tolerate > narcissists as leaders. > > Narcissistic leaders often say that they want teamwork. What that means in > practice is that they want a group of yes-men. > > Distaste for Mentoring. > > Lack of empathy and extreme independence make it difficult for narcissists to > mentor and be mentored. Generally speaking, narcissistic leaders set very > little store by mentoring. They seldom mentor others, and when they do they > typically want their protégés to be pale reflections of themselves. Even > those narcissists like Jack Welch who are held up as strong mentors are > usually more interested in instructing than in coaching. > > Narcissists certainly don’t credit mentoring or educational programs for > their own development as leaders. A few narcissistic leaders such as Bill > Gates may find a friend or consultant—for instance, Warren Buffet, a > superproductive obsessive—whom they can trust to be their guide and > confidant. But most narcissists prefer “mentors” they can control. A > 32-year-old marketing vice president, a narcissist with CEO potential, told > me that she had rejected her boss as a mentor. As she put it, “First of all, > I want to keep the relationship at a distance. I don’t want to be influenced > by emotions. Second, there are things I don’t want him to know. I’d rather > hire an outside consultant to be my coach.” Although narcissistic leaders > appear to be at ease with others, they find intimacy—which is a prerequisite > for mentoring—to be difficult. Younger narcissists will establish peer > relations with authority rather than seek a parentlike mentoring > relationship. They want results and are willing to take chances arguing with > authority. > > An Intense Desire to Compete. > > Narcissistic leaders are relentless and ruthless in their pursuit of victory. > Games are not games but tests of their survival skills. Of course, all > successful managers want to win, but narcissists are not restrained by > conscience. Organizations led by narcissists are generally characterized by > intense internal competition. Their passion to win is marked by both the > promise of glory and the primitive danger of extinction. It is a potent brew > that energizes companies, creating a sense of urgency, but it can also be > dangerous. These leaders see everything as a threat. As Andy Grove puts it, > brilliantly articulating the narcissist’s fear, distrust, and aggression, > “Only the paranoid survive.” The concern, of course, is that the narcissist > finds enemies that aren’t there—even among his colleagues. > > The Rise and Fall of a Narcissist > > The story of Jan Carlzon, the former CEO of the Scandinavian airline SAS, is > an almost textbook example of how a narcissist’s weaknesses can cut short a > brilliant career. In the 1980s, Carlzon’s vision of SAS as the > businessperson’s airline was widely acclaimed in the business press; > management guru Tom Peters described him as a model leader. In 1989, when I > first met Carlzon and his management team, he compared the ideal organization > to the Brazilian soccer team—in principle, there would be no fixed roles, > only innovative plays. I asked the members of the management team if they > agreed with this vision of an empowered front line. One vice president, a > former pilot, answered no. “ I still believe that the best organization is > the military,” he said. I then asked Carlzon for his reaction to that remark. > “Well,” he replied, “that may be true, if your goal is to shoot your > customers.” > > That rejoinder was both witty and dismissive; clearly, Carlzon was not > engaging in a serious dialogue with his subordinates. Nor was he listening to > other advisers. Carlzon ignored the issue of high costs, even when many > observers pointed out that SAS could not compete without improving > productivity. He threw money at expensive acquisitions of hotels and made an > unnecessary investment in Continental Airlines just months before it declared > bankruptcy. > > Carlzon’s story perfectly corroborates the often-recorded tendency of > narcissists to become overly expansive—and hence isolated—at the very > pinnacle of their success. Seduced by the flattery he received in the > international press, Carlzon’s self-image became so enormously inflated that > his feet left the ground. And given his vulnerability to grandiosity, he was > propelled by a need to expand his organization rather than develop it. In due > course, as Carlzon led the company deeper and deeper into losses, he was > fired. Now he is a venture capitalist helping budding companies. And SAS has > lost its glitter. > > Avoiding the Traps > > There is very little business literature that tells narcissistic leaders how > to avoid the pitfalls. There are two reasons for this. First, relatively few > narcissistic leaders are interested in looking inward. And second, > psychoanalysts don’t usually get close enough to them, especially in the > workplace, to write about them. (The noted psychoanalyst Harry Levinson is an > exception.) As a result, advice on leadership focuses on obsessives, which > explains why so much of it is about creating teamwork and being more > receptive to subordinates. But as we’ve already seen, this literature is of > little interest to narcissists, nor is it likely to help subordinates > understand their narcissistic leaders. The absence of managerial literature > on narcissistic leaders doesn’t mean that it is impossible to devise > strategies for dealing with narcissism. In the course of a long career > counseling CEOs, I have identified three basic ways in which productive > narcissists can avoid the traps of their own personality. > > Find a trusted sidekick. > > Many narcissists can develop a close relationship with one person, a sidekick > who acts as an anchor, keeping the narcissistic partner grounded. However, > given that narcissistic leaders trust only their own insights and view of > reality, the sidekick has to understand the narcissistic leader and what he > is trying to achieve. The narcissist must feel that this person, or in some > cases persons, is practically an extension of himself. The sidekick must also > be sensitive enough to manage the relationship. Don Quixote is a classic > example of a narcissist who was out of touch with reality but who was > constantly saved from disaster by his squire Sancho Panza. Not surprisingly, > many narcissistic leaders rely heavily on their spouses, the people they are > closest to. But dependence on spouses can be risky, because they may further > isolate the narcissistic leader from his company by supporting his > grandiosity and feeding his paranoia. I once knew a CEO in this kind of > relationship with his spouse. He took to accusing loyal subordinates of > plotting against him just because they ventured a few criticisms of his ideas. > > It is much better for a narcissistic leader to choose a colleague as his > sidekick. Good sidekicks are able to point out the operational requirements > of the narcissistic leader’s vision and keep him rooted in reality. The best > sidekicks are usually productive obsessives. Gyllenhammar, for instance, was > most effective at Volvo when he had an obsessive COO, Håkan Frisinger, to > focus on improving quality and cost, as well as an obsessive HR director, > Berth Jönsson, to implement his vision. Similarly, Bill Gates can think about > the future from the stratosphere because Steve Ballmer, a tough obsessive > president, keeps the show on the road. At Oracle, CEO Larry Ellison can > afford to miss key meetings and spend time on his boat contemplating a future > without PCs because he has a productive obsessive COO in Ray Lane to run the > company for him. But the job of sidekick entails more than just executing the > leader’s ideas. The sidekick also has to get his leader to accept new ideas. > To do this, he must be able to show the leader how the new ideas fit with his > views and serve his interests. (For more on dealing with narcissistic bosses, > see the sidebar “Working for a Narcissist.”) > > Working for a Narcissist > > Indoctrinate the organization. > > The narcissistic CEO wants all his subordinates to think the way he does > about the business. Productive narcissists—people who often have a dash of > the obsessive personality—are good at converting people to their point of > view. One of the most successful at this is GE’s Jack Welch. Welch uses > toughness to build a corporate culture and to implement a daring business > strategy, including the buying and selling of scores of companies. Unlike > other narcissistic leaders such as Gates, Grove, and Ellison, who have > transformed industries with new products, Welch was able to transform his > industry by focusing on execution and pushing companies to the limits of > quality and efficiency, bumping up revenues and wringing out costs. In order > to do so, Welch hammers out a huge corporate culture in his own image—a > culture that provides impressive rewards for senior managers and shareholders. > > Welch’s approach to culture building is widely misunderstood. Many observers, > notably Noel Tichy in The Leadership Engine, argue that Welch forms his > company’s leadership culture through teaching. But Welch’s “teaching” > involves a personal ideology that he indoctrinates into GE managers through > speeches, memos, and confrontations. Rather than create a dialogue, Welch > makes pronouncements (either be the number one or two company in your market > or get out), and he institutes programs (such as Six Sigma quality) that > become the GE party line. Welch’s strategy has been extremely effective. GE > managers must either internalize his vision, or they must leave. Clearly, > this is incentive learning with a vengeance. I would even go so far as to > call Welch’s teaching brainwashing. But Welch does have the rare insight and > know-how to achieve what all narcissistic business leaders are trying to > do—namely, get the organization to identify with them, to think the way they > do, and to become the living embodiment of their companies. > > More and more large corporations are getting into bed with narcissists. They > are finding that there is no substitute for narcissistic leaders in an age of > innovation. > > Get into analysis. > > Narcissists are often more interested in controlling others than in knowing > and disciplining themselves. That’s why, with very few exceptions, even > productive narcissists do not want to explore their personalities with the > help of insight therapies such as psychoanalysis. Yet since Heinz Kohut, > there has been a radical shift in psychoanalytic thinking about what can be > done to help narcissists work through their rage, alienation, and > grandiosity. Indeed, if they can be persuaded to undergo therapy, > narcissistic leaders can use tools such as psychoanalysis to overcome vital > character flaws. > > Consider the case of one exceptional narcissistic CEO who asked me to help > him understand why he so often lost his temper with subordinates. He lived > far from my home city, and so the therapy was sporadic and very unorthodox. > Yet he kept a journal of his dreams, which we interpreted together either by > phone or when we met. Our analysis uncovered painful feelings of being > unappreciated that went back to his inability to impress a cold father. He > came to realize that he demanded an unreasonable amount of praise and that > when he felt unappreciated by his subordinates, he became furious. Once he > understood that, he was able to recognize his narcissism and even laugh about > it. In the middle of our work, he even announced to his top team that I was > psychoanalyzing him and asked them what they thought of that. After a > pregnant pause, one executive vice president piped up, “Whatever you’re > doing, you should keep doing it, because you don’t get so angry anymore.” > Instead of being trapped by narcissistic rage, this CEO was learning how to > express his concerns constructively. > > Leaders who can work on themselves in that way tend to be the most productive > narcissists. In addition to being self-reflective, they are also likely to be > open, likable, and good-humored. Productive narcissists have perspective; > they are able to detach themselves and laugh at their irrational needs. > Although serious about achieving their goals, they are also playful. As > leaders, they are aware of being performers. A sense of humor helps them > maintain enough perspective and humility to keep on learning. > > The Best and Worst of Times > > As I have pointed out, narcissists thrive in chaotic times. In more tranquil > times and places, however, even the most brilliant narcissist will seem out > of place. In his short story The Curfew Tolls, Stephen Vincent Benét > speculates on what would have happened to Napoléon if he had been born some > 30 years earlier. Retired in prerevolutionary France, Napoléon is depicted as > a lonely artillery major boasting to a vacationing British general about how > he could have beaten the English in India. The point, of course, is that a > visionary born in the wrong time can seem like a pompous buffoon. > > Historically, narcissists in large corporations have been confined to sales > positions, where they use their persuasiveness and imagination to best > effect. In settled times, the problematic side of the narcissistic > personality usually conspires to keep narcissists in their place, and they > can typically rise to top management positions only by starting their own > companies or by leaving to lead upstarts. Consider Joe Nacchio, formerly in > charge of both the business and consumer divisions of AT&T. Nacchio was a > supersalesman and a popular leader in the mid-1990s. But his desire to create > a new network for business customers was thwarted by colleagues who found him > abrasive, self-promoting, and ruthlessly ambitious. > > Two years ago, Nacchio left AT&T to become CEO of Qwest, a company that is > creating a long-distance fiber-optic cable network. Nacchio had the > credibility—and charisma—to sell Qwest’s initial public offering to financial > markets and gain a high valuation. Within a short space of time, he turned > Qwest into an attractive target for the RBOCs, which were looking to move > into long-distance telephony and Internet services. Such a sale would have > given Qwest’s owners a handsome profit on their investment. But Nacchio > wanted more. He wanted to expand—to compete with AT&T—and for that he needed > local service. Rather than sell Qwest, he chose to make a bid himself for > local telephone operator U.S. West, using Qwest’s highly valued stock to > finance the deal. The market voted on this display of expansiveness with its > feet—Qwest’s stock price fell 40% between last June, when he made the deal, > and the end of the third quarter of 1999. (The S&P index dropped 5.7% during > the same period.) > > Like other narcissists, Nacchio likes risk—and sometimes ignores the costs. > But with the dramatic discontinuities going on in the world today, more and > more large corporations are getting into bed with narcissists. They are > finding that there is no substitute for narcissistic leaders in an age of > innovation. Companies need leaders who do not try to anticipate the future so > much as create it. But narcissistic leaders—even the most productive of > them—can self-destruct and lead their organizations terribly astray. For > companies whose narcissistic leaders recognize their limitations, these will > be the best of times. For other companies, these could turn out to be the > worst. > > A version of this article appeared in the January 2004 > <applewebdata://41C347AF-C2DF-4C44-A22A-4C225499FD98/archive-toc/BR0401> > issue of Harvard Business Review.
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