Narcissistic Leaders: The Incredible Pros, the Inevitable Cons - Berkshire Hathaway Annual Meeting Best Of

Narcissistic Leaders: The Incredible Pros, the Inevitable Cons - Berkshire Hathaway Annual Meeting Best Of

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. These productive narcissists have the audacity to push through massive transformations that society periodically undertakes. They are not only risk takers willing to get the job done but also charismatic individuals who can convert the masses with their rhetoric.

However, it is important to note that narcissism can turn unproductive when lacking self-knowledge and restraining anchors. Narcissists can become unrealistic dreamers who 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. Even brilliant narcissists can come under suspicion for self-involvement, unpredictability, and, in extreme cases, paranoia.

Given the large number of narcissists at the helm of corporations today, organizations face the challenge of ensuring that these leaders do not self-destruct or lead the company to disaster. Understanding the different personality types identified by Freud can be instructive in this regard.

Freud recognized three main personality types: erotic, obsessive, and narcissistic. Erotic personalities prioritize love and being loved above all else. They are dependent on those they fear will stop loving them. Many erotics are in professions such as teaching, nursing, and social work. While they can be caring and supportive managers, they tend to avoid conflict and make people dependent on them.

On the other hand, obsessives are self-reliant and conscientious individuals who create and maintain order. They excel as operational managers and constantly seek ways to improve communication, resolve conflict, and find win-win opportunities. Obsessives are ruled by a strict conscience and focus on continuous improvement at work. They are great mentors and team players but may become narrow experts or rule-bound bureaucrats if unproductive or uncooperative.

Narcissists, the third personality type, are independent and driven by the desire for power and glory. They are experts in their industries but also pose critical questions and want to learn everything that affects the company and its products. Unlike erotics, they seek admiration rather than love, and unlike obsessives, they are not troubled by a punishing superego, enabling them to aggressively pursue their goals.

It is the narcissistic leaders who come closest to our collective image of great leaders. They have compelling visions for companies and the ability to attract followers. They see things that never were and ask why not, attempting to create the future rather than extrapolate from the present. Their charisma and oratory skills make them skillful orators who can inspire and move mountains with their words.

However, the very adulation that narcissistic leaders demand can have a corrosive effect. As they expand, they listen less to words of caution and advice, leading to flagrant risk-taking that can result in catastrophe. They listen only for the information they seek and dominate meetings with subordinates, creating internal competitiveness within the organization.

Narcissistic leaders are almost unimaginably thin-skinned and extremely sensitive to criticism or slights. This sensitivity threatens their self-image and confidence in their visions. They cannot tolerate dissent and can be abrasive with employees who doubt them or fight back. This intolerance for dissent and the departure of independent-minded players can lead to succession problems.

To prevent narcissistic leaders from self-destructing or leading the company to disaster, organizations must ensure that they have restraining anchors and a support system. Many narcissistic leaders rely heavily on their spouses or close colleagues as their sidekicks. Good sidekicks, usually productive obsessives, are able to point out the operational requirements of the narcissistic leader’s vision and keep them rooted in reality. They also have the ability to introduce new ideas that align with the leader's views and serve their interests.

In conclusion, narcissistic leaders possess incredible pros such as their compelling visions and ability to attract followers. However, they also have inevitable cons such as their thin-skinned nature, intolerance for dissent, and risk-taking behavior. To mitigate the cons and ensure the success of narcissistic leaders, organizations must provide restraining anchors and a support system. Three actionable advice for organizations dealing with narcissistic leaders are:

1. Foster an environment of open communication and constructive feedback, allowing for dissenting opinions without fear of retribution.
2. Encourage the development of productive obsessives as sidekicks to narcissistic leaders, who can provide a reality check and introduce new ideas.
3. Implement mentoring programs to help narcissistic leaders develop self-awareness and emotional intelligence, enabling them to better understand their impact on others and manage their tendencies effectively.

By understanding the strengths and weaknesses of narcissistic leaders, organizations can harness their potential while mitigating the risks associated with their personality traits.