The Elephant in the Boardroom

Adrian Furnham

The Elephant in the Boardroom
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About this Book

Adrian Furnham delves into the perilous world of leadership gone awry, shining a light on the destructive paths carved by leaders bearing traits of incompetence, tyranny, Machiavellian cunning, narcissism, and even outright malevolence. Through the lens of extensive research conducted by numerous scholars, Furnham uncovers the dark profiles of leaders who not only fail spectacularly but also drag their teams and entire organizations into the abyss with them. This thorough, albeit scholarly, analysis serves as a crucial guide for those in the throes of selecting leaders, aiming to steer clear of those with harmful tendencies, and offers wisdom for those already navigating the stormy seas under a troublesome captain.

First Edition: 2010

Category: Self-Help

Sub-Category: Business Culture

10:11 Min

Conclusion

7 Key Points


Conclusion

Companies should scrutinize leaders' character, not just their achievements, to avoid hiring bad ones. Clear rules and careful hiring can prevent issues with leaders who exhibit risky behaviors.

Abstract

Adrian Furnham delves into the perilous world of leadership gone awry, shining a light on the destructive paths carved by leaders bearing traits of incompetence, tyranny, Machiavellian cunning, narcissism, and even outright malevolence. Through the lens of extensive research conducted by numerous scholars, Furnham uncovers the dark profiles of leaders who not only fail spectacularly but also drag their teams and entire organizations into the abyss with them. This thorough, albeit scholarly, analysis serves as a crucial guide for those in the throes of selecting leaders, aiming to steer clear of those with harmful tendencies, and offers wisdom for those already navigating the stormy seas under a troublesome captain.

Key Points

  • Leaders fail when their strengths become extreme, costing companies millions.
  • Toxic leaders can be sad, bad, or mad, harming their teams and organizations.
  • Hiring focuses on resumes and charisma, overlooking potential destructive traits.
  • The "dark triad" personality traits—psychopathy, narcissism, Machiavellianism—signal risky leaders.
  • Intelligence and adaptability are key for leaders; lack thereof harms businesses.
  • Avoid leaders with extreme personality types to prevent workplace dysfunction.
  • Thoughtful hiring and strong governance prevent leadership failures and ensure accountability.

Summary

“Bad, Sad and Mad” Leaders

Poor leaders come in various forms, such as destructive, twisted, or incompetent. They often fail and end up costing their organizations millions of dollars, sometimes even leading to their downfall. But how do these bad leaders get hired in the first place? The answer is simple: they often have impressive resumes and appear charismatic and confident.

Many of these leaders with personality issues are promoted because of their successes, not despite their problems. As a result, those responsible for hiring often fail to recognize their destructive tendencies. Instead of focusing on negative aspects of a candidate's personality, selectors usually prioritize experience, skills, and achievements.

Unfortunately, leaders who derail often exhibit excessive traits that were once seen as positive. For example, a detail-oriented leader may become a micromanager, or a cautious manager may become overly paranoid. These extremes of positive attributes can turn into detrimental qualities when taken too far.

Toxic Leaders

Leaders who exhibit harmful behaviors, known as "toxic leaders," can be categorized into three main types.

  • Sad Leaders: These leaders are incompetent and unable to fulfill their roles. They lack good judgment and often make faulty decisions.
  • Bad Leaders: This category includes leaders who have a mean streak and are cruel to their subordinates and colleagues.
  • Mad Leaders: These leaders are psychologically unstable, exhibiting traits such as rigidity, intemperance, callousness, corruption, insularity, or even evil intentions.

Behavioral scientists use various terms to describe such harmful leaders:

  • “Aberrant Leaders”: These leaders act in unusual and unacceptable ways.
  • “Antisocial”: This term can refer to self-centered individuals or those who exhibit delinquent behavior. It is often used interchangeably with "psychopath," describing someone with antisocial personality disorder.
  • “Derailed Leaders”: These leaders fall off track for various reasons, sometimes due to mental instability.
  • “Despotic Leaders”: These leaders rule by imposing their will without considering others' opinions.
  • “Destructive Leaders”: Their actions can ruin teams or companies.
  • “Incompetent Leaders”: Leaders who lack the necessary skills or qualifications for their roles.
  • “Malignant Leaders”: These leaders intentionally harm others.
  • “Tyrannical Leaders”: They torment their followers and often treat people unfairly. It is advised that subordinates do not negotiate with such managers, as they will always win. Senior executives should assign these managers positions where they will cause the least trouble.

The Toxic Leader: Characteristics and Impact

When leaders derail, it's often due to a "toxic triangle" of personal failings, follower behavior, and the environment they operate in. Toxic leaders can emerge from this triangle, especially when they have "toxic followers" who exhibit controlling, dependent, dramatic, and self-defeating behaviors. They thrive in "toxic environments" that enable dysfunction. These leaders are often charismatic, narcissistic, and power-hungry.

They may have experienced negative life events that have warped their personality, leading them to rely on coercion to achieve their goals. Most notably, they harbor deep-seated hatred, which may stem from self-disgust projected onto others. These leaders often exhibit behavior associated with the "dark triad of personality," which includes psychopathy, narcissism, and Machiavellianism. Knowing this, it's important to be wary of leaders who display these traits, as they can have a detrimental impact on their organizations and followers.

The Successful Psychopath

Leaders with mental imbalances exist on a spectrum ranging from sane to mad, with various degrees of sanity in between. Some may exhibit mild psychopathic traits, while others may be hardcore psychopaths. Despite their mental state, individuals along this spectrum often find success in the workplace due to their boldness and charm. However, the stresses of the job can push them towards destructive behavior.

To mitigate the risks associated with hiring such individuals for executive positions, hiring officers should conduct thorough background checks. Past encounters with authorities, such as the police, and reports of malignant behavior from former associates should raise red flags. If there are suspicions of psychopathic tendencies in an applicant, a complete background check and biographical investigation are essential.

The Self-Absorbed Narcissist

Healthy people usually have good self-esteem. However, too much self-love, or narcissism, can be harmful. In the business world, some managers with narcissistic traits can be successful. Their high confidence can motivate others, making them "bright-side narcissists." But narcissism is a spectrum. "Dark-side narcissists" are harmful leaders who only care about themselves. In the right environment, narcissistic leaders can do well. But if their followers or companies encourage their bad behavior, it can lead to problems

The Ruthless Machiavellian

Machiavellianism, often called "Machs" by experts, is a personality type that believes in a tough, every-person-for-themselves approach to life. In the business world, being a bit Machiavellian can help a young manager move up the ladder by being competitive and not shying away from tough situations. However, when this trait is taken to the extreme, it can lead to unethical behavior like cheating and lying. Machiavellians can be manipulative, using tricks to control others, which can make their followers fear them rather than respect them. While a healthy level of Machiavellianism might not cause problems, those who take it too far can quickly find themselves in trouble.

“The Cognitively Challenged Leader”

Corporate leaders must be skilled planners and strategists. They should understand financial reports and quickly adapt to new technologies. Leaders need to analyze business situations and make smart decisions. Being flexible and knowing their company, industry, and competition is crucial. However, some leaders lack intelligence, which is a major issue. A leader who is not smart will struggle with daily tasks, harming the company. 

It's important to avoid hiring people who can't grasp new concepts or see the big picture. They tend to think simplistically, learn slowly, and struggle to discuss complex topics. Intelligence is key to personal success in business. Top leaders must be intelligent, but it's hard to measure intelligence without tests. Companies should use intelligence tests for potential CEOs and senior executives. These tests are reliable and accurate, but unfortunately, many companies don't use them for incoming executives.

Identify leaders to avoid.

Types of Leaders to Avoid:

  • “Schizoid”- These leaders lack emotion and prefer to be alone, not caring for teamwork. Always use logic when talking to them.
  • “Schizotypal” - A bit eccentric, these leaders might do well in academic settings but not so much in the corporate world.
  • “Passive-aggressive” - It's rare for them to reach the top. They might become heads of departments but often have a hard time being direct.
  • “Obsessive-compulsive”- They want everything to be perfect and expect the same from their team. If you work for one, keep them in the loop to avoid negative reactions to surprises.
  • “Borderline”- They act on impulse and struggle with relationships. Try not to react to their unpredictable moods.
  • “Avoidant”- They're shy and easily hurt. Offer them reassurance when you can.
  • “Dependent”- They aim to please and might get stuck making decisions. Don't assume they'll share the same opinion with everyone.
  • “Self-defeating”- Although they want to help, they might feel unappreciated. Make sure to recognize their efforts.
  • “Sadistic”- They take discipline too far and might enjoy making others uncomfortable. Avoid challenging them directly or triggering their anger.

Coping with setbacks or failure

To prevent leadership failure, strong corporate governance is essential. Corporate boards must set clear rules and ensure everyone, from leaders to employees, follows them strictly. Accountability is key for these boards. Without it, both the board and the company can become as unstable as a troubled CEO, putting the organization at risk.

Thoughtful hiring process.

To prevent problems, it's best to choose leaders carefully. A bad leader can ruin a company. When picking CEOs of top executives, use many tools to find the most stable candidate. Interviews usually focus on skills but should also look for bad behaviors.

Instead of just picking the most successful candidates, focus on avoiding those with risky traits. Check their history, not just their achievements, to find any harmful personality traits. Ask people who know the candidates well to share both good and bad points, including any negative behaviors. When choosing leaders, it's important to pay attention to these details to avoid future issues.

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