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When Michael Maccoby wrote tbis article, which was first published in early

2000, the business world was still under the spell ofthe Internetand its revolu-

tionary promise. It was a time, Maccoby wrote, that called for larger-than-life

leaders who could seethe big picture and paint a compelling portrait of a

dramaticallydifferentfuture. And that, be argued, was one reason we saw the

emergence ofthe 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 over-

reliance 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 empatby. Perceived threats can trigger rage. The challenge

today-as Maccoby understood it to be four years ago-is to take advantage

of their strengths whiie tempering their weaknesses.

Narcissistic LeadersThe Incredible Pros, the Inevitable Cons

by Michael Maccoby

Many business leaders have what

psychoanalysts call a narcissistic

personality. That's good news for

companies that need passion and

daring to break new ground. But

even productive narcissists can

be dangerous for organizations.

Here's some advice on avoiding

the dangers.

I,HERE'S SOMETHING NEW and daringabout tbe CEOs wbo are transformingtoday's industries. Just compare tbemwitb tbe executives wbo ran large com-panies in tbe 1950s tbrough tbe 1980s.Tbose executives sbunned tbe press andbad tbeir comments carefully crafted bycorporate PR departments. But today'sCEOs - superstars sucb as Bill Gates,Andy Grove, Steve Jobs, Jeff Bezos, andJack Welcb-bire tbeir own publicists,write books, grant spontaneous inter-views, and actively promote tbeir per-sonal pbilosopbies. Tbeir faces adorntbe covers of magazines like Business-Week, Time, and tbe Economist. Wbat'smore, tbe world's business personalities

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are increasingly seen as the makers andshapers of our public and personal agen-das. Tbey advise schools on wbat kidsshould learn and lawmakers on howto invest the public's money. We look tothem for thoughts on everything fromthe future of e-commerce to hot placesto vacation.

There are many reasons today's busi-ness leaders have higher profiles thanever before. One is that business playsa much bigger role in our lives than Itused to, and its leaders are more oftenin the limelight Another is that the busi-ness world is experiencing enormouschanges that call for visionary and char-ismatic leadership. But my 25 years of

consulting both as a psychoanalyst inprivate practice and as an adviser totop managers suggest a third reason-namely, a pronounced change in thepersonality of the strategic leaders atthe top. As an anthropologist, I try tounderstand people in tbe context inwhich they operate, and as a psycho-analyst, I tend to see them through adistinctly Freudian lens. Given what Iknow, I believe that the larger-than-life leaders we are seeing today closelyresemble the personality type thatSigmund Freud dubbed narcissistic."People of this type impress others asbeing 'personalities,'" he wrote, describ-ing one of the psychological types that

clearly fall within the range of normal-ity."They are especially suited to act asa support for others, to take on the roleof leaders, and to give a fresb stimulusto cultural development or damage theestablished state of affairs."

Throughout history, narcissists havealways emerged to inspire people andto shape the nature. When military, reli-gious, and political arenas dominatedsociety, it was figures such as MahatmaGandhi, Napoléon Bonaparte, and Frank-lin D. Roosevelt, who determined tbesocial agenda. But from time to time,when business became tbe engine ofsocial change, it,too, generated its shareof narcissistic leaders. Tbat was true at

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the beginning of tbis century, wbenmen like Andrew Carnegie, John D.Rockefeller, Thomas Edison, and HenryFord exploited new tecbnologies andrestructured American industry. And Itbink it is true again today.

But Freud recognized tbat tbere is adark side to narcissism. Narcissists, hepointed out, are emotionally isolatedand highly distrustful. Perceived threatscan trigger rage. Acbievements can feedfeelings of grandiosity. That's wby Freudthought narcissists were tbe bardest per-sonality types to analyze. Consider bowan executive at Oracle describes his nar-cissistic CFO, Larry Ellison: "Tbe differ-ence between God and Larry is tbat Goddoes not believe be is Larry." Tbat ob-servation is amusing, but it Is also trou-bling. Not surprisingly, most peopletbink of narcissists in a primarily nega-tive way. After all, Freud named tbe typeafter the mytbical figure Narcissus, wbodied because of his pathological preoc-cupation witb himself.

Yet narcissism can be extraordinarilyuseful-even necessary. Freud shiftedhis views about narcissism over timeand recognized tbat we are all some-what narcissistic. More recently,psycho-analyst Heinz Kobut built on Freud'stbeories and developed metbods oftreating narcissists. Of course, only pro-fessional clinicians are trained to tellif narcissism is normal or pathological.In tbis article, I discuss the differencesbetween productive and unproductivenarcissism but do not explore the ex-treme pathology of borderline condi-tions and psychosis.

Leaders like Jack Welch and GeorgeSoros are examples of productive nar-cissists. Tbey are gifted and creativestrategists wbo see tbe big picture andfind meaning in tbe risky challenge ofchanging the world and leaving behind

a legacy. Indeed, one reason we look toproductive narcissists in times ofgreattransition is tbat they bave tbe audacityto push tbrougb tbe massive transfor-mations tbat society periodically un-dertakes. Productive narcissists are notonly risk takers willing to get tbe jobdone but also charmers wbo can con-vert the masses witb tbeir rbetoric. Tbedanger is that narcissism can tum un-productive wben, lacking restrainingancbors and self-knowledge, narcissistsbecome unrealistic dreamers. Tbey nur-ture grand scbemes and harbor tbe illu-sion that only circumstances or enemies

PRODUCTIVENARCISSISTS arenot only risk takersbut also charmerswho can convert themasses with theirrhetoric.

block tbeir success. This tendency to-ward grandiosity and distrust is tbeirAchilles' beel. Because of it, even bril-liant narcissists can come under suspi-cion for self-involvement, unpredictabil-ity, and- in extreme cases-paranoia,

it's easy to see wby narcissistic lead-ersbip doesn't always mean successfulleadership. Consider tbe case of Volvo'sPehr Gyllenhammar. He bad a dreamthat appealed to a broad internationalaudience - a plan to revolutionize tbe in-dustrial workplace by replacing tbe de-humanizing assembly line caricaturedin Cbarlie Cbaplin's Modern Times. Hiswildly popular vision called for team-based craftsmansbip. Model factories

Michael Maccoby is an anthropologist and a psychoanalyst. He is also the founderand president of the Maccoby Group, a management consultancy in Washington, DC,and was formerly director of the Program on Technology, Public Policy, and HumanDevelopment at Harvard University's Kennedy School of Government in Cambridge,Massachusetts. This article was the basis for the book Tbe Productive Narcissist: ThePromise and Peril of Visionary Leadership (Broadway Books, 2003).

were built and publicized to interna-tional acclaim. But bis success in pusb-ing through tbese dramatic changes alsosowed tbe seeds for bis downfall. Gyl-lenbammar started to feel that be couldignore tbe concerns of bis operationalmanagers. He pursued chancy and ex-pensive business deals, which be publi-cized on television and in tbe press. Onone level, you can ascribe Gyllenbam-mar's falling out of touch witb bis work-force simply to faulty strategy. But it isalso possible to attribute it to bis nar-cissistic personality. His overestimationof bimself led bim to believe tbat otherswould want bim to be tbe czar of amultinational enterprise. In tum, tbesefantasies led him to pursue a mergerwitb French carmaker Renault, wbicbwas tremendously unpopular witbSwedisb employees. Because Gyllen-bammar was deaf to complaints aboutRenault, Swedisb managers were forcedto take their case public. In tbe end,sbarebolders aggressively rejected Gyl-lenbammar's plan, leaving bim witb nooption but to resign.

Given tbe large number of narcissistsat the beim of corporations today, tbecballenge facing organizations is toensure tbat such leaders do not self-destruct or lead tbe company to disaster.Tbat can take some doing because it isvery hard for narcissists to work throughtheir issues-and virtually impossiblefor tbem to do it alone. Narcissists needcolleagues and even therapists if tbeybope to break free from their limita-tions. But because of their extreme in-dependence and self-protectiveness, itis very difficult to get near tbem. Kobutmaintained that a tberapist would haveto demonstrate an extraordinarily pro-found empatbic understanding andsympathy for tbe narcissist's feelings inorder to gain bis trust. On top of tbat,narcissists must recognize that tbey canbenefit from sucb help. For tbeir part,employees must learn bow to recog-nize-and work around-narcissisticbosses. To help tbem in tbis endeavor,let's first take a closer look at Freud'stbeory of personality types.

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Three MainPersonality TypesWhile Freud recognized that there arean almost infinite variety of personal-ities, he identified three main types:erotic, obsessive, and narcissistic. Mostof us have elements of all three. We areall, for example, somewhat narcissistic.If that were not so, we would not beable to survive or assert our needs. Thepoint is, one of tbe dynamic tendenciesusually dominates the others, makingeach of us react differently to successand failure.

Freud's definitions of personalitytypes changed over time. When talkingabout the erotic personality type, how-ever, Freud generally did not mean asexual personality but rather one forwhom lovjngand,above all, being lovedis most important. Tbis type of indi-vidual is dependent on those peoplethey fear will stop loving them. Manyerotics are teachers, nurses, and socialworkers. At their most productive, theyare developers of the young as well asenablers and helpers at work. As man-agers, they are caring and supportive,but they avoid conflict and make peopledependent on them. They are, accordingto Freud, outer-directed people.

Obsessives, in contrast, are innerdirected. They are self-reliant and con-scientious. They create and maintainorder and make tbe most effectiveoperational managers. They look con-stantly for ways to help people listenbetter, resolve conflict, and find win-winopportunities. They buy self-improve-ment books such as Stephen Covey'sThe 7 Habits of Highly Effective People.Obsessives are also ruled by a strictconscience-tbey like to focus on con-tinuous improvement at work becauseit fits in with their sense of moral im-provement As entrepreneurs, obsessivesstart businesses that express their val-ues, but they lack the vision, daring, andcharisma it takes to turn a good ideainto a great one. The best obsessives sethigh standards and communicate veryeffectively. They make sure that in-structions are followed and costs are

kept within budget. The most produc-tive are great mentors and team players.The unproductive and the uncoopera-tive become narrow experts and rule-bound bureaucrats.

Narcissists, the third type, are inde-pendent and not easily impressed. Theyare innovators, driven in business togain power and glory. Productive nar-cissists are experts in their industries,but they go beyond it. They also posethe critical questions. They want tolearn everything about everything thataffects the company and its products.Unlike erotics, they want to be admired,not loved. And unlike obsessives, theyare not troubled hy a punishing super-ego, so they are able to aggressively pur-sue their goals. Of all the personalitytypes, narcissists run the greatest riskof isolating themselves at the momentof success. And because of their inde-

pendence and aggressiveness, they areconstantly looking out for enemies,sometimes degenerating into paranoiawhen they are under extreme stress.(For further discussion of personalitytypes, see the sidebar"Fromm's FourthPersonality Type.")

Strengths of theNarcissistic LeaderWhen it comes to leadership, person-ality type can be instructive. Frotic per-sonalities generally make poor manag-ers-they need too much approval.Obsessives make better leaders-theyare your operational managers: criticaland cautious. But it is narcissists whocome closest to our collective image ofgreat leaders. There are two reasons forthis: They have compelling, even grip-ping, visions for companies, and theyhave an ability to attract followers.

Frommes Fourth Personality Type

Not long after Freud described his three personality types, psychoana-

lyst 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 char-

acter in Woody Allen's movie Ze//g, 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 hy conscience

than obsessives. Instead.they are motivated hy a radarlike anxiety that

permeates everything they do. Because they are so eager to please and

to alleviate this anxiety, marketing personalities excel atselling them-

selves toothers.

Unproductive marketing types lack direction and the ability to com-

mit 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, market-

ing personalities are avid consumers of self-help books. Like narcissists,

they are not wedded to the past. But mari<eting 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.

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Great Vision. I once asked a group ofmanagers to define a leader. "A personwitb vision" was a typical response. Pro-ductive narcissists understand tbe visiontbing particularly well, because tbey areby nature people wbo see tbe big pic-ture. Tbey are not analyzers who canbreak up big questions into manageableproblems; they aren't number cruncherseitber (tbese are usually tbe obsessives).Nor do they try to extrapolate to un-derstand tbe future-tbey attempt tocreate it.To paraphrase George BernardSbaw, some people see things, and tbeysay"why?"; narcissists dream things thatnever were and say, "Why not?"

Consider tbe difference between BobAllen, a productive obsessive, and MikeArmstrong, a productive narcissist. In1997, Allen tried to expand AT&T toreestablisb tbe end-to-end service oftheBell System by reselling local servicefrom tbe regional Bell operating com-panies (RBOCs). Altbough this was awortbwbile endeavor for sbareboldersand customers, it was bardly eartb-shattering. By contrast, through a strat-egy of combining telecommunicationsand high-speed broadband Internetaccess over cable, Mike Armstrong has"created a new space with his name onit," as one of bis colleagues puts it. Arm-strong is betting that bis costly strategywill beat out tbe RBOCs' less expensivesolution of digital subscriber lines overcopperwire.This example illustrates thedifferent approaches of obsessives andnarcissists. The risk Armstrong took isone tbat few obsessives would feelcomfortable taking. His vision is galva-nizing AT&T. Wbo but a narcissisticleader could achieve sucb a thing? AsNapoleon-a classic narcissist-once re-marked,"Revolutions are ideal times forsoldiers with a lot of wit-and tbecourage to act."

As in tbe days ofthe French Revolu-tion, tbe world is now changing in as-tounding ways; narcissists have op-portunities tbey would never have inordinary times. In sbort, today's narcis-sistic leaders bave the chance to changetbe very rules of tbe game. Consider

Robert B. Shapiro, CEO of Monsanto.Shapiro described his vision of geneti-cally modifying crops as "the single mostsuccessful introduction of technologyin tbe bistory of agriculture, includingtbe plow" (New York Times, August 5,1999). Tbis is certainly a huge claim-tbere are still many questions about thesafety and public acceptance of geneti-cally engineered fruits and vegetables.But industries like agriculture are des-perate for radical change. If Shapiro's

NARCISSISTSHAVE VIS ION-but that's not enough,People in mentalhospitals also havevisions.

gamble is successful, tbe industry willbe transtbmied in tbe image of Mon-santo. Tbat's wby be can get away withpainting a picture of Monsanto as ahigbly profitable life sciences company-despite the fact that Monsanto's stockhas fallen 12% from 1998 to the end ofthe tbird quarter of 1999- (During tbesame period, the S&P was up 41%-)Unlike Armstrong and Shapiro, BobAllen was content to win against hiscompetitors in a game measured pri-marily by tbe stock market. But narcis-sistic leaders are after something more.They want-and need-to leave behinda legacy.

Scores of Followers. Narcissists havevision - but tbat's not enough. People inmental hospitals also have visions. Thesimplest definition of a leader is some-one whom otber people follow. Indeed,narcissists are especially gifted in at-tracting followers, and, more often thannot, they do so through language. Nar-cissists believe tbat words can movemountains and that inspiring speechescan change people. Narcissistic leadersare often skillful orators, and tbis is one

of tbe talents tbat make them so charis-matic. Indeed, anyone who has seen nar-cissists perform can aftest to their per-sona! magnetism and their ability to stirentbusiasm among audiences.

Yet this charismatic gift is more of atwo-way affair tban most people tbink.Altbougb it is not always obvious, nar-cissistic leaders are quite dependent ontbeir followers-they need affirmationand, preferably, adulation. Think of Win-ston Churchill's wartime broadcasts orJ.F.K.'s"Ask not what your country cando for you" inaugural address. Tbe adu-lation tbat follows from such speechesbolsters tbe self-confidence and convic-tion of tbe speakers. But if no one re-sponds, the narcissist usually becomesinsecure, overly shrill, and insistent-just as Ross Perot did.

Even when people respond positivelyto a narcissist, tbere are dangers. Tbat'sbecause cbarisma is a double-edgedsword-it fosters both closeness and iso-lation. As be becomes increasingly self-assured, tbe narcissist becomes morespontaneous. He feels free of constraints.Ideas flow. He tbinks be's invincible. Thisenergy and confidence further inspire bisfollowers. But tbe very adulation thatthe narcissist demands can have a corro-sive eftect. As he expands, be listens evenless to words of caution and advice. Afterall, be has been right before when otb-ers bad their doubts. Ratber than tryto persuade those wbo disagree witbbim, he feels justified in ignoring them -creating further isolation. The result issometimes flagrant risk taking tbatcan lead to catastropbe. In tbe politicalrealm.tbere is no clearer example of tbisthan Bill Clinton.

Weaknesses of theNarcissistic LeaderDespite tbe warm feelings tbeir cbaris-ma can evoke, narcissists are typicallynot comfortable witb tbeir own emo-tions. Tbey listen only for the kind ofinformation tbey seek. Tbey don't learneasily from others. They don't like toteach but prefer to indoctrinate andmake speeches.They dominate meetings

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with subordinates. The result for theorganization is greater internal compet-itiveness at a time when everyone is al-ready under as much pressure as theycan possibly stand. Perhaps the mainproblem is that the narcissist's faultstend to become even more pronouncedas he becomes more successful.

Sensitive to Criticism. Because theyare extraordinarily sensitive, narcissisticleaders shun emotions as a whole. In-deed, perhaps one of tbe greatest para-

doxes in this age of teamwork and part-nering is that the best corporate leaderin the contemporary world is the type ofperson who is emotionally isolated. Nar-cissistic leaders typically keep others atarm's length. They can put up a wall ofdefense as thick as the Pentagon. Andgiven their difficulty with knowing oracknowledging their own feelings, theyare uncomfortable with other peopleexpressing theirs-especially their neg-ative feelings.

The Rise and Fall of a Narcissist

The story of Jan Carlzon, the former CEO ofthe 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. Ini989,

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 ifthey agreed with this vision of an empowered

front line. One vice president, a former pilot, answered no."l 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 toother 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 de-

velop 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.

Indeed, even productive narcissistsare extremely sensitive to criticism orslights, which feel to them like knivesthreatening their self-image and theirconfidence in their visions. Narcissistsare almost unimaginably thin-skinned.Like the fairy-tale princess who slepton many mattresses and yet knew shewas sleeping on a pea, narcissists-evenpowerful CEOs-bruise easily. This isone reason why narcissistic leaders donot want to know what people think ofthem unless it is causing a real problem.They cannot tolerate dissent In fact,they can be extremely abrasive with em-ployees who doubt them or with subor-dinates who are tough enough to fightback. Steve Jobs, for example, publiclyhumiliates subordinates. Thus, althoughnarcissistic leaders often say that theywant teamwork, what that means inpractice is that they want a group of yes-men. As the more independent-mindedplayers leave or are pushed out, succes-sion becomes a particular problem.

Poor Listeners. One serious conse-quence of this oversensitivity to criti-cism is that narcissistic leaders oftendo not listen when they feel threatenedor attacked. Consider the response ofone narcissistic CEO I had worked withfor three years, who asked me to inter-view his immediate team and reportback to him on what they were thinking.He invited me to his summer home todiscuss what I had found. "So what dothey think of me?" he asked with seem-ing nonchalance. "They think you arevery creative and courageous," 1 toldhim, "but they also feel that you don'tlisten." "Excuse me, what did you say?"he shot back at once, pretending not tohear. His response was humorous, butit was also tragic.

In a very real way, this CEO could nothear my criticism because it was toopainful to tolerate. Some narcissists areso defensive that they go so far as tomake a virtue ofthe fact that they don'tlisten. As another CEO bluntly put it,"Ididn't get here by listening to people!"Indeed,on one occasion when this CEOproposed a daring strategy, none of his

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subordinates believed it would work.His subsequent success strengthened hisconviction that he had nothing to leamabout strategy from his lieutenants. Butsuccess is no excuse for narcissistic lead-ers not to listen.

Lack of Empathy. Best selling busi-ness writers today have taken up theslogan of "emotional competencies"-the belief that successful leadership re-quires a strongly developed sense ofempathy. But although they crave em-pathy from others, productive narcis-sists are not noted for being particularlyempathetic themselves. Indeed, lack ofempathy is a characteristic shortcomingof some of the most charismatic and suc-cessful narcissists, including Bill Gatesand Andy Grove. Of course, leaders doneed to communicate persuasively. Buta lack of empathy did not prevent someof history's greatest narcissistic leadersfrom knowing how to communicate-and inspire. Neither Churchill, de Gaulle,Stalin, nor Mao Tse-tung were empa-thetic. And yet they inspired people be-cause of their passion and their convic-tion at a time when people longed forcertainty.

In fact, in times of radical change, lackof empathy can actually be a strength. Anarcissist finds it easier than other per-sonality types to buy and sell compa-nies, to close and move facilities, and tolay off employees-decisions that in-evitably make many people angry andsad. But narcissistic leaders typicallyhave few regrets. As one CEO says, "IfI listened to my employees' needs anddemands, they would eat me alive."

Given this lack of empathy, it's hardlysurprising that narcissistic leaders don'tscore particularly well on evaluationsof their interpersonal style. What's more,neither 360-degree evaluations of theirmanagement style nor workshops inlistening will make them more em-pathie. Narcissists don't want to change -and as long as they are successful, theydon't think they have to. They may seethe need for operational managers toget touchy-feely training, but that's notfor them.

There is a kind of emotional intelli-gence associated with narcissists, but it'smore street smarts than empathy. Nar-cissistic leaders are acutely aware ofwhether or not people are with themwholeheartedly. They know whom theycan use. They can be brutally exploita-tive. That's why, even though narcissistsundoubtedly have "star quality," theyare often unlikable. They easily stir uppeople against them, and it is only intumultuous times, when their gifts aredesperately needed, that people are will-ing to tolerate narcissists as leaders.

Distaste for Mentoring. Lack of em-pathy and extreme independence makeit difficult for narcissists to mentor and

NARCISSISTICLEADERS oftensay that they wantteamwork. What thatmeans in practice isthatthey want agroup of yes-men.

be mentored. Generally speaking, nar-cissistic leaders set very little store bymentoring. They seldom mentor others,and when they do they typically wanttheir protégés to be pale reflections ofthemselves. Even those narcissists likeJack Welch who are held up as strongmentors are usually more interested ininstructing than in coaching.

Narcissists certainly don't credit men-toring or educational programs for theirown development as leaders. A fewnarcissistic leaders such as Bill Gatesmay find a friend or consultant-for in-stance. Warren Buffet, a superproduc-tive obsessive-whom they can trust tobe their guide and confidant. But mostnarcissists prefer "mentors" they cancontrol. A 32-year-old marketing vicepresident, a narcissist with CEO poten-tial, told me that she had rejected her

boss as a mentor. As she put it,"First ofall, I want to keep the relationship at adistance. ! don't want to be influencedby emotions. Second, there are thingsI don't want him to know. I'd rather hirean outside consultant to be my coach."Although narcissistic leaders appearto be at ease with others, they find inti-macy-which is a prerequisite for men-toring-to be difficult. Younger narcis-sists will establish peer relations withauthority rather than seek a parentlikementoring relationship. They want re-sults and are willing to take chancesarguing with authority.

An Intense Desire to Compete. Nar-cissistic leaders are relentless and ruth-less in their pursuit of victory. Gamesare not games but tests of their survivalskills. Of course, all successful managerswant to win, but narcissists are not re-strained by conscience. Organizationsled by narcissists are generally charac-terized by intense internal competition.Their passion to win is marked by boththe promise of glory and the primitivedanger of extinction. It is a potent brewthat energizes companies, creating asense of urgency, but it can also be dan-gerous. These leaders see everythingas a threat. As Andy Grove puts it, bril-liantly articulating the narcissist's fear,distrust, and aggression,"Only the para-noid survive." The concern, of course, isthat the narcissist finds enemies thatactually aren't there-even among hiscolleagues.

Avoiding the TrapsThere is very little business literaturethat tells narcissistic leaders how toavoid the pitfalls. There are two reasonsfor this. First, relatively few narcissisticleaders are interested in looking inward.And second, psychoanalysts don't usu-ally get close enough to them, especiallyin the workplace, to write about them.{The noted psychoanalyst Harry Levin-son is an exception.) As a result, adviceon leadership focuses on obsessives,which explains why so much of it isabout creating teamwork and beingmore receptive to subordinates. But as

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we've already seen, tbis literature is oflittle interest to narcissists, nor is it likelyto belp subordinates understand tbeirnarcissistic leaders. Tbe absence of man-agerial literature on narcissistic leadersdoesn't mean tbat it is impossible todevise strategies for dealing witb nar-cissism. In the course of a long careercounseling CEOs, I have identified threebasic ways in wbicb productive narcis-sists can avoid tbe traps of tbeir ownpersonality.

Find a trusted sidekick. Many nar-cissists can develop a close relationsbipwitb one person, a sidekick wbo acts asan ancbor, keeping tbe narcissistic part-ner grounded. However, given tbat nar-cissistic leaders trust only their own in-sigbts and view of reality, tbe sidekickbas to understand tbe narcissistic leaderand wbat be is trying to acbieve. Thenarcissist must feel tbat this person, orin some cases persons, is practically anextension of bimself. Tbe sidekick mustalso be sensitive enougb to manage tberelationsbip. Don Quixote is a classicexample of a narcissist wbo was out oftoLicb witb reality but wbo was con-stantly saved from disaster by bis squireSancho Panza. Not surprisingly, manynarcissistic leaders rely beavily on tbeirspouses, tbe people tbey are closest to.But dependence on spouses can be risky,because tbey may furtber isolate tbenarcissistic leader from his company bysupporting bis grandiosity and feedingbis paranoia. 1 once knew a CEO in tbiskind of relationsbip with bis spouse. Hetook to accusing loyal subordinates ofplotting against him just because tbeyventured a few criticisms of bis ideas.

It is mucb better for a narcissisticleader to cboose a colleague as his side-kick. Good sidekicks are able to pointout the operational requirements of tbenarcissistic leader's vision and keep bimrooted in reality. Tbe best sidekicks areusually productive obsessives. Pehr Gyl-lenhammar, for instance, was most ef-fective at Volvo wben be bad an obses-sive COO, Hakan Frisinger, to focus onimproving quality and cost, as well asan obsessive HR director. Berth Jonsson,

Working for a

Dealing with a narcissistic boss isn't easy. You have to be prepared to

look for another job if your boss becomes too narcissistic to let you dis-

agree with him. But remember that the company is typically betting on

/i/5 vision of the future-not yours. Here are a few tips on how to survive

in the short term:

Always empathize with your boss's feelings, but don't expect any

empathy back. Look elsewhere for your own self-esteem. Understand

that behind his dispiay of infallibility, there hides a deep vulnerability.

Praise his achievements and reinforce his best impulses, but don't be

shamelessly sycophantic. An intelligent narcissist can see through flat-

terers and prefers independent people who truly appreciate him. Show

that you will protect his image, inside and outside the company But be

careful if he asks for an honest evaluation. What he wants is information

that will help him solve a problem about his image. He will resent any

honesty that threatens his inflated self-image and will likely retaliate.

Give your boss ideas, but always let him take the credit for them.

Find out what he thinks before presenting your views. If you believe he

is wrong, show how a different approach would be in his best interest.

Take his paranoid views seriously; don't brush them aside-they often

reveal sharp intuitions. Disagree only when you can demonstrate how

he will benefit from a different point of view.

Hone your time-management skills. Narcissistic leaders often give

subordinates many moreorders than they can possibly execute. Ignore

the requests he makes that don't make sense. Forget about them. He

wiii. But be careful: Carve out free time for yourself only when you know

there's a lull in the boss's schedule. Narcissistic leaders feel free to call

you at any hour of the day or night, Makeyourselfavailable, or be pre-

pared to get out.

to implement bis vision. Similarly, BillGates can tbink about tbe future fromthe stratosphere because Steve Ballmer,a tougb obsessive president, keeps tbesbow on tbe road. At Oracle, CEO LarryEllison can afford to miss key meetingsand spend time on bis boat contem-plating a future without PCs because behas a productive obsessive COO in RayLane to run the company for bim. Buttbe job of sidekick entails more tbanjust executing tbe leader's ideas. Tbesidekick also bas to get bis leader to ac-

cept new ideas. To do tbis, be must beable to sbow tbe leader bow tbe newideas fit with his views and serve bisinterests. (For more on dealing witb nar-cissistic bosses, see tbe sidebar "Workingfor a Narcissist.")

Indoctrinate the organization. Tbenarcissistic CEO wants ail of bis subor-dinates to tbink the way he does abouttbe business. Productive narcissists-people wbo often have a dash of theobsessive personality-are good at con-verting people to tbeir point of view.

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One of the most successful at tbis is GE'sJack Welch. Welcb uses tougbness tobuild a corporate culture and to imple-ment a daring business strategy, in-cluding tbe buying and selling of scoresof companies. Unlike other narcissisticleaders such as Gates, Grove, and Elli-son, wbo have transformed industrieswitb new products, Welch was able totransform bis industry by focusing onexecution, pushing companies to tbelimits of quality and efficiency, bump-ing up revenues, and wringing out costs.In order to do so, Welcb hammers outa huge corporate culture in his ownimage-a culture that provides impres-sive rewards for senior managers andshareholders.

Welch's approacb to culture buildingis widely misunderstood. Many ob-servers, notably Noel Ticby in TheLeadership Engine, argue that Welch

are trying to do-namely, get tbe orga-nization to identify with them, to tbinkthe way tbey do, and to become the liv-ing embodiment of tbeir companies.

Get into analysis. Narcissists areoften more interested in controlling oth-ers tban in knowing and discipliningtbemselves. Tbat's wby, witb very fewexceptions, even productive narcissistsdo not want to explore their personali-ties witb tbe help of insight therapiessuch as psychoanalysis. Yet since HeinzKobut, tbere bas been a radical sbift inpsycboanalytic tbinking about wbat canbe done to help narcissists work throughtbeir rage, alienation, and grandiosity.Indeed, if tbey can be persuaded to un-dergo tberapy, narcissistic leaders canuse tools sucb as psycboanalysis to over-come vital cbaracter flaws.

Consider the case of one exceptionalnarcissistic CEO wbo asked me to belp

M O R E A N D M O R E large corporationsare getting into bed with narcissists. They arefinding that there is no substitute for narcissisticleaders in an age of innovation.

forms bis company's leadersbip culturetbrougb teaching. But Welch's "teach-ing" involves a personal ideology tbathe indoctrinates into GE managersthrough speeches, memos, and con-frontations. Ratber than create a dia-logue, Welch makes pronouncements(either be tbe number one or two com-pany in your market or get out), andbe institutes programs {sucb as SixSigma quality) tbat become tbe GEparty line. Welcb's strategy bas beenextremely effective. GE managers musteither internalize bis vision, or tbeymust leave. Clearly, tbis is incentiveleaming witb a vengeance. I would evengo so far as to call Welch's teacbingbrainwasbing. But Welcb does bave tberare insight and know-bow to acbievewbat all narcissistic business leaders

bim understand why be so often lost bistemper witb subordinates. He lived farfrom my bome city, and so tbe tberapywas sporadic and very unorthodox. Yethe kept a journal of bis dreams, wbicbwe interpreted togetber eitber by pboneor wben we met. Our analysis uncov-ered painful feelings of being unappre-ciated tbat went back to his inability toimpress a cold fatber. He came to realizetbat be demanded an unreasonableamount of praise and that wben be feltunappreciated by bis subordinates, bebecame furious. Once be understoodtbat, be was able to recognize his nar-cissism and even laugh about it. In themiddle of our work, he even announcedto his top team tbat I was psychoana-lyzing bim and asked tbem wbat tbeytbought oftbat. After a pregnant pause,

HARVARD BUSINESS REVIEW

N a r c i s s i s t i c L e a d e r s : T h e I n c r e d i b l e P r o s , t h e I n e v i t a b l e C o n s

one executive vice president pip)ed up,"Whatever you're doing, you shouldkeep doing it, because you don't get soangry anymore." This CEO, instead ofbeing trapped by narcissistic rage, waslearning how to express his concernsconstructively.

Leaders who can work on themselvesin that way tend to be the most produc-tive narcissists. In addition to beingself-reflective, they are also likely to beopen, likable, and good-humored. Pro-ductive narcissists have perspective;they are able to detach themselves andlaugh at their irrational needs. Althoughserious about achieving their goals,they are also playful. As leaders, theyare aware of being performers. A senseof humor helps them maintain enoughperspective and humility to keep onlearning.

The Best and Worst of TimesAs I have pointed out, narcissists thrivein chaotic times. In more tranquil timesand places, however, even the mostbrilliant narcissist will seem out ofplace. In his short story "The CurfewTolls,"Stephen Vincent Benêt speculateson what would have happened toNapoléon if he had been born some30 years earlier. Retired in prerevolu-tionary France, Napoléon is depictedas a lonely artillery major boasting to avacationing British general about howhe could have beaten the English inIndia. The point, of course, is that a vi-sionary born in the wrong time canseem like a pompous buffoon.

Historically, narcissists in large cor-porations have been confined to salespositions, where they use their persua-siveness and imagination to best effect.In settled times, the problematic sideof the narcissistic personality usuallyconspires to keep narcissists in theirplace, and they can typically rise to topmanagement positions only by startingtheir own companies or by leaving tolead upstarts. Consider Joe Nacchio, for-merly in charge of both the business andconsumer divisions of AT&T. Nacchiowas a supersalesman and a popular

leader in the mid-iggos. But his desireto create a new network for businesscustomers was thwarted by colleagueswho found him self-promoting, abrasive,and ruthlessly ambitious.

TWO years ago, Nacchio left AT&T tobecome CEO of Qwest, a company thatis creating a long-distance fiber-opticcable network. Nacchio had the credi-bility-and charisma-to sell Qwest'sinitial public offering to financial mar-kets and gain a high valuation. Within ashort space of time, he turned Qwestinto an attractive target for the RBOCs,which were looking to move into long-distance telephony and Internet ser-vices. Such a sale would have givenQwest's owners a handsome profit ontheir investment. But Nacchio wantedmore. He wanted to expand -to competewith AT&T-and for that he neededlocal service. Rather than sell Qwest, hechose to make a bid himself for localtelephone operator U.S. West, usingQwest's highly valued stock to financethe deal. The market voted on this dis-play of expansiveness with its feet-Qwest's stock price fell 40% betweenlast June, when he made the deal, andthe end of the third quarter of 1999.(The S&P index dropped 5.7% duringthe same period.)

Like other narcissists, Nacchio likesrisk-and sometimes ignores the costs.But with the dramatic discontinuitiesgoing on in the world today, more andmore large corporations are getting intobed with narcissists. They are findingthat there is no substitute for narcis-sistic leaders in an age of innovation.Companies need leaders who do nottry to anticipate the future so much ascreate it. But narcissistic leaders-eventhe most productive of them-can self-destruct and lead their organizationsterribly astray. For companies whosenarcissistic leaders recognize their limi-tations, these will be the best of times.For other companies, these could turnout to be the worst. ^

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