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Bernard L. “Bernie” Daina, a former Lieutenant in the US Army and Howard University PhD, is a management psychologist based out of the Denver, Colorado area. He specializes in psychological consulting on investor, executive, and team selection and effectiveness in a wide range of industries and organizations, with special emphasis on entrepreneurial technology companies, venture capital and private equity firms.
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Investors and board members involved with the selection and evaluation of organizational leaders have asked me, “Can one have narcissistic attributes but be a positive force in the world? For example, Steve Jobs?”
In my view, this is certainly true. Such people are a positive force if they (a) have others around them to compensate for the destructive side of their strong narcissistic characteristics, which is often a chilling, thankless, and temporary job for other people, or (b) if they have only moderate narcissistic characteristics — narcissistic “attributes”. Elaboration can be helpful:
1. Dr. Sam Vaknin has written of corporate narcissism and narcissism in the boardroom. He described the pathological narcissist. With the right intelligence, experience, skills, and luck, it has been my experience that these people can rise to the top of an organization and cleverly manipulate things in order to drive success. Often, they blow up in some embarrassing way, or are discarded with luxurious packages when their antics are about to become public. Two of the signature characteristics of pathological narcissism are:
(a) An inability to truly depend on other people and the concomitant repudiation of help (or at least huge problems authentically acknowledging dependency and help), as described by psychoanalyst Dr. Arnold Modell in his 1975 article, A Narcissistic Defense Against Affects and the Illusion of Self-Sufficiency. This trait is often rooted in a longstanding unconscious defense against the helplessness and humiliation experienced because the person was used as ego-enhancing equipment by insecure parental figures during his formative developmental years. The defense is counter-dependence.
(b) As described in formal diagnostic criteria, an inability to empathize with other people, and to truly understand their points of view and show them consideration, except insofar as this may be useful in manipulating them. This trait stems partly from identification with the manipulative parents of childhood. Omnipotent encapsulated grandiosity is also an unconscious defense characteristic, in this case a defense against depression over the lack of love that was not earned through performance, such as academic performance during childhood, as described by psychoanalyst Dr. Alice Miller in her book, The Drama of the Gifted Child.
2. Because scaling a company in a wholesome and flexible way requires the leader to depend on people — to need others — and to take all the help he can get in a discriminating fashion, pathological narcissists are not good candidates for the top leadership role in early-stage companies or in more mature ones that are poised to scale. I sometimes select them, with the explicit proviso that they be replaced by another CEO, or that they be “elevated” to Executive Chairman when a new CEO is found, just in advance of the time that the company undertakes scaling vigorously. If they are left in place, there should be no illusion about the prospects for changing the person’s troublesome characteristics. Someone with power (e.g., a board member or lead investors) must always stand ready to control the person’s tendencies to become suspicious of, competitive with, and to torment or undermine other leaders who contribute to the organization’s success. The influential power figure must also remain alert to the narcissistic leader’s compulsion to exercise his grandiosity by tricking or putting-one-over on others, be they regulators, shareholders, or employees.
3. However, providing he has the right hard skills and cognitive capabilities, the moderate narcissist (or another dominant personality configuration such as a non-pathological obsessive — who is well-organized and analytical — and with narcissistic traits) can make a good candidate for leadership of an early-stage company, or of an organization in a later stage of maturity that is expected to scale. I actually look for moderate narcissism when evaluating CEO or founder/leader candidates in such companies; the presence of some narcissistic traits is, for me, a positive indicator. This is because narcissism implies a predisposition to see achievement as an all-or-none proposition. To the narcissistic person, one is either a success or a failure, and there is very little in the gray area. That person may therefore be impelled to do extraordinary things. Determined to “succeed”, pushed by his own sense of insecurity and fear of embarrassment, he will tax himself to the limit, and apply extraordinary imagination, ingenuity, and tenacity. Mediocrity is simply not acceptable! Part of what motivates him are the same factors in his early developmental history that generated the defensive structure in pathological narcissists: a stinging unconscious memory of being used by caretakers as an extension of their own egos, of having to “perform” in order to “win” love and esteem. Often, this is reinforced by the adult experience of “working for morons”. The person is jet-fired to be his own boss, to determine his own destiny, get his “walkaway money”, build a productive enterprise, and/or win recognition for outstanding achievements that ultimately sets him and his achievements beyond the ordinary, and so forth.
4. One of the differences between the pathological narcissist and the moderate narcissist is that the latter often recognizes the need to depend on others, e.g., employees, consultants, investors; he mobilizes their help (rather than manipulatively extracting it). Also, the pathological narcissist sees the choices in extreme terms, not just success or failure, but magnificence versus deplorable. His own insecurity is so profound that he actively devalues not just the performance of others, but the very people he relies on, those who do not deliver “outstanding” results. (Steve Jobs, I believe, did some of this, excoriating people contemptuously, and he needed others around him to offset his impact.)
Dr. Michael Maccoby published a celebrated HBR article about narcissistic leaders in 2000, Narcissistic Leaders — the Incredible Pros, the Inevitable Cons. He later published a book on “productive” narcissists. Maccoby is a psychoanalyst, and an anthropologist by background, not a clinician. His writings sometimes appear to be quite tolerant of the leader who is a narcissistic character, a forbearance that may not be shared by people who have worked directly for malevolent narcissists. Indeed, the prominent clinical psychoanalyst Dr. Otto Kernberg has in various publications described the psychopathic personality as an extreme case of narcissism. Not your ideal boss!
5. In sum, what we look for in top leaders should be these characteristics of moderate narcissists, some of them shared with other personality types:
– History of transcending prior limits.
– Low tolerance for mediocrity.
– Intrinsically motivated striving for something exceptional — powerful drive to excel.
– Chip on his shoulder — core insecurity impels him to prove himself — aggression channeled into achievement.
– Courage to listen, integrate critiques, and redirect, especially in face of errors.
– Tolerance for ambiguity.
But not:
– Powerful aversion to outside help.
– Inability to genuinely empathize with others.
– Extreme, value-laden polarizations of their own and others’ accomplishments.
– Problems in sharing credit with others.
How to differentially diagnose the above in everyday business practice is an altogether separate topic. Your gut instincts should not be ignored.
– Bernard L. Daina, Ph.D.
Owner, Management and Organizational Psychology