Various studies have highlighted the preponderance of narcissistic leaders in our organizations, and indeed many would attribute the success of leaders such as Elon Musk and Steve Jobs to their particular determination, vision and extreme levels of self-confidence.  Indeed, so beneficial are these traits deemed to be that their negative characteristics are seen as an acceptable part of the deal.

New research from Stanford Graduate School of Business suggests we have a misguided affection for narcissistic leaders, with the small minority who succeed prompting us to overlook the vast majority who do considerable damage to their organizations.

Inspirational leadership

The researchers conducted a number of field tests and surveys to understand the kind of companies narcissistic leaders seem to inspire.  The analysis revealed that their organizations tend to be more competitive, with lower levels of both integrity and collaboration.

“If you deal with a narcissist, it can be unpleasant. If you’re married to one, it can be damaging. But fundamentally, individuals can choose to walk away,” the researchers say. “When narcissists assume positions of power, their effects become hugely magnified.”

The analysis revealed that narcissistic leaders were much less likely to value integrity in their direct teams and the wider organization.  What’s more, they were also likely to back policies that reduce the likelihood of collaboration happening.  These were then reflected in the type of people recruited and promoted in the organization, so that eventually the culture embodied their distorted values.

These findings were consistent regardless of whether the leaders were self-reporting on their behaviors, their teams were reporting on them, or indeed those not reporting directly to the leader but nonetheless working in their organizations.

“Lots of studies show that companies with cultures that are less collaborative and have lower integrity are more likely to get in trouble and violate laws,” the researchers say.

It’s also likely that narcissistic bosses will suffer from litigation proceedings, and even attempt to manipulate earnings.  This willingness to break the law is something that the researchers plan to explore in a follow up study, but for now, they hope their findings strike a cautionary note for boards taken in by the charms narcissistic leaders can possess.

“Because the prototypic visionary leader profile is so similar to that of a narcissist, if boards aren’t careful, they’re going to end up choosing people who are narcissistic as CEOs,” they conclude.  “A more direct way is not to hire anyone unless you have lots of data from previous subordinates about how they were treated. If the person stole people’s ideas, abused people, or was impulsive, those are all earmarks of narcissists.”