Toxic narcissistic leadership: The hidden curse of some companies

The charismatic narcissist:

There are leaders with the gift of enchanting crowds with their charisma. These narcissistic leaders possess an almost magnetic allure that attracts employees, customers, and stakeholders. They have a natural flair for the spotlight and crave admiration and praise. For certain companies, they can be a boon, especially if their charisma translates to positive business outcomes. However, there's a fine line between healthy self-confidence and toxic narcissism. When these leaders care more about themselves than the well-being of their company, they can inflict damage.

The shadow narcissist:

On the opposite end of the spectrum lies the shadow narcissist. These leaders prefer the background over the limelight. They portray themselves as team players, leaders eager to uplift others and achieve collective goals. However, beneath this façade often lurks a hidden agenda. They don't genuinely value others; instead, they use them as pawns to achieve their own objectives. This can have dire consequences for both the individuals involved and the organization as a whole.

In addition to the aforementioned 'charismatic narcissist' and 'shadow narcissist', which are poles apart on the spectrum, there are other variants crucial to recognize:

The authoritarian narcissist:

Such leaders are dominant and controlling. They have a compelling need to oversee their environment and demand absolute obedience from their subordinates. They do not tolerate dissent and can react aggressively or manipulatively when challenged. Often critical and unforgiving, these leaders cultivate a culture of fear and subservience within the organization.

The victim narcissist:

These leaders perpetually cast themselves in the role of the victim. They are masters at manipulating others by eliciting sympathy. They habitually point fingers at others and evade responsibility for their actions. Such leaders can create a toxic work environment, given their unpredictability and tendency to blame others for their shortcomings.

The admiration-seeking narcissist:

Such leaders have an insatiable need for admiration and validation. They constantly seek compliments and affirmation, and can be highly sensitive to criticism. They're often overly concerned about their image, making decisions based on how they're perceived by others rather than what's best for the organization.

The exploitative narcissist:

These leaders view others as tools for achieving their objectives. They capitalize on the talents, ideas, and efforts of their staff without offering due recognition or compensation. Often manipulative, they utilize others for personal gain, disregarding those individuals' needs or feelings.

Some examples

There are several well-known instances of companies that have both flourished and faltered under the leadership of narcissistic leaders.

Successful businesses under narcissistic leaders:

Apple: Steve Jobs, often hailed as a visionary and genius, was also known for his intense and sometimes challenging personality. Despite his strict and occasionally tyrannical management style, he propelled Apple to unparalleled heights.

Oracle: Larry Ellison, Oracle's founder, is renowned for his competitive spirit and colossal ego. Despite his occasionally controversial leadership style, Oracle has enjoyed tremendous success in the tech sector.

Virgin Group: Richard Branson, the founder of Virgin, is recognized for his flamboyant persona and penchant for the limelight. However, his entrepreneurial risk-taking and self-promotion have undeniably contributed to the success of Virgin brands.

Ryanair: Michael O'Leary, Ryanair's CEO, is notorious for his brash and occasionally controversial remarks. Despite criticism, his aggressive business strategy has made Ryanair one of Europe's most profitable airlines.

Companies that faced issues due to narcissistic leaders:

Uber: Travis Kalanick, the former CEO of Uber, faced scrutiny over allegations of sexual harassment and a toxic work culture at Uber. His leadership style and the ensuing controversies eventually led to his resignation.

WeWork: Adam Neumann, the co-founder and former CEO of WeWork, exhibited flamboyant and at times unpredictable behaviours. His ambitious vision, coupled with allegations of self-enrichment and mismanagement, led to a failed IPO and his eventual departure.

Fiat & Ferrari: Sergio Marchionne, the former CEO of both Fiat and Ferrari, was known for his strong work ethic and unconventional management style. While he was widely praised for saving Fiat from bankruptcy, there were also concerns about his authoritative approach and the sustainability of his long-term business strategies.

Volkswagen: The Volkswagen emissions scandal, also known as "Dieselgate", was one of the biggest corporate scandals in Europe. While it cannot be directly attributed to one narcissistic leader, some have suggested that the company culture at Volkswagen, which prioritised performance over everything and left little room for dissent, played a role in the scandal.

Throughout my career, I've witnessed many companies, internal departments, and large-scale projects fail, and people break down due to the toxic behaviour of their leaders. The difference between success and failure sometimes lay in minute details, but often it was in the crucial human dynamics of trust and collaboration that got lost at vital moments.

On the other hand, it's essential to emphasise that the success or failure of a company is rarely the result of one individual. Many factors, including market conditions, company culture, and team dynamics, play a role. However, the leadership style and personality of a CEO or executive can undoubtedly influence the direction and success of a company.

Now, over to you.

Do you recognise anyone or multiple individuals in your organisation who employs one of the aforementioned styles? There's a wealth of literature available on this profile today. Many HR consultants claim they can offer a solution. Yet, I'm convinced that once a toxic leader has ingrained themselves within an organisation, there are few options other than parting ways or walking away.

Luc Campo, 30th October 2023