Toxic Leaders

The Allure of Toxic Leaders

Why We Follow Destructive Bosses and Corrupt Politicians – and How We Can Survive Them

Focus Take-Aways

Leadership & Mgt. • From King Henry VIII to Jeff Skilling, the history of politics and enterprise is ﬁ lled Strategy with destructive leaders who harm their organizations. Sales & Marketing • While blaming amoral leaders for their foibles is easy, toxic bosses couldn't exist Corporate Finance without their followers' compliance. Human Resources Technology & Production • Leadership requires followers. It is an "interaction," not an action. Small Business • Toxic leaders exploit their followers' psychological desires and fears. Economics & Politics • Humans have basic psychological needs for authority, order, security and belong- Industries & Regions ing that leaders meet. Savvy leaders also recognize that individuals need to feel Career Development special. Personal Finance Concepts & Trends • Followers long for leadership in times of crisis, making uncertainty the toxic leader's ally. People fear chaos and powerlessness. • Often, toxic leaders offer a vision of overly simple solutions to complex problems. • Followers who realize a leader's toxicity often feel powerless to unseat the tyrant. • Good leaders communicate a vision that inspires their followers. • Seek nontoxic leaders who "accept the valuable inconvenience of leadership."

Rating (10 is best)

Overall Applicability Innovation Style

8 8 9 7

To purchase individual abstracts, personal subscriptions or corporate solutions, visit our Web site at www.getAbstract.com or call us at our U.S. ofﬁ ce (954-359-4070) or Switzerland ofﬁ ce (+41-41-367-5151). getAbstract is an Internet-based knowledge rating service and publisher of book abstracts. getAbstract maintains complete editorial responsibility for all parts of this abstract. The respective copyrights of authors and publishers are acknowledged. All rights reserved. No part of this abstract may be reproduced or transmitted in any form or by any means, electronic, photocopying, or otherwise, without prior written permission of getAbstract Ltd (Switzerland). Relevance

What You Will Learn In this Abstract, you will learn: 1) What makes a leader toxic; 2) Why followers shoulder much of the blame for toxic leaders; 3) What psychologically motivates followers; and 4) How to shed toxic leaders and recruit nontoxic leaders.

Recommendation This intriguing, intellectual study of disastrous leadership offers a courageous interpretation of corporate scandal and political folly. Amoral leaders are not entirely to blame, Jean Lipman-Blumen argues. Rather, followers enable misguided leaders to rise to power and stay there. Her analysis applies psychological principles to Adolf Hitler’s Germany and Jeff Skilling’s Enron (not exactly parallel, but you get the idea) and concludes that toxic leaders’ followers are willing victims who allowed misguided bosses to appeal to their basest instincts. While Lipman-Blumen’s assertions are startling, she makes a compelling case written in dense but readable prose with intriguing detail. getAbstract.com suggests this book to anyone seeking a deeper understanding of the relationship between leaders and their followers, particularly given the swath cut by today’s toxic leaders.

Abstract

“Leadership is What Makes Destructive Leaders So Strong? often treated as From Adolf Hitler to Enron’s Jeff Skilling, from China’s Chairman Mao to Sunbeam’s Al an action by the Dunlap, the history of politics and enterprise is fi lled with toxic leaders. These destructive, leader directed toward or against power-hungry people make poor decisions meant to aggrandize themselves and demean others. More others. They seek to control those around them, who gladly give the boss credit, accept appropriately, some for themselves and resolutely deny blame. Toxic leaders enjoy moments of glory we should view but fi nally fail, leaving their organizations in tatters and solidifying their ignominious leadership as an interaction places in history. between leaders and their Recent decades have seen a plethora of these ruthless, skilled bosses, in part because followers.” wallfl owers, do-gooders and saints rarely seek positions of political or corporate leadership. After all, such traits as humility and selfl essness are of little help as one climbs the corporate ladder. By their very nature, and often to the betterment of their performance, leaders are driven and competitive, charismatic and self-confi dent, smart and cunning. But those characteristics also can push a leader’s behavior into the realm of toxicity. The corporate scandals of the past few years offer a laundry list of toxic leaders. “We commonly accept toxic Tyco’s Dennis Kozlowski, WorldCom’s Bernard Ebbers, ImClone’s Sam Waksal, and leaders because HealthSouth’s Richard Scrushy went from corporate heroes to accused criminals in we fear that we only a few short years. Business and politics are not the only realms that produce toxic are incapable of leaders. For years toxic leaders ran the Catholic Church and failed to address a rash of overthrowing such strong fi gures all pedophilia by priests. by ourselves.” Blaming these leaders for their faults is easy. Conventional wisdom says these executives were amoral men who made poor decisions. But in actuality, a more realistic, if troubling, force is at work. Followers enable and abet toxic leaders. In fact, people often prefer toxic

The Allure of Toxic Leaders © Copyright 2005 getAbstract 2 of 5 leaders. Human nature propels people toward leaders who offer grand visions and strong leadership. Too often, historians defi ne leadership as something imposed by the leader upon the masses. The true story is more complex: Leadership is a relationship between the “Illusions are the leader and his followers. Hitler could carry out his plan to exterminate Jews and dominate umbilical cord the world only with the help of millions of German voters, workers and soldiers. linking leaders and followers. Leaders Soon after the conviction of Michael Milken – the 1980s junk bond king who was understand their convicted of criminal fraud – a number of his former employees appeared on a TV show followers’ need for illusions.” to defend him. Even though his criminal acts ultimately cost them their jobs, Milken’s minions were unswayed by the prosecutor’s arguments or the jury’s verdict. Defi ning the toxic leader is tricky. Even leaders who are remembered as near saints, such as Abraham Lincoln, Franklin Roosevelt and Mother Theresa, sometimes behaved immorally or made bad decisions. Yet, to be a truly toxic leader, one must consistently exhibit toxic traits and routinely engage in dysfunctional behavior. Those traits and behavior patterns include: “Most humans long to be part of • Lack of integrity and honesty. Lying to followers to bolster a powerful vision. something pure • Outsized ambition that puts the leader's quest for glory above the well being of and beautiful, or at least seemingly so others. despite a festering • Egotism and arrogance that foster incompetence and corruption. malignancy.” • Actions that "intimidate, demoralize, demean and marginalize" others. • Breaching opponents' and followers' basic human rights, and stifl ing criticism. • Holding tight to power by undermining potential successors. Of course, toxic leaders never admit that these ugly descriptions apply to them. At last check, Ebbers, Kozlowski and Skilling maintained their innocence and were shocked that anyone would question their motives. And as Milken’s ex-employees proved, followers “Members of the can remain convinced of their leader’s merit, despite strong opposing evidence. entourage derive their status and raison d’être from Exploiting Followers’ Psychological Needs their relationship Usually, toxic leaders are not psychologists, yet they tend to possess an uncanny ability to the leader. So to tap into their followers’ deep-seated psychological motivations. Toxic leaders typically they are always exploit four basic needs and two primal fears: dedicated to keeping their • The need for authority – As children, we relied heavily on our parents to meet our leader in power.” basic needs for food, clothing and shelter, and to teach us society’s values and norms through a system of rewards and punishments. Children quickly learn obedience, and while teens rebel against parental authority, that rebellion follows its own strict rules. Teen rebellion often takes the form of spiked hair, baggy pants or other fashions dictated by the peer group, which becomes the new authority fi gure. So the pattern of obedience established in early childhood stays with us.

“Leaders serve • The need for security – Those teen rebels with the green hair and pierced eyebrows many purposes long for freedom from parental authority, yet they also have a deep-seated need for their followers. for security. When young adults fi nally separate from their families, they fi nd If they didn’t, we that freedom comes with a price. The security of the family structure is gone, and wouldn’t yearn for them, seek them people seek replacements for parental authority, often fi nding leaders who promise out, or even create security. In practice, this means people gladly trade freedom for security. After the them when they September 11, 2001, terror attacks, for instance, Americans traded the freedom of don’t exist.” hassle-free travel for the security of baggage searches and long delays at airport X- ray machines.

The Allure of Toxic Leaders © Copyright 2005 getAbstract 3 of 5 • The need to feel special – People have a special weakness for leaders who make “Amid contrapuntal them feel like part of a chosen group. Milken’s Drexel Burnham was considered certainties and uncertainties, the coolest place to work in the 1980s, while Enron was the trendy employer of the we seek out 1990s. The energy trader inculcated its employees with the feeling that they were leaders to help special members of an elite club of the world’s smartest, hardest-working people. us negotiate the dangers we meet.” Even the swanky headquarters in Houston told Enron employees they were special. They must be part of a chosen few if the parking lot was fi lled with BMWs and if they were treated to massages, gourmet coffee and upscale lunches in the company cafeteria. Status melds with meaning to create a strong psychological motivation. • The need to belong – Even as individuals want to feel special, they also have a “Shaken by deep need to be part of a group or community. Humans are social animals who fearsome fi nd happiness and meaning in the approval of others. So Enron’s employees were conditions, we transform fallible comforted by assurances from Chairman Ken Lay and CEO Jeff Skilling that the human leaders company’s shares would continue to rise. And German citizens found security and into infallible meaning under Hitler, even as his leadership was disastrous for their nation. gods – gods for • The fear of ostracism – The fear of social death is a powerful motivator for humans whose protection and guidance we who innately want to belong. Thus, it is unusual for followers to speak out against the would willingly toxic leader’s lies or poor decisions. Doing so would result in being excluded from exchange our the group. Toxic leaders demand more fealty than benign leaders require, and they freedom, as the Germans did do not tolerate dissent or questions about their decisions. This psychological pressure in the decades makes it especially diffi cult for whistle-blowers, those few brave company insiders following World who alert leaders and outside authorities about problems within a company. War I.” • The fear of powerlessness – It seems odd that so many bad leaders manage to stay in power so long, but most followers feel powerless to unseat a leader. Moreover, because toxic leaders stifl e dissent, employees often do not know how their co-workers truly feel about a leader. Often workers quit in disgust about a boss’s actions, only to learn “Crises, after later that others had the same concerns but were afraid to speak out. all, are not just threatening Pitching the Toxic Vision and terrifying To truly rule, a toxic leader must understand more than his followers’ primal psychological situations. Crises desires and fears. He also must know that they crave illusions, and he must deliver a are fi res for which we have vision that exploits this need. The vision must captivate the follower and fulfi ll the quest no fi refi ghters, to belong to something grand and beautiful. Enron claimed to have fi nally mastered a invasions against business model that could be applied profi tably to any industry. Only later did everyone which we have no defenses, plagues learn that its visions were misguided. Toxic leaders often offer easy remedies to complex for which we have problems, while benign leaders are unlikely to rely all that much on their personal visions. no medicines.” In fact, benign leaders often place the burden of solving problems on their followers – making a toxic leader an easier choice. If a leader articulates an inspiring vision, followers are all too eager to go along. In times of crisis, it’s especially easy for followers to assign greatness to mere mortals. After “Leaders and Germany’s humiliating WWI defeat, the struggling nation was especially vulnerable to the media fi nd Hitler, a charismatic leader who vowed to return his country to greatness. Germans saw themselves in a authoritarianism as a worthwhile trade for new security. delicate, no-touch tango of mutual Crisis also gave toxic leader Al Dunlap his position as CEO of Sunbeam Corp., a maker need. One wants adulatory cover- of small appliances. The fi rm routinely missed profi t goals. It hired Dunlap, who crowed age; the other about his past successes in an autobiography, although those glories were later debunked. wants full access In the worst toxic leader mode, Dunlap was arrogant and rude. He began at Sunbeam by or, better yet, a screaming at its assembled executives for hours. The company ultimately disintegrated major scoop.” into bankruptcy.

The Allure of Toxic Leaders © Copyright 2005 getAbstract 4 of 5 People are very susceptible at times of crisis. After the Sept. 11 terror attacks, New York Mayor Rudolph Giuliani ascended to the status of near infallibility as he reassured New Yorkers that they would be safe. Thanks to his masterful performance, the crisis elevated the mayor from a mere mortal into a political star who could remind Americans of their long-hidden patriotism and their newfound willingness to sacrifi ce. Giuliani remained a “Autonomy and freedom benign leader rather than a toxic one, yet the rise of his status during those diffi cult days liberate us from shows just how fervently followers seek leaders in times of uncertainty and chaos. The dependency on need for leadership is so strong people always seek new leaders or create them where tyrants as well as on authoritarian none exist. and incompetent Given the strong need for leaders, followers who are confronted with toxic leaders leaders. Freedom and autonomy, unsurprisingly fi nd excuses to tolerate them. Employees submit to bad bosses because frequently braced they want their paychecks or are afraid to be left jobless. People think they incur a by recognized personal risk if they confront a toxic leader, due to their need for order or their fear that anxiety, give the courage to act, a new boss could be worse. even in the face Toxic leaders often surround themselves with entourages, people whose power comes of death.” from their relationship with the leader and who, therefore, are loyal to the leader rather than to some external measure of right and wrong. The members of the entourage are close assistants who take the blame for the boss’s mistakes, but give him all the credit for successes. In some cases, where other employees band together to succeed in spite of a bad boss, working under a toxic leader can deepen collegial relationships and make the organization stronger.

Dismissing and Replacing Toxic Leaders Five strategies can help followers move away from a toxic leader and do better in the future: • "Matriculating in the school of anxiety" – Confront the fear and worry of challenging a toxic leader. Exercising courage will make you stronger. • "Seeking the leader within and strengthening democratic institutions" – Become independent. Use democracy to foster good leaders and vote out bad ones. • "Demanding leaders who disillusion us" – Toxic leaders spread false comfort through “It is then that we their visions. Instead, embrace reality and live up to the demands of authenticity. reach our true • "Kicking the vision habit and the we/they dichotomy" – Be willing to strive without heroic potential. being reassured that you are extra special and that a happy ending is in sight. Our yearning for self-esteem is • "Drafting the next generation of leaders" – See leadership as a duty, not a privilege. satiated. We are calling forth the The best way to repel toxic leaders is to recruit nontoxic leaders. Urge more humble, leader within.” fair-minded potential leaders to step forward and “accept the valuable inconvenience of leadership.” Assuming authority can inspire new leaders to be considerate and selﬂ ess, to identify with others’ feelings, to develop as individuals, to ﬁ nd “coherence” amid confusion and to become self-governing. In other words, nontoxic leaders achieve and bestow freedom instead of spreading poison.

About The Author

Jean Lipman-Blumen is a professor of public policy and organizational behavior at Claremont Graduate University in California. She is a co-founding director of the Institute for Advanced Studies and served as a special adviser to President Jimmy Carter. Her previous books include The Competitive Edge and Hot Groups.