The Allure of Toxic Leaders Why We Follow Destructive Bosses and Corrupt Politicians – and How We Can Survive Them by Jean Lipman-Blumen Oxford University Press © 2004 303 pages Focus Leadership & Mgt. Strategy Sales & Marketing Corporate Finance Take-Aways • From King Henry VIII to Jeff Skilling, the history of politics and enterprise is filled with destructive leaders who harm their organizations. • While blaming amoral leaders for their foibles is easy, toxic bosses couldn't exist 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 Industries & Regions Career Development Personal Finance Concepts & Trends • Humans have basic psychological needs for authority, order, security and belonging that leaders meet. Savvy leaders also recognize that individuals need to feel special. • 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. office (954-359-4070) or Switzerland office (+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 often treated as an action by the leader directed toward or against others. More appropriately, we should view leadership as an interaction between leaders and their followers.” “We commonly accept toxic leaders because we fear that we are incapable of overthrowing such strong figures all by ourselves.” What Makes Destructive Leaders So Strong? From Adolf Hitler to Enron’s Jeff Skilling, from China’s Chairman Mao to Sunbeam’s Al Dunlap, the history of politics and enterprise is filled with toxic leaders. These destructive, power-hungry people make poor decisions meant to aggrandize themselves and demean others. They seek to control those around them, who gladly give the boss credit, accept some for themselves and resolutely deny blame. Toxic leaders enjoy moments of glory but finally fail, leaving their organizations in tatters and solidifying their ignominious places in history. Recent decades have seen a plethora of these ruthless, skilled bosses, in part because wallflowers, do-gooders and saints rarely seek positions of political or corporate leadership. After all, such traits as humility and selflessness 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-confident, 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. Tyco’s Dennis Kozlowski, WorldCom’s Bernard Ebbers, ImClone’s Sam Waksal, and HealthSouth’s Richard Scrushy went from corporate heroes to accused criminals in only a few short years. Business and politics are not the only realms that produce toxic leaders. For years toxic leaders ran the Catholic Church and failed to address a rash of pedophilia by priests. 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 “Illusions are the umbilical cord linking leaders and followers. Leaders understand their followers’ need for illusions.” leaders. Human nature propels people toward leaders who offer grand visions and strong leadership. Too often, historians define leadership as something imposed by the leader upon the masses. The true story is more complex: Leadership is a relationship between the leader and his followers. Hitler could carry out his plan to exterminate Jews and dominate the world only with the help of millions of German voters, workers and soldiers. Soon after the conviction of Michael Milken – the 1980s junk bond king who was convicted of criminal fraud – a number of his former employees appeared on a TV show 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. Defining 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 something pure and beautiful, or at least seemingly so despite a festering malignancy.” “Members of the entourage derive their status and raison d’être from their relationship to the leader. So they are always dedicated to keeping their leader in power.” “Leaders serve many purposes for their followers. If they didn’t, we wouldn’t yearn for them, seek them out, or even create them when they don’t exist.” • Lack of integrity and honesty. Lying to followers to bolster a powerful vision. • Outsized ambition that puts the leader's quest for glory above the well being of others. • Egotism and arrogance that foster incompetence and corruption. • Actions that "intimidate, demoralize, demean and marginalize" others. • Breaching opponents' and followers' basic human rights, and stifling 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 can remain convinced of their leader’s merit, despite strong opposing evidence. Exploiting Followers’ Psychological Needs Usually, toxic leaders are not psychologists, yet they tend to possess an uncanny ability to tap into their followers’ deep-seated psychological motivations. Toxic leaders typically exploit four basic needs and two primal fears: • The need for authority – As children, we relied heavily on our parents to meet our 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 figure. So the pattern of obedience established in early childhood stays with us. • The need for security – Those teen rebels with the green hair and pierced eyebrows long for freedom from parental authority, yet they also have a deep-seated need for security. When young adults finally separate from their families, they find that freedom comes with a price. The security of the family structure is gone, and people seek replacements for parental authority, often finding leaders who promise security. In practice, this means people gladly trade freedom for security. After the September 11, 2001, terror attacks, for instance, Americans traded the freedom of hassle-free travel for the security of baggage searches and long delays at airport Xray machines. The Allure of Toxic Leaders © Copyright 2005 getAbstract 3 of 5 “Amid contrapuntal certainties and uncertainties, we seek out leaders to help us negotiate the dangers we meet.” “Shaken by fearsome conditions, we transform fallible human leaders into infallible gods – gods for whose protection and guidance we would willingly exchange our freedom, as the Germans did in the decades following World War I.” “Crises, after all, are not just threatening and terrifying situations. Crises are fires for which we have no firefighters, invasions against which we have no defenses, plagues for which we have no medicines.” “Leaders and the media find themselves in a delicate, no-touch tango of mutual need. One wants adulatory coverage; the other wants full access or, better yet, a major scoop.” • The need to feel special – People have a special weakness for leaders who make them feel like part of a chosen group. Milken’s Drexel Burnham was considered the coolest place to work in the 1980s, while Enron was the trendy employer of the 1990s. The energy trader inculcated its employees with the feeling that they were special members of an elite club of the world’s smartest, hardest-working people. 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 filled 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 deep need to be part of a group or community. Humans are social animals who find happiness and meaning in the approval of others. So Enron’s employees were comforted by assurances from Chairman Ken Lay and CEO Jeff Skilling that the company’s shares would continue to rise. And German citizens found security and meaning under Hitler, even as his leadership was disastrous for their nation. • The fear of ostracism – The fear of social death is a powerful motivator for humans who innately want to belong. Thus, it is unusual for followers to speak out against the toxic leader’s lies or poor decisions. Doing so would result in being excluded from the group. Toxic leaders demand more fealty than benign leaders require, and they do not tolerate dissent or questions about their decisions. This psychological pressure makes it especially difficult for whistle-blowers, those few brave company insiders who alert leaders and outside authorities about problems within a company. • 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 stifle 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 later that others had the same concerns but were afraid to speak out. Pitching the Toxic Vision To truly rule, a toxic leader must understand more than his followers’ primal psychological desires and fears. He also must know that they crave illusions, and he must deliver a vision that exploits this need. The vision must captivate the follower and fulfill the quest to belong to something grand and beautiful. Enron claimed to have finally mastered a business model that could be applied profitably to any industry. Only later did everyone learn that its visions were misguided. Toxic leaders often offer easy remedies to complex problems, while benign leaders are unlikely to rely all that much on their personal visions. 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 Germany’s humiliating WWI defeat, the struggling nation was especially vulnerable to Hitler, a charismatic leader who vowed to return his country to greatness. Germans saw authoritarianism as a worthwhile trade for new security. Crisis also gave toxic leader Al Dunlap his position as CEO of Sunbeam Corp., a maker of small appliances. The firm routinely missed profit goals. It hired Dunlap, who crowed about his past successes in an autobiography, although those glories were later debunked. In the worst toxic leader mode, Dunlap was arrogant and rude. He began at Sunbeam by screaming at its assembled executives for hours. The company ultimately disintegrated into bankruptcy. The Allure of Toxic Leaders © Copyright 2005 getAbstract 4 of 5 “Autonomy and freedom liberate us from dependency on tyrants as well as on authoritarian and incompetent leaders. Freedom and autonomy, frequently braced by recognized anxiety, give the courage to act, even in the face of death.” 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 sacrifice. Giuliani remained a benign leader rather than a toxic one, yet the rise of his status during those difficult days shows just how fervently followers seek leaders in times of uncertainty and chaos. The need for leadership is so strong people always seek new leaders or create them where none exist. Given the strong need for leaders, followers who are confronted with toxic leaders unsurprisingly find excuses to tolerate them. Employees submit to bad bosses because they want their paychecks or are afraid to be left jobless. People think they incur a personal risk if they confront a toxic leader, due to their need for order or their fear that a new boss could be worse. Toxic leaders often surround themselves with entourages, people whose power comes 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: “It is then that we reach our true heroic potential. Our yearning for self-esteem is satiated. We are calling forth the leader within.” • "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 their visions. Instead, embrace reality and live up to the demands of authenticity. • "Kicking the vision habit and the we/they dichotomy" – Be willing to strive without being reassured that you are extra special and that a happy ending is in sight. • "Drafting the next generation of leaders" – See leadership as a duty, not a privilege. The best way to repel toxic leaders is to recruit nontoxic leaders. Urge more humble, fair-minded potential leaders to step forward and “accept the valuable inconvenience of leadership.” Assuming authority can inspire new leaders to be considerate and selfless, to identify with others’ feelings, to develop as individuals, to find “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. The Allure of Toxic Leaders © Copyright 2005 getAbstract 5 of 5