Why Organizational Narcissism Leads To Failure

Over the past 23 years I have treated at least 50 clients with the diagnosis of narcissistic personality disorder.  In addition, I have performed psychological assessments on well over 1,000 individuals who have fit the criteria for the diagnosis. 

Narcissism Unlike most mental health issues, these individuals rarely come in for mental health consultation, until it is too late…primarily because they only come in when they have lost or are about to lose everything in their life.  In other words, they don’t feel pain until it's too late.  Why?  Because these people think so highly of themselves that they are blind to their shortcomings.  They have built such an inflated sense of self-worth that they don’t invite critique or input.

These people can tolerate only adulation and surround themselves exclusively with people who will tell them what they want to hear.  Their dedication to experiencing themselves as beyond reproach forces them to neglect outside information, as this would threaten their outwardly very confident, but unconsciously very fragile, façade.  As a result, narcissistic people ignore all messages of trouble and pain around them until their family or life disintegrates before their eyes.  That’s when these individuals come to see me.

This narcissistic structure can and has been found in organizations as well.  Companies can become overly self-confident to the point of resisting change and becoming overly reliant on all of the techniques that originally created their success.  When this happens, eyes and ears of the company become closed to anything that sounds unfamiliar.  History contains many examples of where this has resulted in failure.

I’m not advocating change for the sake of change.  There is absolutely nothing wrong with a leader or organization saying, “We’ve done the research, know what the options are, but we are going to continue to operate in this fashion.”  What I am cautioning against is a cocky kind of confidence in the way companies think and do business.  The primary difference between healthy businesses and narcissistic business practices, is that healthy companies are constantly asking questions, considering new avenues, and are open to input.

Whether you are an agent, recruiter, manager or executive, you can stay on the right path by asking questions, staying informed, and surrounding yourself with people who will do the same… 


Editor's Note:  This article was written by Dr. David Mashburn.  Dave is a Clinical and Consulting Psychologist, a Partner at Tidemark, Inc. and a regular contributor to WorkPuzzle.  Comments or questions are welcome.  If you're an email subscriber, reply to this WorkPuzzle email.  If you read the blog directly from the web, you can click the "comments" link below.