I first came across this term whilst watching a recent edition of the ABC’s Catalyst program and it really struck a chord with me.

I guess most of us at some time or another have worked in an organization with someone who had an innate ability to ‘kiss up and kick down’, seemingly without the boss being aware of their actions.

The important thing for us as owners and managers is to be able to recognize these individuals, and take action before they undo all the effort we have put into building a good corporate culture.  After all they can appear to us to be highly motivated operators who get things done, and are therefore much more likely to be rewarded than removed.

So what is a Corporate Psychopath?

Robert Hare, a Professor from the University of British Columbia is thought to be one of the first to use the term in an address to the Harvard Business School, when he compared the similarity of some of the personality traits of the heads to some of the world’s largest corporations to those of serial killers and other kinds of violent criminals.  It seems that around 1% of the general population isn’t burdened by conscience.  Given that our general prison population is less than this figure, and would include a significant proportion who are incarcerated for other reasons such as substance abuse, it is reasonable to expect that many will be found in the business world.   Indeed they are likely to excel there.

In general, psychopaths have a profound lack of empathy, but possess an astounding ability to fake it.  They seduce their victims with charm that masks their true nature as pathological liars, master con artists, and heartless manipulators.  Easily bored, they crave constant stimulation, so they seek thrills from real-life ‘games’ they can win – and take pleasure from their power over other people.

“These are callous, cold-blooded individuals,” Hare said.  “They don’t care that you have thoughts or feelings.  They have no sense of guilt or remorse.”

But wait, you say:  Don’t bona fide psychopaths become serial killers or other kinds of violent offenders, rather than the guys in the next cubicle or the corner office?  That was the conventional wisdom.  On the broad continuum between the ethical every-day person and the predatory killer, there’s plenty of room for people who are ruthless but not violent.  New York industrial psychologist, Paul Babiak says “If I wasn’t studying psychopaths in prison, I’d do it at the stock exchange.”  Hare continues that “There are certainly more people in the business world who would score high in the psychopathic dimension than in the general population.  You’ll find them in any organization where, by the nature of their position, they have power and control over other people and the opportunity to get something.”  Organizational chaos provides both the necessary stimulation for psychopathic thrill seeking and sufficient cover for manipulation and abusive behavior.

Hare contends that corporate psychopaths tend to exhibit the following traits: glibness and superficial charm; a grandiose sense of self-worth, pathological lying; cunning and manipulativeness; lack of remorse or guilt; shallow affect (a coldness covered up by dramatic emotional displays that are actually play-acting); and failure to accept responsibility for their own actions.  Sound like anyone you know?

The damage this type of person can do to your organization is enormous, both in terms of staff retention and in dealing with your clients.  The unfortunate thing is that you as the business owner will probably not know and will find them to be both charming and a high performer, at least until you become their next target.  Indeed, you’ll probably find yourself promoting them ahead of their peers.

How can I avoid the fallout?

In the end it’s all a question of risk management, and I don’t really think we can completely eliminate the possibility of ending up with a corporate psychopath in our team.  However, I think there are three major actions we can take to minimize the risk:

The first is to use tools such as psychometric testing prior to appointment, to minimize the risk and potentially inviting one of these individuals into the fold, particularly into a position of influence.

Secondly, 360 degree feedback mechanisms may assist to highlight emerging concerns amongst team members and fellow workers; and

Thirdly, if corporate psychopaths thrive in organizational chaos, having in place a strong philosophy of structure, systems and measurement may well be you best defence against firstly attracting them, and secondly retaining their interest.  Remember they are easily bored and crave constant stimulation, so I if you demand constant accountability and performance against all the objectives of your business, they may seek out an easier target.  After all, there are plenty of other businesses out there that might not be as organized as yours.   

Geoof Butler - Vestra Business Advantage

 

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