#73: The rise of the psychopathic leader
The hidden threat in management
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Hey friends,
Welcome to the 73rd edition of the “Level Up Ladder” newsletter.
Not too many updates from my side, as I returned from vacation to a busy schedule at work.
The good thing is that I stuck with my plan of not eating sugar this month and I started a new post series on LinkedIn, “21 Days to Becoming an Effective Tech Manager," where I will write a blueprint a new manager should follow in her/his first month in the role.
Here are the tasks for the first week:
Day 1/21: The Importance of Building Relationships Early
Day 2/21: Your first One-on-One: What to ask your Team Members?
Day 3/21: Understanding Team Dynamics: What to look for?
Day 4/21: Aligning Team Goals with Business Objectives
Day 5/21: The Power of Listening as a New Manager
I hope you enjoy reading it as much as I enjoy writing it.
The rise of the psychopathic leader
Social media is full of leadership advice. Everyone, including me, talks about the ideal characteristics of an effective leader. But there is another type of leader making its way up the ranks: the psychopathic leader.
I’m not talking about serial killers or arsonists, but individuals who climb the corporate ladder, leveraging their charm and confidence to gain power, often at the expense of their teams or colleagues.
Psychopathy is part of the “dark triad” of personality traits, alongside narcissism and Machiavellianism. These traits are often found in people who manipulate others for personal gain, show little empathy, and lack remorse. And while it may sound like a recipe for disaster, research shows that a surprising number of leaders possess these traits.
In fact, according to a study published in the journal Personality and Individual Differences, up to 21% of corporate leaders may exhibit psychopathic traits, compared to just 1% in the general population. That’s a staggering statistic when you think about how leadership roles are expected to guide and inspire.
Why Tech Is Vulnerable to Psychopathic Leaders
The fast-paced, high-stakes environment of the tech world makes it especially susceptible to this kind of leader. Why?
Risk-Taking Culture: The tech industry thrives on taking risks, whether it’s launching a new product, embracing the latest technology, or pushing the boundaries of innovation. Psychopathic leaders are known for their risk-taking behavior, which can sometimes lead to short-term wins—but at what cost? In the long term, they may burn bridges, deplete resources, or alienate key talent.
Charm and Charisma: In an industry that often celebrates bold, visionary leadership, psychopathic traits like superficial charm and charisma can easily be mistaken for the traits of a strong leader. While they may impress stakeholders or board members, they often fail to genuinely connect with their teams.
Lack of Empathy: Emotional intelligence and empathy are becoming increasingly essential for effective leadership, particularly as companies prioritize mental health and well-being. Psychopathic leaders lack these critical traits, which can lead to toxic work environments, high turnover, and burnout.
How to Identify a Psychopathic Leader
It can be difficult to spot psychopathic behavior in leadership roles, especially as these leaders excel at hiding their true nature. Here are a few tell-tale signs:
Lack of Empathy or Concern for Others: Psychopathic leaders rarely show genuine care for their employees' well-being. If a leader seems indifferent to team burnout, employee satisfaction, or mental health concerns, that’s a red flag.
Manipulative Behavior: Do they take credit for others’ work? Do they pit employees against each other or withhold critical information to maintain power? This kind of behavior is common in leaders with psychopathic tendencies.
Charm That Masks Poor Decision-Making: Psychopathic leaders are often extremely charismatic, which can allow them to deflect blame when things go wrong. If their charm is more about masking poor decisions than building strong teams, it could be a sign of something deeper.
Superficial Relationships: Do they have shallow, transactional relationships? Psychopaths are good at building connections that serve their immediate purposes, but those relationships are rarely deep or long-lasting.
The Impact of Psychopathic Leadership on Teams
It’s not just the individual’s behavior that’s the problem—it’s the ripple effect it creates in the organization. Studies have shown that teams working under psychopathic leaders often experience:
Higher turnover rates: The toxic work environment fosters fear, distrust, and dissatisfaction, causing valuable talent to leave.
Increased burnout: The relentless pursuit of success, often without regard for employees’ work-life balance, leads to higher levels of stress and burnout.
Lower overall productivity: While psychopathic leaders may deliver short-term results, the long-term impact on team morale and productivity is overwhelmingly negative.
In fact, research conducted by the University of Huddersfield revealed that team performance dropped by 12% when employees reported working under a leader exhibiting psychopathic traits. Over time, this effect compounds, dragging the whole organization down.
Another study, from Board, B. J., & Fritzon, K. (2005), “Disordered personalities at work.” shows that business managers tend to display more histrionic traits (seeking attention or approval) than individuals in the clinic groups and scored similar in narcissism (grandiosity, need for admiration).
What should you do if your boss shows these signs?
If you’re not a psychopath yourself, get out.
I could tell you to be brave, and try to change their behavior, but that cannot be done. If you try reporting him to his boss, that’s also an action deemed to fail. Psychopathic leaders use their charm and influence to prove their worth to their superiors, who usually appreciate them enormously. This is one of the reasons they get roles in top management, they deliver.
Famous people who showed psychopathic behavior
Elizabeth Holmes, founder of Theranos, claimed the company had developed revolutionary blood-testing technology. Despite knowing that the technology was not working, she raised billions in funding by misrepresenting the company’s capabilities.
Bernie Madoff used his charm and reputation to manipulate investors into trusting him with their money, thus creating the largest Ponzi scheme in history.
Henry Ford was known for his intrusive policies, including monitoring employees’ private lives, to ensure they lived according to his strict moral code. He used company thugs to intimidate and silence employees during strikes and often suppressed worker’s rights.
The Path Forward: Building Empathy-Driven Leadership in Tech
So, what can we do to prevent the rise of psychopathic leaders in tech?
Prioritize Emotional Intelligence in Hiring: When assessing potential leaders, it’s essential to go beyond technical skills and focus on emotional intelligence. Can they listen actively, manage conflicts with grace, and genuinely care for their team members?
Create a Feedback Culture: A transparent feedback culture that encourages employees to voice concerns can help identify issues before they spiral out of control. Leaders should be held accountable for their actions, and employees should feel safe speaking up.
Focus on Long-Term Success: Instead of rewarding short-term wins driven by risk-taking, create incentives for leaders who drive sustainable growth, foster innovation, and build healthy team cultures.
Final thoughts
Psychopathic leaders may be more common than we think, especially in fast-moving industries like tech, where charisma and risk-taking can mask deeper issues.
It also depends on the perspective, sometimes, some companies might need these characteristics to stay afloat. Not everyone can fire 30% of the workforce to make sure the company can survive for another quarter.
Always remember that true leadership is about empowering others, not just taking the reins for yourself. Don’t fall for superficial charm; look to become the leader who cares, connects, and empowers the people in the team.
If you responded “Yes” above, how did you handle it?
Recommendations
1/ Adam Grant’s list of “12 books to fire up your brain this fall”
2/ How Intuit Used Design Thinking To Boost Sales By $10M In A Year
As part of my research for the homework for “Managing Creativity and Innovation in Business,” I stumbled upon this interesting article about how Intuit used Design Thinking to create better products and boost sales.
3/ “House of the Dragon” series
I am fan of George RR Martin’s fantasy series, and while Game of Thrones is still one of my favorite shows ever, I paused watching “House of the Dragon” a couple of years ago, after only a few episodes.
As I was seeing a lot of talk in the media about the Second season, I decided to give it another chance, and I was not disappointed. While its plot is not as complex and intertwined as that in Game of Thrones, it’s more interesting from a strategy perspective. And there are more dragons.
Thank you for reading, and I hope you’ll join me in the comments section for further discussions!
Leo
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