Arrogance Kills!

Arrogance can kill companies, the spirit and the financial well being of people in the company, and the careers of the leaders of the organization. Unfortunately, too many times the arrogance is excused as self-confidence. That is a tragic mistake too many leaders make.

There is a difference in being self-confident versus being arrogant. Self-confidence allows us to operate better, generate enthusiasm and energy, and remain persistent in our quest to be the very best we can be. Arrogance on the other hand, prevents us from seeing the realities of the world in which we operate, allows us to think we can do almost anything we want to do, and makes incredible enemies of people and other organizations that want us to fail dramatically given our overbearing manner.

Let’s examine this a bit more closely. According to Webster’s Revised Unabridged Dictionary, arrogance is the act or habit of arrogating, or making undue claims in an overbearing manner; that species of pride which consists in exorbitant claims of rank, dignity, estimation, or power, or which exalts the worth or importance of the person to an undue degree; proud contempt of others; lordliness; haughtiness; self-assumption; presumption.

As you look at the definition of arrogance, look at the key words that can lead to Killer Leadership Behavior. There are a number of ways that arrogance can kill.

First of all, consider the phrase of making undue claims in an overbearing manner. Personally, I interpret that statement as that the arrogant individual not only thinks he or she is a lot better than he or she really is, he or she is a jerk about it by being overbearing about how good he or she thinks they are.

That particular individual is creating enemies within your organization, with your competition, and in some cases with your customers. People can’t wait to knock that person off their pedestal. People resent their success and delight in their failures. If this individual is your boss, either you take on his or her qualities which means even more destroying arrogant behavior, or you can’t wait to either leave that department, that organization, or even better, undermine the jerk! The mission of the organization is lost due to everyone’s focus on the arrogant leader in this situation. The issues with the leader become bigger than the mission of the organization and what everyone needs to do everyday.

Continuing with the definition, note the phrase about proud contempt for others. That behavior is definitely the killing type of behavior. When a leader has a proud contempt of others it translates into an attitude of my way is the only way of doing this. The arrogant leader truly thinks his or her way of doing things is the only right way of doing things.

More importantly, the arrogant leader not only thinks his or her way of doing things is the only way to get things done, he or she also will make fun at the methods of others. It may be subtle, such as a roll of the eyes or a slight smile or it may be not so subtle ridicule of the other individuals in front of everyone. Either way, the damage of the contempt shown can be major.

The leader’s reports know what’s going on as they watch the arrogant leader ridicule the other individuals. The reports are going to mimic that behavior as well. Some may not show it outwardly, but their actions toward that individual are going to prevent an open willingness to try a different approach. The different approach, which may be the right one for the organization to take, now has little chance of success.

In addition to the internal enemies created and the internal projects killed by the arrogant leader, his or her arrogance as well as the adopted arrogance of the followers, can create problems for the organization externally. The arrogant leaders think their way is the only way, so they may miss threats or opportunities that come up in our changing world simply because they don’t agree with the idea. Think about earlier in the twentieth century and the arrogant leader of a Railroad carrying passengers refusing to believe that Airplanes and Automobiles would become the transportation of choice because they were so good as a Train company. Arrogance prevented them from adapting. They thought their way was the only way and they did not need to adapt within the passenger transportation segment.

Also, think about the airline leaders who thought their way was the only way in 1971 when Southwest Airlines began flying. How could this upstart airline take their place with their low fares, low cost, fun operating methods? My gosh, the airline loaded people on board like cattle with those funny re-usable rubber boarding passes. How tacky! (But incredibly cost effective)There had to be some arrogance with those other airline leaders. Look at where Southwest is now. Every other airline has to secretly wish it had their cost basis and it's track record. They are the leader domestically in my opinion.

Arrogance can also suggest to the leader or the company that they can do anything they want. They make decisions that run counter to what may be happening in the market place.

We recently had a mortgage loan company file for bankruptcy in the local Phoenix market. This firm was known for taking loans that banks and other financial organizations did not want. They charged a higher interest rate but were in demand because builders needed access to more cash than banks were willing to lend. They raised money through investors. The investors would receive interest payments of 10-11% which was funded by charging the builders 13-14% on their loans. These were high profile projects too by the way.

The organization for years raised adequate money from investors and received good returns. Unfortunately, some of the loans were to Condo projects. As we all know, too many condo projects were started and for the most part prices dropped or sales stopped.

As I have read in the local newspaper, it appears the CEO ignored advise to stop investing in Condo projects. The leader continued because the Condo projects he invested in were "Special". They were not the same as other condo projects. It appears he thought he could do no wrong.

He had investors who pulled out their investments, the economy took its downturn, and several of the projects that the firm had financed stopped making their loan payments. Given relatively little new investment dollars coming in, loan payments not being made and investors pulling out their money, the firm now was in trouble. They did not have money to fund projects nor the money to take over the properties in default.

Sadly, the firm filed for bankruptcy. Investors are no longer getting their monthly interest check although it is reported that the Bankruptcy Trustee has approved some of the projects investors to receive much reduced interest payments. The bankruptcy has had an impact on the investors and the employees of that firm. It has also made it difficult for builders in this area to secure funds to continue projects.

Unfortunately, the CEO died unexpectedly. It has been reported that it was suicide. Obviously, I am relaying information that I have read and have no first hand knowledge of the situation.

The situation though makes one ask the question, could this have been avoided had he listened to his advisers and investors? Was it his arrogance that made him think that he could do no wrong?

Arrogance can also lead people to believe that they are bigger than the system and can do no wrong. They believe the rules are for someone else. We have seen leader after leader, government official after government official all end up in shameful situations due to their own arrogance. Think about the arrogance of a Ken Lay at Enron, Bernie Ebbers of WorldCom, and Dennis Kowalski at Tyco. I could name a lot more whose careers arrogance killed in the end.

Arrogance also killed or almost killed their companies. They also killed the retirement funds and dreams of many of its employees. It also cost many stockholders a lot of money.

Arrogance kills.

Guard against arrogance every day!