Dictator-like leadership and arrogance
"I've got this!" is a commonly heard phrase coming from leaders who are desperate to prove they know what they're doing. This represents a major problem in organizations and, once acknowledged, needs to be turned around.
Dictator-like leadership and arrogance are two traits that can have a detrimental effect on both individuals and organizations. The main reason for this is the pride, ego and the satisfaction of power, which are behind those two things.
I've seen it happen again and again... I recall, a few years back I was consulting a company. In spite of being young and inexperienced, I still had some success early on in the company's life cycle. But then things started to go south for us. We were making great products that customers loved, but something about our culture changed over time. It became more about coercion than inspiration—and before long everyone knew we were headed for disaster unless something changed fast!
It starts when an entrepreneur has a great idea and some initial funding.
When an entrepreneur starts a company, they need to have a good idea and funding. The idea can be a product or service, and the funding comes from friends, family members or angel investors. The founder must be able to communicate their vision clearly enough so other people will want to invest in it as well.
So, they launch their startup with great fanfare.
So, the company launches with great fanfare. It's a success. The founders have achieved their dream and are now wealthy beyond their wildest imaginations. Success breeds arrogance, however, and that arrogance leads to hubris—and eventually to failure (which is where we started).
Ego comes into the picture
But, it doesn't take long for ego to start forming, both from the founder and from early employees who have been elevated by success. It is important to manage this development by continuously reminding everyone involved of the company's mission and purpose.
Things start changing
The founders of a company are often friends, colleagues or family. They share a common vision for what the company should be and how it should grow, so they agree on all the important decisions.
However, as the startup grows and more people join the team (intentionally or not), it becomes less and less obvious who makes the final decision on which decisions need to be made by whom. By that time hubris steps in and the team of equals that started the company becomes a culture of arrogance.
The once-happy employees are frustrated and turnover begins to increase.
As the leader becomes more and more disconnected from his employees, he begins to lose sight of the fact that they are not happy. The once-happy employees are frustrated and turnover begins to increase. Employees who once felt like they were part of a team now feel as though their leader has abandoned them.
Employees decreases and pressure increases
When an employee leaves, you lose a valuable resource. For example, let's say a startup has a large staff of 120 people who are working on different projects and responsibilities. If one of those employees leaves due to the stress caused by the dictator-like leadership style and arrogance of their leader, then he or she may be replaced with someone who is less experienced and more vulnerable to the same negative work environment.
And so it goes until the company fails.
I've seen this happen in our industry over and over again, from big companies to small ones, and startups that fail fast without even getting a chance to grow up. The reason for this failure is hubris, arrogance and ego-driven leadership that is focused on only themselves rather than the people around them.
Update now or regret later
In order to turn things around, it's important for the company to take a step back and reassess its values, goals, and target audience. They should also conduct a thorough evaluation of their current team and assess whether they are the right fit for the company's culture and goals. It's also important to establish clear communication and collaboration within the team, and to create a culture that is based on inspiration and motivation. By addressing these issues and making the necessary changes, the company can turn things around and get back on track for success.
