Leadership plays a pivotal role in shaping an organization's culture and determining its success. A competent leader can propel the organization to new heights, while a leadership mismatch can lead to talent drain and a rapid decline in market standing. What may surprise many is that even a once-excellent leader can quickly become problematic due to the profound impact of power on the brain.
Neuroscientists have unearthed intriguing patterns through brain scans that shed light on how power changes the brain. One startling revelation is that power tends to make individuals more impulsive and less concerned about the consequences of their actions on others. This transformation is strikingly evident in recent headlines, where formerly respected entrepreneurs made choices endangering their organizations, customers, and employees.
Furthermore, power has the tendency to cause leaders to project their own beliefs and emotions onto others, leading them to perceive consensus even when it doesn't exist. This can result in conflicts, flawed decisions, and a breakdown of trust with colleagues, subordinates, customers, and board members. In severe cases, it can culminate in criminal behaviors such as sexual harassment or racial discrimination.
Marwa Azab Ph.D., adjunct professor of psychology and human development at California State University, Long Beach highlights, "The brains of powerful individuals react differently to social cues, mirroring the behavior of psychopaths or individuals with frontal brain damage, lacking empathy and lacking the ability to consider others' perspectives. Research has shown that power can mold the brain to function in these ways."
This neurological shift occurs incrementally, initially manifesting in subtle ways that may perplex colleagues. However, if left unchecked, these changes can swiftly solidify into firmly established patterns with perilous consequences. Another byproduct of this transformation is that executives may become disconnected from the realities faced by their employees. This detachment grows as salaries rise, accompanied by a shift in socioeconomic status and a faster accumulation of privileges. A staggering shift in the executive-to-employee compensation ratio, from 20-to-1 in 1965 to 399-to-1 in 2021, particularly accelerated during the pandemic, is indicative of this growing chasm.
Employees and customers who lose trust in their executives are likely to depart, incurring significant costs for the organization. Furthermore, they may vent their frustrations on social media and resort to labor actions such as strikes.
To safeguard against the adverse impact of power on leadership, organizations must actively counterbalance these effects consistently. Consider the following strategies:
Go beyond the customary evaluation of skills and achievements when selecting executives. Deliberately scrutinize signs of recent behavioral shifts, including making problematic choices and disregarding data or peer input. Look out for symptoms of "hubris syndrome," a condition associated with an unbridled grip on power. Clinical features of this syndrome include:
Leaders afflicted by the hubris syndrome do not swiftly recover from the detrimental effects of power. Therefore, prioritize the recruitment of executives who exhibit recent humility, demonstrate emotional intelligence, and evince a willingness to learn and grow. A McKinsey study found that nearly half of CEOs face challenges during their initial tenure, with 90% expressing regrets regarding their transitional management. Support new executives with a structured onboarding process spanning their first 90 to 120 days.
While making the right choice in appointing senior leaders is paramount, equally critical is investing in their continuous learning and development. Remarkably, despite 83% of organizations acknowledging the importance of cultivating leaders at every echelon, only 5% have executed comprehensive programs. Irrespective of whether your company is a burgeoning startup or an established industry titan, executive training and coaching should constitute top priorities.
Developing emotional intelligence, particularly honing self-awareness and empathy, can mitigate the adverse effects of power. Effective executive training instills these competencies and fosters an understanding of the perils of power and the significance of early prevention or intervention. Other pivotal skills encompass strategic thinking, adept management of change, and the cultivation of innovative product solutions. Allocate resources to an in-house training initiative or engage specialized consultants in executive training and coaching. The dividends reaped will encompass myriad facets of organizational success.
