Business News www.wbn.co.nz
May/June 2015 Volume 23: issue 5
Surviving toxic leaders From Dr Colleen Rigby
INSIDE
Director of MBA Waikato Management School The University of Waikato
How many inspiring, authentic and transformational New Zealand business leaders can we name?
M
ost people, after a few moments of hesitation, might think of leaders like Rob Fyfe, Stephen Tindall, Mai Chen and Fran Wilde. On the other hand, ask people about a bad leader they have experienced and they can respond with alacrity. So why is there a plethora of bad leaders and a scarcity of outstanding leaders? This may come down to the type of narcissist they are. An “aha” moment about this question occurred at the International Leadership Association Conference in San Diego late last year. A PhD student Emily Grijalva presented her award-winning research on narcissistic leaders and noted two key points: it all starts when leaders are first selected; and
narcissism levels fall on a continuum. Narcissistic leaders thrive in the selection process because they can be charismatic and charming. They are confident, well-dressed and have high selfesteem. The impression they leave is of a visionary who is capable, highly extroverted and outgoing. Their pride in their own accomplishments is influential and persuasive. As a result narcissists appear likely to be highly successful leaders and so are often selected for a leadership position. If they are constructive narcissists, with moderate levels of narcissism, like the NZ leaders mentioned above, then they are not only visionary but also build a sense of trust, are well-
Dr Colleen Rigby Director of MBA balanced, consult staff and show empathy. While they are larger than life in terms of their vision
and profile, they do not feel they deserve special treatment. But some leaders are reactive narcissists (high on narcissism) or shy narcissists (low on narcissism) -and both can be equally devastating for the people they lead. Reactive leaders have a grandiose sense of self and see themselves as special, which can result in them being obnoxious, blaming and lacking in empathy. They have a strong sense of entitlement and exploit others. In their self-absorption and selfadmiration they come across as superior and arrogant. Reactive narcissists seldom take responsibility for failure they will find someone else to blame. In their self-absorption and self-admiration they constantly
WooHoo – NZ Tax Refunds achieves Trusted status WooHoo – NZ Tax Refunds (nztaxrefunds.co.nz) has been awarded Consumer NZ’s ‘Consumer Trusted’ status, giving consumers confidence that they are dealing with a trustworthy business in an increasingly competitive market. WooHoo is the first tax refund provider to be awarded the Consumer Trusted status, placing WooHoo among a select group of businesses recognised for their best-practice standards of service and fair dealings with customers. CEO of WooHoo – NZ Tax Refunds, Cilla Hegarty, said becoming a Consumer Trusted business was testament to the Continued on page 3
Left to right: Cilla and Aaron Hegarty, WooHoo with Derek Bonnar, Consumer NZ
seek positive feedback, see negative feedback as an insult and denigrate anyone they see as a threat. This type of leader rarely consults, manipulates others and may seek constant achievement to compensate for their own insecurities. Shy narcissists on the other hand, while ambitious and selfcentred, are often insecure and suffer from imposter syndrome, not fully believing they deserve the job. They are hesitant when interacting with others and may reinforce their security through dealing with spreadsheets behind closed doors, rather than interacting with others. The way they deal with uncertainty and fear of failure is by being perfectionist, but when something goes wrong they experience intense shame reactions. Despite hypervigilance, when their vulnerability is exposed they can become defensive and hostile. They may also exploit others, but will do so covertly. Whether these leaders are effective or not depends on whom you ask. Ask the leaders themselves and they rate themselves as highly effective; ask their followers and colleagues and they will tell a very different story. If you are currently dealing with a reactive or shy narcissist as your boss, here are some tips: Give them positive feedback about what they are doing well. Couch negative feedback in a way that is not threatening – you may phrase it as a challenge: “That sounds like a great idea. Let’s see if we can brainstorm Continued on page 3
Cosmetics developer nears million dollar mark Page 4
Architecture Awards Page 20
Conference and events Pages 22-27
Business Awards Launch Waikato’s function of the year, the Westpac Waikato Business Excellence Awards, is to be launched officially on Friday, June 26. The WWBEA identifies and celebrates excellent local businesses that have the qualities to make a major impact in the local, national and global business arena. The launch will announce the categories for this year, entry and nomination processes and the benefits to be gained from being an entrant. To register to attend or find out more email events@ waikatochamber.co.nz
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