Fish rots and thus, stinks, from the head down

Fish stinks from the head, also known as “Fish rots from the head down” and so it is with businesses and other organisations – the buck starts and stops in the boardroom.

A strong organisational culture is one that is extremely well aligned to a common set of core values, making policy and procedure changes easier to introduce. However, rigidity and groupthink are two risk factors that accompany strong organizational beliefs and corporate dogma. Having a strong culture is certainly preferable to a weak one, but is not entirely the optimal situation.

Groupthink is a psychological phenomenon that occurs within a group of people, in which the desire for harmony or conformity in the group results in an incorrect or deviant decision-making outcome. Group members try to minimize conflict and reach a consensus decision without critical evaluation of alternative ideas or viewpoints, and by isolating themselves from outside influences. (Wikipedia)

A strong or manipulative CEO can easily create an environment of groupthink. He may even be perceived as the opposite, especially if he keeps on reminding the other (weak) executives that he really wants a climate of team decision making. He however only uses the other executives to buy-in to unpopular decisions. When he wants something desperately he merely steamrollers the others into agreeing with him. This CEO is extremely dangerous, and definitely not good for the organisation, and even society at large. He has a feeling of being untouchable, superior and is generally more clever than his peers (just because that is one of the key criteria he uses to select his team). If anyone dares to stand up to him, or disagrees with what he wants, he will ruthlessly sideline, exclude, embarrass or lobby support against such a person. He is the head of the organisation, and he is rotten, and thus smells. This toxic waste will spread to the rest of the fish.

So how do you spot such a CEO? Some examples of the toxic CEO’s characteristics and behaviour are:

• Master manipulator, always has an answer to any criticism, never the bad guy, never apologizes, little praise for anyone. Accusing critics of not allowing others a place under the sun, or claiming that the critics are stupid and not capable of creating that which they question or criticize
• Total and utter disregard for all regulations, often finding an illegal or unethical way around it (sadly this is sometimes referred to as being entrepreneurial)
• Being superior and having little respect for subordinates, clients, stakeholders. Sees themselves as the “saviour” of the commoners
• Playing “dumb” when being questioned (or being caught out) by an intelligent employee or stakeholder. The flip side is to make less-intelligent people look really stupid with his clever, manipulative answers to their probing questions
• Making promises but rarely keeping to it, changing the goal posts as soon as the objective is in arm’s reach
• Generally out of touch with the real world, his customers, his staff…. Living in his own “superior make-believe world” where he is king
• Surrounds himself with weak people (read: less-intelligent, easily manipulated, losers with few other options) so that the chance of being questioned is minimized
• Labeling people with higher intelligence and superior logical- and reasoning skills as negative
• He is trying to prove himself to, or trying to be accepted by, a person close to them – the main driver of the toxic CEO. So in essence, this man is weak and inferior and manages the company with emotions, instead of good, solid business skills. To him it is personal – which reminds me of George Bush Junior. Bush defied and ignored any sense of intelligence and logic, by attacking Iraq, and all of this just because he wanted daddy’s acceptance and approval. What a huge price the USA, and the rest of the world, had to pay for one man’s insecurity and achievement of a personal goal
• He has symptoms of a personality disorder. One minute he is on top of everything, exuding a positive and superior presence and the next minute, without any logical reason, he “loses” it, speaks in a high pitched voice and becomes abusive
• Frequently appoints a “shadow” to protect him, to make unpopular decisions on his behalf, to bully infidels, to advise him and to get him out of sticky (personal and business) situations. Unbeknown to the CEO, his “shadow” always becomes so power / money hungry that he starts abusing his position of blind trust – inevitably leading to the CEO’s personal destruction
• Often seeks external advice, but only accepts it if it corresponds with his own thinking. Gets a second or third (or fourth) opinion until he finds a consultant that is aligned with his own, inferior thinking

Watch out for the rotten CEO. As long as he is heading the company, it is only a matter of time before the company crashes spectacularly, or even worse, becomes a target for a serious law suit. The rest of the executive team could also be guilty, because they allowed the rot to carry on.

If you are caught up in such a company, maybe it is time to consider your own personal risk. You only have one name, can you really afford to get it tainted by someone else?