Presented to YES 1 Aug. 2013 Larry Earnhart, Ph.D., M.B.A.

Presented to YES

1 Aug. 2013

Larry Earnhart, Ph.D., M.B.A.

Sometimes The Boss Really Is a

Psycho

*Introduction

“Take responsibility, make decisions, take risks! No matter how you carve it up, that’s what management is all about. Anything less is just seat-warming”

THE CORPORATE PSYCHOPATH

“CHAINSAW” AL DUNLAP

LAID OFF 12,000 WORKERS

BANKRUPTED SUNBEAMLEFT WITH $60 MILLION

Famous Corporate Psychopaths

*Bernie Maddoff4,000 victims $17B losses

*Bernie EbbersLooted $600M from WorldCom

*Ken Lay, Jeff Skilling, Andy FastowUtterly destroyed Enron and Arthur

Anderson, $80B in losses

*Ian ThowDefrauded dozens of clients, over $20M

Desirable Managerial Traits

• Gets The Job Done• Makes an excellent first impression• Shows courage and steadfastness• Strategic-minded• Risk-taker• Can live with tough decisions• Confident & knows self worth• Objective & analytical• Networks well• Moves up the hierarchy without loyalties• Visionary

• Gets The Job Done• Makes an excellent first impression• Shows courage and steadfastness• Strategic-minded• Risk-taker• Can live with tough decisions• Confident & knows self worth• Objective & analytical• Networks well• Moves up the hierarchy without loyalties• Visionary

No conscience Aberrant self-promoter No fear Liar and schemer Thrill-seeker No guilt or remorse Grandiose self-image Cold-hearted Glib, superficial charm Severs ties with those no longer useful Exaggerated promises

Psychopathic Management Traits

•1% of the general population •4% of business managers Paul Babiak, Ph.D. & Robert D. Hare, Ph.D., Snakes In Suits

Prevalence Of Psychopathy

Gilbert Labour is an executive coach and bases his estimates on 30 years experiencehttp://www.psychopath-research.com/forum/ubbthreads.php/topics/1074/2/Corporate_Psychopaths

Estimated Impact of Psychopathy on the Organization

•25% of all resignations

•50% of all stress leaves

•25% staff turnover rate

•Each victim is out of pocket $10,000

•The community is out of pocket $5,000 per victim

• Narcissistic – It’s all about them – Their goals are not your

goals• Deceitful - No truth at all• Manipulative – You won’t know• Charming – Many victims love them• Predatory – Steal other’s ideas• Unremorseful – Absolutely no

conscience• Unempathic – Physically unable to feel

other’s emotions

Identifying The Corporate Psychopath

• Results don’t make sense• Good employees leaving• Something just doesn’t seem

right• Lost access to personnel or

departments

Identifying The Corporate Psychopath

How To Manage The Corporate Psychopath

Don’tDo not stop, do not pass Go, do not collect $200

Get rid of offender ASAP

How To Manage The Corporate Psychopath

Prevention

• Intuition• Financial Results• MBWA• Hiring• Team interviews• Check references• Verify resume claims

Larry EarnhartAlchemy Business Consultingwww.alchemyconsulting.ca

Thank You

http://en.wikipedia.org/wiki/Psychopathy

Unlike the criminal or antisocial psychopath, the white-collar psychopath usually does not engage in violence or direct criminal behavior. Instead, they operate through glibness, manipulation, deceit, and with a lack of remorse or guilt