The Idea in Brief

“What’s the difference between Larry Ellison and God? God doesn’t believe he’s Larry.” So quips an executive about Oracle’s larger-than-life leader. Charisma, vision—and, yes, big ego—define many larger-than-life leaders—Jack Welch, Bill Gates, Steve Jobs—who adorn today’s business-magazine covers.

Such “narcissistic” leaders are essential during times of transition. Gifted strategists and courageous risk-takers, they inspire others and drive their organizations toward a compelling future.

But they can also be emotionally isolated and highly distrustful, prone to hair-trigger rages and grandiose airs. They can ruin their company if their excesses go uncontrolled. The challenge? Getting the most out of them—while ensuring that they neither self-destruct nor endanger their companies.

For companies whose narcissistic leaders recognize their limitations, this innovative age could be the best of times. For other companies, it could be the worst.

The Idea in Practice

Strengths of the Narcissistic Leader

Narcissistic leaders see the “big picture” and offer gripping visions of the future. Skilled orators and creative strategists, they attract and inspire scores of followers.

Weaknesses of the Narcissistic Leader

As they garner adulation and success, these leaders begin to feel invincible. They ignore cautionary words and take flagrant risks. They listen only to information they seek and begin dominating subordinates (e.g., Steve Jobs publicly humiliates employees). Other problems follow:

Sensitivity to criticism. Unimaginably thin-skinned, narcissists can’t tolerate dissent. They say they want teamwork but really want yes-men.

Lack of empathy. They crave empathy but are not empathetic themselves. They can be brutally exploitative.

Intense desire to compete. They pursue victory ruthlessly, often unrestrained by conscience and convinced that threats abound. (“Only the paranoid survive,” Andy Grove of Intel maintains.)

Avoiding the Traps

Productive narcissists avoid these traps by:

Finding a trusted sidekick. Ideally a colleague—who keeps them rooted in reality, points out the operational requirements of their visions, and gets them to accept new ideas. Don Quixote had Sancho Panza, Bill Gates has Microsoft president Steve Ballmer, and Larry Ellison has Oracle COO Ray Lane.

Indoctrinating their organizations. Converting people to their point of view by providing impressive rewards for people who internalize—and commit to—their vision. (GE’s Jack Welch embodies this approach.)

Getting psychotherapy. Self-reflecting leaders who are aware of their irrational needs can remain highly productive.

How to Survive Working for a Narcissist

Empathize with your boss’s feelings. But don’t expect empathy back. Understand the vulnerability behind the display of infallibility. Support his best impulses—without becoming sycophantic.

Give your boss ideas, but let him take the credit for them. Find out what he thinks before presenting your views. If you think he’s wrong, show him how a different approach will benefit him.

Hone your time-management skills. Make yourself available at any time, but prioritize his too-many requests. Forget those that don’t make sense; he will, too.

There’s something new and daring about the CEOs who are transforming today’s industries. Just compare them with the executives who ran large companies in the 1950s through the 1980s. Those executives shunned the press and had their comments carefully crafted by corporate PR departments. But today’s CEOs—superstars such as Bill Gates, Andy Grove, Steve Jobs, Jeff Bezos, and Jack Welch—hire their own publicists, write books, grant spontaneous interviews, and actively promote their personal philosophies. Their faces adorn the covers of magazines like BusinessWeek, Time, and the Economist. What’s more, the world’s business personalities are increasingly seen as the makers and shapers of our public and personal agendas. They advise schools on what kids should learn and lawmakers on how to invest the public’s money. We look to them for thoughts on everything from the future of e-commerce to hot places to vacation.

A version of this article appeared in the January 2004 issue of Harvard Business Review.