Do You Need to Be a Jerk to be a Successful Leader?

At first blush, it seems like a simple answer – uhhh no. But is it that simple?

You have the success of Steve Jobs, Jeff Besos, Travis Kalanick, Larry Ellison, …

You have generations of leaders inspired by “The Art of War”, and then came Robert Sutton’s “The No Asshole Rule” with a chapter entitled, “The Virtues of Assholes”. In 2013 Adam Grant gave us “Give and Take: Why Helping Others Drives Our Success”; The Upside of Your Dark Side, etc. What about “Nice guys finish last!”

You see, not so simple.

What do we really mean by “asshole” or “jerk”?

Equally not so simple.

Here are some ideas: fear-based leadership, bullying, public humiliation, egomania (or is it confidence?), not caring what others think – smartest person in the room syndrome, abrasive language, tantrums, arrogance, seeking to control or dominate, or intimidate.

In his 2012 book, Assholes: A Theory, Aaron James, wrote that the asshole allows himself to enjoy special advantages because he has an entrenched sense of entitlement which makes him immune to the complaints of other people. Interesting angle.

How would you define it?

What is the difference between perception and reality?

Is it more often the case that a CEO is perceived as an asshole?

You will hire some people and not others, you will fire people, there are times you have to be tough, direct, and assertive. What if you set demanding expectations (see prior post, Formidable Expectations) vs. unrealistic? Are those seemingly obsessed with performance and productivity metrics rather than employee well-being, perceived as jerks even if accountability is fairly and transparently applied?

It’s not what you do, it’s how you do it. 

Are founders more likely to be jerks?

Malcolm Gladwell noted that disruptors tend to be disagreeable – again not quite asshole level.

Founders often have to push hard. They are pushing their people because teams are lean (early stage). Some are disrupting entire industries and the old guard is fighting back.  Airbnb vs. the hotel industry. Uber vs. Taxi Industry. 

Is the issue more prevalent for first-time, younger founders? Those that have not had the experience working in organizations and seeing the good and bad of leadership styles. Instead, they model their behavior after the myths of the Steve Jobs and Jeff Besos. What about others like Bill Gates – known to set high expectations, can’t comment on the asshole factor. Or, Reed Hastings?

Do these patterns multiply and erupt (for some) as you scale? Does venture capital follow the assholes? “I want not to invest in jerks, … [p]ersonally I believe life is too short. [But] I have wondered if this is actually a bad philosophy as an investor. I'd like to think not but I'm supposed to back founders for the best ROI, not personality.” - Former Silicon Valley investor, Eileen Burbidge.

What’s the verdict?

Perhaps a mixed bag (which then begs the question why do some jacka$$ behaviors work! Let’s leave that for another day).

A piece by NextBridge Consulting entitled “In Praise of the SOB CEO”, looked at a study published in The Journal of Finance, based on the capabilities of 316 individuals who were CEO candidates for private equity funded companies (insert caveat – unique data set)

The findings focused on two factors: “people-related” capabilities (i.e. teamwork, listening skills, treats people with respect, open to criticism) and “execution-related” capabilities (i.e. aggressive, fast mover, persistent, proactive).

And, the results … better execution capabilities meant better financial results and there is a negative relationship between a CEO’s people-related capabilities and their success in venture capital owned companies!! Perhaps, the takeaway here circles back to venture-backed businesses.

On the flipside, of course, is the fact that you may lost great talent, won’t be able to attract the best of the best. People talk. Glassdoor reviews or other complaint websites. They take to social media. Productivity falters when employees aren’t engaged and engaged employees are ones that feel like their work and their opinions matter. 

Hmmm… Anyone watch Silicon Valley? Check out the clip of Erlich’s rant about knowing how and when to be an asshole. “If you’re not an asshole this company dies.”