A Challenge for the Start-Up community...

Social media is awash with advice on dealing with narcissistic parties in our private lives but how do we deal with it in the workplace ? In particular, the Start-Up community which by its very nature attracts entrepreneurs and "characters" who are needed to drive the business forward. At the start they as an individual and CEO become the identifiable face of the organisation but what happens during expansion and rising revenue when their personal traits and behaviour begin to affect the company's growth and the goals of the organisation?

How do you stop those often powerful individuals from damaging everything and everyone around them as the organisation moves from "their control" into a corporate body and the focus is just not on them anymore?

How do we NOT trigger our corporate narcissists to act out so we do not lose market value or focus as they struggle to deal with the attention moving away from them?

The presence of a narcissistic CEO can pose unique challenges in this dynamic ecosystem. It’s crucial for team members, stakeholders, and investors to address such behaviour constructively to maintain the positive and collaborative ethos inherent in Start-up culture or risk losing everything that has been built before.

Here’s how I believe we can address this in the community:

1. Foster Collaborative Culture:

In a Start-up, cultivating a culture of collaboration and mutual respect is essential. Encourage open dialogue and value each member’s input to mitigate the impact of any narcissistic tendencies at the top. Call out when this is not happening on every occasion.

2. Promote Transparent Communication:

Given the close-knit nature of Start-ups, maintaining open and transparent communication is vital. This enables the team to discuss concerns related to leadership behavior and seek collective solutions and record those actions and solutions. Copy them to the CEO so they "know" your view and the expectations. You cannot lead a team effectively without listening to feedback- however uncomfortable that may be for the recipient. As a leader it's your role to listen.

3. Maintain Professional Boundaries:

Start-up environments can be informal, but it’s crucial to establish and maintain professional boundaries, especially with a narcissistic CEO. This will help in managing interactions and maintaining a respectful workspace. Start-up culture is different to mainstream corporate but always remember- this is a work environment, not home or your social life - there will always be a blur but recognise it and act accordingly.

4. Document and Escalate Concerns:

Keep records of unprofessional conduct and escalate these concerns to other founders, board members, or investors when necessary. This provides stakeholders with insights into the leader’s behaviour and its impact on the company’s growth. Never be afraid to speak out - the old cliche of what you are thinking is also being felt by 80% of the room. Be the adult in the room and act on it.

5. Leverage Peer Support:

The camaraderie in start-ups can be leveraged to build support networks among colleagues. Sharing experiences and concerns can help in forming a united front when addressing narcissistic behaviour. Toxic behaviour needs to be challenged but it can only happen if colleagues share their experiences.

6. Focus on Organizational Values:

Reinforce the values and mission of the start-up consistently. Upholding these principles can serve as a shield against the potentially damaging influence of a narcissistic CEO. Have a strong People Lead that can enforce to a CEO that their conduct and their behaviours are not acceptable - It actually matters more that they as the CEO should be doing the right thing, more than anyone else. The tone from the top needs to be right as it sets the company culture and if the CEO is not upholding the values how can the company ever progress?

7. Seek External Counsel:

Start-ups can benefit from external advisory boards or mentors who can offer insights and guidance on dealing with challenging leadership and fostering healthier workplace dynamics. Tell them what is going on - always if you are a senior leader in the firm watching this issue grow. You have a duty to say something - it's what you are paid for - to have the hard and uncomfortable conversations because your junior colleagues do not have the same access but would speak out if only they knew where to express their feelings.

8. Encourage Positive Behavior:

Reinforcing positive leadership actions through acknowledgement can help in moderating narcissistic behaviour and promoting a more empathetic and inclusive approach. In layman's terms - whatever your level -lead and support properly for your colleagues, clients and shareholders - not personal vanity.

9. Prioritize Employee Well-being:

Implementing wellness programs and focusing on employee well-being can create a supportive environment that counterbalances any negative influences and fosters a resilient start-up culture. This must include some form of feedback loop however into People Teams to identify at the earliest possible stages any issues. Make sure every firm has a Whistleblowing line and structure that employees trust and will use. Even if the issue is raised anonymously- it's been raised and good managers should try to understand it and where appropriate -address it.

10. Engage Investors and Stakeholders:

Regularly updating stakeholders on the company’s cultural health, along with its financial health, is vital. Address any behaviour that contradicts the start-up’s values and ethics.

Addressing narcissistic leadership is pivotal in maintaining any company culture but is especially important in Start-ups. It's a very hard challenge in small teams built on growth and trust to address but by taking an open, constructive and proactive stance you give that organisation the best chance of succeeding. None of us like a narcissist at home because it destroys people's lives and happiness. However, in the work environment, it also destroys companies as well as people and we have seen enough of that now.