When the dark side of leadership emerges, organizational catastrophe is just a step away. Financial news proves this year after year. For instance, former CEO Adam Neumann contributed to devaluing the commercial real estate company WeWork by approximately $37 billion in mere months. Now, we all know that the dark side of personality can derail everyone’s behavior from time to time. But leadership derailment is a higher-order problem. As in the case of WeWork, the dark side of leadership can result in bankruptcy and ruin.
Organizational performance is tied to effective leadership, which is the ability to build and maintain a high-performing team. In contrast, executive derailment directly impacts organizational culture and effectiveness, customer satisfaction, employee engagement, productivity, and brand reputation. A leader’s context and rank also affects how publicly or disastrously they tend to derail. The scale of consequences would be completely different for a first-time manager versus an Adam Neumann.