Academics Arjit Chatterjee and Donald C. Hambrick of Pennsylvania State University (presented at the Academy of Management in Atlanta) show that big egos tend towards 'grandoise and higher-risk strategies'.
Big personalities favour acquisitions, big product launches and aggressive global expansion over more everyday areas of management such as cost control and people management.
It is up to the boards of companies to make sure they keep their top person's ego in check and prevent the onset of hubris. They will be able to judge whether the CEO is more a visionary than a narcissist, or the other way around.
FT, 26-27 August 2006
Review by Morice Mendoza