Organizational participants learn that "getting ahead" in organizational life comes from dramatizing a fantasy about the organization's perfection. The fantasy is the return to narcissism, in which the organization and its highest participants are seen as the center of a loving world. Since the return to narcissism is impossible, orienting the organization to the dramatization of this fantasy means that the organization loses touch with reality. The result is organizational decay-a condition of systemic ineffectiveness. Organizational decay is illustrated through the (...) case of General Motors. Specific dimensions considered are: commitment to bad decisions; advancement of participants who detach themselves from reality and discouragement of reality-oriented participants who are committed to their work; creation of the organizational jungle; isolation of management; development of a hostile orientation to the environment; transposition of work and ritual; loss of creativity; dominance of the financial staff; development of cynicism or the loss of reality; and overcentralizatior. Organizational decay may be compared with the consequences of hubris. (shrink)

Corporate scandals have assumed epidemic proportions. All around the globe, even renowned organizations have been felled from their high pedestals by the misdeeds of their leaders. This raises an intriguing question: How do such resourceful organizations end up with crass ‹impostors’ as leaders in the first place? The answer perhaps lies in the misplaced emphasis on certain qualities we associate with leadership. True leadership requires a balance among three elemental pre-requisites: Energy, Expertise and Integrity. When they are synchronized, they unleash (...) the latent potential in any organization. Out of these three interacting gears of leadership, it is Integrity that ensures that an organization is run in the right direction – with a view towards collective good rather than selfish motives. Therefore, it is the most non-negotiable of the three elements. Henceforth, leaders ought not to be selected on the basis of the superficial qualities that have blinded us in the past. They must first pass the acid test of Integrity. This article suggests a ‹decision tree’ and a ‹checklist’ to help in the selection process. (shrink)