| Hubris
stands for the ultimate in greed, arrogance, over-preening,
unbridled ambition and, deceit. All Greek tragedies centre
on hubris and the eventual retribution, nemesis,
in several forms. Oedipus stands as a classic example of
what hubris can do. He was so blinded with arrogance that
he did not take several cues and hints that he was the cause
of the misery in his kingdom. He was so full of himself
that he fell prey to what was indeed a prophecy that he
well knew but could not realize that he was actually a part
of it. Begetting children of his own mother, he was eventually
to gorge out his eyes and roam in the streets as a mad man.
It is for this reason that the old saying goes that those
whom the Gods would destroy, first make them proud.
Mankind
has been told, through the ages, the consequences of hubris
and have been advised moderation, concern for others and
humility (sophrosyn). While Hitler symbolizes the
former and its consequences, Gandhi tells us of the might
of the latter. Do these qualities figure in the culture
or character of an organisation? Do we see less hubris in
the Indian Railways, DRDO, ISRO, or the academia than say,
big corporates, religious places or the district administration?
If hubris portends doom, should we measure it? Benchmark
it?
Hubris
in a corporation is not divorced from its leaders. In fact,
it arises from them and spreads throughout to give a feeling
of invincibility. The statements of the leaders, the way
they actually relate to the society, and the manner in which
the employees behave in relation to other stakeholders,
give indications of its level. Such arrogance in some organisations
may not be loud but yet conveyed by its conduct, if not
apparent behaviour. Hubris leads to a learning disability
in critical areas like positive culture, professionalism,
ethics, and social responsibility while learning may be
high in deceit, chicanery, stealing of intellectual properties,
creative accounting, smothering competition illegitimately,
and the like.
In
the case of Enron, the CEO, Jeff Skilling, a “professional”,
probably typified the arrogance required for driving the
company to its bottom. When people raised questions he accused
them of not going through sufficient details and in turn
called any line of enquiry, as being “unethical”.
Skilling believed Enron to be a nimble success story against
the conservative, slow-moving traditional corporations.
While addressing a conference of utility sector executives,
he told them that he “was going to eat their lunch”.
The company’s arrogance arises from a spectacular
growth from dealing in natural gas and power in 1985 to
trading exotically devised intangible products and services
by 2000. Over a period of 15 years, the company started
trading in 1800 products that included commoditising advertising
space and trading in weather forecasting. Some of these
products were named from fiction, again showing a streak
of arrogance. The names of stock entities Raptors I, II,
and III were straight from the Jurassic Park. The names
of off-shore special purpose entities – there were
about 2800 of them – included “Jedi” and
“Chewco” from the Star Wars.
It
is rumored that the company quickly developed a culture
of flouting the rules at every level of financial reporting,
disclosures, accounting, and worse still, even in personal
lives. The rules were reportedly broken even to accommodate
sexual pleasures and inappropriate expense accounts that
became permissible in the new culture. Every one was lulled
into believing that making as much money as possible is
the secret of corporate success. The top managements’
conduct was described as “so disgusting and base”
that they cheated even their own employees into buying the
company’s stock even as they were offloading theirs.
Currently, employees of Enron are discovering that employment
doors are quickly closed on them for no other reason than
the notoriety of the once famed but fallen company. This
happened to the employees of BCCI as well during the early
90’s, which again was a victim of hubris.
Jim
Alexander, the former CFO of Enron Global Power & Pipelines,
is reported to have compared Enron with Drexel Burnham Lambert
Inc which is now a well known case study of fraud that led
to the demise of this investment banking marvel of the 80’s.
Jim has been quoted in Fortune: “The common theme
is hubris, an overwhelming pride, which led people to believe
they can handle increasingly exotic risk without danger”.
It
is not difficult to detect hubris in the Indian corporate
world. Some of India’s leading companies probably
suffered from this ending up with the nemesis of
court proceedings and jail terms. A feeling of invincibility
creates adventurist tendencies coupled with a learning disability.
In such companies, the manner in which the vendors/suppliers,
auditors and applicants for jobs are dealt with gives the
first signs of hubris. In some cases, the arrogance is unmistakable
at their pre-placement talks in campuses when there is over-preening
by exaggerated images that are far from reality. There is
an affected style, an unnatural slang, a borrowed and familiar
refrain that should actually sound hollow, except for the
aspiring and glamorized listeners.
The
value statements of the companies suffering from this disease
will nevertheless be spotless. They will talk about gender
equality, treating human resources as valuable assets; being
a good and environmentally responsive corporate citizen;
striving for customer care at all costs, etc. However, a
company with widespread and deep-seated arrogance can never
find these value statements in the work place. The company
may have an exponentially growing profit line and a solid
balance sheet with none of the stated cultural attributes.
The sure sign of an impending doom for a corporation is
such a disconnect between the intent in the value statements
and the actual behaviour of its key employees and their
families. While some organizations, such as the government
may never collapse, the individuals can be visited by nemesis
in one form or the other.
The
traditional bureaucracy also often reeks of arrogance with
the several deprived and distressed citizens having to suffer
the callousness and humiliation from the time of seeking
an appointment to making a representation. The manner in
which the common man is shooed away from the path of the
“omnipotent” official is sufficient to put the
oppressive colonialism in better light. Cringing, crawling,
pandering to the bloated egos by respectful body language
and slavish language are protected as valuable heritage.
Rank and cadre differentiation has to be underscored at
every stage to feed the fast eroding ego and fuel the arrogance.
Such
arrogance begins in the shortsighted employees who believe
that they indeed are the system. They derive it by virtue
of the position which they believe is an endowment of a
property than an implicit contract with the society. When
officers/executives mistake the organizational power as
their congenital endowment, they transmit around the signals
of arrogance than of their duties, responsibilities, and
importantly, obligations.
The
body language, the way of communicating, and the manner
in which one relates to others is under constant watch by
juniors, subordinates and members of the family. Arrogance
can spread to all these around who will carry it in their
own way – if by providence it is not the wife who
carries this around, the secretary does. Such arrogance
feeds on the ego and eats away any potential for humility.
Thus, the arrogant manager and his family will not be easily
satisfied with common courtesies. They will need servitude
and a sense of control to pamper their egos and a state
of well being.
Yes,
such a hubris-hit manager, his secretary, wife, and children
may periodically exhibit humbleness and humility which appears
awkward as it is often practiced as a feed to be able to
say that they actually have such virtues (like fraudulent
companies financing social causes for reputation reasons).
As Swami Chinmayananda commented, such a “virtue”
is a strange thing - the moment one believes that he/she
has humility, it is gone!
In
the study of hubris and nemesis in recent times,
Hansie Cronje, the great cricketer from South Africa, stands
up as an example. Hubris went to such an extent that he
played every trick of misdirecting the attention to saying
that it is the ubiquitous greed, tempting money, the sleazy
Asians who are to be blamed, not he. Surprisingly, this
worked for a while at least. He indeed portrayed himself
as a deeply religious person including with a wristband
he wore that says WWJD (What Would Jesus Do?). He tried
a series of tricks arising from a feeling of greatness that
can somehow smudge opposition into confusion through glibness
and manipulation. Alas, even his mother, Ann-Marie, had
to tell him before he stood in the witness box that “there
will be no place in this family if you lie again son, I
won’t call you son again if you do”. Despite
this, his hubris reportedly remained undiminished till the
very tragic end.
Getting back to Enrons, BCCIs and many others, what was
the HR man doing? Was he happy to be part of this culture
that felt good as it lasted or did he run away? Did he fail
his profession and the employees in not trying to influence
the corporate culture? May be there are lessons now that
the HR manager should watch for elements of hubris in his
organisation. He should know and warn that hubris attracts
potential risks for the company arising from adventurism
mistaken as strategy; flouting rules terming it as flexibility,
innovativeness and pragmatism and aggrandizement believing
it to be a motivating incentive. It may be time that I build
a Hubris Score Card to be able to measure periodically!
Of course, an assailable assumption is that the HR managers
have not actually been recruited to facilitate hubris!
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