Read Online Friend and Foe: When to Cooperate, When to Compete, and How to Succeed at Both by Adam Galinsky, Maurice Schweitzer - Free Book Online Page B
Authors: Adam Galinsky, Maurice Schweitzer
Ads: Link
Hershey’s Kisses at a cost of five cents. Some were asked to buy the chocolates for someone else, while others were buying only for themselves. Here is what we found: The powerful bosses acted like Scrooge—they bought 32 chocolates when buying for themselves but only 11 chocolates when buying for others. In contrast, those in the less powerful role of an employee acted like Jim and Della—they bought 37 chocolates when buying for others but only 14 when buying for themselves!
Other researchers have found that wealthier individuals donate a smaller percentage of their income to charity. Even though the powerful have more resources to share with others, power ironically makes people more Scrooge-like.
The key insight from all of this research is that power blinds us to the plight of others. And this “blindness” can have serious consequences: It can lead the powerful to lose their kingdom.
The King’s Downfall
As we mentioned at the outset, there is a scene from the movie
History of the World, Part I
in which King Louis XVI shoots peasants instead of clay discs during his target practice. While shooting his subjects into the air, he is told that “the people are revolting…the peasants feel you have no regard for them.” King Louis XVI responds with absolute shock, “I have no regard for the peasants??? They are my people…I love them.” The very next moment, he yells “Pull!” and a peasant flies up in the air. King Louis XVI forgot to attend to the people and they ultimately beheaded him. He overestimated their loyalty and suffered as a result.
One modern-day version of King Louis XVI is James “Jimmy” Cayne, who resigned as CEO of Bear Stearns in January of 2008, just two months before the entire firm collapsed. Although he never fired rifles at peasants, he was similarly out of touch with his shareholders and employees. Rather than focusing on the welfare of the company, Cayne spent an inordinate amount of time playing bridge; in fact this is what he was doing the day when two of his firm’s hedge funds collapsed and began bankruptcy proceedings. His departure was described as the “Cayne Mutiny” and characterized as “not a fond farewell.” He was later named by CNBC as one of the “Worst American CEOs of All Time.” But Cayne saw the emotions expressed during his departure differently. “When I left on January 4…there wasn’t a dry eye. Standing ovation. I was crying…Standing ovation, of the whole auditorium.”
Whether in business, in government, or anywhere else, a lack of attention to others frequently contributes to powerful people’s eventual downfall. But like Jimmy Cayne, the powerful never see it coming. Sebastien Brion of IESE Business School has documented this blindness scientifically. He found that the powerful are often overconfident in the support they have from others, and as a result they neglect to tend to those around them. Eventually, they lose the support of their subordinates and ultimately lose their power. Alexander Haig knows just how this can happen.
Alexander Haig liked being in charge. He slowly rose up the ranks of the Army, eventually becoming the vice chief of staff in the early 1970s. At the height of the Watergate scandal, Haig served as the White House chief of staff for the final year of President Richard Nixon’s term. Given the immense pressure that President Nixon was facing with the Watergate investigation, Haig essentially ran the government—he was seen as the “acting president,” and special prosecutor Leon Jaworski even called him the “37½ President.”
A few years later, President Ronald Reagan appointed Haig as secretary of state. Just months into his presidency, on March, 30, 1981, President Reagan was shot. On that fateful day, Haig rushed into the briefing room and seized the reins of the presidency. He famously stated, “Constitutionally, gentlemen, you have the president, the vice president, and the secretary of state in
Other researchers have found that wealthier individuals donate a smaller percentage of their income to charity. Even though the powerful have more resources to share with others, power ironically makes people more Scrooge-like.
The key insight from all of this research is that power blinds us to the plight of others. And this “blindness” can have serious consequences: It can lead the powerful to lose their kingdom.
The King’s Downfall
As we mentioned at the outset, there is a scene from the movie
History of the World, Part I
in which King Louis XVI shoots peasants instead of clay discs during his target practice. While shooting his subjects into the air, he is told that “the people are revolting…the peasants feel you have no regard for them.” King Louis XVI responds with absolute shock, “I have no regard for the peasants??? They are my people…I love them.” The very next moment, he yells “Pull!” and a peasant flies up in the air. King Louis XVI forgot to attend to the people and they ultimately beheaded him. He overestimated their loyalty and suffered as a result.
One modern-day version of King Louis XVI is James “Jimmy” Cayne, who resigned as CEO of Bear Stearns in January of 2008, just two months before the entire firm collapsed. Although he never fired rifles at peasants, he was similarly out of touch with his shareholders and employees. Rather than focusing on the welfare of the company, Cayne spent an inordinate amount of time playing bridge; in fact this is what he was doing the day when two of his firm’s hedge funds collapsed and began bankruptcy proceedings. His departure was described as the “Cayne Mutiny” and characterized as “not a fond farewell.” He was later named by CNBC as one of the “Worst American CEOs of All Time.” But Cayne saw the emotions expressed during his departure differently. “When I left on January 4…there wasn’t a dry eye. Standing ovation. I was crying…Standing ovation, of the whole auditorium.”
Whether in business, in government, or anywhere else, a lack of attention to others frequently contributes to powerful people’s eventual downfall. But like Jimmy Cayne, the powerful never see it coming. Sebastien Brion of IESE Business School has documented this blindness scientifically. He found that the powerful are often overconfident in the support they have from others, and as a result they neglect to tend to those around them. Eventually, they lose the support of their subordinates and ultimately lose their power. Alexander Haig knows just how this can happen.
Alexander Haig liked being in charge. He slowly rose up the ranks of the Army, eventually becoming the vice chief of staff in the early 1970s. At the height of the Watergate scandal, Haig served as the White House chief of staff for the final year of President Richard Nixon’s term. Given the immense pressure that President Nixon was facing with the Watergate investigation, Haig essentially ran the government—he was seen as the “acting president,” and special prosecutor Leon Jaworski even called him the “37½ President.”
A few years later, President Ronald Reagan appointed Haig as secretary of state. Just months into his presidency, on March, 30, 1981, President Reagan was shot. On that fateful day, Haig rushed into the briefing room and seized the reins of the presidency. He famously stated, “Constitutionally, gentlemen, you have the president, the vice president, and the secretary of state in
Similar Books
