A narcissistic organisation faces certain risks because of their behavioural characteristics.
- Hubris: Excessive, overbearing and unrealistic pride.
As social creatures, we are very good at picking up personality traits like hubris and arrogance. This can drive away some customers, and attract undesirable customers (self-important, entitled, narcissistic customers can turn into customer service and PR nightmares when disappointed.)
- Omnipotence: Deluded belief that it could do anything; and that everything it does is right.
The narcissistic organisation is unable to realistically assess risks, situations, and opportunities. Breaches of ethics, industry codes of conduct, and the law is a matter of time.
- Omniscience: Deluded belief that it knows everything and can foresee all outcomes.
Without reasonable caution, the narcissistic organisation is driving blindfolded down unfamiliar roads. It is less able to respond to change as it does not expect anything outside of its anticipated outcomes.
- Contemptuousness: Dismissive of others and of information; especially those contrary to its beliefs and delusions.
Without the means for reality checks, the organisation is operating blind. Strategy may become unrealistic. Safety and quality could be compromised. And the organisation is unable to improve or grow.
It is worth noting that any organisation can exhibit some of these characteristics; and thus be open to the attendant risks.Characteristics of a Narcissistic Organisation based on this source.