If you want to understand why some companies have a toxic culture, underperform relative to their potential, and eventually collapse — look no further than the quality of their leadership teams. Whereas competent leaders cause high levels of trust, engagement, and productivity, incompetent ones result in anxious, alienated workers who practice counterproductive work behaviors and spread toxicity throughout the firm. Consider that the economic impact of avoiding a toxic worker is two times higher than that of hiring a star performer.
If we want less incompetent men in leadership roles, those responsible for judging candidates need to improve their ability to distinguish between confidence and competence. The good news is that, for some time now, we have had at our disposal scientifically valid assessments to predict and avoid managerial and leadership incompetence. There are systematic individual differences in how people present themselves, and these differences predict people’s leadership style and competence. When you are able to put thousands of leaders through the same self-report questionnaires, and you link their responses to their leadership style, performance, and effectiveness, you can identify the key patterns of self-presentation that characterize good and bad leaders. The bad news is that, despite the availability of such tools, very few organizations are using them.