Tesco
Ego Check
Book

Ego Check

Why Executive Hubris is Wrecking Companies and Careers and How to Avoid the Trap

Mathew Hayward
Kaplan Publishing, 2007

Read or listen offline

  • 0.5×
  • 0.75×
  • 1×
  • 1.25×
  • 1.5×
  • 1.75×
1×

Editorial Rating

9

Qualities

  • Innovative
  • Applicable

Recommendation

Mathew Hayward’s unusual book draws upon mythology to establish a major business premise and then proves it statistically. The premise is that hubris (CEO arrogance) is usually the source of illogical corporate mistakes, such as overpayment for acquisitions. The author draws heavily upon his research and other studies about “behavioral decision theory” to back up the concept that great pride often brings on a great fall. This profundity is basic to the philosophy of Greek tragedy, Dante, Shakespeare and Milton. The author used this concept to analyze more than 100 corporate mergers. He found that CEOs were usually the decision makers behind substantial overpayments for acquisitions. He concludes that egomania and narcissism, but not courage and conviction, must be “checked at the door.” getAbstract recommends this interesting, thoughtful book.

Take-Aways

  • Many mergers and acquisitions reflect executives’ excess pride.
  • This “hubris” is often the chief culprit in business decisions that fail, particularly overpriced acquisitions.
  • It leads to “false confidence” manifested by mistakes, solo decision making, “ungrounded” judgments and failure to see consequences.

About the Author

Mathew Hayward served in the Wall Street battlefield as a venture capitalist and investment banker. He turned to academe in 1992 to earn a Ph.D. at Columbia. He is now an assistant professor at the University of Colorado business school, a management consultant and a leading researcher on “hubris.”

Comment on this summary or Diskussion beginnen

  • Avatar
    Sign in to share your opinion
  • Avatar
    F. A. 4 years ago
    This was very interesting and I liked the use of real-life examples such as the Segway scooter. I now know what "hubris" is! Great reading!