New Age Consulting (NAC): "Cronus" in Organizational Life

Case Writers: Nesreen SROUJI and Elizabeth FLORENT The objective of this case is to provide a cautionary tale. The narcissistic entrepreneur/founder of the company was initially successful in building his organization during the Internet dot.com bubble, as he was able to motivate and inspire his young employees. As they began to realize that they were being exploited, he lost control of them. Most of them left the company, ironically leaving the leader without the knowledge resources to recreate the organization in the post dot.com economy. Themes addressed in the case are: entrepreneurship; narcissistic leadership; corporate culture, succession, leadership development; and the perils of growing out of the start-up stage.

A clinical perspective is used in analyzing personality and behavior of the leader of this company. Concepts of developmental psychology, family systems theory, cognitive theory, dynamic psychiatry, psychotherapy, and psychoanalysis are applied to better understand his behavior and actions. Significant themes that highlight psychological dimensions relevant to his leadership style are explored. Observations are made about the key elements of effective leadership, and what contributes to leadership derailment. Lessons learned from the case concern leadership development and succession.