Now, when I say investment management is prone to ego-driven behaviours, I'm not just stirring the pot. A 2022 German study found that fund managers exhibit nearly twice the average level of narcissistic traits compared to CEOs in other research.  

Not that all fund managers are narcissists of course, but the nature of the work seems to attract, and I’m sure some people believe it requires, individuals with alpha personality traits such as exaggerated self-esteem and a reluctance to admit fault. Although highly confident individuals who back themselves can have many benefits, they can also dominate conversations, stifle open discussion and impair idea exploration. 

If you believe investing is a team sport, then dealing with narcissistic tendencies must be a top priority. 

Open and safe debate is key to successful investment decision-making 

 We all know a good contest of ideas and robust debate leads to more thorough analysis and better outcomes, but this is only possible when team members feel psychologically safe to share ideas, ask questions, and acknowledge what they don’t know.  

As author and organisational health expert, Patrick Lencioni, says, 

“Teamwork begins by building trust. And the only way to do that is to overcome our need for invulnerability." 

For many, the thought of embracing vulnerability feels...well...vulnerable. It can also be near impossible for people with narcissistic traits as it’s just not part of their psychological makeup. However, without some level of vulnerability and self-awareness, trust cannot be established and team dynamics definitely suffer. 

To get to that sweet spot where a team hums along and there is a collective high-trust culture, individuals first need to know and trust themselves. Self-inquiry and reflection are key to this process, as is a willingness to share those vulnerable insights about yourself and accept that everyone has their own unique motivations, behaviours, strengths and challenges. Understanding each other’s quirks and how to best work together is key. 

Creating a culture of trust: Tips for leaders 

Here are my top tips for leaders who want to foster high-trust teams: 

1. Know yourself and support your team to do that same: My teams programs always start with some kind of profiling exercise and these days I’m using the Enneagram to turbo-charge the self-awareness process. Mapping personality against 9 archetypes and 3 sub-types, the Enneagram reveals so much more than behaviours and communication styles. It explores each archetype’s core motivation and worldview, which in turn reveals strengths, weaknesses, triggers and defence mechanisms.

This level of self-awareness allows for the self-acceptance required to build self-belief and self-trust. It is only from this place that we can truly develop and grow by being less fixated by the self-limiting beliefs and habits of our personality ie ego threats. When this conversation is had across a team, new levels of openness and trust emerge, and the time and energy spent defending and editing is substantially reduced, if not eliminated. 

2. Be comfortable with the uncomfortable: Leaders need to lead by example and be willing to show vulnerability. Acknowledge mistakes, admit when you don't have all the answers, and encourage others to do the same. Normalising vulnerability helps create an environment where even the most self-assured team members can feel safe to share their uncertainties and learn from others. It will feel uncomfortable, and you’ll need to do it anyway.

3. Keystone conversations: Encourage all team member to start projects with keystone conversations to discuss each other’s strengths, communication preferences, and conflict resolution strategies. This easy but highly intentional process establishes a solid foundation for collaboration and ensures everyone’s voice is heard.

4. Diversity and women in teams: Research shows that diverse teams, especially those with more women, tend to have more open conversations, higher levels of trust, and better collaboration. Building a balanced team can counteract homogeneous ideas or ego-driven behaviours and promote a more psychologically safe environment where rigorous challenging of ideas and constant feedback is the norm. Our recent Path to parity report also offers some great insights into why women enhance decision-making and team cohesion, and how to bring more women into your teams.

5. Bring in external facilitators: Using outside facilitators to run team discussions and workshops ensures leaders can fully engage in the experience as participants. This approach emphasises that leaders are as much a part of the team as they are its guides. The unbiased facilitation helps create a safe space for candid and constructive dialogue, which leads to more honest and productive conversations. Despite being an expert in facilitating high trust team dynamics, I still use external facilitators knowing that I’m part of any issue that needs to be surfaced and addressed. 

Building high-trust teams demands intentional leadership to navigate the intricate web of individual personalities and team dynamics. While this process can be challenging and sometimes uncomfortable, the payoff is immense. High-trust teams not only deliver superior performance but also foster unparalleled employee satisfaction - a winning combination for any organisation.

For more insights and ideas on how to build high-trust teams, read this great HBR article on The Neuroscience of Trust.

Want to build high-trust teams that thrive? Book a call with me today to discuss how we can help.