Ego vs. Conscience: Striking the Right Balance
In our fast-paced world, it’s easy to oversimplify what we read, see, and hear. But for any leader seeking real insight, one powerful lens to view experiences through is the dynamic between ego and conscience—both on a personal level and in the broader, existential sense.
Stephen Covey, in The Eighth Habit, provides a clear distinction between the two:
Ego is self-centered, focused on survival, pleasure, and personal enhancement—often at the expense of others. It thrives on ambition but can become self-destructive when left unchecked.
Conscience elevates ego, expanding it beyond self-interest to embrace a broader sense of responsibility—toward a group, a community, or a greater good. It frames life in terms of service and commitment rather than pure self-gain.
Ego in Leadership: Case Studies in Hubris
This contrast is strikingly relevant when analyzing recent high-profile corporate downfalls.
Take former AIG Chairman and CEO Hank Greenberg, for example. No one would dispute that Greenberg had a strong ego—it was likely essential in building AIG into a global powerhouse. But did his conscience ever balance that ego? Did he recognize when to put collective interests above personal ambition?
In the end, accounting irregularities may have been the technical reason for his downfall, but his failure to adapt—his inability to rein in his ego when circumstances demanded it—was the real cause. He didn’t evolve with the times, and that cost him.
Another example: Morgan Stanley’s leadership battle under CEO Phil Purcell. This situation had all the hallmarks of ego gone wild—internal power struggles, shareholder revolts, and hedge funds circling like sharks.
The board’s decision to spin off the Discover unit could have been an example of conscience-driven leadership, but instead, it was seen as a reactionary move—a capitulation to ego-fueled demands rather than a strategic decision for the company’s long-term good.
Meanwhile, Purcell’s opposition—the Group of Eight—also let ego drive their campaign, engaging in a full-scale media war that made headlines for its drama rather than its substance.
Harnessing Ego for the Greater Good
Despite these cautionary tales, ego itself isn’t the enemy. In fact, healthy ego is essential for leadership. The ability to push forward, take risks, and lead bold initiatives requires confidence and self-belief. Without ego, there’s no drive.
The challenge is knowing when to temper it.
As Covey puts it:
“Ego is myopic and interprets all of life through its own agenda. Conscience is the social ecologist listening to and sensing the entire environment. It fills the body with light and is able to democratize ego to reflect more accurately the entire world.”
It may sound lofty, but it’s worth considering before your next big decision. Success isn’t just about winning—it’s about knowing when to step back, see the bigger picture, and align personal ambition with a greater purpose.