A Sociopathic Veterans Day

Every once in a while I stumble across an article that bends my illusion of reality. This time it stemmed from this post on the /r/overemployed subreddit. I find the phenomenon of taking on multiple jobs quite psychotic, especially in the richest time in our country. Most people can’t get out of the rat race and the efforts to exit are getting more and more absurd.

The blog post I’ll be referring to comes from Ribbonroad by Venkatesh Rao, of which I’ve never heard of before. His posts are a 6 part series on psychology of the power dynamics of business based on the TV show The Office, called The Gervais Principle. Below I will be pulling out all of the revelations I deemed important.

Part 1

This is the graph of the company hierarchy that he espouses.

The Sociopath (capitalized) layer comprises the Darwinian/Protestant Ethic will-to-power types who drive an organization to function despite itself. The Clueless layer is what Whyte called the “Organization Man,” but the archetype inhabiting the middle has evolved a good deal since Whyte wrote his book (in the fifties). The Losers are not social losers (as in the opposite of “cool”), but people who have struck bad bargains economically – giving up capitalist striving for steady paychecks.

The Cycle of company ran by sociopaths.

A Sociopath with an idea recruits just enough Losers to kick off the cycle. As it grows it requires a Clueless layer to turn it into a controlled reaction rather than a runaway explosion. Eventually, as value hits diminishing returns, both the Sociopaths and Losers make their exits, and the Clueless start to dominate. Finally, the hollow brittle shell collapses on itself and anything of value is recycled by the sociopaths according to meta-firm logic.

MacLeod’s Loser layer had me puzzled for a long time, because I was interpreting it in cultural terms: the kind of person you call a “loser.” While some may be losers in that sense too, they are primarily losers in the economic sense: those who have, for various reasons, made (or been forced to make) a bad economic bargain. They’ve given up some potential for long-term economic liberty (as capitalists) for short-term economic stability. Traded freedom for a paycheck in short. They actually produce, but are not compensated in proportion to the value they create (since their compensation is set by Sociopaths operating under conditions of serious moral hazard). They mortgage their lives away, and hope to die before their money runs out. The good news is that Losers have two ways out, which we’ll get to later: turning Sociopath or turning into bare-minimum performers. The Losers destined for cluelessness do not have a choice.

Based on the MacLeod lifecycle, we can also separate the three layers based on the timing of their entry and exit into organizations. The Sociopaths enter and exit organizations at will, at any stage, and do whatever it takes to come out on top. The contribute creativity in early stages of a organization’s life, neurotic leadership in the middle stages, and cold-bloodedness in the later stages, where they drive decisions like mergers, acquisitions and layoffs that others are too scared or too compassionate to drive. They are also the ones capable of equally impersonally exploiting a young idea for growth in the beginning, killing one good idea to concentrate resources on another at maturity, and milking an end-of-life idea through harvest-and-exit market strategies.

The Losers like to feel good about their lives. They are the happiness seekers, rather than will-to-power players, and enter and exit reactively, in response to the meta-Darwinian trends in the economy. But they have no more loyalty to the firm than the Sociopaths. They do have a loyalty to individual people, and a commitment to finding fulfillment through work when they can, and coasting when they cannot.

The Clueless are the ones who lack the competence to circulate freely through the economy (unlike Sociopaths and Losers), and build up a perverse sense of loyalty to the firm, even when events make it abundantly clear that the firm is not loyal to them. To sustain themselves, they must be capable of fashioning elaborate delusions based on idealized notions of the firm — the perfectly pathological entities we mentioned. Unless squeezed out by forces they cannot resist, they hang on as long as possible, long after both Sociopaths and Losers have left (in Douglas Adams’ vicious history of our planet, humanity was founded by a spaceship full of the Clueless, sent here by scheming Sociopaths). When cast adrift in the open ocean, they are the ones most likely to be utterly destroyed.

The Gervais Principle

Sociopaths, in their own best interests, knowingly promote over-performing losers into middle-management, groom under-performing losers into sociopaths, and leave the average bare-minimum-effort losers to fend for themselves.

The Gervais principle differs from the Peter Principle, which it superficially resembles. The Peter Principle states that all people are promoted to the level of their incompetence. It is based on the assumption that future promotions are based on past performance. The Peter Principle is wrong for the simple reason that executives aren’t that stupid, and because there isn’t that much room in an upward-narrowing pyramid. They know what it takes for a promotion candidate to perform at the to level. So if they are promoting people beyond their competence anyway, under conditions of opportunity scarcity, there must be a good reason.

Scott Adams, seeing a different flaw in the Peter Principle, proposed the Dilbert Principle: that companies tend to systematically promote their least-competent employees to middle management to limit the damage they can do. This again is untrue. The Gervais principle predicts the exact opposite: that the most competent ones will be promoted to middle management. Michael Scott was a star salesman before he become a Clueless middle manager. The least competent employees (but not all of them — only certain enlightened incompetents) will be promoted not to middle management, but fast-tracked through to senior management. To the Sociopath level.

And in case you are wondering, the unenlightened under-performers get fired.

So why is promoting over-performing Losers logical? The simple reason is that if you over-perform at the Loser level, it is clear that you are an idiot. You’ve already made a bad bargain, and now you’re delivering more value than you need to, making your bargain even worse. Unless you very quickly demonstrate that you know your own value by successfully negotiating more money and/or power, you are marked out as an exploitable clueless Loser.

A Loser who can be suckered into bad bargains is set to become one of the Clueless. That’s why they are promoted: they are worth even more as Clueless pawns in the middle than as direct producers at the bottom, where the average, rationally-disengaged Loser will do. At the bottom, the overperformers can merely add a predictable amount of value. In the middle they can be used by the Sociopaths to escape the consequences of high-risk machinations like re-orgs.

The future Sociopath must be an under-performer at the bottom. Like the average Loser, he recognizes that the bargain is a really bad one. Unlike the risk-averse loser though, he does not try to make the best of a bad situation by doing enough to get by. He has no intention of just getting by. He very quickly figures out — through experiments and fast failures — that the Loser game is not worth becoming good at. He then severely under-performs in order to free up energy to concentrate on maneuvering an upward exit. He knows his under-performance is not sustainable, but he has no intention of becoming a lifetime-Loser employee anyway. He takes the calculated risk that he’ll find a way up before he is fired for incompetence.

The career of the Loser is the easiest to understand. Having made a bad bargain, and not marked for either Clueless or Sociopath trajectories, he or she must make the best of a bad situation. The most rational thing to do is slack off and do the minimum necessary. Doing more would be a Clueless thing to do. Doing less would take the high-energy machinations of the Sociopath, since it sets up self-imposed up-or-out time pressure. So the Loser — really not a loser at all if you think about it — pays his dues, does not ask for much, and finds meaning in his life elsewhere.

Dastardly as all this sounds, it is actually pretty efficient, given the inevitability of the MacLeod hierarchy and life cycle. The Sociopaths know that the only way to make an organization capable of survival is to buffer the intense chemistry between the producer-Losers and the leader-Sociopaths with enough Clueless padding in the middle to mitigate the risks of business. Without it, the company would explode like a nuclear bomb, rather than generate power steadily like a reactor. On the other hand, the business wouldn’t survive very long without enough people actually thinking in cold, calculating ways. The average-performing , mostly-disengaged Losers can create diminishing-margins profitability, but not sustainable performance or growth. You need a steady supply of Sociopaths for that, and you cannot waste time moving them slowly up the ranks, especially since the standard promotion/development path is primarily designed to maneuver the Clueless into position wherever they are needed. The Sociopaths must be freed up as much as possible to actually run the business, with or without official titles.

Part VI

The Clueless and Losers debate whether or not ends justify the means. Sociopaths use whatever is justifiable to cover up whatever they want to get done. The result is a theater of justification.