We drive into the future using only our rear-view mirror.
–Marshall McLuhan
There’s no universal formula for effective leadership. But there is an overlooked foundation: self-awareness. The best leaders aren’t just strategically smart, they’re psychologically minded.
In my work as an advisor to organizational leaders, and as a licensed psychoanalyst, I’ve found that leaders who are self-aware, emotionally regulated, and psychologically integrated—who are, in other words, introspective, attentive to their own blind spots and shortcomings, and able to effectively manage themselves both internally and socially without being hijacked by intense emotions—tend to helm companies that are more socially responsible and that succeed across a range of key performance metrics. In contrast, leaders beset by unresolved conflicts and whose emotional instabilities drive impulsive, erratic behavior and poor decision-making—no matter how talented, skilled, or innovative they may otherwise be—invariably generate or exacerbate problems for their organizations and then face greater difficulties in rebounding from them.
That this may be self-evident doesn’t make it any less significant. The observation by itself doesn’t solve the problem that many institutional leaders are skeptical, even dismissive, of the importance of self-understanding and reluctant to consider how personal history and unconscious forces influence decision-making in institutional operations.
What’s to be done about this? I think we can better prepare prospective leaders for their exceptional responsibilities by educating them to be psychodynamically minded—capable of introspection and self-reflection, attuned to unconscious as well as conscious feelings and motivations, and able to recognize empathy and care for others as strengths.
How? By creating psychodynamically-oriented courses that focus on human complexity in relation to organizational culture and leadership. Rather than offering such training only to early-career or established professionals, these courses should be made part of the required curriculum for both undergraduate and graduate students majoring in business, economics, political science, entrepreneurship, and technology. Such a curriculum would introduce these students to fundamental psychoanalytic concepts, including the dynamic unconscious, internal conflict, repression and other defense mechanisms, psychosocial theories of development and attachment, and the lasting influence of early childhood experience in later life. It would also help them appreciate how the practical application of psychoanalytic concepts can enhance one’s understanding of interpersonal behavior (Lunbeck 2024), thereby fostering psychological acuity in the pre-professional study of decision-making in institutional contexts.
One model already available is the program in Psychoanalytic Studies at the University of Pennsylvania, established in 2015 and designed in partnership with the Psychoanalytic Center of Philadelphia. While not specifically focused on preparing business students or aspiring entrepreneurs, its curriculum is interdisciplinary and offers courses sponsored by different departments and programs. Many courses are team-taught by a member of the university’s standing faculty and a professional psychoanalyst.
Similarly, for the past two years, I’ve served as a volunteer mentor for the Purposeful Work Job Shadow Program at Bates College. Each semester, my Shadow Program has been robustly subscribed by a cohort of undergraduate students from majors including economics, neuroscience, technology and computer science, political science, psychology, sociology, and interdisciplinary studies. These students are all deeply interested in learning about psychoanalytic principles and eager to understand how psychological insights can be applied advantageously in organizational settings and other institutional contexts.
Of course, obstacles exist. Psychoanalysis has become largely eclipsed by psychopharmacology and other treatment modalities and is often mischaracterized in the public imagination as irrelevant and anachronistic. Moreover, there has been thus far only very limited implementation of psychodynamic pedagogy in leadership programs, thanks to the traditional canon of leadership and management theory and the leadership-development industrial complex. Instead, empirically oriented social sciences and cognitive-behavioral psychology continue to shape the study of human motivation and behavior, and while some of this research is incisive and useful, much of it is reductionistic, oversimplified, and psychologically naïve. Consider the how-to-be-a-great-leader genre—books, articles, and other media that promise to teach leadership skills through frameworks, principles, and success stories that privilege generic, prescriptive advice. Despite its popularity, this genre is not only inadequate, but it also actually encourages the avoidance of many challenging issues—for example, by perpetuating false illusions about leadership; by promoting formulaic modes of evaluation; and by failing to see leaders as complex individuals with strengths, weaknesses, and capacities related to developmental processes shaped by both intrapsychic and environmental forces (Stein 2021).
And this is just part of the broader marginalization of psychoanalysis in higher education. As Max Cavitch writes, such sidelining is about much more than “the suppression [by academic psychology, most notably] of a single field of knowledge but also, crucially, a defensive refutation of the determinations of unconscious experience throughout all aspects of human affairs” (Cavitch 2025, 9). Yet the argument for psychoanalytic education is a strong one. Psychoanalysis has always been a highly interdisciplinary field, meant to provide a comprehensive framework for a holistic understanding of individual and group behavior. It is concerned with understanding and addressing psychological development and functioning, conscious and unconscious processes and their relation to environmental factors, subjective and emotional experience, the problems and sequelae of trauma and early attachments, fantasies and anxieties, and unconscious conflict—all of which have consequences for decision-making and workplace behavior. Both practitioners and teachers of psychoanalysis engage patiently and thoughtfully with their patients and students, respectively, helping them to pay close attention to the potency of fantasy, desire, and aggression in their own and others’ experience and thereby enabling beneficial changes in thought, feeling, and behavior (Stein 2020). In addition to its clinical applications, psychoanalysis is an unparalleled educational resource for students and future leaders in every field (Stein 2024).
As leadership advisor Kerry Sulkowicz notes, “leaders are neither born nor made; real leaders are forged in the crucible of childhood and accumulated life experience, often with no small amount of trauma involved … some of the best leaders became that way as an adaptation to rather specific traumatic childhood events” (Sulkowicz 2021). Research shows that “family environments ripple through the decades to affect decisions” (Economist 2025), and there are demonstrated correlations between bosses who experienced a disaster in childhood and their appetite for risk in adulthood. Yet even reputable business publications recommend that “no one should be selecting [CEO] candidates on the basis of their formative years” (Economist 2025). Childhood experiences are generally overlooked when considering qualifications for leadership, except for cherry-picked synopses of early life struggles, such as escaping economic hardship or overcoming adversity, which can serve as compelling origin stories for assertive leaders. Jacinda Ardern, the former prime minister of New Zealand, observes that, if you ask parents what values they think are important for their kids, the overwhelming majority “want their kids to share … be generous … kind and empathetic, brave, courageous. Those values that we teach our kids, we then see somehow as weaknesses in leaders?” (Ardern 2025)
Minimizing or dismissing a prospective CEO’s formative experiences hobbles both the assessment of current and prospective leaders and later leadership issues. Considering the psychological “source-code” for ingrained ways of feeling, thinking, and responding; defense mechanisms; and predispositions to relating and communicating, among many other formative early life influences, is essential to the evaluation of individuals’ leadership capacities. The conventional approach to defining estimable leadership skills and traits, and the educational and experiential trajectory for aspiring leaders, radically minimizes nearly everything that happened before approximately late-adolescence.
Disproportionate emphasis is still typically placed on tangible strengths, measurable knowledge and skills, and operationally focused competencies. This, in turn, fuels the leadership development industry. Nearly every consulting firm has a dedicated executive coaching practice. Most universities and business schools offer curricula in leadership and entrepreneurship. Students can register for modules on such topics as “developing mindfulness and authenticity to build trust, create engagement, and promote productivity,” “learning different methods of effective decision-making and ways to avoid bad decisions,” and “establishing alignment between personal and organizational purpose.” There are leadership greenhouses, talent labs, and classes on ‘leadership in the age of AI” and on “becoming an empathetic leader.” Other course topics include: emotional intelligence, managing power and pressure, effective communication and executive presence, leveraging influence and motivation to boost productivity.
At an earlier time, such “soft” skills would have been denigrated as meritless. The fact that they’re offered now is a clear sign of a progressive attitude shift. But the content is inadequate. Half a century ago, the influential management guru Peter Drucker advised companies to hire executives “for their strengths, not their absence of weaknesses” (Drucker 1967, 72). That idea is still prevalent and both justifies and rationalizes a myopic and Machiavellian approach to achieving or assessing enterprise success, while also over-simplifying and over-valuing the contributions of a single individual—a hold-over of the specious “great man” theory of history.
Enterprise trajectories and outcomes are rarely entirely attributable to a single individual. They are the result of nesting decisions and processes involving many people. Deep analysis of any organization’s history and developmental journey inevitably reveals enormous complexity, and its current situation is nearly always the consequence of multiple, intertwining factors. In most organizational ecosystems, people adapt (or maladapt) to the explicit and implicit needs and expectations of its central figure. The measure of a leader is often determined, no matter what the official narrative is, by others’ willingness to accommodate, enable, comply, appease, or defer to that leader.
In addition, much of the preparatory guidance in university courses and the tools and solutions proffered by conventional consulting and executive coaching services fall short of achieving their stated aims. A 2014 McKinsey study asserted that “companies pay lip service to the importance of developing leadership skills but have no evidence to quantify the value of their investment” (Gurdjian et al. 2014). Another study found that while “global organizations spend more than $60 billion annually on leadership development programs, the returns these investments yield for leaders and their teams are not always clear” (Yemiscigil et al. 2023).
A different approach is needed. Leaders face tremendous challenges and are increasingly poised to support and influence their organizations in ways they may never have encountered before and for which technical know-how alone is inadequate. The pressures of rapid decision-making, profound human complexity, and intense disruption to working norms—geopolitical upheaval, post-pandemic transformations to business environments and global commerce, the meteoric ascent of AI and other emerging technologies—require leaders to have more psychological acuity than ever before. Today’s world requires a sophistication in thinking about leadership that only psychoanalysis can provide.
The success, failure, and struggles of people in leadership positions are directly related to their capacities and limitations in recognizing and effectively navigating their own psychological and emotional states. Leaders must thoughtfully leverage the multifaceted complexities of their whole selves. Fulfilling the demands and expectations of their role as ultimate institutional decision-makers is inseparable from the sort of self-understanding that psychoanalysis is uniquely qualified to enhance.
Works cited
Ardern, Jacinda. 2025. A Different Kind of Power. New York: Penguin.
Cavitch, Max. 2025. Psychoanalysis and the University: Resistance and Renewal from Freud to the Present. New York: Routledge.
Drucker, Peter. 1967. The Effective Executive. New York: Harper and Row.
Economist. 2025. “The Early Lives of Bosses: From Cot to Corner Office.” The Economist 455.9445 (26 April 2025): 64. https://www.economist.com/business/2025/04/24/the-early-lives-of-bosses.
Gurdjian, Pierre, Thomas Halbeisen, and Kevin Lane. 2014. “Why Leadership-Development Programs Fail.” McKinsey Quarterly 1st Quarter, vol. 1: 121-26. https://www.mckinsey.com/featured-insights/leadership/why-leadership-development-programs-fail#/.
Lunbeck, Elizabeth. 2024. “How Do You Teach Psychoanalysis to Gen Z?” Psychoanalysis and You. Podcast audio, October 3, 2024, https://apsa.org/psychoanalysis-and-you-episode-3/.
McLuhan, Marshall. 1964. Understanding Media: The Extensions of Man: Signet Books.
Office of Purposeful Work Job Shadow Program, Bates College. https://www.bates.edu/purposeful-work/job-shadow/.
Psychoanalytic Studies at the University of Pennsylvania. https://web.sas.upenn.edu/psys/about/.
Stein, Alexander. 2020. “Psychoanalysis in the Public Sphere: A Call for Taking Analytic Thinking, Writing and Action into the Broader World.” Psychoanalytic Perspectives 17.2: 141-160. https://static1.squarespace.com/static/5fbc3428d0fb35038fbe4eb5/t/64ceb388b70e5d37fbf72762/1691267976505/Psychoanalysis+in+the+Public+Sphere_Dr+Alexander+Stein_Psychoanalytic+Perspectives+17-2+June+2020.pdf.
—. 2021. “How To Become a Malevolent Leader: A Field Guide for Aspiring Fraudsters and Tyrants.” Forbes, January 27, 2021, https://www.forbes.com/sites/alexanderstein/2021/01/27/how-to-become-a-malevolent-leader-a-field-guide-for-aspiring-fraudsters-and-tyrants/?sh=43e7d9097149.
—. 2024. “Psychoanalysis as a Technology for Positive Change and Influence at Scale.” Technology and the Mind. Podcast audio, January 24, 2024, https://podcasts.apple.com/us/podcast/dr-alexander-stein-on-psychoanalysis-as-a/id1638761843?i=1000642693582.
Sulkowicz, Kerry. 2021. “What Psychoanalysis Can Offer Leaders.” Unpublished lecture. Political Mind Seminar Series, Institute of Psychoanalysis (London), May 25, 2021.
Yemiscigil, Ayse, Dana Born, and Horace Ling. 2023. “What Makes Leadership Development Programs Succeed?” Harvard Business Review February 28, 2023, https://hbr.org/2023/02/what-makes-leadership-development-programs-succeed.