Material character defect: Beware of people with this dangerous disorder

Spring is just around the corner. The economy is getting better. Life is mostly great.

But I’m troubled by one thing. I have had a series of encounters in the past year with people suffering from MCD. (Fortunately, none of them are TEC members!)

What is MCD? It stands for “material character defect.”

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I can’t take credit for putting a name on this terrible affliction. That credit goes to Linda Mertz, CEO of Rubicon-based Mertz Associates, an exemplary M&A advisor to middle market companies. Linda mentioned the term at a TEC meeting, and it perfectly describes a few people I had the displeasure of dealing with last year.

We have all dealt with people suffering from MCD, in big ways and small. Have you ever been to dinner with somebody who complained about the food, wine or service for no other reason than wanting a free dinner, dessert or drink? That’s a symptom of MCD.

People with MCD can ruin your whole day and maybe even ruin your business and your life. So let’s learn how to identify and avoid those suffering from this outward-debilitating disorder.

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I recently spoke to an HR director who related a story about an executive candidate who was taken out of the running when he belittled his wife at a dinner with the board of directors. This guy definitely suffered from MCD.

One of my unhappy encounters involved somebody who committed fraud and embezzlement. Now, I’m a very trusting and positive person. But this guy really shook my faith in human nature. Not only did he steal, he then claimed he had “permission” to steal and acted very hurt that we’d even suggest a lack of trust or ethics.

In my opinion, he crossed the line from MCD to sociopathic disorder, but who am I to judge? I hope that at least a few years in jail for this perpetrator will improve the world. But I doubt it will heal him of his MCD condition.

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The problem is, many people with MCD are able to survive, even thrive–or at least fly under the radar–because they are masterful at justifying their bad behavior. And, enough people and organizations are willing to ignore or tolerate it.

So how do you identify a person with this terrible affliction? Here’s my list of The 10 Worst MCD Character Flaws.

  • Arrogance or hubris
  • Dishonesty
  • A short temper
  • Narcissistic
  • Uber high ego with the need to always have the last word
  • Joyless
  • Cheap, and always picking on the help (employees, service workers, etc.)
  • Greedy
  • Victim mentality, always blaming
  • An almost-painful-to-watch lack of self-awareness

How do you avoid people with MCD? You can’t. But as Ronald Reagan once said, “Trust but verify.” Here’s my advice for your workplace.

Hire slowly, fire quickly

For all hires, especially sales, I strongly recommend using intelligence testing and personality/culture profiling such as DISC. For key hires, include interviews with an industrial psychologist. In Wisconsin, I use Rick Bauman at Humber, Mundie & McClary.

Do not hire on gut instinct alone. And don’t hire your favorite waitress from your favorite restaurant or watering hole unless you follow a hiring process.

Make them pass the spouse test

My wife, Laura Gille, is an excellent judge of character (and a great banker) and I rely on her to help me evaluate key people. She’s very perceptive and is excellent at understanding the dynamics of all the people in the room.

She observes and she listens. My guess is your spouse or significant other can do this for you too.

Observe (and observe again)

Like my HR friend related, you can readily observe MCD in people, especially now that you have my list of The 10 Worst MCD Character Flaws.

Listen to your gut

If you have a customer, supplier, prospective employee, or date that is flashing you a yellow MCD light, listen to your inner voice. Some of my most expensive mistakes have come from not proceeding with caution when my gut told me to slow down or stop for MCD.

Your assignment for your professional and personal “spring cleaning” is to rid yourself of anybody afflicted with MCD. Good luck!

As a serial entrepreneur, business and community leader since 1983, John Howman has led a variety of businesses, from technology to consumer products companies. He leads two groups for TEC, a professional development group for CEOs, presidents and business owners. He can be reached at JHowman@AlliedCG.com.

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