In my 25-plus years of working with executives and their leadership teams, I am often asked, “What is your favorite session to deliver?” or “If you had to pick one thing that would be key to transform leaders and their organizations at all levels, what would it be?” My answer is: ego!

Over a five-year period, Dave Marcum and Steve Smith, authors of the acclaimed book Egonomics, searched more than 2,000 news articles that used the word “ego” and surveyed thousands of people who attended their leadership sessions. In their surveys, they asked, “If the word ‘ego’ flashed in front of you, what is the first thing that you would you write down?” Ninety-two percent of the first responses were negative. “Arrogant” was the first word mentioned by almost 5:1, followed by “self-centered,” “insecure,” “close-minded,” “defensive,” “conceited” and “condescending” (and that’s just if we keep the list clean).

At a micro-level, business performance suffers when ego negatively impacts the way we produce. Dr. Paul Nutt of The Ohio State University conducted more than two decades of research with hundreds of organizations on why 50 percent of business decisions fail. He discovered three key reasons:

* More than one-third of all failed business decisions are driven by ego.

* Nearly two-thirds of executives never explore alternatives once they have made up their mind.

* Eighty-one percent of managers push their decisions through by persuasion or edict, not by the value of their idea.

So if this is true, and you were offered a magic pill that would instantaneously remove your ego, would you take it? Some of you may be thinking, “absolutely,” while others may immediately say, “no, thank you.” And why is that? Well, just as there is the costly negative side to ego, there is also the positive side of ego. With those same surveyed audience members mentioned earlier, ego also had a positive meaning. The word “confidence” cited nearly 10:1. The positive side brings self-confidence, self-esteem and ambition. So it begs the question, is ego a liability or an asset? Or is it both?

Let’s explore that for a moment. If the irony about ego is that it is both a valuable asset and a deep liability, how do we prevent the negative side of ego from impacting our bottom line? How do we prevent our ego turning our strengths into weaknesses, or make us the traitor instead of the talent?

The power of the negative side of ego is that it can take a strength like assertiveness and create the perception that you are pushy. It can turn intelligence into condescension, determination into stubbornness, and independence into detachment.

When an organization invests in us for our talents, it also inherits the potential counterfeits of those talents. We need to be consciously aware of where our natural talents lie so that they can be transformed into solid, legitimate strengths. Equally as important is to watch for the signs of ego implying that a talent or strength is about to become a weakness or impediment. When ego works against us, these four warning signs indicate we’re losing value:

Early Warning Sign No. 1: Being comparative

Ironically, being too competitive makes us less competitive. By fixating on someone else, we give up our potential in the name of becoming “better than” or at least “as good as” someone else.

Early Warning Sign No. 2: Being defensive

There is a vital difference between defending an idea and being defensive. The motive behind defending an idea is to let the best argument win (even if it’s not yours). When we’re defensive, we defend our position as if we’re defending who we are. Don’t confuse your ideas with your identity.

Early Warning Sign No. 3: Showcasing brilliance

Showcasing isn’t about making our brilliance visible; it’s about making it the center of attention. The more we want or expect people to recognize, appreciate or be in awe of how smart we are, the less they listen, even if we do have better ideas.

Early Warning Sign No. 4: Seeking acceptance

When we’re reluctant to risk being candid rather than popular, conversations are artificial and reality goes under the table. That reluctance is a major reason why unsuccessful projects in companies don’t get killed as early or as often as they should.

The bottom line: Often the most difficult side of business to master is the human side, and nothing is more human than ego. How we manage ego on the human side affects everything we do on the business side, one way or another.