This makes sense. In business, it pays to be objective. But this effect is a coping mechanism that spans areas of life well beyond business. Similar to how everyone considers themselves an above average driver - narcissism/inflated sense of self keeps people in the gene pool. It is not a long term strategy, though, so the longer you lie to yourself, the more life will find your real level for you. I think that you can actually go a long time with this reality distortion - and the same narcissism can be implicated as much in success as in failure.