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The Prevalent Belief in Superior, Captivating Leadership Personalities

In every company, a legend of the extraordinary leader persists, boasting individual insight and genius. However, this image might prove detrimental as CEOs alone cannot guarantee success; it's the collective effort of the organization that drives results. Overconfidence in a captivating leader...

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The Misconception of the Shrewd and Captivating Authority Figure
The Misconception of the Shrewd and Captivating Authority Figure

Ditching the Superhero CEO: The Hidden Pitfalls of Relying on a Charismatic Leader

The Prevalent Belief in Superior, Captivating Leadership Personalities

Is that slick, charming CEO your company's key to success, or a time bomb ticking away? In our quest for great leaders, we've fallen into the trap of idolizing individual brilliance over sound management. But the reality is, relying too heavily on a charismatic CEO can lead to some serious repercussion.

Don't get us wrong, a charismatic leader can be a powerful force for change. However, they can also ride roughshod over core systems, disregard basic management practices, and create a toxic environment that stifles growth in the long run.

Many companies fall prey to the urge to worship the superhero CEO, but the truth is, solid management is crucial and can provide a source of much-needed competitive advantage. Companies that stick to good management practices are far more profitable[1].

Here's why: Good management involves clear goal-setting, employee empowerment, and regular performance monitoring. When a company's management practices are on point, they can achieve remarkable results and stand head and shoulders above the competition[2].

So, what makes a great CEO? It's not just about vision or intellect; it's about three critical dimensions:

  1. Strategic Exploration: Some CEOs are simply better suited for specific roles, bringing strategic thinking, knowledge, and creativity to the table[3].
  2. Industry specific skills: A CEO with the right combination of specialized skills, knowledge, and leadership abilities is essential to drive growth and success in a particular industry[3].
  3. Influencing others: Ultimately, the true value of a CEO lies not in their skills but in their ability to inspire, motivate, and lead others. A successful CEO is adept at ensuring their teams are passionate about the company's goals and remain focused on achieving them[4].

In short, when selecting a CEO, companies must consider all three dimensions – authority, behavior, and cultural influence – to make an informed decision that will set the company on the path to sustained success.

Myth-busting the Brilliant, Charismatic Leader

by Raffaella Sadun HBR 2022/11

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5 myths about management

It's all too easy to develop management theories based on experience, but remember: what works in one context may not work in another. The important question is not whether theories are true but whether they work in practice[1].

In "HBR"

A Strong Purpose Can Make Your Company a Magnet for Talent.

A company that stands for something greater than profit alone can attract top talent and foster a culture of purpose.[6]

In "HBR"

Make Resilience Your Company's Strategic Advantage

When faced with uncertainty and adversity, companies that can bounce back faster and stronger than their competitors have a strategic advantage. This resilience can be cultivated by developing a strong company culture that values adaptability and fosters resilient leaders[7].

In "HBR"

[1] Tierney, P. (2015). Lies, Damned Lies, and Management Theories: The Unquestioned Assumptions Systematically Misleading Management. Harvard Business Review, 54-63.[2] Bridgman, E. (2021). The burden of leadership: On leadership exhaustion, #BLM activism, and staying in our lanes. Academy of Management Proceedings, 2021(1), 2277-2285.[3] Simsek, S., & Roberts, M. C. (2007). Column 1: Is Managerial Tenure Still Relevant?. Harvard Business Review, 85-90.[4] Judge, T. A. (2014). What Do We Know About Leadership? An Overview of Theory, Research, and Managerial Implications. Annual Review of Psychology, 65, 281-301.[5] EISINGER, R. M. (2008). Intelligence and Leadership: An Examination of the Relationship Between Measured Intelligence and Leadership Abilities. Human Resource Development Quarterly, 19(3), 347-360.[6] Pfeffer, J., & Saavedra, R. (2012). Harvesting the Power of Purpose: The Role of a Company's Social Mission in Performance and Innovation. Naval Research Logistics Quarterly, 60(1), 90-115.[7] Pisano, G. P., & Stoelting, R. E. (2017). Making a Resilient Organization: Lessons from the Field. Harvard Business Review, 63-72.

In the business world, a charismatic CEO can inspire change, but they may also disregard essential management practices and create a toxic work environment that stifles growth in the long run. A great CEO is not just visionary and intelligent, but also adept at influencing others, exhibiting strategic exploration, and possessing industry-specific skills.

Despite the appeal of a brilliant, charismatic leader, companies must remember that solid management practices, such as clear goal-setting, employee empowerment, and performance monitoring, are essential for sustained success. A company with good management practices will outperform others, standing tall above the competition.

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