Showing posts with label carly fiorina. Show all posts
Showing posts with label carly fiorina. Show all posts
Wednesday, August 31, 2011
Is the Charismatic Leader a Super Hero?
The Charismatic leadership model offers other challenges to researchers. Often charismatic leaders are viewed as superheroes that swoop down in a moment of need, reminiscent of fictional characters such as Batman and Superman. Within organizational development, finding these heroes becomes even more challenging during times of crisis. Jacobsen (2001) showed that all the conditions that should create the charismatic leader’s appearance, does not. Shamir, House, and Arthur (noted within Jacobsen’s study) mapped the conditions when charismatic leaders appear. The charismatic leader’s appearance is most apt when: 1. The situation is perceived to threaten important values, 2. The relationship between performance and goal achievement is nebulous, 3. The situation is unstable, and 4. The task requires exceptional effort. Attempting to reconcile some sense of pragmatism between the superhuman traits under Jacobsen’s concept with the realism under Callan’s views makes identifying the traits, conditions, and environment that much more problematic to uncover.
Jacobsen tried to bridge the gap empirically by identifying six historical figures deemed charismatic by their transforming an organization, country, or movement. Some individuals included John F. Kennedy, Lee Iacocca, and Adolf Hitler. The biggest challenge with attempting to gauge the charismatic leadership models’ impact on organizational development under Jacobsen is that it happens after the fact. Once the event is over and recorded by history, researchers are tasked with attempting to analyze and articulate what happened. This is more the challenge with monumental events. The impact of the event cannot be thought until it transpires. Contemporary CEOs such as the late automotive designer John DeLorean and Hewlett Packard’s (HP) Carly Fiorina, who was ousted by HP, are not emblematic of the invincibility attributed to the charismatic leadership model. Though they were rising stars at one point of their careers, they could not maintain the luster of the charismatic leader. The subjectivity of the charismatic leadership model makes it such that success is measured far into the future compared to the objective standards ascribed to the traditional leadership model. With the traditional leadership model, the CEO enhances stakeholder profitability, cuts costs, and expands into new markets or does not.
References
Jacobsen, C. (2001 Spring). Dynamics of charismatic leadership: A process theory, simulation model, and tests. Leadership Quarterly, 12(1), 75.
Related: Charisma
Saturday, January 30, 2010
Special Assignments Require Charismatic Leadership, but There Are Limitations
Pundits and laymen often weigh in on the virtues and vices of charisma. Advocates of charisma look for tools and new information to be more engaging and magnetic. Invariably, these individuals desire distinction and recognition in an insipid and calamitous world. While adherents chase this illustrious trait and its manifestation, the downside of charisma is often misunderstood. It’s like the aspiring celebrity who once lied awake at night dreaming about millions of adoring fans in his first silver screen premier. The pomp and pageantry was palpable. Finally, the day arrived and that walk on the Red Carpet was just what he imagined. Now, his life is not his own. He has become property of the public where the loss of privacy is the price for fame and fortune. Of course, the fantasy is always better than reality. His current histrionics involve anything from throwing a phone across a crowded room to physical altercations with the paparazzi. The downside of fame and fortune seemed more manageable in the dream. In this instance, the actor chose his fate.
Conversely, true charismatic personalities are a combination of biological predisposition and environmental influences. Arguably, they didn’t consciously choose the dynamics that formed them. When charismatic personalities are exhibiting great oratory, colorful dialog and the ability for great interpersonal connections, they are demonstrating the affectation of charisma.
But, what is the less glamorous side of charismatic leadership? Is it true that charismatic leaders often have a high attrition rate among adherents? Are charismatic leaders often fired or summarily dismissed from positions and projects they were initially recruited to lead? The Mega church, World Changers headed by Dr. Creflo Dollar in College Park, Georgia is an excellent example of the vagary of charismatic leadership. Florence Duncan, a former World Changers member said, “"World Changers teaches a theology and doctrine that people want to hear… There's nothing wrong with wanting to prosper, but to present that as the central core of the teachings of Christianity is a deception and lie. I'd say that they would have just about as much chance of gaining abundant prosperity by purchasing a lottery ticket”(Sherrell, 1997, para. 32). Another former church member, Demetrius King said “I thought it could work...It sounds good and you would want it to work. It's as simple as one, two three -- tithe and you will prosper”(Sherrell, 1997, para 30). Reportedly, King left the church after his financial situation didn’t improve.
Charismatic leaders are adept at getting specific goals completed, but the challenge comes with the inability to manage the expectations of adherents. To this extent, charismatic leadership is a “double edged sword.” On one side, adherents hear and feel the direction of the charismatic leader and want to contribute to bringing the vision to fruition. On the other side, when tasks seem insurmountable, take too long or isn’t happening specifically as the charismatic leaders has proposed, disillusion, discontentment and disenchantment sets in. Thus the adherent leaves the organization and another hopeful convert takes his place. The shortsightedness of the charismatic leader shows his ability to inspire, but not acknowledge the limitations and co-dependency of his followers.
When charismatic personalities are rising stars within a company, the twinkle can often diminish. The late John Z. DeLorean was a star engineer at General Motors. DeLorean is credited for creating the Pontiac GTO, Pontiac Firebird and DeLorean DMC-12 sports car. “DeLorean always claimed he had fired General Motors, but it was actually the other way around: GM had fired him, basically because power had gone to his head, and he was more interested in dating (and marrying) young blondes in California than he was in the boring business of making cars. Even more importantly, he was no longer ‘making his numbers’ - an unforgivable sin for the suits in Detroit’” (Fallon, 2005, para 4).
Ousted Hewlett Packard (HP) CEO, Carly Fiorina is another example of the trappings of charisma. Fiorina was recruited by HP from Lucent Technologies Inc. in 1999. The following year, the company added chairman to her list of titles, making her the first woman to hold all three top posts — president, CEO and chairman — at a major computer company. Like DeLorean, as Fiorina began her quest to expand HP’s reach and competitive edge, dissenters pounced. Dr. James Owers, professor of finance at the Robinson College of Business at Georgia State University and an expert on corporate reorganization said “She brought about a major acquisition, that, from the objective of those of us who look at corporate restructuring, had absolutely no merit. Combining H-P with Compaq appeared to be more an ego trip, not a business deal. Many of us are still saying, ’Where’s the rationale here?’”(AP, 2005, para 8).
Authorities on leadership are quick to criticize the Charismatic leadership model as possessing more show than substance. Extensive tomes have been written on the ideal leader as if this mythical figure exists in a vacuum. While there are effective tools to be garnered from most leadership models, charismatic leadership may be one of the only leadership models where there is very little demarcation between the model and the personality. Other leadership traits may be transferable or separated from the individual, but the Charismatic leadership model is inextricable from the individual.
The effectiveness of charismatic leadership will hinge on the dynamics and longevity of the situation. If traditional leadership models are hatchets, charismatic leadership is a scalpel. Timing and precision are everything in its degree of effectiveness.
References
Associated Press (AP).(2005 February 9). Hewlett Packard top executive ousted. msnbc.com: Retrieved from: http://www.msnbc.msn.com/id/6939785/
Fallon, I. (2005 March 22). John DeLorean: The man who fooled the world. The Independent: Retrieved from: http://www.independent.co.uk/news/world/americas/john-delorean-the-man-who-fooled-the-world-529467.html
Sherrell, R. (1997 Dec. 6). Creflo Dollar's World Changers Church International: Cult or Christianity. Creative Loafing: Retrieved from: http://www.apologeticsindex.org/d11.html
For more information, visit: Charisma
Conversely, true charismatic personalities are a combination of biological predisposition and environmental influences. Arguably, they didn’t consciously choose the dynamics that formed them. When charismatic personalities are exhibiting great oratory, colorful dialog and the ability for great interpersonal connections, they are demonstrating the affectation of charisma.
But, what is the less glamorous side of charismatic leadership? Is it true that charismatic leaders often have a high attrition rate among adherents? Are charismatic leaders often fired or summarily dismissed from positions and projects they were initially recruited to lead? The Mega church, World Changers headed by Dr. Creflo Dollar in College Park, Georgia is an excellent example of the vagary of charismatic leadership. Florence Duncan, a former World Changers member said, “"World Changers teaches a theology and doctrine that people want to hear… There's nothing wrong with wanting to prosper, but to present that as the central core of the teachings of Christianity is a deception and lie. I'd say that they would have just about as much chance of gaining abundant prosperity by purchasing a lottery ticket”(Sherrell, 1997, para. 32). Another former church member, Demetrius King said “I thought it could work...It sounds good and you would want it to work. It's as simple as one, two three -- tithe and you will prosper”(Sherrell, 1997, para 30). Reportedly, King left the church after his financial situation didn’t improve.
Charismatic leaders are adept at getting specific goals completed, but the challenge comes with the inability to manage the expectations of adherents. To this extent, charismatic leadership is a “double edged sword.” On one side, adherents hear and feel the direction of the charismatic leader and want to contribute to bringing the vision to fruition. On the other side, when tasks seem insurmountable, take too long or isn’t happening specifically as the charismatic leaders has proposed, disillusion, discontentment and disenchantment sets in. Thus the adherent leaves the organization and another hopeful convert takes his place. The shortsightedness of the charismatic leader shows his ability to inspire, but not acknowledge the limitations and co-dependency of his followers.
When charismatic personalities are rising stars within a company, the twinkle can often diminish. The late John Z. DeLorean was a star engineer at General Motors. DeLorean is credited for creating the Pontiac GTO, Pontiac Firebird and DeLorean DMC-12 sports car. “DeLorean always claimed he had fired General Motors, but it was actually the other way around: GM had fired him, basically because power had gone to his head, and he was more interested in dating (and marrying) young blondes in California than he was in the boring business of making cars. Even more importantly, he was no longer ‘making his numbers’ - an unforgivable sin for the suits in Detroit’” (Fallon, 2005, para 4).
Ousted Hewlett Packard (HP) CEO, Carly Fiorina is another example of the trappings of charisma. Fiorina was recruited by HP from Lucent Technologies Inc. in 1999. The following year, the company added chairman to her list of titles, making her the first woman to hold all three top posts — president, CEO and chairman — at a major computer company. Like DeLorean, as Fiorina began her quest to expand HP’s reach and competitive edge, dissenters pounced. Dr. James Owers, professor of finance at the Robinson College of Business at Georgia State University and an expert on corporate reorganization said “She brought about a major acquisition, that, from the objective of those of us who look at corporate restructuring, had absolutely no merit. Combining H-P with Compaq appeared to be more an ego trip, not a business deal. Many of us are still saying, ’Where’s the rationale here?’”(AP, 2005, para 8).
Authorities on leadership are quick to criticize the Charismatic leadership model as possessing more show than substance. Extensive tomes have been written on the ideal leader as if this mythical figure exists in a vacuum. While there are effective tools to be garnered from most leadership models, charismatic leadership may be one of the only leadership models where there is very little demarcation between the model and the personality. Other leadership traits may be transferable or separated from the individual, but the Charismatic leadership model is inextricable from the individual.
The effectiveness of charismatic leadership will hinge on the dynamics and longevity of the situation. If traditional leadership models are hatchets, charismatic leadership is a scalpel. Timing and precision are everything in its degree of effectiveness.
References
Associated Press (AP).(2005 February 9). Hewlett Packard top executive ousted. msnbc.com: Retrieved from: http://www.msnbc.msn.com/id/6939785/
Fallon, I. (2005 March 22). John DeLorean: The man who fooled the world. The Independent: Retrieved from: http://www.independent.co.uk/news/world/americas/john-delorean-the-man-who-fooled-the-world-529467.html
Sherrell, R. (1997 Dec. 6). Creflo Dollar's World Changers Church International: Cult or Christianity. Creative Loafing: Retrieved from: http://www.apologeticsindex.org/d11.html
For more information, visit: Charisma
Wednesday, June 24, 2009
Charisma Case Study: Former HP CEO Carly Fiorina
The firing of Hewlett-Packard (HP) CEO Carly Fiorina shows that when it comes to charisma, women are just as affected by it as men. Fiorina's ousting suggests that the playing field has not leveled equally for men and women, but charisma is an equal opportunity provider between the sexes. The February 10, 2005 Wall Street Journal article, "How Traits That Helped Executive Climb Ladder Came to Be Fatal Flaws" described Fiorina as "unshakable, self-reliant, comfortable with the spotlight, fond of dramatic gesture, impervious to criticism…passionate about the big picture…embracing change as a way of life." Intuitively, these traits should have been the means for rocketing HP's stock into orbit after its $19 billion merger with Compaq Computer Corp. However, before Fiorina's ouster, HP's stock reportedly was down 50%.
A 2004 University of Florida study showed that Chief Executive Officers who exude intelligence, optimism, and leadership do not necessarily help their companies perform better than less charismatic counterparts do. However, the more charismatic CEO’s tend to draw higher salaries and better benefits. The study surveyed vice president-level managers of 59 Fortune 500 companies about their perceptions of the company CEO's charisma. Indicators included confidence in the CEO's management abilities and whether the CEO’s made the survey respondents feel optimistic about the company's future. The study compared the resulting "charisma" score to indicators of corporate performance and crosschecked the results against the CEOs' salaries. The conclusion... better firm performance is unrelated to the CEO’s charisma, but rather to higher salaries for the CEO5…except when the market volatility proved a benefit to the company.
Taking the necessary cues from the University of Florida's study shows that charismatic leaders are great for getting the ball rolling and creating optimism, but they need a more stabilizing style of management while enthusiasm remains high. In the current global economy, the "all or nothing" approach to leadership is not sufficient. Dissenters of the charismatic leadership model cannot rest on Fiorina's demise by saying "I told you so”, nor can the charismatic leadership model suggest that a conservative, risk- adverse approach is impractical during volatile economic times. Fiorina's ousting illuminates the need for hybrid approaches to business management that are streamlined enough to turn on a moment’s notice based on the needs of the immediate situation. A world of differences has finally come to mean all the difference in the world.
The celebrity-industrial complex has insured that business, politics, and entertainment require inanimate entities to have personalities. For Hewlett-Packard to shun any nuance of the value that charismatic leadership brings would act contrary to its best interest. There is a reason England still maintains a monarchy, while the Prime Minister and Parliament operate the government. The individual pragmatically seeks a stable government to insure ones perpetuity, and the need to maintain traditional emotions acts as a stimulus.
The lessons learned from charismatic leadership are:
· Realizing the "Built in" power and weakness---While we live in a "winner take all" society, every business, or management model has its down side. The idea is to measure the strengths versus the inefficiencies and make the necessary corrections as part of the process.
· Checking and balancing the factors that spark charisma---Egotism, self-glorification and a need for high achievement are factors in a charismatic personality. In the celebrity-industrial complex, these are not necessarily negative traits, but one should apply modifications through pragmatic conservatism when deemed necessary.
· "Don't become overwhelmed"--Charismatic leadership sweeps in like a Tsunami and mesmerizes everyone in its path through shared passion and energy. Emotions often override logic and all that is left are the shouting and finger pointing. Managers have to be on guard for the intoxicating nuances that such leadership brings.
· Asking more questions---Big picture thinkers see the world from a different perspective. Charismatic leaders may be big on plans, but short on details. By analyzing every aspect of the "Big Plan”, executives can help the charismatic leader view the challenges that such actions may create.
For more information, visit: Charisma
A 2004 University of Florida study showed that Chief Executive Officers who exude intelligence, optimism, and leadership do not necessarily help their companies perform better than less charismatic counterparts do. However, the more charismatic CEO’s tend to draw higher salaries and better benefits. The study surveyed vice president-level managers of 59 Fortune 500 companies about their perceptions of the company CEO's charisma. Indicators included confidence in the CEO's management abilities and whether the CEO’s made the survey respondents feel optimistic about the company's future. The study compared the resulting "charisma" score to indicators of corporate performance and crosschecked the results against the CEOs' salaries. The conclusion... better firm performance is unrelated to the CEO’s charisma, but rather to higher salaries for the CEO5…except when the market volatility proved a benefit to the company.
Taking the necessary cues from the University of Florida's study shows that charismatic leaders are great for getting the ball rolling and creating optimism, but they need a more stabilizing style of management while enthusiasm remains high. In the current global economy, the "all or nothing" approach to leadership is not sufficient. Dissenters of the charismatic leadership model cannot rest on Fiorina's demise by saying "I told you so”, nor can the charismatic leadership model suggest that a conservative, risk- adverse approach is impractical during volatile economic times. Fiorina's ousting illuminates the need for hybrid approaches to business management that are streamlined enough to turn on a moment’s notice based on the needs of the immediate situation. A world of differences has finally come to mean all the difference in the world.
The celebrity-industrial complex has insured that business, politics, and entertainment require inanimate entities to have personalities. For Hewlett-Packard to shun any nuance of the value that charismatic leadership brings would act contrary to its best interest. There is a reason England still maintains a monarchy, while the Prime Minister and Parliament operate the government. The individual pragmatically seeks a stable government to insure ones perpetuity, and the need to maintain traditional emotions acts as a stimulus.
The lessons learned from charismatic leadership are:
· Realizing the "Built in" power and weakness---While we live in a "winner take all" society, every business, or management model has its down side. The idea is to measure the strengths versus the inefficiencies and make the necessary corrections as part of the process.
· Checking and balancing the factors that spark charisma---Egotism, self-glorification and a need for high achievement are factors in a charismatic personality. In the celebrity-industrial complex, these are not necessarily negative traits, but one should apply modifications through pragmatic conservatism when deemed necessary.
· "Don't become overwhelmed"--Charismatic leadership sweeps in like a Tsunami and mesmerizes everyone in its path through shared passion and energy. Emotions often override logic and all that is left are the shouting and finger pointing. Managers have to be on guard for the intoxicating nuances that such leadership brings.
· Asking more questions---Big picture thinkers see the world from a different perspective. Charismatic leaders may be big on plans, but short on details. By analyzing every aspect of the "Big Plan”, executives can help the charismatic leader view the challenges that such actions may create.
For more information, visit: Charisma
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