Charismatic Leadership: One Size Does Not Fit All

Dear Mr. Brown:

I came across one of your articles where you suggest that charismatic leadership is most suitable when a company is in crisis mode. If what you say is true, can you draw the conclusion that most companies do not have charismatic CEOs at the helm, because most companies are stable? As a result, are out- of- work charismatic leaders running around looking for companies to save?

Julian Christianson
Montreal, Canada


Dear Mr. Christianson:

Thank you for posing an intellectual challenge. Yes, research suggests that charismatic leaders are most beneficial for companies during crisis situations or times of uncertainty. However, there is a difference between the most ideal time for charismatic leaders to flourish and the basic effectiveness of charismatic leaders in general. If business is about people management and profitability, charismatic leadership is generally effective despite the stability of a company. For examples, let’s say a corporation’s quarterly profit reports have been steadily increasing, but the Research & Development (R&D) division has been slow in creating innovative products and services. Although the overall company is healthy, a charismatic leader may jumpstart the R& D division to create groundbreaking products and services. Charismatic leaders are often passionate about ideas and new challenges. There will never be a shortage of problems and challenges within a company that does not necessitate a charismatic leader rising to the occasion.

At the end of the day, charismatic leaders are not skulking around looking for companies to save. Charismatic leaders are visionaries looking for opportunities to put their ideas to work that are a part of a long-term mission.

Related: Charisma

Charisma, Government and Other Businesses: Measuring Outcomes

This review is from: Performance Budgeting for State and Local Government (Paperback)

"Performance Budgeting for State and Local Government" isn't a page turner. In fact, you're more apt to read a few pages and put it down. Not because of its profundity, but because of its tedium. But, building the foundation to any business for long term sustainability requires a degree of monotony. Kelly and Rivenbark's "Performance Budgeting..." is about power and the inner workings of state and local governments tasked with measuring services to the public.

As a master degree candidate, this book was a requirement for a course of the same title. While it's only 8 chapters, readers are left with a greater appreciation for taxes and how it greases the wheels that keep governments operating. While you can read another type of business book, "Performance Budgeting..." shows you how the private sector has largely influenced governmental operations. While, the government isn't quite as efficient, "Performance Budgeting for State and Local Government" spends a long time attempting to make its case.

As performance review is important, it becomes increasingly difficult to make the same case for the public sector as the private sector. In fact, "Performance Budgeting..." fails to make a compelling case, because certain departments within city government are immeasurable based on the nature of the services.

Whether you're a student of politics, government or business, this book is a helpful tool for aligning programs with outcomes and objectives, albeit limitations. For one who teaches on charisma, measuring service deliverables is essential.