Stardate 99592.99.* Who would you prefer to captain
the starship Enterprise? Charismatic James T. Kirk or Analytical Vulcan Spock?
You might be surprised to know that a heavy
game-theory-laden article addressing this question was published recently: “At
the Helm, Kirk or Spock? The Pros and Cons of Charismatic Leadership” by
Benjamin Hermalin.
In our ‘superstar economy’ era, the Kirks seem to
get widespread exposure. You don’t hear much about the Spocks – wonky low-profile
folks who can’t seem to fan up any flames of enthusiasm. In my own area, higher
education, I increasingly observe that leadership searches implicitly or
explicitly prioritize charisma. Kirks rather than Spocks get the top jobs, and
increasingly so.
Would the typical space-cadet prefer to have Kirk
or Spock as captain? As you might have guessed, the answer is “it depends”.
Hermalin’s article explores (1) why charisma is viewed as a positive attribute
in leaders, and (2) why charismatic leaders don’t always do well. The game
theory formulation is dense (to a neophyte like me) and the typical reader will
be bogged down by equations, propositions and lemmas. I won’t go into any of those
details, but instead highlight some of the interesting conclusions from the
model.
The main point: There is a tradeoff between
inspiring your followers and giving the hard facts in a challenging situation.
Hence, a leader needs to make a choice between when to provide more information
and when to dial down the information and give more inspiration instead. When
times are good, charisma matters much less. Everyone’s happy hearing all the
positive-sounding facts. But when times are bad, it gets trickier. Hermalin
explores the calculus that a savvy
leader (one who knows the hard facts) and is able to maximize the highest
output by figuring out the balance between inspiration and information.
But that’s an ideal situation. We all wish our
leaders, or we ourselves, are ideally savvy.
Hermalin then explores two polar opposites: The professor is either a low-charisma leader or one who rarely
utilizes emotional (inspirational) appeals, and therefore mainly opts for the
information approach. (A low-charisma leader utilizing inspiration almost
always is viewed suspiciously.) On the other hand, the demagogue does not have good access to the facts, and can only make
emotional appeals. Interestingly, ‘rational’ followers, i.e., those who recognize
when someone is making an emotional appeal and not providing many facts, are
less suspicious of a higher charisma leader who often makes emotional appeals
compared to a lower charisma leader. Thus, in a challenging situation, it seems
that having a charismatic leader potentially leads to better (productivity)
outcomes.
In contrast to the rational followers, ‘emotional’
followers fall into different categories and may respond more positively or
more negatively to the demagogue. The
article goes through the different possibilities in more detail, but then comes
to the conclusion that a highly charismatic demagogue
will tend to outperform the professor,
while a less charismatic demagogue
may elicit a weaker outcome than the cold hard facts approach of the professor. This is scary, because it
suggests that from outward appearances, highly charismatic demagogues will outwardly be perceived as more effective – and we
might expect to see such types increase in leadership positions of highly
complex organizations.
Why is this potentially dangerous? Hermalin’s
analysis suggests that “a highly charismatic leader is tempted to substitute
charm for action… less likely to learn relevant information and, on certain
margins, works less hard…” to the detriment of the organization. While the real
world is certainly full of nuances and complexity that may not be captured by
Hermalin’s ultra-theoretical model, his broad conclusions don’t seem
far-fetched. But this may be a “that’s obvious” response from a casual reader.
In a leadership role, my core personality and
approach fits well with the professor
category. I can turn on the inspirational charm when I think it’s absolutely needed,
but am very reluctant to do so because I find it emotionally draining. I’d like
to be more of a savvy leader; I have
a lot more to learn in this regard. As a follower, I’d like to think I’m
particularly skeptical of demagogue
leaders, but this article made me consider that I should pay attention to the
charisma-level of a leader and how often emotional appeals are made from said
leader. It’s a good reminder to be aware of one’s own implicit biases.
*Stardate calculated from this website based on the article’s publication date, assuming noon.
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