Lavoie, CEO of the company, created this system as a reaction to
problems they’d experienced elsewhere. “In
my old company,” Lavoie
told Berns, “if you had a great idea, we would tell you, ‘OK, we’ll make
an appointment for you to address the murder board’ ”—a group of
people charged with vetting new ideas. Marino described what happened
next:
Some technical guy comes in with a good idea. Of course questions are asked of that
person that they don’t know. Like, “How big’s the market? What’s your marketing
approach? What’s your business plan for this? What’s the product going to cost?” It’s
embarrassing. Most people can’t answer those kinds of questions.
The people who
made it through these boards were not the people with the best ideas.
They were the
best presenters
.
Contrary to the Harvard Business School model of vocal leadership,
the ranks of effective CEOs turn out to be filled with introverts,
including Charles Schwab; Bill Gates; Brenda Barnes, CEO of Sara Lee;
and James Copeland, former CEO of Deloitte Touche Tohmatsu. “Among
the most effective leaders I have encountered and worked with in half a
century,” the management guru Peter Drucker has written, “some locked
themselves into their office and others were ultra-gregarious. Some were
quick and impulsive, while others studied the situation and took forever
to come to a decision.… The one and only personality trait the effective
ones I have encountered did have in common was something they did
not
have: they had little or no ‘charisma’ and little use either for the term
or what it signifies.” Supporting Drucker’s claim, Brigham Young
University management professor Bradley Agle studied the CEOs of 128
major companies and found that those considered charismatic by their
top executives had bigger salaries but not better corporate performance.
We tend to overestimate how outgoing leaders need to be. “Most
leading in a corporation is done in small meetings and it’s done at a
distance, through written
and video communications,” Professor Mills
told me. “It’s not done in front of big groups. You have to be able to do
some of that; you can’t be a leader of a corporation and walk into a
room full of analysts and turn white with fear and leave. But you don’t
have to do a whole lot of it. I’ve known a lot of leaders of corporations
who are highly introspective and who really have to make themselves
work to do the public stuff.”
Mills points to Lou Gerstner, the legendary chairman of IBM. “He went
to school here,” he says. “I don’t know how he’d characterize himself. He
has to give big speeches, and he does, and he looks calm. But my sense is
that he’s dramatically more comfortable in small groups. Many of these
guys are, actually. Not all of them. But an awful lot of them.”
Indeed, according to a famous study by
the influential management
theorist Jim Collins, many of the best-performing companies of the late
twentieth century were run by what he calls “Level 5 Leaders.” These
exceptional CEOs were known not for their flash or charisma but for
extreme humility coupled with intense professional will. In his
influential book
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