The Perfect CEO: A Myth?

Experts at Hogan Assessments, a leading provider of personality testing and leadership development, have identified three key myths that contribute to perceptions of the perfect CEO and examined whether success in the role can really be attributed to these commonly held assumptions.

Myth No. 1: Charisma is the most important quality of a CEO

When asked what qualities make a perfect CEO, most would probably answer with characteristics such as ambitious, results-oriented, committed and, above all, charismatic. Charisma is a very attractive trait for a leader, but there is a strong correlation between charisma and narcissism. In fact, there is a stronger correlation between charisma and narcissism than between height and weight. Those who appear confident, intelligent, charismatic, interesting, and politically savvy are generally more likely to be promoted. However, once in leadership positions, these individuals can make self-serving decisions, take risky gambles, and consequently bring chaos and ruin upon their organizations. Very charismatic leaders may appear more ambitious in strategic terms, but are less effective in their leadership behavior.

While charisma typically correlates with professional success, humility is a far better indicator of manager effectiveness. "Humble managers know their strengths and limitations, embrace feedback, foster collaboration and are more effective leaders," explains Jackie Sahm, vice president of integrated solutions at Hogan Assessments. "In addition, humble managers are more likely to foster engagement, retain good employees, and stay on the job longer than their more arrogant colleagues. The companies they lead continue to perform well after they leave, because humble leaders often ensure succession planning is in place before they leave."

Myth #2: A real CEO never fails

No matter how hard we try to be successful, failure is part of life. How CEOs deal with failure says more about their suitability than whether they fail or not. For companies, how we learn from our experiences matters a great deal, and it's an important factor in professional and corporate success. "Many CEOs misperceive and misreact to failures. As a result, they find it difficult to learn from failures and are more inclined to repeat the mistakes of the past. Those who dodge responsibility for failures for their own benefit or blame them on others are more likely to face negative consequences such as loss of trust or respect from colleagues and employees," says Jackie Sahm. "On the other hand, those who are not resilient or are too self-critical often get nowhere in their careers and tread water."

CEOs must recognize and overcome these tendencies and learn from personal and professional mistakes to create and succeed in a productive leadership environment. Fortunately, as a CEO, you can learn to respond better to failure: Developing self-confidence, seeking feedback from trusted individuals, and adopting new strategies for dealing with setbacks can all help to better handle failures in the future.

Myth #3: CEOs are supernatural beings

"The best CEOs tend to be characterized by four traits, all of which build trust and loyalty - and none of those traits have anything to do with supernatural powers," Jackie Sahm explains. "They show good judgment, integrity, credibility and support." What these four traits have in common is that the perfect CEO typically builds trust on multiple levels by balancing competing demands. These are in complex tension with each other: CEOs must be visionary but humble, supportive but also hold their employees accountable, and decisive and quick to act, but also conscientious and accurate. The role of the CEO is thus paradoxical and resembles a tightrope act. To paraphrase Darwin, we can say that it is not the strongest who survives, nor the most intelligent. It is the one who adapts best to change.

Source: Hogan Assessments