Stanford GSB Executive Education’s Post

Investors are often attracted to the magnetism of eccentric CEOs. But as Associate Professor Amir Goldberg finds, charismatic leadership doesn’t always correlate with business success. In a new study, Goldberg and several colleagues used a deep-learning model to analyze over 60,000 earnings call transcripts, observing how executives’ "performative atypicality" — strikingly unorthodox language and persona — impacts analyst projections. As they found, analysts assigned a premium to firms like Tesla and Green Dot whose leaders tended to speak more unconventionally. The more a CEO’s behavior and speech seemed to mimic that of celebrated innovators, the higher the premium. However, this "atypicality premium" proved unjustified, as companies with atypical leaders tended to underperform compared to analyst forecasts. Eccentricity and charisma, the researchers found, don’t always drive profitability. Goldberg cautions investors and analysts to rethink their assumptions about what makes a good leader. “If we interpret eccentricity or charisma as a signal of other qualities, like strategic vision or leadership — under the pressure to discover the next big thing — we end up making the same mistakes,” he says. #leadership https://lnkd.in/gq9d6qsh

Investors are often attracted to the magnetism of eccentric CEOs. But as Associate Professor Amir Goldberg finds, charismatic leadership doesn’t always correlate with financial success. In a new study, Goldberg and several colleagues used a deep-learning model to analyze over 60,000 earnings call transcripts, observing how executives’ strikingly unorthodox language and persona — their "performative atypicality" — impacted analysts’ projections. They found that analysts assigned a premium to firms like Tesla and Green Dot, whose leaders tended to speak more unconventionally. The more a CEO’s behavior and speech seemed to mimic that of celebrated innovators, the higher the premium. However, this "atypicality premium" proved unjustified, as companies with atypical leaders tended to underperform compared to forecasts. Eccentricity and charisma, the researchers found, don’t always drive profitability. Goldberg cautions investors and analysts to rethink their assumptions about what makes a good leader. “If we interpret eccentricity or charisma as a signal of other qualities, like strategic vision or leadership — under the pressure to discover the next big thing — we end up making the same mistakes,” he says. #leadership https://lnkd.in/gDq4_Ays

Good to Great Level 5 Leadership: Great companies are led by individuals who are both ambitious and humble, prioritizing the company's success over their own ego. First Who, Then What: Building a great team is the most important step. Get the right people on the bus, in the right seats, before figuring out where you're going. Confront the Brutal Facts: Don't shy away from difficult realities. Acknowledge your weaknesses and limitations to make informed decisions. The Hedgehog Concept: Find your company's intersection of passion, talent, and economic advantage. Focus on what you can be the best in the world at, not just what's profitable. A Culture of Discipline: Great companies instill a culture of self-discipline and accountability in their employees, fostering a commitment to excellence. Technology Accelerators: Technology should be a tool to amplify your existing strengths, not a replacement for a sound strategy. The Flywheel Effect: Success is a cumulative process. Small, consistent wins build momentum and propel the company forward over time. The Doom Loop: Understand and avoid the negative cycle of undisciplined action, poor results, and a further decline in morale and performance. The Council, Not the Star: Great companies are led by capable teams, not lone charismatic leaders. Build a strong leadership council for collective wisdom. Technology and Innovation: While technology can be an accelerator, true greatness comes from a culture of innovation and continuous improvement within your core business.

Innovation does not need to be forced. In many instances, in my opinion, there could actually be an opportunity for it to come gradually - that is, if you let it. Too many leaders today are not patient. However, for large successes to come along, it is required. Why do you think some organizations try to rush things? Could it be due to economic uncertainty? #BusinessInnovation #BusinessTransformation #BusinessGrowth

VOX Organizationis NOW AVAILABLE FOR THE BUSINESS WORLD And for the first time implemented in Secondary Research in five world-known companies VOX Organizations as a measuring methodology for alignment between Organizational Culture and Leadership Styles, for the first time, was implemented in secondary research by Ms. Maja Mircheska, MA. The new VOX Executive implemented this methodology in five world-known companies: Procter & Gamble, Disney, Mercedes, Tesla and Facebook. The overall research took around 4 months to complete, meticulously paying attention to every aspect of both organizational culture and leadership style. Among the participants in this research were: Jon Moeller, CEO of Procter & Gamble, Robert Iger, CEO of Disney, Dieter Zetsche former CEO of Mercedes, Elon Musk, CEO of Tesla and Mark Zuckerberg, CEO of Facebook. In some of the companies, the results showed alignment, while in other the alignment was not present. The organizational culture types varied from Entrepreneurial Democracy, Conservative Democracy to Entrepreneurial Autocracy. The Leader’s Types were characterized from ‘’Jack Welch’’ like (Entrepreneurial Democrat), to ‘’The Banker’’ (Conservative Democrat). The VOX Organizationis model, in this research, once again proved and justified the need for implementing such an instrument to measure organizational culture and leadership styles. More importantly, this research by Ms. Maja Mircheska, MA proves that the model can be used in a secondary research, deriving realistic and valuable information. Namely, Ms. Mircheska, MA is the first VOX Executive that brings VOX Organizationis available for the business world.

How can leaders and managers fail businesses in the easiest way possible? I'd say, a strategic dilemma will come in handy. In fact, that's the most prevalent characteristic you'll see in businesses around, except for a few really well organized ones. In most of the Bangladeshi business organizations, senior management and leaders are stuck in a "bottom-up" mindset, and it's time for a shift towards a "top-down" approach. We're often bogged down in the day-to-day grind, missing out on high-level strategies that should steer the ship. So, when the business faces challenges and risks on it profitability, leaders try to fix them abruptly. For example, in challenging economic times, leaders resort to quick fixes like layoffs and cost-cutting without addressing the root issues. Was there any problem in the "Corporate strategy", or was it a problem of "Business Strategy" in the first place? In most of the cases, reshaping the "Operational Strategy" gets most of the focus (Maybe because that's easier?). It's what I'd love to call the "Great Failing Strategy" - a fixation on the present while ignoring the bigger picture just to successfully fail in the long run. Not to mention, junior executives suffer the most due to this hierarchical strategic disbalance. In a society where we are not courageous enough to question, confront and fix the top, managers impose unethical and unjustified burden on bottom. All the burden of Corporate and Business strategy failures are thus carried by the executives, or in the worst case scenario, the interns! It's hightime we give the "Top-down" approach a chance along with "Bottom-up". Leaders should focus on aligning corporate and business strategies, setting a strong foundation for the entire operation. By shifting the focus to strategic roles of individuals and real problem-solving, businesses will be better prepared for the future. To sum up, It's time for Bangladeshi businesses to ditch the quick-fix mindset and embrace the holistic strategy fixation at the right level. Obviously the other option is failing the business with pride.

Leadership, processes, talent and technology are the fuel for growth. Mindset is the differentiator while leadership is imperative to change management. Value creation comes from leadership, relationships and creativity. Learn more from L. Gary Boomer here: https://boomer.link/ky3 #cpa #accounting

Leadership, processes, talent and technology are the fuel for growth. Mindset is the differentiator while leadership is imperative to change management. Value creation comes from leadership, relationships and creativity. Learn more from L. Gary Boomer here: https://boomer.link/ky3 #cpa #accounting

Leadership, processes, talent and technology are the fuel for growth. Mindset is the differentiator while leadership is imperative to change management. Value creation comes from leadership, relationships and creativity. Learn more from L. Gary Boomer here: https://boomer.link/ky3 #cpa #accounting