Organisational leadership matters most during a period of stress and uncertainty.
- is a visionary
- shows strong confidence in self and others
- communicates high performance expectations and standards
- personally exemplifies the firm's vision, values, and standards
- demonstrates personal sacrifice, determination, persistence, and courage.
The researchers also assessed the extent to which the firms face environments that are dynamic, risky, and uncertain.
- Your leadership matters most when it is least clear what course you should follow. The decisions and actions of those above, beside, and below you also matter most when the organisation is facing intensified competition or requires strategic redirection. Yet these are the very moments when developing leadership is least practical.
- Periods of normalcy -- when strategies are working and performance is strong -- are therefore those when the need for leadership development is least evident but best achieved.
Source: David A. Waldman, Gabriel G. Ramirez, and Robert J. House, "CEO Charisma and Profitability: Under Conditions of Perceived Environmental Certainty and Uncertainty," 1996.