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Publication: Entrepreneur
Publication Date: 01-MAR-03
Format: Online
Delivery: Immediate Online Access

Article Excerpt
GEORGE WASHINGTON. WINSTON CHURCHILL. JEFFREY SKILLING. DON'T LAUGH. UNTIL THE PAST YEAR, MANY MANAGEMENT CONSULTANTS, EXECUTIVES AND BUSINESS JOURNALISTS LIONIZED ENRON'S FORMER CEO AS A PARAGON OF LEADERSHIP SIMILAR TO OUR FIRST PRESIDENT OR BRITAIN'S WWII ICON.

Today, Skilling is more often compared to Ivan Boesky or Charles Ponzi, and investors, creditors and politicians are screaming for his head. But management experts say the vociferous anger over Enron, Tyco and other corporate implosions masks a subtler yet more serious concern. Simply put, does this series of scandals indicate that corporate America--both small businesses and large corporations--has forgotten how to define and discover outstanding leaders? More broadly, have Americans in general lost sight of the qualities that make up the finest leaders?

Answering this question will help determine the fate of the small and large business worlds, which have lost the trust of many Americans. Discovering answers is not an impossible task; in fact, some management experts believe the scandals and economic downturn have provided a rare opportunity for America to redefine its views on leadership.

TURNING ON THE CHARM

Many executives believe businesses' current problems can be linked to one fatal flaw: the idea that charismatic leaders are best able to manage companies ranging from Fortune 500 firms to mom-and-pop stores. Rakesh Khurana, an assistant professor at Harvard Business School who researches corporate leadership, believes Americans have always had a soft spot for charismatic leaders, a consequence of our founding ideology as a nation of rugged individuals. And he does not deny that charisma is a vital component of some leaders' personas, especially in professions like politics where public speaking is important.

"The aftermath of September 11 has shown that a president still has to be able to rally people," says Daniel Pink, author of Free Agent Nation (Warner Books) and former chief speechwriter for Al Gore. Pink notes that though President Bush is not considered a polished public speaker, many people nonetheless looked to him to deliver rousing oratory in the wake of the terrorist attacks.

Though charisma can be important, over the past decade too many businesses have sought out ultra-charismatic "superstar" leaders to the exclusion of other types of personalities. In fact, the rate at which U.S. companies replace their top leaders has skyrocketed since 1990, as firms search for supposed miracle workers from outside their organizations. In the early 1980s, several self-promoting saviors...

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