Business owners are more likely to experience success by developing a ‘conservative’ approach to running their company, according to new research.
A study by Warwick Business School found that these types of leaders tend to be more successful than ‘charismatic’ leaders that possess exceptional powers of persuasion.
Christian Stadler, who was the study’s lead author, explained that these characters tended to face little resistance when making bold decisions about the direction of their company. In an interview with hrmagazine.co.uk, he claimed that this made them more vulnerable to fatal mistakes.
He said: “If your company is heading in the right direction, a charismatic leader will get you there faster. Unfortunately, if you’re heading in the wrong direction, charisma will also get you there faster.”
The report could certainly provide food for thought for anyone with an interest in entrepreneurship. Whether looking to start a franchise or a unique business, it is certainly worth considering what type of leadership approach to adopt.
According to hrzone.co.uk, the study indicated that highly successful companies were more likely to have ‘conservative’ decision-makers at the top.
“Listening takes time and yet it ensures that an organisation is not only on board but also engages everyone in the process – producing more solid results in the long run and leading to less reckless strategic shifts,” Stadler concluded.