Contrary to the Harvard Business School model of vocal leadership, the ranks of effective CEOs turn out to be filled with introverts, including Charles Schwab; Bill Gates; Brenda Barnes, CEO of Sara Lee; and James Copeland, former CEO of Deloitte Touche Tohmatsu. "Among the most effective leaders I have encountered and worked with in half a century," the management guru Peter Drucker has written, "some locked themselves into their office and others were ultra-gregarious. Some were quick and impulsive, while others studied the situation and took forever to come to a decision.... The one and only personality trait the effective ones I have encountered did have in common was something they did not have: they had little or no 'charisma' and little use either for the term or what it signifies." Supporting Drucker's claim, Brigham Young University management professor Bradley Agle studied the CEOs of 128 major companies and found that those considered charismatic by their top executives had bigger salaries but not better corporate performance.
We tend to overestimate how outgoing leaders need to be. "Most leading in a corporation is done in small meetings and it's done at a distance, through written and video communications," Professor Mills told me. "It's not done in front of big groups. You have to be able to do some of that; you can't be a leader of a corporation and walk into a room full of analysts and turn white with fear and leave. But you don't have to do a whole lot of it. I've known a lot of leaders of corporations who are highly introspective and who really have to make themselves work to do the public stuff."
Mills points to Lou Gerstner, the legendary chairman of IBM. "He went to school here," he says. "I don't know how he'd characterize himself. He has to give big speeches, and he does, and he looks calm. But my sense is that he's dramatically more comfortable in small groups. Many of these guys are, actually. Not all of them. But an awful lot of them."
Indeed, according to a famous study by the influential management theorist Jim Collins, many of the best-performing companies of the late twentieth century were run by what he calls "Level 5 Leaders." These exceptional CEOs were known not for their flash or charisma but for extreme humility coupled with intense professional will. In his influential book Good to Great, Collins tells the story of Darwin Smith, who in his twenty years as head of Kimberly-Clark turned it into the leading paper company in the world and generated stock returns more than four times higher than the market average.
Smith was a shy and mild-mannered man who wore J.C. Penney suits and nerdy black-rimmed glasses, and spent his vacations puttering around his Wisconsin farm by himself. Asked by a Wall Street Journal reporter to describe his management style, Smith stared back for an uncomfortably long time and answered with a single word: "Eccentric." But his soft demeanor concealed a fierce resolve. Soon after being appointed CEO, Smith made a dramatic decision to sell the mills that produced the company's core business of coated paper and invest instead in the consumer-paper-products industry, which he believed had better economics and a brighter future. Everyone said this was a huge mistake, and Wall Street downgraded Kimberly-Clark's stock. But Smith, unmoved by the crowd, did what he thought was right. As a result, the company grew stronger and soon outpaced its rivals. Asked later about his strategy, Smith replied that he never stopped trying to become qualified for the job.
Collins hadn't set out to make a point about quiet leadership. When he started his research, all he wanted to know was what characteristics made a company outperform its competition. He selected eleven standout companies to research in depth. Initially he ignored the question of leadership altogether, because he wanted to avoid simplistic answers. But when he analyzed what the highest-performing companies had in common, the nature of their CEOs jumped out at him. Every single one of them was led by an unassuming man like Darwin Smith. Those who worked with these leaders tended to describe them with the following words: quiet, humble, modest, reserved, shy, gracious, mild-mannered, self-effacing, understated.
