WHEN LEADERSHIP CHARMS FAIL

 True leadership demands more than charm, argues LINUS OKORIE

Charismatic leadership. The term itself exudes magnetism, invoking images of bold visionaries, eloquent speakers, and captivating personalities capable of inspiring entire organizations to move mountains. It is no surprise that charisma  is often viewed as a golden ticket in business and politics—something that separates the great leaders from the average ones. After all, who wouldn’t want to be led by someone who can effortlessly command a room, make compelling promises, and ignite a sense of shared purpose?

However, as alluring as charisma may be, its power comes with a dangerous flipside. Charisma is often mistaken for competence. When someone radiates confidence, speaks persuasively, and makes grand visions seem not only possible but also inevitable, it is easy to overlook deeper questions about their actual capabilities. Underneath that charm, is the leader truly equipped to handle the complexities of a business? Or are they using their charisma to mask incompetence, indecision, or even narcissism?

This occurrence happens too in recruitment, where it is regarded as “previously undetected recruitment error.” During interviews, candidates who exude confidence, speak eloquently, and present themselves with enthusiasm can create an illusion of competence. Their magnetic personality may cause hiring managers to bypass critical evaluations of their actual skill set, experience, or fit for the role. The persuasive nature of a charismatic applicant can lead decision-makers to make emotional judgments, overlooking key indicators of job performance. Upon resumption, it becomes evident that their charm masked a lack of depth, revealing serious gaps in their qualifications or capacity to manage the demands of the position.

Charismatic leadership can lull teams, stakeholders, and entire organizations into a dangerous sense of security, preventing people from asking the tough questions and making rational, fact-based decisions. There is a reason why leadership experts frequently warn against “charismatic overload.” The charm that first draws people in can easily become manipulative. Leaders who possess this trait can leverage their charisma to control, influence, and steer decisions—not based on merit or logic, but on emotion and personal loyalty.

One of the most significant risks of charismatic leadership is the erosion of rational decision-making. Under the spell of a charismatic leader, followers may begin to ignore facts, overlook flaws, and forgo their own critical thinking. Emotional decisions—driven by loyalty or the sheer belief in the leader’s vision—replace analytical, rational approaches. In the worst cases, this results in what some call “charisma-induced blindness.”

This was the tragic case of Enron Corporation, one of the largest companies in America. At its peak, CEO Jeffrey Skilling was a charismatic leader who convinced both employees and investors that the company was untouchable. This resulted into a culture where dissent was stifled and no one dared question the decisions made at the top. Enron’s eventual collapse exposed a company rotten at its core—a collapse fuelled by charismatic leadership gone unchecked. Its collapse affected over 20,000 employees and shook Wall Street.

The dangers extend beyond financial collapse. The manipulation fostered by unchecked charisma can breed a toxic workplace culture. Relationships deteriorate as leaders wield their charm to divide and conquer, turning employees against one another or silencing dissent. What starts as charismatic influence can evolve into emotional manipulation, eroding trust and morale within the organization.

Take Adam Neumann, the co-founder and former CEO of WeWork. Neumann’s charisma was legendary. He sold investors on a vision of a global empire of shared workspaces, promising a future where his company would revolutionize how people live and work. His charm and confidence attracted billions of dollars in investment, pushing WeWork’s valuation to dizzying heights. But behind the scenes, WeWork was bleeding money, and Neumann’s leadership was increasingly erratic.

Eventually, the company’s financial troubles caught up with it, and Neumann was forced to step down. WeWork’s initial public offering (IPO) was postponed, and the company’s valuation plummeted by tens of billions of dollars. In this case, Neumann’s charisma blinded investors and employees alike to the company’s underlying weaknesses.

Nevertheless, do not mistake this critique as a wholesale condemnation of charisma. When used wisely and tempered with substance, charisma can be an asset. The trick lies in understanding how to recognize when charisma crosses the line from inspiring to manipulative—and how to balance the strengths of charm with the need for integrity, competence, and rational decision-making.

So, how can you tell when a leader’s charisma is a strength or a potential danger? How can organizations ensure that their leadership is not built on charm alone?

Charisma is powerful because it taps into deep psychological needs. Humans are hardwired to respond to confidence, vision, and the emotional pull of a compelling narrative. Charismatic leaders often have a unique ability to communicate in ways that make people feel seen, heard, and valued. They know how to craft stories that resonate with the dreams and desires of their followers. It is not uncommon for employees to feel an almost personal loyalty to such leaders, believing in their vision with near-religious fervour.

Take Steve Jobs, for instance. Jobs was known for his magnetic personality and his ability to inspire loyalty and passion from his team. His charisma was integral to Apple’s meteoric rise, as he convinced his employees—and the world—that they were not just selling computers; they were changing the world. Under his leadership, Apple became more than just a company—it became a movement.

True leadership demands more than charm—it requires authenticity, accountability, and a commitment to ethical practices. Charismatic leaders must be held to the same standards of responsibility as any other, ensuring that their influence serves the organization rather than themselves.

The key to avoiding the dark side of charisma lies in balancing it with transparency and fostering a culture where diverse perspectives are valued. Leaders who embrace accountability and encourage honest feedback create a more stable foundation for long-term success. Charisma may ignite momentum, but it is the blend of competence, humility, and collaboration that sustains it.

 Okorie MFR is a leadership development expert spanning 30 years in the research, teaching and coaching of leadership in Africa and across the world. He is the CEO of the GOTNI Leadership Centre