Here O’Reilly et al. propose that the effect of CEO personality on performance outcomes is carried by organisational culture. They explore links between CEO personality, estimated from language modeling of earnings calls, and organizational culture, which they estimated from Glassdoor reviews. The finding that jumps out is the negative correlations between CEO conscientiousness and adaptive cultural dimensions like agility, innovation, execution, and performance. They say this is because the CEOs become myopic and too detail focused.
The downside of the bright sides of personality, like the risks of high CEO conscientiousness, have been talked about before. In practice, at the individual level, these effects don’t tend to appear more than would be expected by chance, especially when you control for other traits like neuroticism. All in all, I encourage high conscientiousness in our CEOs.
Source: https://lnkd.in/ejazYcRh
