Do Leaders of Great Companies have to be Dictators?

As I've been watching the world of entrepreneurship around me, I'm always looking for patterns and trends.  One I particularly focus on is leadership. As I've looked at some of the greatest companies and business leaders in the world, I've noticed that most of them have exceptionally strong personalities and dominate their company.  I don't have all the answers, so instead today I'd like to explore the patterns I've found and I look forward to hearing all of your thoughts on this.

Do Leaders of Great Companies have to be Dictators?

So let's start of by how I reached this conclusion. Recently, we've all been inundated with Steve Jobs thanks to the iPhone 4 "antennagate" and Mark Zuckerberg thanks to Facebook privacy issues and the upcoming "Social Network" movie.  In both cases, these guys have reputations for very strong personalities that very strongly lead from the top at their companies.  It got me thinking and led to me identifying quite a number of other past and present CEOs of major companies who are doing the same:

  • Bill Gates:  He used to be notorious for ripping his developers when he found errors in their code and having exceptional expectations. His charity work notwithstanding, he had a pretty ruthless reputation at Microsoft before he started giving those Billions away. 
  • Jack Welch: Maybe he was more benevolent than others, but there are entire books about his no "BS" policies and how he wrangled GE into shape and really forced his doctrine onto the company.
  • Elon Musk: founder of a space company, Tesla motors and major shareholder in PayPal. He's known for being a bit of an egomaniac that will accept nothing less than perfection. He just successfully IPO'd Tesla last week.

I'm sure there are others, but if you know these people as well, but I think you get the idea.  

So why do I think you might need to be a dictator to succeed? 

1. Motivating Your Employees

When you have hundreds of employees, I imagine it can be very difficult to reach, inspire, motivate and bring to action all of them. With a strong personality with a slight touch of passionate dictatorship, you're more likely to hold everyone in line.

2. Fulfilling Your Vision 

When you found a company you have to have a strong vision for where the company is going and you need to have your employees understand it.  Unfortunately, this can be really challenging and much like motivating your employees is difficult, getting them to buy into your vision is just as important.  Without a rock solid vision you impose on the company (regardless of where it came from) how does a great company not falter?

3. Being a Pioneer Isn't Easy

All of these companies I've mentioned have been pioneers in their industries. To lead people to the front lines of changing markets takes strength and perhaps the dictator-like personality is the one required to lead them there. Part of being a pioneer means seeing what no one else sees. If that's the case then you have to show unwavering strength and confidence to keep your "troops" (employees) believing in you and working hard on your behalf.

 

So I'm still thinking a lot about this question, and I definitely wonder if there are elements you can take from these without being maniacal, but I also think there's a strong argument for why these people had to be this way and that the media lens certainly magnifies (and celebrates?) these qualities.

 

So do you think Leaders of Great Companies have to be Dictators?

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Discussion

The answer is "No"

Jason, I don't believe you actually believe that a company leader needs to be a dictator to succeed. You're playing devil's advocate.  I hope this article doesn't brand you with this being your belief.

The answer is "No".  There are plenty more leaders that are non-dictatorial that succeed as well.  Herb Kelleher of Southwest Airlines, Howard Schultz of Starbucks, and too many more to list.

Marsh Sutherland

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Marsh Sutherland
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re: The answer is "No"

 Marsh,

It's not really about believing it or not...it's more of an exploration of leadership and what I see around me. There are patterns everywhere, but there are also false positives.  After more thought, I believe that the media lens only let's you see parts of these leaders and exaggerates and sensationalizes the dictator portions. Yes, they all have strong convictions, but I'm sure they're all compassionate and caring at times too.

 

Thanks,

Jason

Jason Evanish
CEO / Co-Founder
Greenhorn Connect
Twitter: @Evanish  

 

Control vs. Passion

 Jason,

I like this post a lot.  

I'm interested in your thoughts on what qualities start up teams should have and how  leaders can help their teams cultivate those qualities. 

My sense is that great start up teams need to have:

  • Passion
  • Vision
  • Buy-in / Cohesion 

These map pretty well to the three most relevant qualities that I would assign to these 'dictatorial leaders' are:

  • Passionate (motivating your employees)
  • Visionary (fulfilling your vision)
  • Controlling (being a pioneer isn't easy)

I think you can get employees to buy-in  from being controlled, but it's probably not optimal.  A dictatorial leader loses a lot by being controlling:

  1. Initiative: I'd guess employees lose their edge when they submit their creative instincts to that of a domaineering leader
  2. Feedback Loop: A controlling leader can force his or her team to take risks to stand at the front lines of a new market - but it seems like feedback from the team will be dampened for fear of contradicting the law from on-high.
  3. Long-Term: Probably a bigger issue for investors, but a dictatorial leader becomes indispensable to the enterprise.  

Definitely a topic worth keeping in mind.  Thanks Jason.

 

Re: Control vs. Passion

Michael,

 

Thanks for the comment and great stuff!

 

I actually got some interesting comments in line with your comments when I sent the link to my father: see below.

 

-Jason

 

 Strong Leadership does not equal Dictitorial Leadership.

 
In fact, I would argue that being a dictator has nothing to do with leadership.  To me leadership is getting others to do what you want them to do, do it willingly, do it happily and all without threat.
 
A Dictator says, "Do this or else!"
 
A Leader says, "We have this goal that we simply must meet.  I believe I know how to get there.  Now we need to work together to get there."
 
The members of the team are the key in mt mind.  At least 1/2 of all employees won't listen to either.  They go along to get along and actually like watching life go by.  Another 1/4 of all employees want to help, and will to some degree.  But they will never make the big move to leading, not even leading themselves.  The Dictator has a huge influence on these employees.  Might I say fear motivates them?  The final 1/4 are the key.  Dictators turn them off.  They want to know why they should buy in. 
 
Great leaders in the end are:
 
- Empathic, which leads to them acting as a
- Dictator when they need to, a
- Leader when they need to, a
- Pastor/confessor when they need to, a
- Compassionate friend when the need to, a
- Strict father when they need to, and more.
 
All of these are needed at different times.  The trick is to know when to be what.
Jason Evanish
CEO / Co-Founder
Greenhorn Connect
Twitter: @Evanish