The new realities shaped by the disruptive and complex moment we are experiencing are completely different for each organization. This situation is forcing some companies to completely reinvent themselves, while others are unable to operate as needed. Others are seeing turnover grow at unexpected levels. The personality characteristics of the CEOs of the companies influence the consequences that each of the companies is experiencing as a result of the pandemic.
The Leader in Times of Crisis Program
This article will focus on how the CEOs scored on the Hogan Personality Inventory (bright side of personality), or HPI, which evaluates seven aspects of personality that tend to appear during everyday situations and the Hogan Development Survey (dark side of personality), or HDS, measures the 11 aspects of personality that can derail performance during times like these.
Some personality traits can pose risks to companies’ success. These traits, which Hogan calls derailers, tend to arise when people are stressed, fatigued, or bored (that is, when we do not exercise self-control). These are the most challenging elements of personality to work with, and they are the most damaging to our careers. Because crises such as the one we are currently experiencing cause almost constant stress, these characteristics are particularly notable right now.
Financial
Among CEOs in the financial sector, we saw a pattern involving the Sociability and Inquisitive scales. Sociability refers to interest in frequent and varied social interaction — these are leaders who facilitate and promote communication and socialization in virtual spaces with their teams. Inquisitive refers to creativity and openness to new ideas, which is highly positive for this sector, as the sector is typically rigid without much change. This shows that they are leaders willing to rethink the way they do business and create new strategies different from the traditional ones.
The greatest risk involves behaviors associated with the Colorful scale. People who score high on this scale seem gregarious, entertaining, and jovial, and they enjoy being the center of attention. The crucial risk with this scale lies in a tendency to exaggerate the facts and, as a consequence, create panic in the team. As is evident, this characteristic can be disastrous in a sector as delicate and with as much social impact as this.
Industrial
In the industrial sector, CEOs scored similarly on the Prudence, Inquisitive, and Learning Approach scales. Prudence has to do with self-control, being conscientious, and having a good work ethic. The CEOs’ overall results demonstrate that they can make good decisions guided by planning and structure, while balancing flexibility and challenging traditional paradigms. The Learning Approach scale describes a person’s learning style. In these particular results, CEOs demonstrate a good balance between learning through practical experience, which is key during times of uncertainty, and an interest in learning in academic spaces, which today are virtual. Curiosity, one of the characteristics measured by the Inquisitive scale, also plays a key role in this sector due to the creativity and willingness to rethink problems that this crisis requires.
Among CEOs in the industrial sector, we found two main risk factors: Excitable and Reserved. People who score high on the Excitable scale work with passion and enthusiasm, but they can also become easily frustrated, irritated, upset, and inclined to abandon projects or remove support from people. The main problem is difficulty with emotional self-control, which can lead to hurt relationships or put projects, processes, or ideas at risk when they do not go as expected. An industrial sector CEO with these characteristics may have difficulties managing the current situation and effectively leading a team.
Those who score high on the Reserved scale, on the other hand, may appear mentally strong, distant, and unconcerned for other people’s feelings. For leadership to be effective, regular communication with the team (especially in critical circumstances) is essential, and CEOs who are high on the Reserved scale might tend to cut this communication under stress.
Health
We found that Interpersonal Sensitivity, Prudence, and Learning Approach were the scales on which CEOs in the health sector scored highest. It is not a surprise to find that the Interpersonal Sensitivity scale appeared in this sector. This scale measures warmth and social ability, which are of great importance during this difficult time for humanity. Our analysis shows that CEOs of companies in this sector have the ability to transmit these skills as values within their organizations.
On the “dark side”, the results from the health sector were very interesting. We found three primary risk factors: Bold, Mischievous, and Diligent. High scorers on the Bold scale tend to appear confident, fearless, self-promoting, and unable to admit mistakes or learn from experience. Obviously this is a very high-risk scale for this sector because the ability to learn from experience and correct mistakes is required (and to correct them, you must first admit them).
The Mischievous scale refers to seeming bright, charming, adventurous, risk inclined, and limit testing. If we look at it from this perspective, it can seem positive for this high-pressure sector. However, the risk factor lies in exceeding the limits and overlooking security protocols or basic nonnegotiable principles.
Finally, high scorers on the Diligent scale appear to be hardworking and detail oriented, with high performance standards for themselves and others. Like the Mischievous scale, this may sound positive; however, the risk factor is reflected in “paralysis” behaviors. That is, when this trait arises, the leader (or the team, under the leader’s direction) might not produce the necessary results, because they are not ideal.
Services
Our findings were equally as interesting within the services sector. We found that the Inquisitive and Adjustment scales prevailed among these CEOs. Adjustment is particularly important during these times, as it has to do with the ability to manage stress, control emotions, and listen to feedback. These results show that these CEOs have the ability to maintain a balance between acting with a sense of urgency, openly listening to feedback from the environment, and managing their emotions in the face of the crisis to avoid creating panic in their companies.
CEOs in the services sector also tended to score high on the Bold and Mischievous scales. Obviously, it will always be a risk to have difficulty with accepting feedback or with owning mistakes (Bold) and the possibility of blurring the limits in every sense of the word (Mischievous).
Technology
Technology CEOs’ most notable scores were on the Prudence, Inquisitive, and Interpersonal Sensitivity scales. For this sector, the importance of the Inquisitive scale is highlighted because it is the one that allows the industry to remain at the forefront under realistic and achievable parameters. The scale of Interpersonal Sensitivity is also striking in this sector, as one might think that technology companies would be removed from people and the human factor. This demonstrates the ability of these CEOs to integrate technology and innovation with the human side. From a team perspective, these CEOs should also be able to keep their teams engaged.
On the other side, technology sector CEOs tended to have high scores on the Bold and Imaginative scales. As it may be evident, arrogance is one of the most common personality traits of people under stress. The Imaginative scale refers to appearing innovative, creative, possibly eccentric, and sometimes self-focused. The risk factor stems from behaviors such as difficulty landing or executing ideas and difficulty communicating in a practical and easily understandable way. In circumstances like these, it is of great importance to work from practicality, because theorizing, analyzing, thinking and rethinking projects will not monetize what little you can.
Transportation
Among CEOs in the Transportation sector, scores on the Sociability and Prudence scales prevailed. This sector is one of those that will have significant reinvention challenges since it requires people to be face to face. Sociability will play a crucial role within organizational culture to keep employees involved and connected to each other.
We also found behaviors associated with the Colorful scale to be the main risk factor. Just as in the financial sector, a high score on this scale can be a double-edged sword that leads to making one-sided decisions or generating panic in teams.
Tourism
Finally, in the tourism sector, we obtained very interesting findings. Given that this is one of the sectors hit hardest by COVID-19, these CEOs are facing challenges never before imagined. We found their Ambition and Adjustment scores to be their main strengths. The Ambition scale predicts leadership, drive, competitiveness, and initiative — which are essential to getting out of a situation as complicated as the one many tourism companies find themselves in. These results indicate a good prognosis. Surely many of these organizations be strong enough to withstand the impact of this crisis once it has passed.
The three main derailers: Cautious, Bold, and Diligent. The Cautious scale measures risk aversion, fear of failure, and avoidance of criticism. This scale can be challenging because it can lead to difficulties in making risky decisions or decisions without all the necessary information (which is every day in these new conditions).
Crisis is inevitable, and organizations are well advised to be prepared. The single best way to be prepared for a crisis is to have a leader who is effective at handling crises when they occur. Our decades of research on personality and leadership tell us that the most effective leaders during a crisis are well adjusted, ambitious, realistic about the scope of the problem, steadfast about tackling the problem head on, and deeply compassionate about how the crisis is affecting others. Although it can be difficult to see in the midst of a crisis, organizations with these sorts of leaders have bright futures ahead.
