Beware of charismatic business leaders

From Article in November 2009 Organization Science

Charisma is undoubtedly a coveted trait in business, especially for those in (or aspiring to hold) leadership positions. A charismatic leader can rally customers, employees, shareholders, board members, and key constituents, around his or her vision and take a company to great new heights. In times of trouble, a charismatic leader is almost a necessity.

But what about the downside of charismatic leadership? What happens when charisma misleads?

Factoring recessions into business planning

From The Coca-Cola Company's "2020" Investor Presentation on November 16, 2009

Recessions, unfortunately, are a part of business life. Smart companies (especially smart, cyclical companies) plan for the possibility of a downturn, especially during a prolonged period of positive economic conditions. And after the recessionary storm blows through, they quickly begin the implementation of post-recessionary “clean up.”