We’re perhaps all too familiar with the notion of narcissistic leaders. Indeed, popular lore often has it that it’s charismatic leaders who are the only ones capable of bending the world to their will. Research from Stanford aims to understand how the personality of the leader affects the performance and culture of their organization.

The study looked into how CEOs’ personalities relate to the way their companies work. The researchers used a clever computer program to figure out what kind of people the CEOs are by looking at what they said in meetings. They also checked over a million reviews from employees on Glassdoor to understand how the companies function.

Influencing behavior

The results showed something interesting. The way a CEO acts and thinks is linked to how the company behaves. The researchers focused on five important traits that describe a person’s personality: being open to new things, being friendly and agreeable, being careful and organized, being outgoing and social, and being calm or nervous.

Here’s what they found. CEOs who were outgoing and liked being around people were connected to companies that worked well together and got things done. CEOs who were friendly and easy to get along with tended to create flexible and united company cultures. But, interestingly, CEOs who were very organized and precise didn’t always lead companies that focused on moving quickly or getting big results.

But there’s a twist. There’s no such thing as a perfect CEO personality. Each CEO trait has its own strengths and weaknesses. For example, someone who’s really outgoing might not be super organized. This means that the best kind of CEO personality depends on what the company needs.

In simple terms, the study looked at how CEOs’ personalities match with their companies. It found that some traits, like being outgoing and friendly, help create positive company cultures. But the right mix of traits isn’t the same for every CEO – it depends on what the company is like.

“A personality of a leader that might work in one situation might be exactly the wrong personality in another situation,” the authors conclude. “Leaders who are very open-minded and creative can be great for companies whose strategy is to be innovative. They could be terrible in companies where the strategy is to be cost-conscious and incremental.”