Article published in El Espectador: https://www.larepublica.co/analisis/daniel-lopez-hincapie-2889790/la-paradoja-de-la-soledad-de-los-ceos-2-3-4080686
Economists and architects share a very powerful idea: design shapes behavior and, consequently, social outcomes. The way a space is designed determines, in large part, the outcome of social interactions. Organizations are no strangers to this phenomenon.
If a space can be designed to foster certain outcomes, then we can also design organizations to mitigate the collateral effects of power. My hypothesis is that the loneliness of power is, by definition, a design problem. Let's review this phenomenon in more detail.
The CEO is the hinge between the board of directors and his team. He or she must respond to the strategic expectations and pressures of shareholders, while leading his or her team in executing the strategy. By definition, the CEO has no peers, which creates a sense of isolation. Boards should not only focus on direction and supervision, but also on the emotional support of the CEO.
The maturity of corporate governance influences this phenomenon. In the absence of strong corporate governance, decision making is overly concentrated on the CEO, which increases his or her burden of responsibility and isolation. Without well-structured control and deliberation bodies, the CEO becomes the sole point of reference for strategic decisions.
Added to this dynamic are the relationships between the CEO and his team, since these will always be influenced by a phenomenon known in psychology as the authority bias: the human tendency to allow ourselves to be influenced and change our behavior in the face of power figures. As a result, these relationships lose spontaneity, affecting the quality of the relationship in terms of emotional support for the CEO.
On the other hand, a study by the University of Norway reveals that confidentiality intensifies this phenomenon. Sensitive information that the CEO cannot share increases his burden of responsibility, raises stress and deepens his isolation. The organizational structure, based on authority, hierarchical filters and restrictions on communication, makes their loneliness a real organizational problem, rather than just a myth.
Finally, the CEO's multiple responsibilities tend to blur the boundaries between his personal and professional life. The pressure for results leads him to put his individual and often family well-being on the back burner. Without balance, his support network tends to shrink, generating a spiral of isolation that is difficult to break.
CEO loneliness is the result of cultural structures and paradigms that have been built from organizational design. The good news is that we can also redesign them. If organizational design shapes behavior, we have a responsibility to redesign structures that mitigate the loneliness of power and foster more sustainable leadership.
In the last column of this series, we will explore how to redesign the organization to mitigate the collateral effects of power through adjustments in corporate governance, organizational culture and individual CEO habits. But, in the meantime, I invite you to reflect: How can we mitigate this phenomenon? What would you redesign?
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