Leadership, Coordination and Mission-Driven Management

Patrick Bolton, Markus K. Brunnermeier () and Laura Veldkamp ()

No 14339, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: What makes a good leader? A good leader is able to coordinate his followers around a credible mission statement, which communicates the future course of action of the organization. In practice, leaders learn about the best course of action for the organization over time. While learning helps improve the organization's goals it also creates a time-consistency problem. Leader resoluteness is a valuable attribute in such a setting, since it slows down the leader's learning and thus improves the credibility of the mission statement. But resolute leaders also inhibit communication with followers and leader resoluteness is costly when followers have sufficiently valuable signals.

JEL-codes: D21 D23 D7 (search for similar items in EconPapers)
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Date: Written
Note: CF
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