128 / Rotman Management Spring 2017
to greater effectiveness. After a brief orientation to leader-
ship-relevant Behavioural Economics principles, I will de-
scribe how we set out to help Cal in two areas: managing his
behavioural triggers and building trust among co-workers.
First, though, a question: Has anyone ever met Homo
Economicus — that wonderous Economics avatar endowed
with perfect information, flawless logic, and a relentless
drive to maximize utility? While Economic theories provide
useful guidelines in the abstract, our daily decisions are
typically coloured by the myriad biases and irrationality de-
scribed by Behavioural Economics. The application of these
principles provides perspectives on both what drives leaders
and how to help them.
Managers attend to reliable execution of the day-to-
day, but we look to leaders to take us to new places. What
distinguishes a leader from a manager is the leader’s ability
to influence and provide direction and perspective. In our
ongoing work with leaders, we call the factors that distin-
guish a leader from a manager ‘Executive Presence’, and it
is these factors that organizations typically seek to develop
in leaders by having them work with a coach or participate
in leadership-development programs.
Most people think of Executive Presence (EP) as ‘cha-
risma’ or ‘owning the room’. While these factors are im-
portant, they only tell part of the story. EP encompasses
the qualities that help a leader engage, align, inspire and
move people to act, and these qualities fall into three broad
dimensions. I have already described this framework and
Bates Executive Presence Index (ExPI) on these pages [seeNO ONE WOULD EVER DISPUTE that Cal
Chambers was the smartest guy in the
room, least of all Cal. As Chief Science
Officer of Obsidian Pharmaceuticals,
Cal holds multiple patents and has been
responsible for developing the core bio-
logical platform on which all of Obsidian’s therapies are
based. To a researcher like Cal, science isn’t just the focus
of his work: The pursuit of scientific truth is foundational
to his identity and values. To question his conclusions in
any matter, scientific or otherwise, is to betray one’s foolish
ignorance and Cal’s response is often withering. A brilliant
scientist who has developed clinical breakthroughs, he also
produces breakdowns in the workplace, through both his re-
flexively combative and harsh interpersonal behaviour and
his micromanagement-induced bottlenecks in processes
and reporting.
Cal’s interpersonal challenges haven’t been limited to
his own team: They also complicated his working relation-
ships with the rest of the Obsidian leadership team. Put sim-
ply, few on the team would trust Cal to have their back. Cal
has often lamented that things would be so much easier if
other people would just be as rational and thoughtful as he
is. Ironically, despite his considerable intellectual gifts, Cal
has been no more exempt from irrationality and biases in
making decisions than any of his colleagues.
Throughout this article, I will use the real-life case of
‘Cal’ and ‘Obsidian’ (names changed) to explore applying
insights from Behavioural Economics in coaching leadersHow to ApplyHow to Apply
Behavioural Insights Behavioural Insights
to Leadershipto Leadership
POINT OF VIEW Andrew Atkins, Vice President, Bates Communications