In response to global financial crisis, countless theories have been raised as to why risk management systems failed, and leaders were allowed to follow a course of action that had such far-reaching consequences. One of the most interesting theories comes from Wall Street lawyer and author Susan Cain who argues that the answer lies in the dominant personality type that exists within modern organisations. Cain, the best selling author of the book ‘Quiet – the power of introverts in a world that can’t stop talking’, suggests that a lack of diversity in terms of personality was a major contributor to ‘group-think’ and an inability to identify all possible outcomes.
While there are many components to personality, the distinction between introverts and extroverts is one of the most identifiable personality differences and a pillar of renowned psychologist Karl Jung’s personality theory. We all know the stereotype – introverts, are the quiet shy types, while extroverts are the loud outgoing types. Cain goes to great lengths to de-bunk some of the myths about introversion indicating that it has less to do with shyness, defined as the fear of social judgment, and more to do with optimum levels of stimulation; introverts are sensitive to stimulation and are therefore most effective when they have periods of reflection and solitude. Extroverts are less sensitive to stimulation and therefore require more external engagement with the world to reach their optimum level.
Cain goes on to explain biological differences, in the brain, between introverts and extroverts indicating that extroverts are more sensitive to dopamine, the ‘reward chemical’ released by the brain. This means that extroverts process information quickly, and act quickly. They are more likely to get ‘carried away’ with their momentum. In contrast, introverts process information more slowly, but are far less likely to be influenced by dopamine. In short, while they make decisions more slowly, they tend to be more accurate in their decision-making.
So what does this have to do with the financial crisis and financial institutions? Most importantly, the modern organization, particularly in the Western world, is biased towards the extroverted profile. The bold, assertive profile is notably apparent within the Investment Banking world, which was at the heart of the crisis. The message is not that extroverts should no longer play a role in leadership, but rather that our leadership structures should be more representative of both of these personality types. Furthermore, the two styles compliment each other when structured effectively providing a powerful balance between outward energy and internal focus and reflection.
At Standard Bank, we believe that diversity, in all its forms, helps to build a stronger, more dynamic organisation. So what’s your personality type, and where do you see yourself fitting in at Standard Bank? Visit
www.standardbank.com/graduates to find out more about our opportunities.