Managing exceptions :: The key to excellent performance

by Finn Majlergaard | 27. Feb, 2025 | Blog

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This article is about managing exceptions and why excellence in this ability makes us stand out as leaders.

Break the rules

Many years ago, right after graduating from University I got a job with IBM as a trainee and had to learn to make advanced computer programs in "C" - a widely used programming language. As time went by I became quite good and one day I found myself programming an important part of a national payment card transaction system. Transactions were handled in real time. It was a huge system, but it worked nicely for many many years.

Recently I have been thinking back to those days and realized that one of the main reasons why the IT system became robust was because we spent an immense amount of time managing exceptions. In this case, an exception is everything that is diverging from the normal - a breakdown on a remote terminal, wrong format of a transaction, rejection of a transaction etc. I think we created more C-code for managing exceptions than we did for the actual system. If we hadn't focused so intensively on finding ways to manage all sorts of possible exceptions we would have had a lot more interruptions (downtime) and consequently lower customer satisfaction.

Today after having helped hundreds of leaders and organisations gain cultural intelligence I think I can see a pattern. And I want to share it with you and get your comments and thoughts.

The computer program was successful predominantly because we were extremely good at managing exceptions of all sorts. When I look back at all the managers I and my colleagues in Gugin have coached I can see a resemblance. The successful managers and leaders of multicultural teams are to a large extent successful because they have a phenomenal ability to handle exceptions.

A company might have rules for handling almost everything, but we human beings are not bits and bytes so the manager must have the skills, empathy and courage to constantly break the rules and make exceptions. Otherwise, the system would collapse. But of course, it will need to learn managing exceptions as well as it does anything else.

There might be rules for who can get a company car, but sometimes it might make sense to give a company car to a single-mom secretary if that makes her life so much easier then she can remain a great asset to the company.

There might be rules for how many weeks of vacation an employee can have per year but circumstances in his life may require an exception to these rules.

Managing exceptions is something we do all the time but sadly a lot of managers are so keen on following the rules that they miss the opportunity to realise how great it feels to break them. Try to turn it around for a moment.

An example of managing exceptions

Imagine you are late for your flight. You know you have to check in 30 minutes before departure. You arrive at the check-in counter 28 minutes before departure exhausted after having rushed through the airport. Now two things can happen:

  1. You will be told that you are late and that you have to purchase a new ticket. That is according to the rules but you still get upset because you can easily get on the plane without delaying anything.
  2. You will be told that you are late, but they will try to check you in any way. You feel happy because an exception was made for you. Your satisfaction with the airline has increased and you will tell everybody how great service you got. You might even click "like" on their Facebook page.

The example above illustrates how important the exceptions are. But if we make exceptions all the time and disregard the rules we will end up with anarchy. So balancing between obeying and breaking the rules is like balancing between rigidity and anarchy - a try dilemma for the manager.

It is, however, my opinion that far too few managers dare to break the rules and focus on managing exceptions. Only by breaking the rules we acknowledge the validity of the rules. So be courageous and start breaking rules.

You can read more about managing exceptions here

What separates a good leader from one who truly moves people? Research — and decades of cultural intelligence practice — point to one word: charisma. And unlike talent, charisma can be learned.

In 1979, Warner Records refused to send Prince on tour. Not because of his music — they knew he was exceptional — but because he lacked charisma. He couldn't yet move an audience. Fast forward one year, and Prince had transformed himself into one of the most commanding performers in the history of popular music. He didn't wait for charisma to arrive. He worked at it, systematically, studying and adopting the techniques of the performers he admired.

That story is not just about rock and roll. It is a precise metaphor for leadership. At Gugin, we have spent over two decades helping leaders across cultures and industries make exactly this kind of transformation — not by telling them to "be more confident," but by equipping them with concrete, learnable strategies rooted in emotional intelligence, cultural intelligence, and communication science.

 

Why Most Charisma Advice Fails

The most common advice leaders receive about charisma is frustratingly vague: project confidence, be warm, be present. These qualities do matter. But they are nearly impossible to "just do" on command, especially under pressure, across cultures, or in unfamiliar organisational contexts.

Research by Professor John Antonakis and his colleagues at the University of Lausanne Business School has shown that charisma is not a personality trait reserved for the few — it is a set of communicative behaviours that can be identified, taught, and practised. In their studies, randomly selected middle managers who underwent structured charisma training were subsequently rated by peers and subordinates as more charismatic, more competent, and more trustworthy. The training worked.

At Gugin, we have built on this science and gone further — weaving it together with emotional intelligence (EQ) and cultural intelligence (CQ) to create a leadership development approach that is both evidence-based and globally applicable.

The Nine Charismatic Behaviours — And What They Really Require

The Antonakis research identifies nine concrete charismatic leadership tactics: using metaphors and stories, showing moral conviction, expressing shared feelings, setting high expectations, using contrast and rhetorical questions, using lists, and animating communication with body language. These are the building blocks. But building blocks need a foundation — and that foundation is emotional and cultural intelligence.

Take metaphors, for example. A metaphor is only powerful if it resonates with the audience. In Gugin's cross-cultural leadership programmes, leaders quickly discover that a metaphor drawn from American sports culture may fall flat in a team from Northern Europe, and that a story invoking individual heroism may alienate a collectivist audience in East Asia. The charismatic tactic is the same; the cultural calibration is everything.

The same applies to moral conviction. Appealing to shared values is one of the most potent charismatic tools a leader has. But whose values? Which moral frameworks? A leader operating across multiple cultural contexts must understand that concepts like fairness, loyalty, duty, and hierarchy carry profoundly different weight in different cultures. High cultural intelligence — the ability to read, respect, and adapt to cultural difference — is what allows a leader to express genuine moral conviction that actually connects rather than alienates.

Emotional Intelligence: The Inner Architecture of Charisma

Charisma without emotional grounding is performance. It can work in the short term, but it rarely sustains trust. The leaders Gugin works with are taught to understand that emotional intelligence is not a soft supplement to charismatic leadership — it is its inner architecture.

Consider the tactic of expressing shared feelings. Antonakis identifies this as key: when a leader says "I feel the same uncertainty you do, and here is how I am holding it," they build identification and trust. But this requires real self-awareness. Leaders must be able to name and regulate their own emotional states before they can credibly reflect the emotions of others. In Gugin's programmes, we invest significant time in developing exactly this capacity — helping leaders identify their emotional triggers, understand how their inner states broadcast outward, and build the emotional vocabulary needed to communicate with authenticity.

Empathy — a core dimension of emotional intelligence — also directly underpins several charismatic behaviours. Setting high expectations while simultaneously communicating belief in others (another of the Antonakis tactics) requires a leader who genuinely sees the potential in the people around them. That kind of seeing is empathic. It cannot be faked over time. When Prince produced the band The Time for Warner Brothers, he did not simply demand excellence — he made each member believe they were capable of more than they thought. That is emotionally intelligent leadership in action.

Cultural Intelligence: Charisma That Travels

One of the most important — and most overlooked — dimensions of charismatic leadership in today's world is its cultural portability. A leader who is magnetic in one cultural context may be perceived as arrogant, shallow, or inappropriate in another. This is not a flaw in those audiences. It is a signal that charisma, like all communication, is culturally embedded.

Gugin's work in over 60 countries has shown us that the nine charismatic tactics are universal in their structure but must be culturally adapted in their expression. Rhetorical questions, for instance, invite participation and create anticipation — but their delivery must match the power-distance norms of the audience. In high-hierarchy cultures, a rhetorical question from a senior leader may silence a room rather than energise it. In low-hierarchy cultures, it may spark exactly the engagement intended. Cultural intelligence tells the leader which dynamic they are working in, and how to adjust.

Similarly, the use of storytelling — one of the most powerful charismatic tools — varies enormously across cultures in terms of what stories are appropriate, how direct or indirect they should be, and what kinds of protagonists resonate. Gugin teaches leaders to build a culturally diverse repertoire of stories and to develop the sensitivity to know which story belongs in which room.

How Gugin Trains Charismatic Leaders

Gugin's leadership development programmes integrate the science of charismatic communication with structured development in emotional and cultural intelligence. The process is iterative and experiential, not theoretical.

Leaders begin by gaining honest self-awareness: understanding how they are currently perceived, what emotional signals they project under pressure, and how their default communication style reads across cultures. This foundation phase often surfaces important blind spots — the technically brilliant executive who speaks too abstractly to inspire, the empathetic manager whose conflict-avoidance reads as a lack of conviction.

From there, leaders move into skill-building: practising charismatic communication tactics in safe, structured environments with real feedback. They learn to craft metaphors that carry cultural resonance, to tell personal stories that build connection without oversharing, to use contrast and rhetorical structure to sharpen their message. They receive coaching on non-verbal communication — the body language, vocal variety, and presence that Antonakis identifies as essential to bringing charisma alive.

Finally, leaders apply these skills in live contexts, with coaching support, and receive 360-degree feedback that tracks their progress. This mirrors the approach Antonakis found to be effective — group training combined with individual coaching — and embeds it within the broader cultural and emotional intelligence framework that makes the development durable and globally relevant.

Charisma as a Leadership Responsibility

There is a deeper point worth making. Charisma is not about making yourself more impressive. At its best, it is about making others feel seen, energised, and capable of more than they believed. It is about communicating in a way that bridges difference, builds shared purpose, and creates the conditions for people to do their best work.

In a world where leaders must navigate unprecedented complexity — technological disruption, geopolitical volatility, multi-generational and multicultural workforces — the ability to communicate with clarity, conviction, and emotional resonance is not optional. It is a strategic capability.

Prince didn't work on his charisma because he wanted to be famous. He worked on it because he knew, instinctively, that the music mattered — and that without the ability to connect, the music would never reach the people it was meant for.

The same is true of leadership. The work matters. Charisma is what carries it across.

 

About Gugin  |  Gugin is a global advisory firm specialising in cultural and emotional intelligence. We help organisations build the leadership capability to thrive in a complex, multicultural world. Learn more at www.gugin.com

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