One of the worst effects is that too many "leaders" fancy themselves as grand strategists and visionaries and who are above the "little people" that are charged with refining and implementing those big and bold ideas. These exalted captains of industry develop the grand vision for the product, the film, the merger, or whatever -- and leave the implementation to others.
This was one of Carly Fiorina's fatal flaws at HP: she loved speeches and grand gestures like the Compaq merger, but didn't have much patience for doing what was required for making things work. By contrast, this is the strength of Pixar leaders like Ed Catmull, John Lasseter, and Brad Bird.
Yes, they have grand visions about the story and market for every film, but they sweat every detail of every frame and worry constantly about linking their big ideas to every little detail of their films.
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