Thin Slicing at work in the corporate world as the Economist declares “What the boss looks like determines how he performs”.
This may sound like voodoo. Psychologists spent much of the 20th century denigrating the work of 19th-century physiognomists and phrenologists who thought the shapes of faces and skulls carry information about personality. However, recent work has shown that such traits can, indeed, be assessed from photographs of faces with a reasonable accuracy.
…These findings suggest that instant judgments by the ignorant (nobody even recognised Warren Buffett) are more accurate than assessments made by well-informed professionals. It looks as if knowing a chief executive disrupts the ability to judge his performance.
Sadly, the characteristics of likeability and trustworthiness appear to have no link to company profits, suggesting that when it comes to business success, being warm and fuzzy does not matter much (though these traits are not harmful). But this result also suggests yet another thing that stockmarket analysts might care to take into account when preparing their reports: the physog of the chief executive.