Running Head: Charismatic Entrepreneur Richard Branson

Richard Branson

Jim Nelson

April 22, 2010

Charismatic Entrepreneur Richard Branson 1

Introduction

Richard Branson’s communication style is diverse and dynamic, as exemplified by his

outgoing personality and easy going management principles. According to the precepts of

LaSalle’s 12 Virtues, Howard Gardner’s 7 R’s, Hofstede’s collectivist culture analysis, Bales’

interaction process analysis, and Csikzentmihalyi’s Flow theory, it is possible to create a

framework to develop a comprehensive understanding of Branson’s communication style and

ascertain as to whether the CEO of Virgin Group has successfully maintained a work-life

balance. Richard Branson, a self-made entrepreneur, is a multi-billionaire and founder of a

conglomeration of entities that include airlines, railways, record companies, sustainable fuels

development, and space flight. His dynamic and charismatic stature combined with his ability to

empower others enables him to communicate effectively in a nontraditional corporate culture.

Follows is Richard Branson’s style of communication in the context of the LaSallian Virtues.

LaSallian Virtues

Effective communication is one of the most critical roles a leader should possess. As

described by St. John Baptist de La Salle, effective communication leader is the one who

possesses some important virtues such as patience, exactness, prudence, wisdom, vigilance,

constancy, order, impartiality and resilience. Richard Branson, the Chairman and Founder of

Virgin Groups is one such charismatic leader who is often described as interesting, persuasive,

confident, assertive, restless, polished and occasionally aggressive, some of which is believed to

have changed over the years. Some of the characteristics of Richard Branson’s communication

style from the perspective of the LaSallian virtues will be discussed in the following section.

Branson, a self- made man had a difficult childhood. Although he was brought up in an

average family, Branson’s upbringing taught him the importance of independence, courage and
Charismatic Entrepreneur Richard Branson 2

endurance. For example, he once set off on a 50-mile adventure on his bike with only some

sandwiches and a bag of apples just to teach himself the importance of self endurance. He also

taught himself to swim while his family looked on approvingly from the bank of a river. Having

suffered from dyslexia and poor eyesight, Branson wasn’t able to perform well in school but was

more interested in athletics. As a result he dropped out of school at the age of 17 while working

on the “Student” magazine business. Soon he started the mail order business calling it Virgin

Records and opened a shop in Oxford, London. Richard Branson, who was brought up to be an

adventurous and self- reliant person was a man of great wisdom (Witherbee, 2005).

Branson in the past with his actions has gained himself the name publicity hound.

Although his business ideas are out of ordinary the fact that he currently owns more than 270

branded companies is a great achievement. As his empire has expanded, Branson is known to

take on implacable industries that treat customers badly by providing an entertaining experience

and offering better deals to the customers (Deutschman, 2006). Therefore, it is evident that

Branson possess prudence. Instances such as arriving nearly naked in Times Square to kick off

the joint venture of Virgin Mobile USA with Sprint PCS Group have also gained him the name

maverick (Khermouch & Yang, 2003). Exactness is another LaSallian virtue that Branson

possesses. The young entrepreneur of Britain is a very down to earth guy who knows exactly

what he wants. In addition to being a charismatic communicator, Branson possess a business

acumen combined with excellent public reputation which helps in generating a good brand image

amongst the customers. Additionally, Branson who has two kids possesses vigilance. Branson

who thinks his kids are his biggest achievement in life also believes in happy well- motivated

employees. Therefore, care for his kids, constant motivation to employees and enthusiasm for his

business makes him a vigilant person. As a result Virgin is one of the top companies for
Charismatic Entrepreneur Richard Branson 3

graduates’ employer wish lists. Furthermore, Branson whose interest in life is setting huge,

unachievable challenges while trying to rise above them also possess resilience (Broad, 2003).

Amongst the LaSallian virtues, Branson who likes to challenge an established order and

rather creates businesses of his choice clearly doesn’t possess order. Most people have thought

that his vision for Virgin breaks all the rules and is too wildly kaleidoscopic. Although Branson

was known to be restless and lacking patience in the past, people who work with him say that he

has become less impulsive and much more thoughtful. Currently, Branson has also been very

cautious to preserve what has already been gained and not blow it away (Davidson, 2002).

Additionally, Branson who makes decisions based on his own experience and biases lacks

impartiality.

The LaSallian virtues or characteristics Sir Richard Branson, the chairman and founder of

Virgin Group possesses are wisdom, prudence, exactness, vigilance and resilience. In addition,

lately he has seen to be more patient. Although Branson is a maverick, he is an effective leader

with great charismatic personality, huge enthusiasm and passion for his work. Due to all the

characteristics he possesses, Branson is a great effective communication leader who has been

able to reach the pinnacle of success with his hard work, enthusiasm and determination.

Gardner’s 7 R’s

Richard Branson has a knack for influencing people and changing their minds to

accommodate his way of thinking. We can analyze how Branson is successful in doing this by

using Howard Gardner’s Seven Levers that Impact the Process of Mind Change, otherwise

known as the 7 R’s. These 7 R’s include reason, resonance, research, resources and rewards, re-

descriptions, real world events, and resistances.

Charismatic Entrepreneur Richard Branson 4

The first two R’s to analyze are reason and resonance. When discussing Branson and his

influence over people, reason and resonance go hand in hand. However, the reasoning that

Branson uses is usually quite unique. Normally, reason involves a logical process and lengthy

analysis. However, Branson usually can think of things on the fly and has a team of people that

can help him turn his ideas into reality. The reasoning behind Branson’s success is that he

always wants to put customers first. He says he does this by being a consumer himself so he can

resonate with what consumers may need or want. He states that the reason he originally went

into business was not because he could make a lot of money, but because the “experiences [he]

had personally with businesses were dire and [he] wanted to create an experience that [he] and

[his] friends could enjoy” (Branson, 2010). An example of this is with Virgin Atlantic Airlines.

As a consumer Branson saw a need for the type of airline he offered which included luxuries

such as massages, stand up bars, and more space. This helped make and keep Virgin Atlantic

extremely successful (Deutschman, 2006).

Research is the next R. Branson is rather unique in regards to research. On the

political/personal interest side, Branson is extremely educated and well versed in influencing

policy. Examples of this are his efforts to save the condor from extinction and his campaign to

help develop alternative fuels. However, in normal business ventures, Branson does not follow

the typical research pattern. Typically, when Branson has an idea, he will scribble the idea on

his hand so he remembers it at a later time (Sheff, 1997). He then has a designated advisory

team whose job is to “capture his entrepreneurial ideas and wrestle them into some kind of

corporate structure that is both attractive to investors and palatable to him” (Barney, 2008).

The next R’s are resources and rewards. With billions of dollars in working capital,

Branson’s resources are practically unlimited. His unique promotional tactics, which are usually
Charismatic Entrepreneur Richard Branson 5

quite expensive, gain the attention of many and are extremely effective when combined with his

charismatic personality.

Next is representational re-description. Branson is an expert at presenting his products

and ideas in multiple and unique ways. One example of this is when Branson wore a wedding

dress to promote his Virgin Brides company (Betsy, 2003), or used a chainsaw to saw through a

British Airways airplane seat when promoting Virgin Atlantic Airways (Deutschman, 2006).

Real World Events is the next R. In recent endeavors, Branson has used real world

events to help change minds. One event in particular is the world’s reliance on oil. Branson and

his Virgin Group have been working on projects that would shift the world away from oil and to

use more alternative renewable energies (Barney, 2008). For example, several Virgin planes

have been converted to biodiesel fuel and new Airbuses are 27% more efficient (Barney, 2008).

Branson constantly uses examples from Al Gore and other environmental experts and groups to

help make the development of alternative fuels a priority in our society today (Barney, 2008).

Finally, Branson faces resistances. Any CEO of a company will face resistances, but

being the CEO of a company as diverse as Virgin is even more difficult. With Branson entering

into so many complex ventures, there will be resistances from many different circles. An

example of this is when Branson began Virgin Atlantic Airways in 1984. The head of American

Airlines stated, “What does Richard Branson know about the airline business? He comes from

the entertainment business” (Barney, 2008). Also, Branson faces resistances on several of his

political and environmental views such as the prevention of global warming. However, it seems

that no matter how many resistances that Branson may face, he has the patience and charisma to

take them head on.

Charismatic Entrepreneur Richard Branson 6

By evaluating leaders like Branson & Virgin Group using Gardner’s seven R’s, one can

see that Richard Branson is an expert at influencing people and making his ideas thrive.

Hofstede’s Cultural Dimensions

The United Kingdom, a highly individualist culture, possesses many similar cultural

norms to the United States. As native of the UK, Richard Branson an icon of individualism and

this is demonstrated in his style of communication and leadership with Virgin. Virgin has a

strong focus on entrepreneurship. The organization is always looking for the “next big idea”.

With the launch of Pitch TV, Virgin is giving entrepreneurs the opportunity to share their great

idea with the public and possibly investors. This exposure could launch the careers and products

of every day citizens.

Individualist cultures also stress the importance of independence. Branson believes in the

need to be free from annoyances and obligations. The many companies of Virgin are each

independent from the other. This corporate structure of keeping each of the smaller entities

separate from one another allows the organization to focus on small specific product categories

and industries, while still capitalizing on the Virgin brand built by Branson.

Richard Branson values uniqueness. He looks for the most dedicated, talented, and

creative employees to work for Virgin. The company doesn’t have a large corporate headquarters

and has a minimum layer of management. Branson views the companies as “part of the family”

rather than part of a hierarchy. This gives each of the businesses the empowerment necessary to

operate on their own.

Branson never pigeonholes himself. Keeping all options and industries available for

growth ensure endless possibilities in new business ventures. Branson also says that he doesn’t

listen to critics. In 1984, when Virgin Atlantic was launched, a critic once said that “No brand on
Charismatic Entrepreneur Richard Branson 7

earth” can stand for music stores, airlines, financial services, etc. This critic refereed to such

brand diversity as “ego”. Branson proved that critic wrong.

Branson is a sponge for new ideas. He often times carries a notebook in his pocket to

write down promising ideas. With other 350 companies, his unique individualist leadership style

is quite apparent.

The British culture has influenced Richard Branson and his communication and

leadership styles. Branson’s individualistic style and entrepreneurial spirit has led him to explore

many business lines in diverse industries. The title of his most recent book, “Screw It, Let’s Do

It”, shows Branson’s enthusiasm for exploring new opportunities.

Bale’s Interaction Process Analysis

Sir Richard Branson prefers informal communication at all levels. He often laughs at

himself and enjoys an informal atmosphere in the work place. He does not like to attend

meetings to make a decision, because he does not believe in group decision making. He likes to

make decisions by himself as quickly as possible. If he likes a business proposal, he will make

the decision within thirty seconds. He does not like to spend money on research and does not

believe in statistical data. He believes that with open communication, he can build a stronger

infrastructure because everyone in the company would be devoted to the excellence of the

company. He sends often monthly letters to his employees in whom he provides details of

Virgin’s future plans, along with his telephone and home address. He has given full authority to

all his managers to make decisions. Branson makes any major financial decisions by himself and

through his own whimsical methods.

Branson is well known for dropping in on employees and writing down any comments

about any of his companies in a notebook. He listens to all employees and enjoys talking to
Charismatic Entrepreneur Richard Branson 8

them. He does not like to call them into a meeting to find out their problems, he approaches them

in an informal way. He thinks that way the employees will talk to him with an open mind and

will express their feeling easily. He has not embraced the current Hi-Fi technology and is not a

fan of using digital assistants; he still carries a notebook with him, in which he writes notes on

everything from employee’s problems to new business ideas.

Branson is not a task-oriented person; he is more of maintenance type. He has created a

fun-working atmosphere where all people enjoy being a part of rather than simply come to office

for work to earn a paycheck. According to Branson, if employees love their jobs, they will love

their customers. Hence, he says employees first, customers next.

According to the book “Losing My Virginity”, Branson subdivides his companies as soon

as the number of staff reaches 100. In this way, Virgin Records ended up being 20 different

companies. The people who lead each of these businesses are managing directors, that way

Virgin has created 200 millionaires over the years. Ultimately, business is not about

"balance sheets, money, profits and loss," he argued. It is about "creating something

you're really proud of, something the people who work for you can be really proud of...

the actual business aspect is simply there to be mopped up at the end." (London Business

Form, 2008).

Branson plays the role of biased leader by having a personal stake in all his decisions.

Though he likes to receive ideas from his employees, group thinking is not given preference.

Because of his closed-mindedness, if decision is good, it will be wholly good. If they are bad,

they will be wholly bad.

Charismatic Entrepreneur Richard Branson 9

Csikzentmihalyi’s Flow Theory

Richard Branson’s career path, although unorthodox, is a testament to Virgin’s business

practices that are founded in the theory of flow as described by Mihalyi Csikzentmihalyi. Virgin

Group’s communication style encourages employees to innovate and express their own opinions

within the organization in order to remain in flow. Branson’s leadership communication style

and the fundamental principles of the entire corporation are based on his “Have Fun” philosophy

(Branson, 2008). As the CEO of a worldwide organization with entities in many industries,

Branson is happiest and most fulfilled when working on diverse, dynamic, and challenging

projects. He stays within flow by chasing opportunities and by finding talented, dedicated,

creative individuals to develop ways to improve the services the Virgin subsidiaries offer to

customers and investors. Branson’s autobiography “Losing my Virginity,” and his book “Screw

It, Let’s Do It” explain the major decisions he made in considering acquisitions, mergers, new

initiatives, and the setbacks he experiences while trying to lead fledgling companies. He writes

about many mishaps he has experienced, and how the challenge of competition influenced his

decisions to go into music, rail, airlines, or banking, as the young, relatively inexperienced, but

enthusiastic innovator. One example of his initiative to innovate backfiring is the decision to sell

orchids instead of roses on Valentine’s Day in Virgin’s airports, and being left with tons of

dying, smelly flowers. At times like this, Branson re-establishes flow by agreeing to restore

conformity. He appears to relish danger and challenge as evidenced by regular attempts to fly

around the world in a balloon, yacht racing, fishing trips during hurricanes, rescuing hostages

from Iraq, opening health clubs in South Africa, and perhaps most daringly; starting a

commercial space flight company. Flow, for Branson is overcoming insurmountable challenges,

whether in business ventures, or in sports adventures, or by combating global warming.

Charismatic Entrepreneur Richard Branson 10

In order to remain in Flow, Branson needs regular challenge both in business and in

private adventures. Having eschewed formal education, he discovered early that creating

something new and innovative was rewarding and profitable. However, Branson is aware that

the seemingly reckless behavior of a wild, fun loving CEO is a poor public relations decision,

and he always is careful utilize media attention to explain the rationale of his decisions. He is

particularly good at finding capable leaders within his companies who stay in flow by being

challenged and enjoy motivation and a fairly hands off management style. Branson says

repeatedly that customers and employees are the most important facets of his business and that

friendly and unconventional business practices are integral to the Virgin personality. By

encouraging employees to be cheeky, creative, and youthful when providing high quality

services, he inspires better performance and brand loyalty from staff and clients. He regularly

chats with patrons and passengers and is gratified to hear their opinions. Branson constantly

does his own ‘market research’ to find out whether his decisions are right rarely goes into

negotiations unless he has quantified the risks and rewards, Whether chatting with every

passenger on his flight, or greeting the reservations calling center employees by name, Branson

uses regular interfacing with his employees and customers to continue searching for innovative

ways to provide the ideal Virgin experience.

Branson is currently pursuing Virgin Galactic commercial space flights, a possible

acquisition of the Royal Bank of Scotland, the development of a comic book series based on

archetypal characters in India, a Global Earth Challenge prize, funding for the Elders, an

international non-governmental leadership group, and the continued health and profitability of

Virgin Group. By remaining active, humble, and approachable, he is able to remain in flow by

direct participation in the everyday decisions of his companies and by advocating for an
Charismatic Entrepreneur Richard Branson 11

inclusive method of communication of new ideas on a global level. At the end of his book,

Branson quotes Al Gore’s statement about climate change being the ‘end of fun’ (Branson,

2008). The CEO of Virgin Group will do everything possible to ensure that he will be able to

continue having fun and staying in flow and wants to receive confirmation from global leaders,

customers, and employees alike that everyone has the right and the means to have fun, stay in

flow, and make the world a sustainable place to work and live, and dream. As a leader by

example, Branson advocates hands on, direct change by any means possible, whether by giving

interviews, appearing on the Colbert Report, or chatting with seat mates on transatlantic flights.

Work-Life Balance

Branson is a CEO who achieves work life balance which is rare. He is devoted to his

family. He spends time with his daughter, Holly, 21, who is a medical student. He spends two

months in the summer with his family on Virgin Islands. During winter holidays, he goes to

Ulusaba, South Africa, with his family and on spring break to Majorca at a hotel he used to own.

According to the article “Richard Branson: What a Life”, he says, “I’m always around my kids,

I’ve seen much, much more of my family because I’ve always worked at home.” (Morris, 2003).

He used to play cricket and soccer in his school days and still likes to watch matches. He plays

tennis every day before his day begins. By combining travel, sports, family, and business, often

simultaneously Branson maintains a conglomeration of businesses and a healthy relationship

with his family.

Conclusion

The LaSallian virtues or characteristics Sir Richard Branson, the chairman and founder of

Virgin Group possesses are wisdom, prudence, exactness, vigilance and resilience. The British

culture has influenced Richard Branson and his communication and leadership styles. Branson’s
Charismatic Entrepreneur Richard Branson 12

individualistic style and entrepreneurial spirit has led him to explore many business lines in

diverse industries, which exemplify British influence. Branson prefers informal communication

styles, and has bias a leader who chooses the direction of a new venture and then finds talented

individuals to expand on that idea. As a leader by example, Branson advocates hands on, direct

change by any means possible, and encourages everyone in his companies to actively seek out

careers that will allow them to develop their own flow. By committing to a work life balance

that allows him to be with his family, travel extensively, and pursue humanitarian resolutions as

well as new adventures, Richard Branson proves he is an effective, profitable, and engaging role

model and leader for international business.

Charismatic Entrepreneur Richard Branson 13

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Charismatic Entrepreneur Richard Branson 14

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