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As I stopped to listen to the inauguration speech of newly appointed president, Barack Obama, the thing that stood out most about him was not the content of his speech but rather how he was able to draw the attention of millions by just the words he spoke. His words not only captivated millions but it also instilled hope and inspiration to those who listened. Obama shares a rare trait that great leaders have. That trait is charisma.
While many may be described as charism

More important than recognizing charisma is recognizing how a person uses it. Taking that extra analytical step can make a world of difference. After all, "charisma" doesn't equal "goodness." One can also be a charismatic tyrant.

Did you know in Good to Great, Jim Collins found that often the charismatic CEOs were the less successful ones. This was because people would be afraid to report bad news to charismatic CEOs. If Jim Collins wrote about it, there must be some truth to it.
I think that charisma is good for the speaker, and bad for the people. One is able to woo the crowd to his favor, even if his intentions are ill conceived. The crowd is easily convinced by anyone who smooth talks; therefore, this is how most tyrants and even men rise to power.
I still feel it is an important quality. Good post!
- Jun

Charisma is overrated. If it's not connected to competence, intelligence and hard work, it's nothing more than smoke, mirrors and illusions.

I second jrandom's comment. I worked for a CEO who talked a great game and really impressed everyone at the company when he came on board. Three years later we came to realize that's all he does--talk. All the management training/self-awareness seminars in the world couldn't help the man make a well-informed business decision to save his life.
There is a limit to how far you can go on charisma alone. However, the opposite is probably also true. There is limit on how far you can without charisma, even if you have competence, intelligence, and hard work. To over emphasize or devalue it would be a mistake. It must be included in the makeup of a leader and valued appropriately.

Perhaps it depends on what is meant by "charisma." Great leaders aren't necessarily showy. They lead, and people follow them, because of their ability and commitment.
I wonder if it has more to do with playing up your strengths. Charisma is an Obama strength.
While the book "Hardball" by Chris Matthews is not the best-written thing I've ever read, it's a fascinating look into the world of politics from an "insider" perspective. He highlights a lot of the personality traits that got great leaders to power. Often it involved leveraging strenghts and turning weaknesses into strengths.
True charisma is a rare trait, and I imagine it is just as likely a charismatic individual could be evil as they could be good. I know very few truly charismatic individuals, but those I do know are usually smart, able to listen,they appear acutely aware of what is going on around them and are able to use that to their advantage.
The loud, funny, know it all boss showy individual is not necessarily charismatic.

Charisma is overrated. If it's not connected to competence, intelligence and hard work, it's nothing more than smoke, mirrors and illusions. -@jrandom42
This post is not attempting to say that charisma alone makes a person efficient. All the author seems to be saying is that charisma makes people more likable, which makes other people want to work for them. He's not saying charisma will automatically equal out to be the best boss or leader imaginable.
Charisma just helps. I know that my charismatic nature has won me better jobs and better projects. Yes, I am intelligent, competent, and hard working, but being charismatic helps me to stand out when there are other intelligent, competent, and hard working people vying for the same position or project.
Being charismatic is no substitute for hard work or determination, but it sure as hell helps when the competition is high. I would never, EVER, say that charisma is overrated. That's like saying being likable in a job interview is overrated.

Charisma can make a great salesperson, but a lousy engineer.
I've seen far too many "charismatic" individuals rely soley on their charisma to game the system and not do any of the messy, boring, dull, but totally necessary tasks to succeed in my current field. Personally, even if a person is "dull" and lacking in charisma, but has a record of hard work, intelligence and competenece, they have an advantage with me.
Charisma may induce me to look at one's record, but without a history of competence, intelligence, and hard work, they are going to be directed to sales and marketing, not engineering.

@jrandom42 - I definitely agree that if people rely solely on their charisma and have no experience to back themselves up, they will flail. You make a great point.
But, really, how many charismatic people do you know going into the engineering field? Most likely, if a person knows their strength is charisma, they will go into sales and marketing. They will gravitate to the profession that will utilize their skills in the best way.

I think there's a difference between "charisma" and "having a dynamic personality."

Charisma accompanied by honesty is unstoppable. That is what people, employees, anyone will follow anywhere.