Leadership and Management Style of Elizabeth Holmes: A Case Study

Developing Leadership
& Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The traits and talents that people possess that enable them to supervise operations, direct
initiatives, and direct their teams toward the accomplishment of objectives are known as
leadership competencies (Ho, 2021). The report will cover the leadership and management style
of the CEO Elizabeth and brief analysis on the risk and performance of the company.
MAIN BODY
The success or failure of an organisation is impacted by effective leadership. Elizabeth
Holmes had both success and failure during her tenure as CEO of the start-up Theranos due to
her unethical activities. Holmes' advantages account for the business's success. She was excellent
at networking to increase her credibility, developing a positive personal brand, enticing people to
invest in her blood testing technique, and having a narcissistic need to advertise her product.
However, narcissism turned into a flaw when her desire for fame and personal wealth resulted in
immoral actions that led to the company's destruction (Williams, 2022). Holmes transgressed
several moral lines. By prohibiting a scientific review of her blood testing method, she gave in to
confirmation bias. Low morale, discontent, and distrust were the results within the organisation.
By ignoring and hiding reports of accuracy issues with the blood testing technology, she
endangered the lives of her clients.
Additionally, Holmes conned investors. The board of directors failed to oversee senior
management, a hierarchical top-down company structure gave Holmes complete power over
decision-making, and hierarchical relationships stifled complaints from below, all of which
contributed to Holmes' unethical behaviour. External forces, such as the demand for other blood
testing services, a regulatory gap, and a dearth of third-party evaluations, affected Holmes'
choice to engage in unethical behaviour (Purkayastha, Dutta and Chakravarty, 2020). The
positive consequences of deficiencies, such as narcissism, are addressed or mitigated by a good
leader while strengths are maximised. When internal and external deterrents are weak or non-
existent, an effective leader won't breach ethical lines because doing so will cause the
organisation to fail.
A Case Study of the Leadership of Elizabeth Holmes
The success or failure of an organisation depends on the effectiveness of its leadership.
The qualities, motives, choices, and actions of a leader have an impact on the organisation as
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well as other stakeholders. Elizabeth Holmes is a good example of a leader who had success as
the CEO of a start-up company but also experienced failure due to her choices and deeds as a
leader. The situation Elizabeth Holmes was involved in, her leadership traits (both good and
bad), the ethical lines she crossed and their effects on the community, the organisational culture
elements that influenced her behaviour, the outside influences on her decisions, the outcomes and
lessons learned from her case are all covered in the case study on Elizabeth Holmes' leadership.
The Situation
Former CEO of the start-up business Theranos is Elizabeth Holmes. In order to create a
portable blood testing device that performs a wide range of tests with just a pinprick of blood,
she founded the company in 2003 (El-Masri and et. al., 2019). The technology used for blood
testing was very practical, practical, affordable, and readily available. It has the ability to alter
and disrupt the medical diagnostic market.
Leadership Strengths and Weaknesses
Elizabeth Holmes shown both a strength and a weakness as a leader. Her advantages
highlighted how she was able to influence how people perceived her blood testing technology,
draw in talent, supporters, and investors, and increase the company's value. Her involvement in
unethical actions that ultimately resulted in the filing of civil and criminal charges against her
and the liquidation of the corporation is attributable to her frailty.
One of Holmes' strengths is her capacity to forge alliances and build networks based on
her knowledge of health technology to increase her credibility. She met most of her first
important contacts at Stanford University (Moore, 2021). A Stanford professor introduced
Holmes to a person with the connections necessary to a health technology start-up, which was
how she first made significant connections. Holmes was able to establish her credibility and a
good reputation for her business through this early network.
Holmes' positive personal brand image is another asset. She had a gripping tale to tell.
She dropped out of college and used her tuition funds to start a company that aims to create a
health technology that has the potential to help a lot of people all over the world, developing a
visionary and scientific genius persona in the process. She also adopted some of Steve Jobs'
characteristics. To appear more mature, she wore a black turtleneck the majority of the time. She
spoke in a low, deep tone. She appeared passionate, motivated, and committed due to the size of
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