The Psychology of Leadership Book Summary - The Psychology of Leadership Book explained in key points
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The Psychology of Leadership summary

Sébastien Page

Timeless principles to perfect your leadership

18 mins

Brief summary

The Psychology of Leadership dissects the mental frameworks and behaviors that influence effective leadership. It delves into emotional intelligence, decision-making, and the psychological traits that differentiate exceptional leaders from their peers.

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    The Psychology of Leadership
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    Re-defining success

    Ask leaders about happiness, and many will offer the old chestnut about happiness equalling success – but psychological research indicates that the exact opposite is true. Happier leaders and teams are far more successful than unhappy ones. As happiness has never been an exact science, the idea of a leader taking responsibility for the happiness of themselves and their teams feels counterintuitive at best.

    That’s where positive psychology comes to the rescue, and the work of foundational researcher Martin Seligman. Page highlights the importance of Seligman’s PERMA framework, which breaks down and explains five separate dimensions of happiness. The acronym stands for Positive emotions, Engagement, Relationships, Meaning, and Accomplishment, and explains both the key components of happiness and why they're so vital in long-term happiness.

    Leaders can shape four of the five levers – engagement, relationships, meaning, and accomplishment – both in the organization and within themselves. Page emphasizes that modeling these behaviors, understanding them, and cultivating the right conditions for them will nurture happiness, and with it long-term success. Let’s tackle these four levers one by one.

    Engagement, for instance, is that state of being so engrossed in a task or activity that time speeds by and action flows. It is the kind of state cultivated by professional athletes and musicians, for example, who must give their entire focus over to the act of performing. At work, engagement is the most productive state for any individual or team, and keeps burnout at bay even when things get stressful.

    Healthy and supportive relationships are another vital component of happiness both at home and at work. The extent to which you nurture supportive relationships is so important in leadership that it will get its own chapter later. Relationships rich in trust, authenticity, and transparency help drive innovation and productivity, and serve as early warning systems when problems arise.

    Meaningful work, or finding meaning in the work that you do, is like the “secret sauce” that makes happiness possible in almost any circumstance. That is because it is so often a matter of framing, or finding what's meaningful for you in what you do. For instance, “I am an investment banker” is clear, but overall pretty meaningless. However, the statement “I guide clients toward financial freedom to live their dreams” would hold far more meaning for most.

    Listen to a retirement speech and you’ll notice a pattern: it’s a highlight reel of milestones. Achievements like these don’t just mark the finish line—they fuel happiness along the way. The formula is simple. Choose a goal that matters, give it a clear deadline, and throw your energy behind it. When a target feels meaningful and keeps you engaged, each accomplishment becomes a built-in motivator for the next one.

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    What is The Psychology of Leadership about?

    The Psychology of Leadership (2025) draws on research into several subdisciplines of psychology to offer a framework for successful leadership based on scientific research into happiness. Weaving together real-world examples, personal anecdotes, and research, it presents a framework for harnessing psychological insights in leadership. 

    Who should read The Psychology of Leadership?

    • Stressed out leaders at any stage of their careers looking for more satisfaction or meaning in their work.
    • Coaches, consultants, and HR professionals looking to turn around toxic workplace cultures
    • Anyone interested in being happier and healthier at work, while cultivating more success

    About the Author

    Sébastien Page is the head of Global Multi-Asset and Chief Investment Officer at T. Rowe Price and a member of the editorial board of Portfolio Management and the Financial Analysts Journal. He regularly appears as a leading voice in finance on CNBC and Bloomberg TV, and sits on the board of directors for the Institute for Quantitative Research in Finance.

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