The human mind is the most powerful tool that we possess. It can do positive as well as negative wonders. The placebo effect is defined as a phenomenon that influences beneficially in illness, failures, despair etc. It is attributable to the brain–mind responses to stimuli we receive from some people or some objects in our life. The placebo effect is more famous in medical context; it is a substance with no known medical effects, such as sterile water, saline solution, or a sugar pill, alternative therapies such as reiki, pranik healing. People follow some Gurus some follow soothsayers because they get Placebo Effect.

The fact is that placebo reduces negative emotions which in turn decrease pain, anxiety and despair. I am talking here about placebo leadership. Leadership is not an easy task; it doesn’t happen just by itself. Placebo leaders are empathetic. Empathetic leaders understand the needs of others; they are aware of people’s feelings.

Nelson Mandela was the first democratically elected President of South Africa. He was the face and leader of the Anti-Apartheid movement, relentlessly fighting against racial discrimination all through his life. He was sentenced to life imprisonment for conspiring to overthrow the state following the Rivonia Trial. His tremendous focus, determination, and will dismantled the apartheid, Mandela come out as a champion and lead his country into having an equal and free future. His government focused on dismantling the legacy of apartheid by tackling institutionalised racism and fostering racial reconciliation. I call Nelson Mandela a placebo leader.

Placebo leaders make encouraging impact on their people. They maintain communication and show up during periods of uncertainty.  Even when there is not much to say, keeping a regular pulse of communication, especially face to face, provides reassurance and consistency. Visibility of leaders in crucial times is comforting. During the Corona virus pandemic it is observed that women-led countries have tackled the pandemic much better. Seven countries in the world where women are heading the nations, have tackled Covid 19 tactfully.  Their empathetic leadership has cautiously tackled the situation. Those seven countries have lowest numbers of casualties.

Jacinda Ardern, the Prime Minister of New Zealand could practically wiped out Covid 19 by end of May 2020. She gives the credit to the spirit and discipline followed by her citizens.  Germany, led by Angela Merkel, has lowest death rates than other Euro Nations. Sanna Martin, the young Prime Minister all of 34, of Finland governs with a coalition of four female-led parties, has had fewer than 10 percent as many deaths as compared to Sweden. And, Tsai Ing-wen, the President of Taiwan, has presided over one of the most successful efforts in the world at containing the virus, using testing, contact tracing and isolation measures to control infections without a full national lockdown.

Katrín Jakobsdóttir, Prime Minister of Iceland has successfully brought down the death rate by Covid-19 in Iceland. In Norway, Prime Minister Erna Solberg is using technology to the fullest use to track isolated patients. The patients don’t feel lonely.  The current Prime Minister of Denmark is Mette Frederiksen closed her country’s borders on 13 March. A few days later she closed kindergartens, schools and universities and banned gatherings of more than 10 people. Her decisiveness appears to have spared Denmark the worst of the pandemic: its death toll stands at less than 250, and the number of patients being treated in hospital for Covid-19 is falling drastically. Placebo modulates emotions via verbal information.

The worst effects are seen in such times when rumour mills spread alarming information. But when people get the chance to ask questions themselves to find out what points their leaders are making, when they are asked how they are feeling and when they get regular information and hard facts from the Government agencies they feel comfortable. Possibly the biggest impact of sustained communication is on trust which is a crucial commodity during change. 

I call Ratan Tata also a placebo leader. The 82-year-old leader of Tata Trust donated a massive sum of Rs.500 crores for fighting Covid-19 crisis calling it as ‘one of the toughest challenges that the human race will face’. Ratan Tata is well known for his philanthropy, shared the note from his charitable organisation. He captioned the post, “Tata Trusts and Tata group companies have in the past raised to the needs of the nation. At this moment, the need of the hour is greater than any other time.” On 26 November 2008, in a series of attacks in Mumbai, when Taj Mahal Palace hotel was attacked, destroying the interiors, killing of guests, including the destruction of the hotel’s roof in the shootout, it’s worth a mention here that Mr.Ratan Tata went all out to care for each and every employee of the hotel to help them recoup from the shock. All categories of employees including those who had completed even 1 day as casuals were treated during the time the hotel was closed. During the time the hotel was closed, the salaries were sent by money orders. Employees were treated like family members.

I get tired of hearing about soft skills as most important skills required for effective leadership. Please note that U.S Army Field Manual on Leadership Development is one of the best sources on leadership, insists repeatedly that empathy is essential for competent leadership. Without empathy, one cannot build or nurture followers.  Devoid of compassion one cannot inspire followers or elicit loyalty. Empathy is most essential in negotiations of any kind.