Charismatic Leadership Theory suggests that followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors. The most fundamental way a charismatic leader increases performance is byarticulating an appealing vision. This vision serves as a long-term strategy for attaining a goal by making the future better than the status quo.

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A charismatic leader does not just set goals; they provide a "vision statement"—a formal proclamation of an organization's mission—that they use to imprint on followers an overarching goal and purpose. They then communicate high-performance expectations and express confidence that followers can attain them, which enhances follower self-esteem. Unlike transactional leaders who rely on rewards or directive approaches, charismatic leaders use emotional appeal and personal risk-taking to inspire followers to go beyond their self-interest for the sake of the organization. This articulation of a "better future" is the primary engine of motivation in charismatic leadership.