Bishop of Exeter Robert Atwell said although Jonathan Draper was an "excellent preacher" he must do more "to take people with him".
The bishop also said the cathedral had "acute" financial problems.
Both men said they were "committed to continue working together" on a "clear path".
The bishop's comments followed an annual visit by an independent panel that reports to the bishop about the cathedral's future.
Bishop Atwell wrote: "Although an excellent preacher, the visitors were repeatedly informed that the lack of spiritual leadership and pastoral care emanates from the dean himself."
The visitors reported that the dean "claims to be a 'big picture' thinker, but appears not to listen to advice, even from senior colleagues".
Their report continues: "The dean appears to have little interest in the more mundane running of the cathedral.
"He does little to encourage staff and seems to have little contact with many regular members of the congregation who claim to find him remote and disinterested."
What do deans do?
Source: Church of England
The bishop added that it was "essential" the cathedral, which costs £1.5m a year to run, "lives within its means".
He said the cathedral's "situation in Exeter is acute because, unlike some other cathedrals, it has no large endowments".
The bishop has ordered a "change of culture" at the cathedral and wants a progress report from the chair of the Cathedral Council, which governs the cathedral, next April.
The dean of Exeter Cathedral has been ordered by his bishop to mend his ways after being described as "remote and disinterested" in a report.