CEOs rated high in character by employees delivered an average return on assets of 9.35% over two years, dramatically outperforming low-character counterparts. Low-character CEOs achieved only 1.93% return on assets in the same period, according to IE. A five-fold difference proves leadership character directly impacts shareholder value.
Many leadership development programs prioritize skills and strategy. Yet, evidence shows leader character better predicts organizational success and employee well-being. This focus on tactical abilities often overlooks foundational traits that truly drive performance and foster a resilient workforce.
Organizations that cultivate and measure leader character gain sustained competitive advantages and foster resilient, engaged workforces. This approach protects against career collapse and costly leadership failures.
The 11 Dimensions of Leader Character
A model of 11 inter-correlated leader character dimensions provides a robust framework for how character translates into tangible benefits for leaders and organizations, as detailed in character matters: the network structure of leader character - PMC. These dimensions correlate positively with promotability, leadership, and performance, and negatively with derailment risk, reports Sigma Assessment Systems. Investing in these traits is a direct financial lever for organizational success and a preventative measure against costly leadership failures.
2. Judgment
Best for: Leaders making sound decisions under pressure. Judgment is the most central character trait, linking leader character to positive follower outcomes like well-being and organizational commitment, states character matters: the network structure of leader character - PMC. Prioritizing its development directly enhances a leader's ability to navigate complex situations effectively. Strengths: Drives positive follower outcomes | Limitations: Difficult to teach directly | Price: Integrated into character development programs
