Journal Article

Make Leader Character Your Competitive Edge

Austin, Robert D, Furlong, William (Bill), Crossan, Mary

2023

Overview

Leadership character is often overlooked in organizations, despite its significant impact on positive organizational development. A study found that organizations with leaders of high character had nearly five times the return on assets compared to those with low character. However, leaders often underestimate and misunderstand the concept of character, marginalizing it as just being about ethics. Character is about more than ethics; it is the foundation of judgment and decision-making. Developing positive character traits can result in better decisions and outcomes. The research into leader character began as an investigation into the failures of leadership during the 2008 global economic crisis. The study identified 10 dimensions of leader character that interact with judgment. These dimensions can function as virtues or vices depending on their deficiency or excess. Organizations can start by fostering a conversation about leader character and integrating it into HR practices and strategic initiatives. By elevating character alongside competence, organizations can create a healthier culture and achieve strategic advantages.

• Publisher: Massachusetts Institute of Technology, Cambridge, MA
• Subject: Accountability / Competitive advantage / Corporate culture / Decision making / Economic crisis / Focus groups / International banking / Judgment / Leadership / Professional hockey