Character matters: Character dimensions’ impact on leader performance and outcomes

Abstract

In a recent commencement address at the Ivey Business School, Domenic Barton, the head of McKinsey & Co.’s global consulting practice, said: ‘‘When we think about leadership we focus too much on what leaders do . . . and we don’t spend enough time on who leaders are — the character of leaders.’’ Similarly, in a speech to Ivey students, Mark Carney, Governor of the Bank of England, said that ‘‘. . . to restore trust in banks and in the broader financial system, global financial institutions need to rediscover their values . . . Employees need a sense of broader purpose, grounded in strong connections to their clients and their communities.’’ Few among the hundreds of C-suite leaders and board directors with whom we have discussed this topic in focus groups sessions, conferences, and executive development programs over the last five years, would disagree with them. While leaders readily agree that ‘‘character matters,’’ they also report that they seldom refer to it, talk about it, or use it in recruiting, selecting, promoting or developing leaders . . . although it does surface more often when it comes to firing them! Based on our research, we attribute the gap between the perceived importance and the actual use of character to three things. First, there is a great deal of ambiguity about what is meant by the word character, which of its dimensions are most important in organizational leadership, how character can be assessed, and what can be done to develop character in today’s and tomorrow’s leaders. Second, leaders tell us that what they need is a