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WANTED: LEADERS WITH INTEGRITY |
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| By John H. Zenger, D.B.A. and Joseph Folkman, Ph.D. |
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In the aftermath of WorldCom, Enron, Arthur Andersen and other scandals it
should be expected that companies will put a high premium on finding executives
with high ethical standards. But suppose you are the modern Diogenes, who with
lantern in hand, has been sent out to find such a person. Exactly what would you
look for? How do you discover a person who will act with high integrity and
display impeccable character even when put in a position of enormous power?
And that seems to be the problem. People with track records of honesty and
integrity through their careers get catapulted into roles with enormous
influence. They are in a position to use their power and influence to obtain
enormous personal wealth. For many that temptation is simply overwhelming.
Their position appears to cause them to believe that they are no longer
governed by old rules.
We recently analyzed 20 years of data collected on some 25,000 leaders. This
information was obtained from questionnaires completed by subordinates, peers,
bosses and the managers themselves. This technique, often described as
360-degree feedback, creates a reliable and we believe valid picture of a
leader’s behavior. We had a database of 225,000 such instruments, so we had
on average 10 questionnaires for each manager. A careful analysis of this
information provides useful insights about what makes great leaders. We
compared the top 10% with the highest aggregate scores with the bottom 10%
with the lowest scores. In many cases we had data from the companies that
allowed us to compare this feedback data with actual performance measures the
firm tracked. The group was largely middle and upper-middle managers. They
came from most industry sectors. Most were North American, though some
were international leaders.*
As viewed by peers, subordinates and bosses these people were rarely evaluated
as being unethical. Remarkably, we found little evidence to suggest that these
managers displayed any unethical behavior. So how can we explain the sudden
rash of senior executives who appear to be displaying such unethical behavior?
Frankly, we are hard pressed.
We see three possibilities. One explanation is that the group who ultimately
rises to the top of any organization is more greedy and dishonest, but manage
to camouflage that until they get into senor roles. Another explanation is
that the opportunities for unethical behavior are not so tempting at lower
and upper-middle levels. Finally, there may be much greater scrutiny of
leadership behavior at these middle levels. Whatever the explanation,
unethical behavior is simply not perceived by subordinates and colleagues
of most middle and upper-middle managers.
So let us go back to Diogenes. What should he look for, or look out for? Does
he somehow attempt to verify that the prospective executive does not cheat on
taxes or on a spouse? That information is not usually accessible to the
corporation. Indeed, there are few, if any direct windows into this
competency.
But our research provides some enticing clues. We discovered that there were
16 behaviors or competencies that separated those who where perceived highly
by subordinates and peers from those who were not. As most would predict, one
of those was “honesty and integrity”. After further analysis, we believe this
to be the central characteristic of great leaders. But our research went on to
discover that there were behaviors that were consistent companions to honesty
and integrity. We caution, however, that these companions must not be assumed
to be the cause of honesty and integrity. Instead, people who scored high on
one scored high on the other. Period. But much of science is based on looking
at correlations and then figuring out what links these things together.
The first companion behavior we identified was “assertiveness”. Simply stated,
people with high scores on honesty and integrity always had high scores on
speaking up and letting their views be known. They were the opposite of
passive. They took initiative. So what might the linkage be? As the
revelations come forward about the behavior of the leaders of companies
embroiled in scandal, we see two patterns. From insiders we hear that
honesty and integrity were often talked about, so the concepts were not
foreign. And we hear that many people inside were aware of the practices
that have now come to light. A few had the courage to speak up and not
merely be passive. That behavior appears to predict those who are most
apt to display high integrity through their careers. We believe that
companies cannot tolerate people who know of improper practices but who
keep quiet about them. Such “wink-wink” behavior is not characteristic of
those with the highest character.
The second competency companion with honesty and integrity is the display of
genuine consideration for others. Again, we make no pretense that being
considerate makes someone honest and ethical, but we can see good explanations
for the link. Unethical behavior invariably damages other people, whether
they are customers, shareholders or employees. Gains from greedy behavior
come at somebody’s expense. A totally thick-skinned calloused view of others
makes such behavior possible. But the leader who has genuine compassion and
consideration for others would not find it possible to do that.
So our suggestions to Diogenes are rather obvious. Look for people who have
a clean track record of honesty in all their business dealings. But do not
rely on that alone. Look for leaders who have displayed their willingness
to speak up, especially when it comes to matters of principle. And then
find people who display genuine concern for others. This is obviously much
more than the, “How’s the family?” question. It is the genuine behavior
that has them treating other people of all ranks with dignity and respect.
Our data suggest that you will usually find them approachable, somewhat
humble and self-effacing and willing to share the spotlight with others.
*To learn more about the revealing findings from our research, and the
implications for developing the crucial Leadership your organization needs
to be successful in the future, please join us at one of our free Leadership
Development Executive Sessions:
November 20, Houston, TX
November 21, Seattle, WA
December 10, Washington, DC
December 11, Chicago, IL
9:00 a.m. – 12:30 p.m.
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Comments from attendees at our Boston, New York, and Dallas sessions:
"This was time well spent...thank you for providing a different vision on how
to develop our employees."
"MUCH better than most of these kinds of sessions I have attended."
"The information was eye-opening and great!"
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