ROI vs. ROC: Does Character Count?

This information from The Harvard Business Review was too good not to pass on. According to the studies in this article, companies that have Leaders that display integrity, responsibility, forgiveness and compassion character have a better Return on Investment.

Daniel Goleman’s book, Primal Leadership, is also a great backbone for improving the perception of character in leaders. He identifies the six different leadership styles and how they can be used.  The success of his information is the flexibility of the person in the managerial position and the willingness to apply Emotional Intelligence in everything they do.

As HBR’s article states, “When we hear about unethical executives whose careers and companies have gone down in flames, it’s sadly unsurprising. Hubris and greed have a way of catching up with people, who then lose the power and wealth they’ve so fervently pursued. But is the opposite also true? Do highly principled leaders and their organizations perform especially well?”

“They do, according to a new study by KRW International, a Minneapolis-based leadership consultancy. The researchers found that CEOs whose employees gave them high marks for character had an average return on assets of 9.35% over a two-year period. That’s nearly five times as much as what those with low character ratings had; their ROA averaged only 1.93%.” Click here for the full article.

How do you make character count in your organization? In working with all levels of leaders in companies around the globe, I see the good, the great and the should be terminated immediately.  The formula is simply wrapped in these four qualities of character: integrity, responsibility, forgiveness and compassion. What kind of incentive, training and information do your leaders rely on?

Please let me know if you would like me to send you the link to The CEO of YOU: Leading Yourself to Success or click here. You will find great reminders for leaders and those who choose to take responsibility for their outcomes. Marsha@MarshaPetrieSue.com

 

Marsha Petrie Sue, MBA
Professional Speaker, Executive Coach, Best Selling Author
Certified Myers Briggs Type Indicator Practitioner

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