Leadership is a fundamental aspect of every successful organization. However, there is one significant aspect of leadership that often gets overlooked – character. Character is more than ethics, it’s a crucial element that influences decision-making processes, overall performance, and the culture of an organization. When adequately fostered, character can become a competitive edge leading to better decisions and outcomes.
The Misunderstanding of Character
MIT research, sparked by the 2008 global economic crisis, involved interviewing over 300 business leaders across the globe. The consensus was clear – the character of leaders had significantly contributed to the crisis. However, the definition of character and whether it could be developed remained topics of contention.
Many leaders underestimate the concept of character, reducing it to ethics alone. This narrow perception is a significant oversight. Character forms the bedrock of judgment, impacting the choices made by individuals every minute, every day. It’s the micro-moments between stimulus and response where character-driven judgment comes into play.
The Impact of Character on Performance
Character-based judgment is a potent tool for superior performance, and its absence can explain instances of misconduct and poor decision-making. This was evident in high-profile cases like the global financial crisis, the Volkswagen emissions scandal, and the Boeing 737 Max tragedies. In these instances, there was ample technical competence, but character was noticeably missing. The fallout from these events underscores the impact of compromised character, showing how it can lead to a slippery slope of poor judgment and decision-making.
The Broader Influence of Character
While character undeniably supports ethical decision-making, its reach extends far beyond being “good.” Character influences individual well-being, fosters sustained excellence, and contributes to the overall health of an organization. It matters at all levels of the organization, not just in leadership. When we broaden our understanding of character, we can begin to see its influence in every aspect of our organizations.
In an era where organizations are constantly seeking competitive advantages, character offers a largely untapped resource. It’s time we recognized the significant role of character in shaping our organizational cultures and driving superior performance. After all, character is not just about being “good” – it’s about making good decisions, fostering positive relationships, and leading successful organizations. By nurturing character in our leaders and employees, we can build stronger, more resilient organizations that are not only successful but also contribute positively to society.
Maverick 