Canadian HR Reporter

SEPTEMBER 8, 2014 CANADIAN HR REPORTER & STRATEGIC CAPABILITY NETWORK Credit: Jim Bourg (Reuters) BY MARCEL VANDER WIER For the last year, leadership character has been front and centre in the news cycle, thanks in large part to the campaign leading up to the United States presidential election. Contrary to natural talent, lead- ership is a trait largely built upon the decisions we consciously make, according to Gerard Seijts, a professor of organizational be- haviour at Western University's Ivey Business School in London, Ont. Good leaders are impactful and memorable, said Seijts, speaking at a Strategic Capability Network event in Toronto recently, off ering up names such as the late South African president Nelson Man- dela, Maple Leaf Foods owner Michael McCain, and retired bank president Ed Clark. But society off ers many bad ex- amples as well, including Canadi- an senator Mike Duff y, U.S. swim star Ryan Lochte, and America's current president-elect, he said. Leadership is a mix of character, commitment and competencies, with most of the focus on compe- tencies such as motivation, com- munication, intellect and vision, said Seijts. But recent research reveals defi ciencies in the value organizations put on character — an issue Seijts hopes will be rem- edied in the future. "For the longest time, the bulk of organizations, as well as busi- ness schools, have focused on competencies and, for the most part, have done a good job," he said. "Competencies count, charac- ter matters, and commitment to the role of leadership is critical to the individual and organizational success. (But) if any of the three pillars are defi cient, that particular shortfall will undermine the other two leadership components." Background e global fi nancial crisis of 2008 was the starting point for Sei- jts and his research team, which eventually resulted in the book Leadership on Trial: A Manifesto for Leadership Development. While corporate greed and the regulatory system received the brunt of the blame at the time of the recession, his team probed deeper, looking at the eff ect key business leaders had on the col- lapse of the global economy. e crisis proved to be a "semi- nal moment" for Seijts and his team when they realized there were defi ciencies in the defi ni- tion of leadership, noting many business leaders failed because of marked fl aws in character. "Could good leadership have made a diff erence, or was this sim- ply an act of Mother Nature?" said Seijts, acknowledging his team answered yes to the former. Excessive overconfi dence, hu- bris and a lack of accountability or learning by corporate leaders played major roles in the world- wide crisis, found the team, and such character flaws remain prevalent in current-day cases, such as the Wells Fargo scandal in the U.S., said Seijts. "Since 2008, we've really fo- cused on what character is, how to measure it, and what organi- zations can do to bring that in through recruitment selection, onboarding and performance management," he said. "You can have fantastic competencies and be deeply committed to the role of leadership, but if you have charac- ter fl aws or defi ciencies, it doesn't matter." "Good leadership is a function of competencies, character and commitment, and of those three Cs, character is often talked about the least, and is least understood. We really need to elevate its im- portance because research clearly indicates that it is related to both individual and organizational performance." Defi ning leadership character Due to the subjective nature in which appropriate character is often defi ned, Seijts set to create an objective framework within which eff ective leadership could be measured. "(Character's) subjectivity has always been a problem," he said. "We need a standard to adhere to." Seijts and his team surveyed scores of societal leaders and pored over academic literature to develop the framework, which consists of 10 traits — such as courage, transcendence and drive — surrounding judgment like spokes on a wheel. Other traits include collabora- tion, humanity, humility, integrity, temperance, justice and account- ability, with each trait being fur- ther defi ned with a set of behav- ioural actions. Temperance, for instance, can be broken down into specifi c ac- tions of patience, calm, compo- sure, self-control and prudence. And there's a reason judgment is at the core, said Seijts. "At the end of the day, leaders get evaluated on their judgment or the quality of their decisions," he said. "It's almost like an air traf- fi c controller. Depending on the situation, you may have to adjust or tweak your leadership style or approach. You have to dial up or dial down certain character di- mensions. That's the nature of situational leadership… Any vir- tue in excess can turn into a vice." All of these traits can be devel- oped, said Seijts, pointing to the well-known literary examples of Frodo Baggins and Luke Skywalker. A person doesn't wake up a leader, he said, noting many of his- tory's top leaders were reluctant in their roles, yet willing to step into uncomfortable zones. "It's an ongoing process," he said. "Good leaders try to develop their competencies and character. ey don't rest on their laurels." HR's role Understanding the tenets of lead- ership character puts HR profes- sionals on the inside track when it comes to hiring and embedding quality leadership DNA into their company, said Seijts. Leadership applies to everyone within an organization, and it is important to evaluate character alongside competencies while working to create a culture around leadership character, he said. "Each and every one of us can act or engage in acts of leader- ship. It's about coaching, mentor- ing and engagement. I think one of the key roles that leaders these days play is the need to develop the next generation of leaders in the organization." There are concrete ways to shape corporate culture, he said, including hiring and promoting for character, or adding explicit search criteria to recruitment of- fers that include character dimen- sions alongside competencies. Further actions could include the introduction of behavioural- based interviewing or situation- al interviews, as well as deep reference-checking. In terms of senior organiza- tional leadership, the character of a CEO can have a tremendous impact on the board of directors, and it is imperative the board evaluates said character, said Sei- jts, adding research shows that those CEOs who demonstrate integrity, responsibility, forgive- ness and compassion typically garner better fi nancial returns than those without those char- acter traits. e importance of leadership character An objective framework allows HR practitioners to understand leadership behaviours and embed them into their organizations Nelson Mandela

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