In the Sunday Times business section this weekend Luke Johnson, Chairman of Risk Capital Partners and the Centre for Entrepreneurs, set out his list of the most important characteristics that a managing director should possess.
In brief these were:
The ability to motivate. The boss who can enthuse a workforce will generally do better than one who rules by fear.
Domain Knowledge. They must have sufficient technical understanding to gain the respect of their team.
The ability to listen. The best bosses don’t dominate debates but encourage feedback and leave their doors open. They listen to the shop floor by going there in person.
Decisiveness. Ultimately companies cannot function as pure democracies and someone has to make decisions rather than procrastinate. Employees need a sense of direction.
Financial literacy. Must be able to interpret financial statements and analyse accouts.
A sense of humour. Life is too short not to enjoy going to work .
Reliability in a crisis. Someone who doesn’t panic in the face of adversity and gets down to work in a diligent and professional way without histrionics.
Frugality. Having a thrifty approach to business. Extravagant CEOs set a bad example especially if they live beyond their means. A lean operation is the only way.
Delegation. The only way for start-ups to become large companies is for the proprietor/managers to learn to identify, promote, trust, and empower talent.
Adaptability. Modern companies need to be flexible and intelligent leaders thrive on change and are constantly learning.
Bravery. Outstanding leaders need the courage to make unpopular decisions. Those who fail to speak out on controversial issues and follow the consensus are followers not leaders.
That’s Luke Johnsons’ list and I can’t say I disagree with any of them. An interesting mixture of personality traits e.g. adaptability (being open to experience) and learned skills e.g. financial knowledge.
I’ve yet to meet anyone who meets all those criteria however! And when it comes to frugality it’s hard to say it abounds. When the average pay at the top of organisations is 130 times pay at the bottom and CEOs get rewarded for failure e.g. the Barclays CEO walking away with £28 million it’s hard to believe it exists at the very top of organisations.
If you want to comment or add to the list contact him at: email@example.com
Older workers are different from younger ones preferring jobs with role clarity with an emphasis on loyalty and independence.
They also prefer to work where everyone knows each other, is from a variety of backgrounds, and is treated as individuals with unique skills.
They are less comfortable in insecure jobs even though there might be opportunities for high pay. This might reflect family responsibilities or concerns about affording retirement.
In terms of personality factors emotional stability, rule consciousness, and self-reliance, increase with age but factors like liveliness, abstractedness, apprehension, and tension decrease.
These findings were reported by Gulko and Deakin in a report “Age and Work Characteristics: The role of Personality” at a British Psychological Society conference in Brighton.The authors said that given the ageing workforce this knowledge “can help employees with (the) attraction, selection, and retention of employees”.
Fellow psychologist Malcolm Starkey has directed me to some research at the University of Antwerp that looks at generation differences in relation to motivation and finds that older workers are not less motivated – just motivated by different things.
A study of 94 mergers by a Washington-based consultancy firm Potentious found that, using the Korn-Ferry 360 degree evaluations, the following leadership capabilities were the key to success.
In the acquiring company
Act with integrity
Focus on customer needs
In the target company
The findings are based on a five year study using a range of financial indices as well as the 360 data.
Although there is an overlap in the capabilities for both organisations the study revealed that they were more important in achieving success at senior level in the acquiring company but at middle management level in the target company.
I wonder if this is because senior executives in the target company are more likely to be demoralised or worried about their future whereas middle managers might see it as an opportunity?
Cary Cooper and colleagues did some research in the UK into mergers and acquisitions back in the late 1980s and found that morale and productivity (what we would now call employee engagement) often took 12 – 18 months to recover after a merger or takeover.
Based on these findings the author of the study, J Keith Dunbar, proposes that :
“assessing the collective leadership capabilities should be part of the due diligence carried out before any merger, and
that the middle managers at the target companies, who are crucial to success, should be offered contracts which will keep them there”
Source: HBR September 2014
These traits, which help their partners to be advance their careers are: conscientiousness, reliability, and diligence.
These are the traits commonly found in successful executives with conscientiousness linked to success in life generally i.e. you do what you say you’ll do.
The study examined 5,000 married couples aged between 19 and 80 years of age and tracked them over 5 years to see how well they did at work. They also asked them to describe their partners.
Those who progressed the most in their chosen occupation had a spouse who scored high in conscientiousness, regardless of sex.
The author of the study, Joshua Jackson, talking about the results said “ It is not only your own personality that influences the experiences that lead to greater occupational success, but that your spouse’s personality matters too”.
He said it’s not just about your spouse encouraging you to ask for a pay rise or promotion but the influence of your spouse’s daily behaviour which influences you over time.
Conscientiousness can mean a spouse sharing the domestic chores or emulating the other person’s personality traits making them reliable and diligent employees.
This is where HR has been getting it wrong! Instead of using personality questionnaires to assess the applicant they should be inviting the applicants’ spouses in for assessment as well. Of course that doesn’t help if the applicant doesn’t have one – unless they borrow one for the occasion from a successful friend.