Summing Up
Judging from the number of responses to the July column, Justin Menkes, author of the book Executive Intelligence, appears to have tapped into a hot issue with his concern that what he terms "executive intelligence" is underrated, under-measured, and under-experienced in the selection and development of leaders. Some took issue with his definition, a few disagreed with his main thesis, and a number suggested the importance of executive intelligence as only one ingredient in leadership success.
Stephen Burkett said: "… I find that the core of the issue remains the definition of executive intelligence … Executive intelligence is less about number-crunching power or one's grasp of advanced concepts, and more about evaluating situations and taking appropriate action." Quinton van Eeden added, "Executive intelligence seems to be the sum of the parts—emotional intelligence, IQ, personality, values, and experience … A demonstration of executive intelligence must lie in the demonstrable ability to act and execute." Paul Jackson took us to the next step in commenting, "Once defined, how do we measure executive intelligence? Once measured, how do we assess its impact or usefulness?" And, we might add, how do we incorporate it into our everyday assessment of potential or actual leadership talent?
There was a full range of opinions regarding the importance of EI, perhaps in part due to the breadth with which the term was defined in each case. For example, Rowland Freeman opined, "Intelligence is of value, but more important is demonstrated common sense. Some of the most intelligent leaders I have known were failures at leadership." As Malvin Bernal put it, "Executive intelligence will only guarantee a sound processing of information that produces decisions … Execution is the basic ingredient that makes a great leader." On the other hand, Philip Derrow argued, "Executive intelligence, particularly as Mr. Menkes defines it, is, I believe, the most important component for long-term leadership effectiveness … Three words that best describe effective people in any organization: smart and happy. Both the order and the conjunction are important . . . ." Harry Tucci went even further, saying: "The concept of executive intelligence is a very useful measure of success … When it comes to meeting earnings and Street expectations I'll take the manager with his nose deep in a book any day."
Akram Boutros, along with many others, argued for balance in our assessment of the importance of EI, pointing out that "both executive intelligence and instincts are essential. Executive intelligence, however, must precede executive instinct. That is to say, analytics should tell the story; experience should guide the results." John Pullen posited that "The most effective executives have a unique balance of good leadership skills (adaptable personality and style) and the ability to think about issues from a systems-oriented, conceptual perspective … It's not one or the other."
The issue of recognizing the trait arose as well. Le Anh Tuan commented, "The reality is that people … are so busy that they usually fail to examine and see how 'executive intelligent' a leader is . . . ." Terry Rodgers agreed: "The problem is that we are not generally well equipped to evaluate and identify the difference between executive intelligence and personal style. Spotting the fraudsters … is an issue . . . ." This prompts the questions: Has executive intelligence been well-enough defined? How can an organization, beginning with its board of directors, insure that EI is being factored into the selection and development of leaders? What implications does this have for business school curricula? What do you think?
Original Article
The impact of one individual on the performance of an organization has long been debated, and the debate has focused most recently on the controversy over compensation for CEOs. Jeffrey Pfeffer and Robert Sutton cite studies that maintain that no more than 10 percent of the performance of an organization can be attributed to its leader as opposed to other forces. Some might argue that that's a lot. There is also debate about the most important traits of leadership. Some recent studies continue to examine the personality and style attributes of effective leaders. Others are giving more emphasis to certain forms of intelligence.
Jim Collins concluded in his classic study, Good to Great, that among the most important attributes of leaders, people who John Kotter maintains achieve "extremely useful change," was the right mix of humility and a drive for success. More recently, Collins has added to his list (after studying successful leaders in nonprofit organizations) "legislative leadership," the ability to create coalitions both within and outside of organizations. While concluding that leaders have less control than most people think, Pfeffer and Sutton advise them to "act as if they are in control" and "behave in ways that cause others to believe in the possibility of success of both the organization and the leader."
In his recent book, Executive Intelligence, Justin Menkes proposes another set of hypotheses, among them that too much emphasis has been given to personality and style and too little to types of intelligence that enhance leadership performance. He argues that "when it comes to predicting work performance, cognitive-ability tests have been demonstrated to be approximately ten times as powerful as personality assessments. . . . Personality is not a differentiator of star talent. It is an individual's facility for clear thinking or intelligence that largely determines their leadership success." Menkes places his bets on an individual's "executive intelligence," the ability to digest, often with the help of others, large amounts of information in order to form important decisions that produce useful action with the right amount of deliberation.
These sets of views complement one another. But just how much effort do we place on assessing "executive intelligence" as opposed to personality and style in selecting and training those we hope will lead at all levels of organizations? Menkes claims that executive intelligence, as opposed to knowledge (which is more a matter of experience), can be developed through repeated solving of new, unfamiliar problems using information, both relevant and irrelevant, provided for the purpose. K. Anders Ericsson, in the recently published Cambridge Handbook of Expertise and Expert Performance, has concluded in addition that the most effective ways of developing this kind of capability involve constant exposure to specific goal setting and immediate feedback.
In your experience, what is the relative importance of executive intelligence, style, and personality in effective leaders? What importance do these findings have for the selection of candidates for, and the design and execution of, formal (MBA) and on-the-job programs for developing leaders? Will they eventually help relieve the perceived "seller's market" in leadership talent? What do you think?
Many of the successful managers of today are successful because of cutting costs and outsourcing but lack the insight or instinct to build and grow. Shifting through massive amounts of information is important, but looking at this information and projecting it into the future is what builds businesses.
The renumeration of the business builder is most often the result of their initiative and results versus the inflated rewards granted by the Board of Directors for short-term profits. It seems to me that good instincts and the ability to develop a market, such as Steve Jobs did with the iPod and iTunes, creates more wealth than "creative accounting practices," and should be rewarded as such.
Give me the visionary business builder anytime.
Several years ago, after more than 20 years in business, I was finally able to distill my thinking on this topic into three words that best describe effective people in any organization: smart and happy. Both the order and the conjuction are important in clarifying the relative importance of and the need for each trait.
While I believe smart is the price of admission to the party, my HR executive challenged my commitment to the complete principle by asking if I would indeed be willing to fire a technically gifted yet personally morose associate. After thinking for a moment, I responded that because the cancerous effect of negative people is so great, I would reconsider my position only if that person could truly do their job without interacting with either co-workers, customers, or suppliers. However, since no such isolated position exists in our organization, the quesiton was moot.
There seems to be little doubt that the ideal is the person who can balance productive, vision-pulled decision making with the ability to inspire and persuade people to perform and grow. Smart and able to keep others happy, you might say (ref thought-provoking letter from Philip Derrow).
As a practitioner trying to help individuals develop their executive capabilities, I find that even when talented people have lots of both desired traits, there is always slightly more of one than the other. The devil in in the detail and this even slight inbalance will drive executives to focus their behaviour more on one aspect of their role than the other--especially when they are under stress.
As a community of interest, I think we still have a long way to go yet to fully describe the formula for executive success. Hopefully the debate will continue!
Too often companies want the flamboyant, swashbuckling manager who is charismatic and inspiring to their troops. However, charisma and flair will only get you so far. When it comes to meeting earnings and Street expectations I'll take the manager with his nose deep in a book any day.
Determining how well execs "play with others" and exhibit leadership and guidance skills is often lost in the milieu of great accomplishments and resume verbage submitted to HR departments. Interviewing some of the potential exec's co-workers and direct reports can provide key insights.
I have seen executives who are both academically knowledgeable and extremely smart, yet failed to produce the desired business outcome. Though it pays to have "executive intelligence," the ability to turn vision into reality, plans into concrete manfestations, are the stuff that legends are made off.
True, Jack Welch, Bill Gates, and Warren Buffett are men of exceptional intelligence, but what made them different is their ability to turn their visions into reality.
Organizations do, however, need to rate senior management in more areas than just performance and 360 with their peers. Subordinates should play a larger role in evaluating executive management. This may, in essence, shift a corporate culture but it will benefit the workplace in showing that greater value is placed on workers' feedback. It will also help weed out the executives who may be keeping their leader from reaching his (her) true potential.
I have taken part in an exercise where scores of VP level managers went through a two-day session designed to identify and explore MBTI profiles. Purpose? To give us all a richer sense of the "diversity" of mental machinery available in our firm and to understand that not all minds work alike, whatever the knowledge base or educational background. Diversity (gender, race, etc) is promoted throughout corporate America for noble reasons, but I'd wager very few firms actively pursue intellectual diversity, certainly not to the extent that they actively seek to ensure a wide range of thinkers in their management ranks.
We all left that session with some interesting insights and (for some) new self-awareness. But follow-through to leverage the richness of our mental machinery? BAU, the managers who were all in the same general MBTI profile ... are still there and still favor people who think just like them.
Ultimately, luck and circumstance have as much to do with someone's ability to rise to a leadership role in a typical corporate setting as any innate aptitude or acquired knowledge. Birds of a feather however do indeed stick together and are very territorial in nature.
Some years ago (1953) a very fine study was made on what attributes made a successful executive/leader. For some reason it is not in the Business School library anymore, but I still have a copy. Intelligence was not a principal attribute in the study--it can be hired--but a leader "must think broadly, relate and associate easily and can use weighting and judgement in arriving at logical conclusions. He or she has a lively interest in the world around them and feels some degree of social and economic responsibility."
As Albert Einstein said, "The intuitive mind is a sacred gift and the rational mind is a faithful servant. We have created a society that honors the servant and has forgotten the gift." I submit we need both.
Executive Intelligence to me is about a "knowing" of the individual (call it instinctual) that allows that person to make an impact in the right way at the right time with the right results or, conversely, know when to draw back from an intervention. An executive intelligent person would also have their fingers on the pulse of the organization and be able to engage others in change. I agree that the person should have a lively interest in life, be a critical thinker and an innovator, and possess a firm grip on their values and social and economic responsibilities not only to the organization but also to the stakeholders.
The more the developing leader can be exposed to situations in which he/she is challenged to be a part of determining resolves, the more their capabilities will be developed. We find that when young, high potential leaders are actually involved in decision making roles, rather than merely observing, the speed of their development soars.
Someone above has mentioned the person's proclivity to action as an important component. Is that part of intelligence? Others suggest the assimilation of facts [according to Justin Menkes or perhaps observations) that lead to a synthisis which then leads toward action or new directions. Is this intelligence? Finding (or observing) a need and filling it, or wanting to fill the need: is this intelligence?
I've not seen any sufficiently defining studies that really address or can address what makes a leader. Perhaps it is just one's instincts gained from lots of observation and a bit of help from outside knowledge, or help from God, that shows one the directions to take. How do futurists know what's coming? By observing trends, I'm told. Does intelligence include observations, and how we do we define those, as instincts? Once defined, how do we measure executive intelligence? Once measured, how do we assess its impact or usefulness?
Part of this 5% from leaders includes putting the right people in the right place at the right time ... and that calls for Executive Intelligence, or intuition, whatever you may call it.
The reality is that people around are so busy that they usually fail to examine and see how "executive intelligent" a leader is, especially when everything is going well. Yet if the situation allows them to solve a problem they could be seen as "executive intelligent."
In summary, a talented leader is one who can effectively drive his/her team to achieve the desired goal set forth that finally contributes to achieving the organizational goal. In addition, "Emotional Intelligence" is also a good indicator of how leaders fit themselves into the department or organization, and are as perceived talented and indispensible.
The end result of it all and a demonstration of executive intelligence must lie in the demonstrable ability to act and execute. A pity that such leaders are often viewed as "too task-oriented," as mavericks, or as "not fitting into the corporate culture."
Execution has two components: Doing the right thing the first time and doing the right thing well. For example: Value to the customer is degraded when the customer is not treated with consideration or attended to in a timely manner.
The mature chief executive assures an environment in which the desired results (production, quality, value, innovation, change, profits, cost reductions) can be accomplished consistent with all applicable and important standards or expectations of regulators or stakeholders. The tools include intelligence, discernment, listening, planning, communicating, organizing, and controlling for the actions that will drive strategy and accomplish the needed and desired results.
In today's business world we see an increasing amount of information. Combine this with regulatory and compliance pressures and it is clear that fact-based judgement and the ability to digest large amounts of information in a short timeframe are crucial for sustainable leadership.
A leadership trait that is missing in the profile of an effective leader is visionary skill. "If you don't know where you want to go, it doesn't matter which way you go" (Alice in Wonderland). A leader should convince followers to do the right things.
The slogan or view that "good leaders surround themselves with good people" can help less intelligent leaders succeed, yet there must be a minimum level of Executive intelligence for this become a reality. In the final analysis, however, business success should determine the price tag of the executive, and not merely the MBA grades achieved at a business school.
What is executive instinct if not the ability to recognize opportunity and create strategies? I feel that common sense and instinct are at least components of, if not synonyms for, executive intelligence. According to Spencer Stuart's Web site, "Executive Intelligence Evaluation (ExI?) is a proprietary assessment methodology which is used in selected assignments to evaluate the judgment skills of executives. It sets a new standard of accuracy, objectivity and predictive validity in executive assessment."
It would seem that executive intelligence is less about number-crunching power or one's grasp of advanced concepts, and more about evaluating situations and taking appropriate action. This is the core of the management discipline. If Spencer Stuart and esteemed associate Justin Menkes have truly come up with a means to measure and teach this precious gift, I fear professors throughout the world may soon be out of work.
Everyone remembers the EI of Gates and Jobs. However, not really discussed are the execs at IBM and Xerox that lacked the EI (and cultural and climate diversity), and who gave away the genius and talent of their people, and therefore of their corporations, to the very people we now use as examples.
I expect the hard times coming for many of the EI-driven organizations is when the organization grows too large to be impacted by, or accepting of, executive intelligence (and diversity).
I think business schools and organizations must train future leaders in tools and techniques to gather information from a wide range of sources. Identification of relevant data and effective analysis of immense amounts of information will be the key to crafting and executing strategies in the coming decades.
ExI, according to my observation of great leaders like Mr. Subbaiah of the Murugappa group and Mr. Narayanamurthy of Infosys, is the urge to question their own experience and foregone conclusions, and reflect upon the insights that govern their style the very next moment. This deep awareness to one's own responsibility and commitment to the future of people and market forces can be taken as an indicator of the presence of an intelligent factor in executive capability.
One analogy would be that of an automobile. It has an engine (intelligence), a transmission (relationships), and a traction system: the wheels (practical processes). Are not all three elements necessary for the vehicle to achieve its purpose? Different combinations realize different capabilities and thereby different performance--all required as conditions change.
I would argue that we should invest our considerations in personal strengths such as resiliency, integrity, and adaptability, given that specific threshhold levels of intelligence, personality, and style are met. These surely are the factors that make a real difference beyond knowledge, skill, and experience.
So the next time you are in a position to recruit, analyze, or mentor a potential leader, ask yourself whether you would follow that person into battle and why, not what they scored on their latest Executive Assessment.
I recommend reading "Snakes in Suits" by Hare and Babiak for more insight into this issue. Be aware that the qualities of entrepreneurial leadership and psychopathy are sometimes not far apart. As responsible leaders, it is our job to protect our organizations against these predators and to continue to be aware that the faculty for clear intelligence is often absent from those who are so able to snow us with their interactive personal abilities even while they are busy confusing us with their apparent sincerity. We must learn to identify these players and take them out of the game before they do the harm they are so capable of inflicting.
Charisma is a result of both personality and intelligence. People believe in the work of an effective executive, but a leader must inspire faith in his/her vision.
Executive Intelligence is a critical ingredient of leadership. Intelligent leaders have industry foresight, an ability to "imagine" the future. Often, they steer the industry and shape it to their advantage. They ensure that their organization has competencies and capabilities required to fulfill the industry demands. We have seen how the leaders at Netscape, Amazon, and e-Bay imagined the future and transformed their industries. The leaders of these companies are known for their intelligence and industry foresight more than anything else.
I also would ask, "Does the definition of 'good leadership' depend on the context of the organization?" General Patton may have been a great leader in war. How would he fare with a hall full of shareholders? Employees?
Last, what is the measure of success? We have all seen recent fiascos where a leader's success in the game was measured by the quarterly profit ruler. That particular game seemed to reward short-term results at the expense of long-term welfare. It also resulted in the rise of powerful but unethical leaders who destroyed a great deal.
Sometimes one person can get a thing done and that's fine.
But for complex projects to get done within a certain time frame and under a certain budget, more people bringing in different issues/viewpoints/agenda need to get involved as members of a team.
An executive (= leader) in charge of such a team faces a fair amount of uncertainties related to market conditions, personalities of team members, issue-based competencies, risk-taking abilities, dreaming about success, and abilities to exploit hard data and intuitions, with regard to what a path to acceptable success might look like.
Processing what is known and what is yet unknown and putting that information to work for results requires a high degree of cognitive ability that combines both confidence and humility. A tall order, to be sure; but with enough feedback and dedicated practice, such a trait can be cultivated.
I pity those amongst us who have forgotten a very important lesson ... it doesn't matter if you're an incompetent high school dropout or an incompetent Harvard MBA grad.
Allow me to sum this up...
Lesson 1 - Nothing can ever relieve the clear "Seller's market" in leadership talent.
Lesson 2 - A cautious buyer will forever be thankful for that.
Executives on their own do not make organisations successful. Success is an outcome created by a group of people walking down the same track, intent on reaching the same destination and helping each other along the way. Effective executives, however, are pivotal in helping to form and nurture the relationships that form amongst this group and which are essential to achieve a desired outcome.
I have observed many executives head up successful organisations, yet when you talk with them there is little evidence of any special executive intelligence. Instead what is observable is the result of collective intelligence -- which the executive team has been successful in tapping into and making use of for the common good.
Individual executive intelligence accounts for little. Collective executive intelligence counts for a small amount, and collective group intelligence from within the entire organisation counts for a lot.
The most successful leaders are those who seem to be able to combine intellect with executive maturity, or emotional intelligence, to enable them to make the right decisions for the right contexts. An article in the June 2006 HBR by Scott Spreier, Mary Fontaine and Ruth Malloy ("Leadership Run Amok: The Destructive Potential of Overachievers") makes this point very well.
Let me put it this way: Oscar Wilde once said that experience is the name one gives to one's mistakes. I'm a strong believer that a good manager NEEDS to make mistakes in order to get better and become a great leader. What differs between a laid-off manager and a great leader, both at a time good managers, is their ability to learn from their mistakes.
It depends on who the leader/worker is and if they are empowered to produce executive intelligence. Everyone should know their role in the business and everyone should try at times to lead.
When I was at Harvard Business School (MBA 1974) I repeatedly heard professors declare that interpersonal skills are what take people to the top. I still believe this is true. In the case of decision making, often an executive is dependent on what others tell him or her. How forthright will they be? If the information they give you is tainted by fear of expressing differences, how good can your decision be?
The key executive skill is to encourage people to be forthright by making it safe for them to be outspoken, even rewarding those who courageously express different views. Then the executive is blessed with good information for making the decisions.
Leaders without executive intelligence may be able to engage associates to do the right things the wrong way, or the wrong things the right way; but never the right things the right way.
The finding that no more than 10 percent of the success in an organisation can be attributed to its CEO is interesting. I do not know how his contribution is measured but we must not forget that his influence down the line could be exponential. He impacts on 10 persons, and these ten impact on another 10 or even less, and in this way the whole organisation would feel the impact of his guidance.
Transformations that lead to growth are a result of a constructive coordination of the levels of intellect based on a consistent and even pattern of growth. Executive Intelligence is all about extending capabilities to become a "catalyst of growth" and to "grow as a whole."
His/her responsibility is to make team members grow along with the organisation. For this, executive intelligence may contribute to the extent of 50 to 60 percent. Something more, which may be called an instinct or experience, is necessary. The instinct can be felt from the results the team generates and the positive vibrations spread across the organisation, as well as the feeling of belonging and satisfaction experienced by the team members under this leadership.
Today I work with organisations finding their way through stormy waters. The research into Executive Intelligence rings some loud bells for me. The ability to make sense of a complex pattern of internal and external information and to translate that into sustainable organisational realignment is critical. An analogy I often use is the successful helicopter pilot who needs outstanding situational awareness: What distinguishes the best from the merely good is the ability not just to know their position from instruments, looking outside, and maps, but to be able to visualise their position as if standing away from their aircraft -- to be able to understand their position in the normal physical dimensions as well as that of time and the dimensions of numerous alternatives.
The truly outstanding are able to communicate that simply and effectively in such a way that others are able to see and understand the same picture and turn it into action. And of course the picture needs to be constantly updated and re-evaluated as the context changes. Too many of the failing organisations I work with have lost even the ability to look outside the cockpit: Their instruments are telling them only what they want to know as they fly into the side of the mountain in front of them.
Other attributes are of course important, such as personal style, values, and commitment; but executive intelligence is an ingredient that, in an increasingly complex and fluid world, is essential.
My take is that real leadership is about getting your people ahead, making them see progress as they get ahead, and giving them a sense that it is their "doing" that is creating the progress.
Quite like the sherpa who accompanies climbers on Everest, a leader should be there when needed, but otherwise let the climber cut his own path to the top. This way, as the company gets ahead, it will also have so many more "summiteers."
Collins demonstrated pretty clearly that successful executives have the humilty to know that they don't know it all and need the right people in the right places around them to listen to and collaborate with, coupled with the will to succeed. That's what leads to results over time. The leaders he profiled were all very intelligent, but that wasn't the differentiator. It was the hard stuff of the "soft side" of leadership, coupled with a bit of luck, that made them -- and their companies -- great.
There is no doubt that cognitive competence predicts leadership success. What we need to understand is which competencies are most important ("mapping" the leadership domain), how these competencies develop within individuals (describing the development of a range of competencies), what kind of environments/classrooms support the development of these competencies (evaluating research-based developmental curricula), and how to integrate evaluations, assessments, and learning interventions so that real progress is made.
Having said this, we fully acknowledge that there is no one-to-one correspondence between cognitive competence and leadership success. Leader behavior is predicted by a number of attribues/competencies/qualities that work together in complex ways. What we need is a systematic research approach to identifying these and examining how they work together in real-world leadership contexts.
There are three types of leaders: 1) goal oriented; 2) people oriented; and 3) true leaders who realize that they must have quality people to attain any goal or height for his/her company. I also believe a leader must have a vision and the creativity, intelligence, and will power to stick to that vision. I have seen many CEOs who are intelligent, but few that start with a vision and utilize their intelligence to get the job done. Thankfully, I work for one that does, and he is a real joy. He makes coming to work fun, not a chore. True leadership: rare.
Situational and contingency theories of leadership have always stressed that no one style works. Success is a function of the leader's style, personality, and executive intelligence as well as the kind of context in which he/she operates and is coming from.
If you examine the Indian scene, there are many first-generation entrepreneurs, but few startups scale up and grow beyond the family business. That is a true challenge to one's leadership skills. Since Indian society is hierarchical, I see so many students who are deeply affected by their social backgrounds and who do not make visible attempts to demonstrate leadership.
In my opinion, therefore, their personality has to be molded into a more assertive state. The same is true for executive education programs where participants come from largely bureaucratic organizations or organizations that are run by the personal command of the owner(s).
As our entire society evolves, leadership styles must be evolutionary, adapting to the environment and differentiating. A style that will click in the highly global IT industry will fail in the large semi-government sector.
Put another way, some people aspire to lead because they genuinely believe things can be done better and they have something to contribute to that process. Others use leadership to meet deep emotional needs to be seen to win or be the focus of attention. The latter type will often "chew you up and spit you out" without a moment's hesitation.
Executive intelligence is but one essential trait of a good leader, but motivation has the capacity to underpin -- or undermine -- performance, regardless of Executive Intelligence, Emotional Intelligence, or anything else.
Though MNCs are changing the outlook of working styles by introducing reforms, incentives, and so on, it will take some time to have a complete process-driven organisation.
Lastly I would like comment that great leaders like Richard Branson, Donald Trump, Azim Premji, etc. would be creating everlasting effects on each one of us not because of their persistence and focused work but because of their "Executive Intelligence."
I believe that, due to human nature, an organization is necessarily bound to sacrifice much when both attributes, intelligence and tone-setting abilities, are seen as identical in purpose.
The manager's thrust is analysis and control. Minutia is their middle name. These are the people who keep things going on a day to day basis.
A leader has "street smarts." This person can quickly analyze what the manager brings to the picture and at the same time keep abreast of all that is new in the world with all its opportunities: someone who can bring a vision, not merely manage one; someone at once analytical and creative.
This is the person you don't want to put constraints upon. Input is critical. Their time must be spent in one-on-one floor discussions with workers at all levels from operations to those who deal with customers, reading a dozen magazines and newspapers of every kind, computer surfing for information, and being around other creative people. You may even think daydreaming. Leaders are idea people, visionary even.
They are also good decision-makers. They know danger and risk, including the difference between the two. They are mentally quick and skilled at setting a course for others to follow. They can sketch the basis of a project and pass it down in order to take advantage of others' skills and added creativity. They are experienced enough to be able to identify pitfalls ahead of time (or get advice if necessary) and are particular in making sure such things are expertly mitigated to avoid unnecessary entanglements and time.
They are also action people. Quick forward motion, considered risk, and broad expansive thinking are trademarks of the leader a.k.a. entrepreneur/leader.
Finally, personality. This must be a person who can inspire. Someone you can have confidence in. You must know them, or at least feel like you do. You have an inkling of how they think and operate, and you know they are keeping your best interests at heart, or at least you suspect they have similar values as you do.
These are all the elements of a leader. Leaders could be a friendly (that helps), completely charismatic, or stern depending upon the scope of the organization. What they shouldn't be is insincere, out solely for themselves, or full of hot air.
Can these things be taught? I'm optimisitc. A broader net should be used in finding them, in my opinion. And a leader must be brave. Can that be taught? I doubt it.
It is the ability of executives to apply a mix of their natural intelligence with their emotional intelligence that promotes success in organisations. This is why organisations look for various experts from different fields of knowledge to create functional leadership. Experience has shown that only executives with great emotional balance have been able to drive the best from these sets of experts.
Remember, getting the best from people you work with is not measured by the level of intelligence one has but by the ability to manage the emotional challenges. The amount of team support the executive gets will be dependent upon his ability to lead people, which essentially comes from emotional maturity. Emotional intelligence is not taught at school, but can be developed over time through conscious commitment to change.
It is a highly subjective and debatable topic, based on one's own area of expertise. While there are commonalities or competencies, both intrinsic and extrinsic as to what may be seen as successful in one's view of leadership, it appears that it is agreeably situational. What an organization values is expressed in its culture.
In the column Jim Heskett asked, "As we select and train future leaders for all levels of our organizations, how much effort do we really spend assessing executive intelligence as opposed to personality and style?"
Today I believe the answer to this question is that we spend very little to no effort. If "executive intelligence" is evaluated, it is based on personality, style, and who you know. It is subjective. In my opinion, Daniel Goleman's work in Emotional Intelligence is the foundation of Executive Leadership (see Harvard Business Review, Nov-Dec 1998).
An independent study shows that CEOs score lowest on the emotional quotient (EQ) aspects of these assessments. The emotional quotient (EQ) accounts for 80 percent of job performance and predicts success over any other skill, including IQ and technical expertise.
Having said this, I think the importance of executive intelligence, style, and personality is crucial for future executive leadership to progress and enhance our organizations in our competitive global world.
The second element is "focus." There was a great book written a few decades back that analized great leaders. It found that great leaders focus on only a small part of the business and then use the small focus as a sort of rudder to move the entire ship. For example, some great leaders focus on hiring the right people and then get out of the way to let the right people do the right thing. Others focus on how capital is spent. Once they move the capital to the right locations they let the capital do its work. Some focus on the strategy and making sure everyone knows what it is. Then they get out of the way and let people execute it. Still others focus on getting the processes and procedures right and then get out of the way and let the processes produce what they are designed to produce. Depending on one's point of view, one might pick a different focus.
In many ways it doesn't matter which focus one takes. In the end, the combination of point of view and focus keeps a leader from being overwhelmed with too much decision making so that fewer, better decisions can be made. True intelligence often means knowing what not to waste your time on, rather than being the most book-smart.
Executive intelligence defines an entire process of gathering, filtering, and processing information. At the first level are employees who gather all the raw information from the market, then filter it and present this filtered information to the manager. The manager sees the final report and can clearly judge the entire situation without being overwhelmed by the amount of information that is available today.
It is true that every manager processes information according to his own style of leadership, but it is vital to have the basic information on which to make a good decision. So executive intelligence is related to the capacity to process information.
Executive intelligence is very important for a manager in today's society because without it he will not be able to make the neceasary decisions that could mean the survival of the business. If a manager is not well-informed he could make a bad choice regarding the competition and clients, and could be "thrown out of the market" by others who understand better the needs and threats of an open market.
That said, I understand that executive intelligence, intuition or instinct, emotional intelligence and IQ obviously also play an important role in leadership.
I thought this was what the B-schools taught their students by providing them with limited information for analysis and subsequent decision making throughout the one or two-year programs.
I am a young programmer aspiring to join a good B-school in the next two years, and I'm already researching and working on how to strengthen these traits of my personality, which at the end of the day will be termed my Executive Intelligence. However, knowing that it's overridden by sheer style and apparent personality (which perhaps any fashion model would have abundance of) could be quite a deterrent to one's drive.
how do we make leadership research more relevant for the "on the streets practitioner?"
We can list IQ (intelligence quotient) as a guide to academic learning, EI (emotional intelligence) as a guide to using emotions in an intelligent way, ExI (executive intelligence) as a guide to informed leadership, DmI (decision-making intelligence) as a guide to problem solving and strategic thinking, and SI (strategic ideation, or strategic intelligence) as a guide to determining the "What" that follows the "Who" as set forth by Collins. I have also been thinking about calling it Strategic Wisdom (SW) because the word "intelligence" seems to be the latest fad in buzzwords.
Other useful skills come from being in the "trenches" at all levels, learning "street smarts" from experience. Several years as a sales person are the best ways to learn about people, their needs and wants. Having been a salesman and a sales manager I've learned that the most important skill for sales is listening. Learning a canned pitch is the most counterproductive skill for selling. Of course, one must know the product or service inside and out, so when there is a match between the needs and desires of the prospect and the benefits of the product or service, putting the two together becomes automatic.
There is evidence that different leaders with a reasonable amount of intelligence will take similar if not identical decisions. Processing huge amounts of information or using intuition in an effective manner are not interesting factors because leaders usually have access to teams who digest this information for them.
We need to look at what leaders really do different. That is incredibly similar to what defines success for the rest of us in our organizations: social skills.
Great leaders have a unique way of making people feel encouraged, excited, and committed in a continuous manner. They also isolate people from external distractions to help them focus on the task. There is much more that can be said about this, but a good summary is that leadership is about people (investors, employees, customers) while taking care of business.
Executive intelligence, style, and personality are important traits in effective leaders, but the path to sustainable growth is the ability to innovate, create knowledge, and apply this to new products and services. An effective leader knows it is not about having the most knowledge, but about perceiving how and when to use knowledge. Traditional education systems are not meeting increased challenges from young people, many of whom are increasingly disappointed with current teaching approaches. They feel that their education is becoming obsolete to their daily lives and future careers. The first goal of all education should be to bring enlightenment to the students. Training the mind, not stuffing the brain with facts and formulas, is what they need.
My vision is that we can make a difference in our world and in our organizations by coaching managers to be creative leaders. There is a need to focus on more than problem-solving skills and personal networks. It is important to foster aspirations and share values, excitement, and a view that almost anything is possible. We need to spread positive energy around us. Creating an entrepreneurship culture is about delivering, communicating, living, and believing in a passion for winning, a true we-can-do-it spirit.
However, another critical dimension of effective leadership is the ability to motivate and move people in a constructive manner. This requires skills for coherently communicating with and motivating people to internalize the message and constructively act on it. These leadership dimensions do appear to require greater emphasis on appropriate types of personality and style. I say "appropriate" since it depends on who is on the receiving end of the message. In this ever- globalizing business world, one fixed style or personality trait may not be successful everywhere.
Overall, though, it is clear that to be in the "Executive Club," intelligence and cognitive ability is the most critical requirement. However, to make the leader a true leader, appropriate style and personality traits also need to be exhibited.
Leadership is not delegated; it is assumed. Regardless of organizational structures and effective decision making, in the long run, things get done among human beings. How do people work together? Do those served grow as persons? The only test of leadership is if someone follows voluntarily.
The intelligence that I do find in leaders is a whole brain approach to thinking. They acknowledge both the left (logic, sequential thinking, etc) and right (images, emotions, etc.) in equal proportion. By working with the whole brain they are better able to develop their own intuition, which is critical in making decisions and unifying people. The executive intelligence is not just analytical; it is emotional as well. They passionately work towards a vision and in doing so inspire the hearts and minds of colleagues.
An effective leader does not have any specific skill set, but she must have some basic traits so she can articulate the timing of execution of skills. The combination of decision analysis, listening, and team work is already part of formal MBA and other programs which lead to "Executive Intelligence," but this combination is not used for selection purposes. Therefore, executive intelligence can be incorporated into the selection criteria.