The Strategist

Be A Good Person To Be A Successful Businessman

04/08/2015 - 15:26

A new research report shows that in order to run a successful business one needs to first develop a good character.
The key to success lies in winning the trust of the subordinates. – 08 April 2015 – Jenny Che in “The Huffington Post” says that as per a recent study it has been observed that good character and a good business are reciprocal in nature.
The above mentioned study was conducted by KRW International, a firm that gives consultation in the field of leadership qualities, which enumerated in detail the relationship between “the integrity” of a company’s C.E.O. and its overall business performance. Many firms were subject to the case study of this research wherein it was noticed that the companies with top executives of high moral principal, rated by the correspondent employees, were performing better than the ones with a C.E.O. of “lower character rating”. 
In the “Harvard Business Review”, which launched the first publication of the said research papers, Mr. Fred Kiel, the founder of KRW International, said”
“I was unprepared to discover how robust the connection really is”.
The report published in the “Harvard Business Review”, seems to highlight ten business figures who excel in their board performances. As per Kiel, the enlisted personalities are “virtuoso CEOs”, who stood up against the wrong issues though supported the subordinates for a right cause. They expressed their genuine concern to the employees, showed “empathy” and were able to move on forgiving past-mistakes.
The said list incorporates executive figures who were ranked high by their subordinates for “vision, strategy and accountability” like the president and C.E.O. of Larson Manufacturing Company, Mr. Dale Larson, one of the ex-C.E.O. of the outdoor retailer REI, Sally Jewell, and also the president and C.E.O. of Intermountain Healthcare, Charles Sorenson among others.
However, the KRW studies also produced a comparative list of C.E.Os who were at the bottom of the score line, and seemed to “be preoccupied with their personal financial gain”. They often seemed to “twist the truth for their advantage”.
The approach of the study was made by interrogating eighty four American companies along with non profitable organisations. The employees had to rate their managerial figures and C.E.Os based on four “moral principles” which comprised of “: integrity, responsibility, forgiveness and compassion”. The response data collected from various companies were then aligned with the financial status and performance of the respective company in order to investigate whether any relative pattern appeared impacting the profitability of the firms.
Interestingly, the firms whose helms were at the hand of the virtuoso CEOs, scored high by their subordinates for their positive characters, had “an average return on assets of 9.35 percent” within a span of two years; whereas, on the other hand the companies headed by the C.E.Os “who scored lower” managed “an average ROA of just 1.93 percent”.
Moreover, a reversal assessment pattern was noticed when the various C.E.O.s were requested to make a self assessment. The managing figures who were rated high by their staff gave themselves lower marks as compared to the ones making a highly rated self assessment whereas they were given lower scores by their employees.
Marillyn Hewson, the C.E.O of Lockheed Martin, writes:
"It’s important to communicate that the commitment to integrity, respect and excellence starts at the top -- and even more important to demonstrate that commitment through decisions and actions. Show employees that you are embracing your values, and you’ll go a long way towards building trust."

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