HRpedia: 'Return on character'
When people say, 'Our integrity stock went up 23% last quarter'
Return on character, n.
Business, much like microwaves, has a different effect on different things. In the face of adversity (microwaves in this analogy), people will adapt in different ways. Some leaders wilt under pressure — they are the soggy post microwave toast of the business world. Others burn out – they are the exploding metal fork you accidentally left on the plate.
And, in this increasingly strained analogy, there are those that thrive and flourish – popcorn or soup or something.
The point is that how successful a person is in a role is dictated both by the unique pressures of the role and their own characteristics. You probably knew that, just in a less waffley way.
Translating character into success — this is the eponymous “return on character”, a play (obviously) on return on investment or assets. Far from nice guys finishing last, the concept of return on character proposes that being a compassionate or forgiving person can have a measurably positive influence on business.
Frank Kiel, author of Return on Character, researched four character traits of CEOs through anonymous employee surveys and measured them against their performance. The four traits he looked at were: forgiveness, integrity, compassion, and responsibility.
Across the board, the more of each that was possessed by leaders, the better their results. The most characterful outperformed the least characterful five-fold. Not bad for a bunch of softies.
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