Stephen H Baum Leadership

…hard-nosed personal virtues…count more than “softer strengths like teamwork and flexibility. ” — George Anders in “Tough CEOs Often Most Successful,” WSJ November 19.

When misleading advice is published in a major daily newspaper, it gets me upset. Reporting on personality profiles of CEOs of private equity owned firms, the article leaves the distinct impression that toughness alone determines leadership success. 

If short term financial results is all that matters, if instituting draconian measures is what is required, then toughness and detachment are paramount. But if other results matter, such as improving the sustainability and reputation of the company, enhancing its competitive edge, attracting and retaining the very best talent — then other core leadership traits also matter. 

These traits, of which sources quoted in the article are dismissive, would include character (first among equals) and ability to engage and inspire followers.

There is one line in the article that suggests the possibility that an unrelenting focus of private equity firms on short term earnings might make the research misleading in other situations.  Even this is misleading — firms like Castle Harlan  take a five to seven year view of their investments and work hard to make the companies better companies. 

ghSmart, whose files were used for the research,  asserts that “the value of hard skills increases nonstop.” Much of what we have seen in the subprime mess is an excess of CEO’s competitive drive, a disdain for the value of human capital and a focus on results at any cost. 

Don’t get me wrong. It takes a tough CEO to make tough decisions. But that is only one aspect of being the boss. The dozens of CEOs with whom I have worked and whom I have interviewed were tough. Demanding. Fair. Analytical. Adapting. Motivating. Even inspiring. And a whole lot more.