What are the traits that chief executive officers (CEOs) of successful companies share?
A new study suggests that hardnosed personal traits such as persistence and efficiency count for more than "softer" strengths like teamwork or flexibility. The study, by three University of Chicago business school professors, draws on detailed personal assessments of 313 CEO candidates to present a starker view of good leadership's ingredients.
Of these candidates, 225 were hired. Their subsequent performance fuels most of the study's conclusions. "We found that 'hard' skills, which are all about getting things done, were paramount," says lead author Steven Kaplan, a professor of finance and entrepreneurship. "Soft skills centering on teamwork weren't as pivotal. That was a bit of a surprise to us." Among the high-scoring traits: following through on commitments, hiring Grade A players, analytical skills and setting high standards.
One open question is whether the data, which looked primarily at buyout-company CEOs, apply to bosses at public companies, as well. By contrast to early-stage turnarounds of under-managed companies, public-company CEOs may need more soft skills to manage relations with wide shareholder bases and other diverse constituencies.
Here are five CEO traits that correlate most closely with business success at buyout companies:
Persistence, Attention to detail, Efficiency, Analytical skills and Setting high standards
Source: The Wall Street Journal, November 19, 2007