Return on Character: The Real Reason Leaders and Their Companies Win

by Fred Kiel

Does the character of our leaders matter?

You may think this question was answered long ago. Countless business authors and analysts have assured us that great leadership demands great character. Time and again, we've seen that truth play out, as once-thriving organizations falter and fail under the guidance of leaders behaving badly. Why, then, do so many executives remain skeptical about the true value of leadership character? A winning strategy and a sound business model are what really matter, they argue; character is just the icing on the cake.

What's been missing from this debate is hard data that shows not only that leadership character matters for organizational success, but how it matters; and concrete evidence that it leads to better business results. Now, in this groundbreaking book, respected leadership researcher, adviser, and author Fred Kiel offers that evidence--solid data that demonstrates the connection between character, leadership excellence, and organizational results.

After seven years of rigorous research based on a landmark study of more than 100 CEOs and over 8,000 of their employees' observations, Kiel's findings show that leaders of strong character achieved up to five times the ROA for their organizations as did leaders of weak character.

Return on Character goes on to The book also provides a character-building methodology--step-by-step advice and techniques for assessing your own character habits and improving your performance and that of your organization.

Return on Character provides the blueprint for building your own leadership character and creating a character-driven organization that achieves superior business results.

Genres: Leadership, Business, Management, Nonfiction, Self Help

272 pages, Hardcover

First published March 17, 2015

About the author

Fred Kiel, PhD, is a founding partner of the
leadership development and strategic analytics
firm KRW International and a pioneer in the
field of executive coaching. For more than
thirty years, he has helped Fortune 500 CEOs
and senior executives build organizational
effectiveness through leadership excellence and
mission alignment. His rigorous data gathering
and customized development process provide
executives with transformative feedback.

Reviews

[Greg’s Library · Rating 5 out of 5]

Unlike other business books I've read, this one presented two important aspects of leadership: character and skills. Some business books focus only on characters such as integrity, empathy, and being accountable. On the other hand, others focus on skills such as strategy execution, crafting and communicating vision, etc. This book does the work of discussing who the leader is and what the leader should do.

Based on solid research, this book presents two kinds of CEOs, namely, the Virtuous CEOs and Self-Focused CEOs. As the name implies, the virtuous leaders are the good guys while those self-focused ones are usually hated and sometimes feared.

This book does it best in presenting the information about the performance results of both groups; showing that virtuous leaders are bringing more in terms of engagement, financial results, and overall longevity of their respective companies.

Moreover, the book does not stop in presenting the research result but more importantly, provided an easy to follow flow charts on how to improve and become a virtuous leader. This makes the book appealing for those looking forward in improving their leadership characters in addition to improving their skills.

I am certain that every one who reads this will benefit from the findings and the exact methods laid on how to improve. This is not just a book about business but also on how to become a better person since every human being has a set of characters and skills.

After reading this book, you will be invited in a special call to action.

[Ravi Persaud · Rating 4 out of 5]

I was kindly sent this book by a coworker and dove in without any expectations (free books, am I right?); what I got was a pretty interesting exploration on the intersection of morality and business - specifically, in the different styles of CEOs/leaders and what character traits or skills they possess.

This is really the crux of the book, I think; it's not just the comparison of "Self-Focused" vs. "Virtuoso" CEOs, but the deeper inquiry into the definitions of "morality", "character", etc. and how they directly lead to positive results in business and in life.

Kiel lays out neat maps, scales, charts and pathways to compare and contrast different attributes, and even provides helpful models on how you can improve your own character and move more towards a Virtuoso style.

Here are some quick takeaways:

1) Virtuosos are recognized as having strong individual character and keen business sense. Virtuosos also build teams of similar individuals of strong character.

2) There's a laundry list of good character traits, some of which are: keeping promises, acting consistently with principles, telling the truth, responsibility in owning choices and admitting failures, empathizing and empowering others.

3) It IS possible to learn this power, but it requires consistent effort, energy and resolve - after all, moving more towards the Virtuoso side of life involves making significant personal changes in pursuit of improving your character, and nothing is more scary than change.

Overall, a good, research backed read with clearly laid out ideas and important takeaways. I don't think there's anything particularly shocking (I'm sure we've all been part of... less-than-great organizations or teams so we know some of this intuitively) but there's a lot of value in having these thoughts cleanly and explicitly written down, and it serves as both a reminder and a guide that I'm sure I'll reference again down the road.

[Theodore Kinni · Rating 4 out of 5]

It's a small, self-selected sample, but it suggests that character-driven leadership pays off

[Melsene G · Rating 4 out of 5]

Very interesting study about CEO character types and how it makes a difference for companies. There are virtuoso leaders and self-focused leaders and the study in this book reveals that virtuoso leaders outperform self-focused leaders by a meaningful margin. The premise certainly makes sense. You want leaders with the following traits: integrity, responsibility, forgiveness, and compassion.

Keystone Leadership skills include: vision, strategic focus, executive team development, and accountability. The author provides plenty of charts and a roadmap to becoming a virtuoso leader. There are good concepts here and I think most would agree that leaders with character are superior to self-absorbed narcissistic style leaders. As with all social science studies, there are issues with the sample. There were few women CEOs and some of the polling data may be skewed. The book waxes global, however, the study here was based on US participants, so it's impossible to reach any sort of global conclusions, although it's perhaps wishful thinking. Western culture, US culture, capitalism vs. communism/socialism, etc., are way different than all other cultures and it's impossible to compare oranges and apples on this issue.

That being said, the book provides valuable material for those who wish to be successful leaders.

[Lera Mar · Rating 3 out of 5]

Dipping my toes into nonfic. I cannot tell whether the assertion that leaders should have morals and that it contributes to the business being more profitable in the long run is a groundbreaking theory. Ideally, that would be the case, that’s the whole idea behind the rise of ESG. My only problem is that the sample size from which all this research derives is quite small and thus it’s difficult for me to evaluate to what extent the results can be generalised.
This book was easy to read and digest.

[Darren · Rating 5 out of 5]

This is one of those landmark books you occasionally encounter. It is a bit like an iceberg, most of its power and mass is hidden from view, yet you soon feel its impact!

The author presents the findings of a major study conducted into seeing what makes (or breaks) really top-flight leaders in American companies. It is not the lightest of reads but it is a very informative and fascinating academically rigorous deep-dive. The research has sought to examine the interconnected world of character, leadership excellence and organisational results, taking direct evidence from over one hundred CEOs as well as interviewing nearly 9,000 employees to gauge their own reactions and valuations.

Being a strong, confident, considerate leader has its benefits, especially on the company’s bottom line. The good news is that even poorly performing, weaker leaders can transform and transition into a stronger, higher performing character. It is just that they must accept the need and endure a possibly rigorous series of procedures.

The author pulls no punches, starting the book with this fairly stern yet valid paragraph: “Just seeing the words character and business leadership in the same sentence brings to mind a seemingly unending list of ineffective leaders who periodically sweep through the business world, draining organisations of all real value, leaving nothing behind but angry investors and an unemployed workforce. These “greed is good” proponents can make for great headlines, but that's where their contribution to any common good ends. When it comes to running a business that achieves maximum returns for all stakeholders - investors, governing boards, employees, clients, communities, and the world they share - self-involved, bottom-line-driven leaders rarely deliver the goods.”

This reviewer can identify many so-called top leaders who are in fact rather ineffectual and a corrosive effect on their enterprise. The cream does not always rise to the top… These leaders might be skilled in some things, yet they lack the all-round, credible, quality leadership skills that can really set an enterprise alight with creativity, vitality, profitability and a determined, loyal workforce. This is not a “how to be a great leader in one day”-type of book. It is a detailed, focussed, considerate examination of a very serious subject. It is the sort of book that a weak, ineffective leader probably won’t read, after all they know everything don’t they and they have the title to evidence their success. The rest of us, whether regular workers, aspiring leaders or even true, confident and real company leaders will find a lot of actionable and gripping information. It will be a heavy read but the outcome is worth it.

One hopes that the publishers will make a simpler, accessible version of this book in due course, allowing the message be spread to as wide an audience as possible. It might even start to have an impact on those who really do need to change their habits…. One can dream, can’t one?

Return on Character, written by Fred Kiel and published by Harvard Business Review Press. ISBN 9781625271303, 272 pages. YYYYY

[Rick Yvanovich · Rating 5 out of 5]

I loved this as it supplied empirical evidence to support what you likely already suspected contributes to some companies performing better than others. Empirical evidence aside, it's a new perspective on the role leadership plays that has been previously presented as either not applicable or not mentioned. I totally get it and I encourage all to become virtuoso leaders by following the path laid out in the book so you can see where you need to change direction.

[Jonathan Silk · Rating 4 out of 5]

Excellent book on leader character and how it can be developed. A must read for anyone that believes leaders should provide thoughtful, skilled leadership so organization's can succeed in complex operating environments.

[Riccardo Bua · Rating 5 out of 5]

Best example so far on how to make a business case for leadership and coaching scenarios. Systemic and complete with real samples

[Erik · Rating 4 out of 5]

Positive reinforcement for all of us as we consider our roles as leaders

[Janet Cline · Rating 3 out of 5]

I still like the book by the Anderson's on Character the best. It seems to be the most easy to implement.