Qualities that make a great CEO

The cult of the dynamic and aggressive chief executives may have taken a few hits due to the setbacks from the likes of former WorldCom chief Bernie Ebbers, Disney's Michael Eisner and even Martha Stewart. Yet previous corporate scandals that consumed the likes of WorldCom and Enron has failed to create any lasting impression on the film star-like celebrity enjoyed by the most prominent CEOs.

Celebrity without substance? Big-buck share options for miniscule contribution? What qualities make a great CEO?

These are questions that have surfaced out of the current and more critical climate. And it is true that everyone, from shareholders to market professionals, are far more questioning and want to know what makes the corporate superstars worth their multimillion-dollar salaries.

Asked what makes a great CEO, most respondents would mention charisma. Though it is certainly true that charismatic individuals attract followers, it is not necessarily the case that they make the best corporate leaders.

There is lot of evidence to suggest that charismatic bosses are as likely to take their enterprises and followers into the abyss as lead them to riches.

Some of the best research being produced at the moment (by Jim Collins and his team see Harvard Business Review January 2001) lends support to the theory that charisma in a CEO can be counterproductive. The companies that have the most consistent and successful track records over a 50 years or more also have a habit of employing some of the most consistently low key, reticent executives in the top position.

Collins and his team identified a far more important quality than charisma: Level 5 leadership. The characteristics of this include humility, low ego, iron will, a commitment to serving the corporation, being prepared to take the blame for failure while attributing success to others.

Key question

No doubt there are many chief executives who would claim some if not all of these qualities. The question I would urge these to ask of themselves is how much of what they have built will last after they have gone?

An ability to build attitudes and processes while retaining ambitions that endure after their departure is one of the acid tests of a great CEO. Many will claim that only history will prove their worth. I would argue there is a more immediate test. Quite simply, this is the quality of their successor. Have they built a team that is capable of taking over and which shows the same passion, determination and integrity?

Vital factor

Integrity is key to the making of a great CEO. Intellectual integrity takes into consideration all points of view, displays empathy and understanding for the position of others, and looks at all angles of an issue before reaching a decision.

In Korn/Ferry's experience there are additional key qualities that contribute to making a great CEO. Vision is a must. This is the art of seeing what is possible, of shaping the future, and of inspiring others with that vision.

However, vision without the ability to get things done is worthless. It is not good enough for the CEO to devise strategy if he does not have the mastery of his business (preferably gained by working his way up from the bottom) to be able to take it in the direction he chooses. So implementation is key.

So too is a high level of energy. What we know of successful chief executives is that they work long and hard and with great enthusiasm. Their energy should be infectious, inspirational and transferable to their team. Yet how many CEOs really inspire with their energy? How many stifle with their lethargy?

What is certainly true is that we know that great CEOs tend to be feverishly curious. They want to know about new technology, they want to find out about new trends, they want to figure out who their next competitor is going to be, they have interests outside work and are able to constantly nourish their minds and broaden their horizons.

They are also predictable. Their team knows what to expect. They make levelheaded decisions under the most intense pressure and are not prone to emotional outbursts or personal attacks.

Great CEOs show humility and consider themselves the servant of their organisation. They are personally accountable. They show integrity and moral character. They are visionaries who are able to realise their goals. They are both curious and predictable.

As for charisma, it is a nice thing to have, but it is no more than an optional extra.

Metin Mitchell is the managing director of Korn/Ferry International in the Middle East.