Character: Competitive Edge or Strategic Liability?

Elevating character alongside competence in organizations holds significant potential. However, character can be either a competitive edge or a strategic liability. Following the 2008 Global Financial Crisis, character flaws were identified as a major cause of leadership failures. Understanding the role of character in both success and failure is crucial. Simplifying character leads to misunderstandings, and without proper understanding and management, it becomes a liability.

Moving beyond awareness to actual development of character is necessary. Character is shaped by habits and heavily influenced by systems such as organizations and society. Developing character is challenging but essential, similar to forming healthy habits. It is vital for achieving lasting personal and organizational change.

Embedding character leadership effectively in organizations requires the support of senior leadership. Character can shape organizational systems and address toxic cultures. Character imbalances are perpetuated in human resources practices, and if not understood and developed, character becomes a liability.

Beyond organizations, boards and regulators should provide character oversight. Non-financial risks, such as character, can lead to financial instability. Education plays a crucial role in developing character alongside competence, benefiting organizations with effective individuals.

Investing in the broader ecosystem that shapes character is necessary to make it an asset. The roadmap is clear, and there are no shortcuts. The five differentiators provide guidance for effective and transformative impact.