In a world marked by rapid technological advancements, accelerating business model disruptions, and unanticipated global challenges, the qualifications and attributes necessary for effective leadership and company direction are constantly evolving.
However, the fundamental element that consistently remains at the forefront is the importance of character in leadership roles, particularly for company directors.
A director is the rudder that steers the ship, influencing not just the company’s trajectory but also its ethos, culture, and team dynamics. Conventional wisdom has traditionally placed a heavy emphasis on competence, a proven track record, and relevant industry experience when recruiting for leadership roles. Yet, we are increasingly witnessing a shift in this mindset.
More companies are realising that recruiting directors based on character first and then training them for competency can pave the way for long-term success.
What Is character?
Character refers to the innate attributes that shape a person’s responses, decisions, and overall behaviour. For a director, these could be qualities such as integrity, empathy, resilience, and commitment to ethical conduct. These traits determine how directors react during challenging times, how they handle ethical dilemmas, and most importantly, how they inspire their teams.
A director with strong character drives a positive organisational culture and helps create an environment where honesty, respect, and fairness are prized. More than any skill, character is the quality that can foster trust within an organisation, and trust is a vital component of successful leadership.
Character in Crisis Management:
An organisation’s true character is often revealed during a crisis. This was clearly demonstrated by Johnson & Johnson during the Tylenol crisis in 1982. Faced with the daunting challenge of managing public fear after seven people died from cyanide-laced Tylenol capsules, its CEO James Burke made the tough decision to recall all Tylenol products from the market, a move costing the company over $100 million.
Burke’s decision, guided by the character traits of responsibility and integrity, not only saved lives but also helped salvage the company’s reputation. This case underscores how strong character can guide leaders to make ethical decisions even in the face of adversity.
Character in Recruitment:
Recruiting board directors for their character requires a well-structured and deliberate process. Here are some recommended practical tips to help you achieve this:
- Identify your organisation’s core values. For instance, if your company values integrity and innovation, ensure these are the traits you are looking for in your board directors.
- Include desired character traits in the job description. For example, mention that you’re seeking directors with a demonstrated commitment to ethical leadership and strong decision-making capabilities.
- Ask candidates behavioural type questions where they have demonstrated the desired traits. For example, ask for a time when they made a tough decision that aligned with their personal values, even when it wasn’t the easiest path.
- Consider using Psychometric Assessments at the initial recruitment stage. Tools such as Myers-Briggs Type Indicator can shed light on a candidate’s character traits. These can be used alongside traditional assessments to provide a comprehensive view of the candidate’s suitability.
- During reference checks, specifically inquire about the candidate’s character. For instance, ask if the candidate demonstrated resilience during challenging times or how they dealt with ethical dilemmas.
- Provide hypothetical situations that test a candidate’s values. For example, you might present a situation involving a potential ethical compromise and ask how the candidate would respond.
- Consider having Multiple Interviews with different interviewers as this allows for diverse perspectives on a candidate’s character. For instance, someone from HR might focus on different traits than a potential peer on the board.
- Pay attention to the candidate’s interaction with all staff levels. For example, a candidate’s respect and consideration towards junior staff can reveal a lot about their character.
- Look for Consistency: Ensure the candidate’s words and actions align. If a candidate claims to value teamwork but has no examples of collaborative efforts, this might indicate a discrepancy.
- Finally, trusting your gut instinct can be invaluable in assessing a candidate’s character. If something feels off, it may warrant further investigation.
By following these strategies, organisations can ensure they select board directors whose character aligns with their core values, fostering a positive organisational culture and effective leadership.
The Role of Competency
While it’s crucial to recruit directors with strong character traits, competency cannot be disregarded. A director’s ability to comprehend complex issues, make informed decisions, and strategically steer the company is vital. However, competencies are often more trainable than character traits. They can be enhanced and developed through various leadership development programs, on-the-job experience, coaching, and mentoring. Companies can invest in comprehensive training programs to refine the skills of their directors.
As the custodian of corporate governance in Namibia, the Namibian Institute of Corporate Governance is tasked with adopting and championing global best governance practices for the benefit of all governing bodies. It does this through capacity building and advocacy and thought leadership in both private and public sector.
Striking the Right Balance
Ultimately, the goal should not be to choose character over competency or vice versa. Instead, organisations should aim to strike the right balance between the two. This means recruiting directors who exhibit strong character traits and then investing in their professional development to enhance their competencies.
Recruiting directors based on their character, then honing their competency, presents an innovative way to build an ethical, effective board capable of steering the company towards success. By putting character at the forefront of board recruitment, we can foster a more ethical business landscape, better equipped to face future challenges.
Our companies deserve leaders of character and competence. It’s high time we prioritised these attributes accordingly. Let’s recruit for character and train for competency – for the benefit of our companies, our employees, and our societies.
*Chisom Obiudo is an admitted legal practitioner and a Governance Consultant and Trainer at Directed Governance Consultancy. She currently serves on the Board for Legal Education and is the Deputy Chairperson of the Ministry of Justice Ethics and Integrity Committee and the Deputy Chairperson of the Governance Committee at Namibia Investment Fund.
She holds an LLB degree and a Masters degree in corporate governance and specialised certificates in compliance, non-executive directorship and legislative drafting.
Reach her at chi@directedgovernance.com or visit www.directedgovernance.com
