Executive Leadership Traits
As companies seek to hire new executive leaders, historically the focus has been narrow: someone with technical expertise and a track record of successfully managing financial resources. However, as the business landscape evolves, so do the qualities needed by leaders. Traditional managerial pedigrees no longer guarantee success in the C-suite. Along with a long list of industry-specific traits, successful executive leaders are those with strong social skills who can motivate a diverse workforce, confidently make decisions, and navigate change in unchartered territory.
As mentioned in an article by Forbes, relying on traditional leadership skills to fill a redefined C-suite role will no longer keep your company ahead of the competition.
Successfully filling an executive position is like seeking the proverbial needle in the haystack, which is why most businesses use executive search firms. According to a study conducted at Harvard Business School, around 80% to 90% of the Fortune 250 and FTSE 100 companies use the services of executive search firms when hiring new leaders or making a succession decision.
The digital landscape has redefined the role of executives, so utilizing extensive research and experience from nearly 15 years in the industry, we have outlined the top traits that matter most when selecting and evaluating executive leaders.
Top 5 Must Have Qualities:
1. Innovative
Innovation remains a driving force in the business world. A study conducted by Maureen Metcalf, Forbes Council Member, indicates that organizations led by innovative executives are 1.7 times more likely to outperform their peers. Innovation is the backbone of evolution, and ‘the challenges leaders face continually become more complex. Therefore, the skillset of leaders need to evolve continuously’ (Metcalf). Innovative leaders are forward-thinkers, capable of adapting to emerging trends, and transforming challenges into opportunities.
2. Emotionally Intelligent
Emotional intelligence (EQ) is a distinguishing trait in top-tier leaders. Data reveals that 58% of success in all types of jobs is attributed to EQ. Executives with high EQ can navigate complex interpersonal relationships, build strong teams, and enhance overall productivity. While some leaders might excel at their job technically, if they can’t effectively communicate with their team or collaborate with others, those technical skills will get overlooked. By mastering emotional intelligence, leaders are able to enhance employee engagement and lower turnover rates.
3. Results-Oriented
Successful leaders focus on outcomes. They set clear objectives, measure progress, and hold themselves and their teams accountable for results. A Harvard Business Review study found that organizations with performance-driven cultures are 16 times more likely to outperform their peers. Results-oriented leaders drive efficiency and productivity, consistently delivering on strategic goals. Their approach fosters a culture of excellence and continuous improvement. Results speak volumes, and this trait is non-negotiable for executive leadership. Statistics show that leaders who set clear objectives and drive their teams to achieve them are a hallmark of success.
4. Decisive and Delegative
The ability to make critical decisions swiftly and delegate tasks efficiently is an important facet of exceptional executive leadership. Studies conducted by the University of California, Berkeley, reveal that decisiveness can lead to improved organizational performance. Berkeley Psychology Professor Anne Collins states that "the value people attribute to outcomes is subjective, the true value is heavily influenced by context of the decision and confidence of the decision maker.” Delegative and decisive leaders empower their teams and lead to a more dynamic, agile organization.
5. Inspirational
Inspirational leaders inspire trust, respect, and loyalty. According to a survey by EY (formerly Ernst & Young), 86% of leaders attribute their company's growth to strong, inspirational leadership. By leading through example, these leaders motivate their teams, instilling passion and a sense of purpose that drives exceptional performance.
Takeaways
Selecting and evaluating executive leadership is a pivotal task for any organization. The right leadership team can lead a company to unprecedented success, while the wrong one can jeopardize its future. Utilizing statistics and analytics to identify and assess these key traits can guide organizations in making informed decisions. Innovative, emotionally intelligent, results-oriented, decisive, and inspirational leaders are the catalysts of growth and prosperity. In a realm as dynamic as digital transformation, embracing these traits in executive search is the foundation for a successful business.
By recognizing and valuing these traits, companies can stay ahead of the competition and set themselves up for a prosperous future. It is through these critical attributes that companies will be well-equipped to tackle challenges, drive innovation, and navigate the complex world of digital transformation.