EFFECTIVE MANAGEMENT
EFFECTIVE MANAGEMENT
Leadership Characteristics of Highly Effective CEOs
By Joseph P . Truncale , Ph . D . Contributing Editor
When a leading research team began tracking results of privately held industry companies , a great deal of data was collected , analyzed , and compared . They began to look for patterns of performance over an extended period of time . Through a strict process , they made a stunning discovery .
A select group of companies outperformed the rest of their industry by a significant margin in key metrics including organic sales growth , value-added and profitability . And they did so consistently over more than ten years .
These leading companies were not a particular size in terms of sales volume or head count . They weren ’ t located in one area of the country nor were they concentrated in one type of product or service specialization . What then is the common thread that enabled these businesses to perform at such a high level , consistently and for so many years ?
To answer this question , a comprehensive research project was undertaken with a special focus on the leadership characteristics of the CEOs of these high-performing companies . While this study was conducted as part of a doctoral dissertation , it became far more than an academic exercise .
Good leadership can be transformative .
The baseline comparative was based on James McGregor Burns ’ theory of leadership which is centered around three distinct leadership styles : Transformative , Transactional and Passive-Avoidant ( L ’ aissez-Faire ). A brief description of each style follows .
Passive-Avoidant is considered the least effective style of leadership , evidenced by leaders who interact with their reports only when there is an obvious problem or serious issue / mistake . It focuses on punitive , even embarrassing measures as corrective action .
Transactional leadership can be an effective style but in a somewhat limited way . It assumes that leadership is based on a quid pro quo ; that is , people work for remuneration and should expect nothing more . The working relationship is based on the idea that work is done , and there is an exchange of consideration in the form of compensation . Simple and straight forward .
Transformational leadership is considered as effective as it is rare . This style of leadership is focused on getting organizational results by maximizing the potential and unique ability of every team member . The leader is seen as a facilitator , educator , coach and mentor . Team members working with a transformational leader report high levels of personal and professional satisfaction and tend to contribute to significant organizational success in ways that are specific , measurable and reflective of their individual contribution .
The construct of the study included use of three survey instruments and in-depth interviews . Here ’ s what was learned .
Photo : Getty Images / iStockphoto / AndreyPopov / Chan2545
Every one of the CEO ’ s participating in the study rated their leadership style as transformative . Not a surprise ; these are confident , self-aware individuals . However , what we did not expect to find is that in every case , the direct report groups ( the CEO ’ s management team ) also rated their CEO ’ s leadership style as transformative .
Is it coincidence that where there is a transformative style of leadership ( recognized by the CEO and by their direct reports ), organizational performance significantly exceeds that of industry norms and over an extended period of time ? If not , what are the specific behavioral traits , beliefs , and characteristics of these transformative leaders ? Can they be taught , learned , practiced , and improved by anyone willing to better understand and improve their own leadership behaviors / style ?
For more information the traits identified and how they can be applied in your organization , contact me at joe @ ajstrategy . com
Joseph P . Truncale , Ph . D ., CAE , is the Founder & Principal of Alexander Joseph Associates , a privately held consultancy specializing in executive business advisory services .
He is the former CEO of the Public Relations Society of America ( PRSA ), the world ’ s largest public relations organization . Prior to joining PRSA , Joe was President & CEO of NAPL , a business management association representing leading companies in the printing , graphic communications , mailing , fulfillment and marketing services industry .
Joe specializes in strategy , customer analysis and organizational effectiveness .
He is a graduate of Monmouth University and he holds a Masters ’ Degree from Rutgers University . In 2011 , he earned his Ph . D . in Media , Culture and Communications at New York University and was the recipient of the Prism Award for Academic Achievement . His dissertation was a ground-breaking study of the leadership styles of highly successful entrepreneurial business executives in the graphic communications industry .
Joe served as Co-Chair of the New York University Board of Advisors and is an adjunct faculty member at NYU teaching graduate courses in Executive Leadership , Financial Management and Analysis , Finance for Marketing Decisions , and Leadership : The C Suite Perspective . He resides in Colts Neck , NJ .
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