Making wise business decisions is incredibly difficult. One of the wisest decisions you can make is to choose the right leaders in your company. But how do you know if you've chosen the right leader? This recent article from mcKinsey will hopefully answer that.
Is there a link between growth and specific leadership traits? We've tried to shed some light on this question by integrating two unique databases: McKinsey's granular-growth database, with information on the growth performance of more than 700 companies, and a database created by the executive search firm Egon Zehnder International that contains performance appraisals of more than 100,000 senior executives (see sidebar, "Two unique performance databases"). The overlap between the two databases - a group of 5,560 executives at 47 companies across a broad range of industries - allowed us to examine in detail the relationship between leadership competencies and revenue growth. We found that leadership quality is critical to growth, that most companies don't have enough high-quality executives, and that certain competencies are more important to some growth strategies than to others. Companies that know how they want to grow can use these insights to cultivate the right skills in top executives.