Fred Kiel - Return on Character: The Real Reason Leaders and Their Companies Win

Fred Kiels premise, that good character and strong principles are an essential part of a successful leaders tool kit, may seem obvious. But the sad truth, writ large over the years, is that too often character gets dismissed as superfluous. The science that Kiel has put behind his premise, combined with the tools for how to become a Virtuoso leader, should be required reading for todays and tomorrows CEOs.

JIM BERRIEN, Partner, Bentley, Farrell, Ahl & Berrien

Business leaders have an obligation to deliver more than a rising stock price and profits. Return on Character demonstrates how to identify, choose, and become a Virtuoso leader and why character-based leadership actually yields better returns. This book provides the road map for the kind of leaders we must have today and tomorrow.

GARY C. BHOJWANI, Chairman, Allianz of America

In my experience, the global leaders who obtain the best results are indeed like the ones whom Fred Kiel has identified as Virtuoso leaders. Its great to have this confirmed with hard financial metrics.

PAUL J. FRIBOURG, Chairman and CEO, Continental Grain Company

As a leader, I always struggled meeting the demands of leadership while still being the person I wanted to be. In Return on Character , Fred Kiel provides the data that proves leading with high character is not only possibleits necessary.

DEAN HAGER, former CEO, Kroll Ontrack

I intuitively knew that Fred Kiels groundbreaking research was truebut I did not expect to have it so soundly confirmed with hard data. This book finally provides the justification for boards to embrace scientifically validated character assessment as part of their evaluation of senior management teams.

RICHARD J. HARRINGTON, former President and CEO, Thomson Reuters

Kiels research addresses the real heart of the matter and biggest challenge for all leaders. A crucial must-read for anyone seeking a leadership role.

THOMAS HERRON, former CEO, TriStar Centennial Medical Center

Kiels book makes the case that moral leadership pays off for the companys bottom line. More important, the book provides a methodology for leaders and companies to develop talent and institutionalize moral leadership across the organization.

VERN KIMBALL, CEO, Calgary Stampede

Return on Character is brilliant, important, and timeless. The research needed to be done, and the story needed to be told. Fred Kiel finally proves that the presence of moral character is very profitable.

DOUG LENNICK, cofounder and CEO, Think2Perform

Uniquely combining art, science, and soulfulness, Fred Kiel provides business leaders with a compelling case for true human decency. It drives profits, it rewards people, and it does good. Every person leadingor hoping to leadan organization should read this book.

DANIEL McCARTHY, Principal, Gallarus Ventures, LLC

At a time of low public estimation of the moral compass of the business sector, Fred Kiel offers us three reasons for hope: first, that this low moment has created a yearning for great character in leadership; second, in his proof that great character isnt just morally preferable but that it offers better returns; and third, that leaders can diligently improve their character. As Kiel writes, Lets dig in, to which I would add, Now! Before the last sinews of trust snap.

MICHAEL S. McGAVICK, CEO, XL Group

Trained as a PhD psychologist, Fred Kiel helped pioneer executive coaching for C-suite leaders. Decades of working closely with CEOs have enabled Kiel and his colleagues at KRW International to develop an extensive database on CEO character and to identify leadership traits correlating with corporate success: integrity, responsibility, forgiveness, and compassion. Return on Character is a book for corporate boards seeking to identify their next Virtuoso CEO and for aspiring executives hoping to take their place among the best.

DANIEL MENKEN, author, Faith, Hope and the Corporation

Fred Kiel provides compelling statistical evidence that the character of the CEO and the executive team materially impacts an organizations financial results and offers insightful perspectives on defining and developing character. This book is a valuable and practical resource for boards of directors, CEOs, chief human resource officers, and others who are engaged in selecting and developing senior executives, as well as those who aspire to such roles.

DAVE PYLIPOW, Chief People Officer, Delhaize America

Return on Character is the most comprehensive treatment of the interrelationship between leadership and ethics that I have ever read. Its not only descriptive, but also prescriptive, providing experience-driven methods for leaders to improve or reengineer their effectiveness. A must-read for any leader at any level!

MARK W. SHEFFERT, Chairman and CEO, Manchester Companies, Inc.

Return on Character represents a much-needed, powerful body of research. Achieving profound self-awareness, high moral standards, and character should be the foundation of every leaders journey, regardless of title. The authors dream can and must be realized.

DARCY WINSLOW, founding member and Managing Partner, Academy for Systemic Change

R eturn
O n
C haracter

R eturn
O n
C haracter

The Real Reason Leaders
and Their Companies Win

Fred Kiel

HARVARD BUSINESS REVIEW PRESS

Boston, Massachusetts

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Copyright 2015 Fred Kiel

All rights reserved

Printed in the United States of America

10987654321

No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior permission of the publisher. Requests for permission should be directed to , or mailed to Permissions, Harvard Business School Publishing, 60 Harvard Way, Boston, Massachusetts 02163.

The web addresses referenced in this book were live and correct at the time of the books publication but may be subject to change.

Library of Congress Cataloging-in-Publication Data

Kiel, Fred.

Return on character : the real reason leaders and their companies win / Fred Kiel.

pages cm

ISBN 978-1-62527-130-3 (hardback)

1. Leadership. 2. Character. 3. Executive ability. 4. ManagementPsychological aspects. 5. Success in business. I. Title.

HD57.7.K523 2015

658.4092dc23

2014039585

The paper used in this publication meets the requirements of the American National Standard for Permanence of Paper for Publications and Documents in Libraries and Archives Z39.48-1992.

I would like to dedicate this book to the thousands of randomly selected employees who generously gave of their time to respond to our surveys, knowing that they would receive nothing in return from us.

And, of course, I would like to dedicate this to the 121 CEOs who signed up for this research and also generously gave us their time and attention.

Why was Lincoln so great that he over-shadows all other national heroes? He really was not a great general like Napoleon or Washington; he was not such a skillful statesman as Gladstone or Frederick the Great; but his supremacy expresses itself altogether in his peculiar moral power and in the greatness of his character.