Prepare To Sharpen Your Judgments

12 5 2007 12:29PM

The key role of a leader is to make decisions that produce desired results. That determines a company's success or failure. What's crucial is not what percentage of decisions an executive gets correct, but whether he gets the important ones right.

"Judgment is the key factor when we look at leadership," said Warren Bennis, the University of Southern California's distinguished professor of business. "Long-term success is the sole marker of good judgment. Where it breaks down is invariably related to (a problem in) the information pipeline."

Bennis, who recently co-authored "Judgment," has spent decades advising world leaders as well as top chief executives like Jack Welch and Howard Schultz.

Bennis and Bill George, a former CEO of Medtronic (NYSE:MDT - News) and now professor of management practice at Harvard Business School, share tips.

Gather intelligence. When making decisions about people -- whom to hire as CEO, for example -- rely on multiple sources of information, Bennis says. It's easy for a person to impress his boss, but what do his peers and subordinates think?

Have others conduct interviews. "If you have your mind set on (hiring) someone or you're facing serious time pressure, it's amazing what you will wrongly overlook," Bennis told IBD.

If you're vetting a candidate for executive vice president, have his future colleagues -- other executive vice presidents -- interview him. They may notice something important that you missed.

Review and learn. What is it that turns someone into a master, whether it's of violin, golf or leadership? Two things: practice and reflection, says Bennis.

"In the Army they call it debriefing," he said. "Even if you make good decisions, you need a built-in process for reflection. Otherwise you'll make the same mistakes over and over again."

Demand the truth. Encourage candor at your firm and reward it. "Only in that way can you get reflective back talk," Bennis said.

Avoid the superficial. Too often boards of directors look at charisma, style and image rather than character and integrity, George says. A towering, broad-chested man may look like a leader, but he is not always the best choice.

George says that great CEOs such as Procter & Gamble (NYSE:PG - News) CEO A.G. Lafley, Sara Lee (NYSE:SLE - News) CEO Brenda Barnes and Avon (NYSE:AVP - News) CEO Andrea Jung don't fit the Hollywood image of a CEO.

"We're not talking about an athletic or beauty contest," George said. "All the time, good people are overlooked."

Promote from within. Develop leadership programs. Mentor people, get to know them, watch them at work and test them under pressure. "Citigroup and Merrill are going outside for CEOs," George said. "That's a big mistake. They'll just listen to presentations. It's too easy to be impressed by someone this way. You have no idea how they make judgments."

Hire grounded people. "Those who balance their professional, personal and community lives will be far better leaders than someone who only has work," George said.

Prepare To Sharpen Your Judgments

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Prepare To Sharpen Your Judgments

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