+ Models ORGDYN-100752; No. of Pages 14 Organizational Dynamics (2019) xxx, xxx—xxx Available online at www.sciencedirect.com ScienceDirect jo urnal homepage: www.elsevier.com/locate/orgdyn Elevating leader character alongside competence in selection: $ A case study of Canada Revenue Agency Mary Crossan, Sonia Côté, Stephen Virgin “How do you know you are hiring the right leaders?” This was leads to poor judgment, as revealed in high profile examples the question posed in 2016 by the Board of Management at such as Volkswagen, Wells Fargo and Enron. For example, an Canada Revenue Agency (CRA) to Sonia Côté, then Director individual who lacks self-awareness and vulnerability will General of Executive Programs and Leadership Development have their Humility compromised. This weakness in Humility at CRA. Like other Canadian federal government depart- is often why individuals fear speaking up and taking risks; ments, CRA uses well-established key leadership competen- because they fear being judged. Lacking Accountability or cies (KLCs) that serve as the basis for candidate selection, Courage can relegate individuals to being bystanders in learning and development, and performance and talent situations that merit involvement. Lacking Temperance management. While Côté was confident in how candidates can deny the patience and calm needed under pressure to were assessed against the KLCs, she grasped that evaluating be steady and foster the clarity of thought required to competencies was necessary but not sufficient in selecting prioritize and take appropriate action. Strength of character the right leaders. This prompted her investigation into provides the ultimate form of resilience that is central to character leadership. well-being and the pursuit of excellence. There are many reasons individuals and organizations In this article, we build on prior research that has decide to elevate character alongside competence in provided the academic underpinning for what leader personal leadership and organization practices, such as character is, why it matters to both individual well-being when selecting candidates for hire. Research has established and sustained excellence, and how character can be the importance of developing character for individual well- embedded alongside competence in HR practices. We focus being, both personally and professionally. Therefore, it not on the process of elevating character alongside competence only benefits organizations but offers benefits to individuals in the executive selection process at CRA. We offer insights within the organization. Further, character supports from that process and consider the short-term and expected sustained excellence in organizations. By sustained excel- long-term results of such an initiative along with an agenda lence, we refer to individuals performing at the highest for future research and implications for practice. levels both in the short and long term. Character leadership also fundamentally influences the culture of excellence in an organization. Finally, character informs areas such as risk LEADER CHARACTER: A PRIMER management, compliance, and conduct because character serves to pivot away from the notion of bad people doing bad Although leader character is essential for those in the things toward the notion that there are many people with position to lead, we emphasize its role in fostering the weaknesses in character, and this weakness in character disposition to lead. Disposition to lead means that even without having a leadership position, a person brings the best of themselves to all situations in the form of thought $ This research did not receive any specific grant from funding leadership and exemplary behaviors, thus it is important agencies in the public, commercial, or not-for-profit sectors. even for individuals without supervisory responsibility. https://doi.org/10.1016/j.orgdyn.2020.100752 0090-2616/© 2020 Published by Elsevier Inc. Please cite this article in press as: M. Crossan, et al., Elevating leader character alongside competence in selection, Organ Dyn (2020), https://doi.org/10.1016/j.orgdyn.2020.100752 + Models ORGDYN-100752; No. of Pages 14 2 M. Crossan et al. The seminal research of Christopher Peterson and Martin provided in Appendix A. The following foundational under- Seligman identified a set of character strengths that stood pinnings to the framework help to explain what leader the test of being universal, reflecting different cultures and character is and why it matters. We also contrast character even different religions. Our concept of leader character with competence to help explain why they may be treated builds on this foundational work and relies on the Leader differently when it comes to selection. Character Framework developed by a team of researchers from the Ivey Business School, shown in Fig. 1. 1 There are 11 dimensions of character with a set of M. Crossan, A. Byrne, G. Seijts, M. Reno, L. Monzani, and observable behaviors, referred to as elements. While “ J. Gandz, Toward a Framework of Leader Character in these behaviors are all virtuous, a few of these virtuous ” Organizations, Journal of Management Studies 54, no. 7, behaviors can also be viewed as an expression of values, (2017): 986—1018. such as being even-handed (associated with the dimen- The framework, based on extensive research in philoso- sion of Justice); a few are also personality traits, such as fi phy, psychology, sociology, and management, identi es the being conscientious (associated with the dimension of dimensions of leader character that are ubiquitous and Accountability). There are a defined set of dimensions collectively influence individual well-being and sustained that inform character, whereas competence is typically excellence in organizations. All of the dimensions of char- assessed relative to a job context. Thus, competence will acter are important, as we subsequently describe, even differ from one organization to the next, from one job though many individuals and organizations tend to privilege to the next, and from one level of an organization to some dimensions over others. Strength of character refers to another, whereas the 11 character dimensions are someone who is highly developed on these 11 character relevant for all individuals and all organizations, both dimensions, recognizing that since historically there hasn’t professionally and personally. been a clear understanding in organizations of what leader 2 At the center of the character framework is Judgment, or fi character is and how to develop it, there is signi cant what Aristotle referred to as “practical wisdom.” Judg- opportunity to strengthen leader character in organizations. ment has its own set of behaviors that underpin it, such as fi fi The De nitions of the speci c character dimensions are being situationally aware, cognitively complex, and a Figure 1 Leader character dimensions and elements Please cite this article in press as: M. Crossan, et al., Elevating leader character alongside competence in selection, Organ Dyn (2020), https://doi.org/10.1016/j.orgdyn.2020.100752 + Models ORGDYN-100752; No. of Pages 14 Elevating leader character alongside competence in selection 3 critical thinker, but great Judgment relies also on the the notion that character dimensions can become vices when 10 dimensions that support it. This character-infused used in excess or when deficient; in her role as head of Judgment explains why character is needed in all executive services, Côté had observed that these deficien- contexts and applies to all organizations. Judgment relies cies were often present when leaders derailed or were on leaders being able to access and rely on any of the stagnant. For example, she observed that many executives dimensions of character as needed. While a person needs lacked the self-awareness to understand that their high to develop all dimensions of character, different level of Drive without strong Humanity and Humility situations will demand reliance on specific dimensions; negatively influenced their Judgment and decision-making. for example, a high level of Temperance would be needed Thus, she and her colleagues investigated how they could to remain calm when under pressure. elevate character alongside competence in selection at the 3 All virtues can operate as a vice when not supported by CRA. the other dimensions. Thus, Courage without Temperance The CRA serves millions of Canadians every year. Its goal is becomes recklessness. Even Integrity, which few would to be trusted, fair, and helpful by putting people first. The imagine could operate as a vice, could be dogmatic and Agency delivers more than CA$31.8 billion in benefits to self-righteous without Humility and Humanity to support Canadians, and it administers over CA$498 billion in taxes it. In contrast, competence does not carry this same risk. on behalf of governments across Canada. The CRA interacts Having a high level of competence in one area is not with millions of Canadians, on a regular basis or at least once viewed as a risk when a person does not have high a year at tax time. competence in another area. Acknowledging that it needed to do more to meet the 4 The elements of character need to be exercised to expectations of Canadians, the CRA introduced public develop them. This has been a significant blind spot for consultations in 2018 to help inform the Agency’s service organizations who often assume that valuing a dimension, transformation. Public consultations were a part of the CRA’s such as Integrity,