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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.

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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

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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, will, by its value, solicit it. Such an people-focused approach to service and delivered on

assumption is equivalent to expecting someone to run a commitments made by the Minister of National Revenue

marathon without training for it. Becoming someone who on October 29, 2018, when she announced the CRA’s first

is authentic, candid, transparent, principled, and consis- Chief Service Officer (CSO). Under the CSO’s leadership, the

tent takes intelligent and intentional exercise. Although CRA began focusing on better understanding people’s needs

the character dimensions can be isolated for the purpose and expectations to improve service experience and deliver

of understanding and developing each one, they are better outcomes for Canadians.

ultimately and ideally interconnected. Thus, not attend- In April 2019, the Honourable Diane Lebouthillier,

ing to weaknesses can foster imbalances such that what Minister of National Revenue stated:

could have operated as a virtue becomes a vice. This is

Our Government is committed to ensuring that the CRA

different from competencies, which can be distinct in

puts people at the center of everything it does. Over the

their development and execution in a specific job

past three years, we have introduced changes that are

context. And weaknesses in one competence do not

leading to real results for Canadians. With these public

necessarily undermine another competence.

consultations, we are taking another step in listening

5 Character is not something people are born with; rather,

to Canadians and responding to their concerns,

it is a set of habits that develop or atrophy. We are always

expectations, and desire to improve how the CRA delivers

“becoming while we are busy doing” –— becoming more or

services.

less accountable, more or less courageous, etc. Without

the conscious exercise of character, there is every

The executive community plays a crucial role in service

likelihood that people may become less patient

improvements at the CRA. The Agency currently employs over

(Temperance), less compassionate (Humanity), and less

400 executives across Canada and a total population of 43,000

vulnerable (Humility), often as a result of the subtle,

employees. As part of its staffing practices and guidelines, the

unseen, yet powerful influences of context –— which

CRA follows an executive (EX) qualification standard that

includes the context of organizations. Whereas compe-

stipulates that, at the entry level, candidates’ KLCs must be

tencies tend to have a significant knowledge and skill

assessed through a structured interview, structured reference

component associated with the work context, and they

checks, and a third-party validation of the candidate’s KLCs.

are often developed in programs designed for the specific

Experience is assessed at the screening phase, and knowledge

competence, character is constantly evolving, both

is usually evaluated as part of a written test or included in the

personally and professionally. Thus, a person’s work

structured interview.

and life experiences fundamentally shape character,

The Clerk of the Privy Council, the senior civil servant in

and the story about who someone is and why they have

the Canadian government, approved the new KLCs for

become the person they are is unique to each person.

federal public service EXs in March 2015. The KLCs are

aligned with the Clerk’s vision for a public service that is

THE CANADA REVENUE AGENCY

collaborative, innovative, streamlined, high performing,

adaptable, and diverse. Each competency is defined in

In her experience in human resources (HR), Côté had not behavioral terms for specific leadership roles, increasing

encountered another leadership framework that so in complexity as individuals move up the ranks (see Table 1).

explicitly linked potential shortcomings of character to Most federal departments and agencies, including the CRA,

achieving organizational excellence. She strongly supported have fully endorsed the KLCs.

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4 M. Crossan et al.

Table 1 Key leadership competencies for federal public it was time to explore a new way of hiring that would enable

service executives interviewers to not only know about a candidate’s

experience, knowledge, and KLCs but also discover who a

Key leadership competencies

candidate is with respect to leader character. The team sent

Create vision and strategy out a request for proposals (RFP), seeking to embed char-

Mobilize people acter in their executive leadership recruitment practice.

fi

Uphold integrity and respect CRA de ned the scope of work as follows:

Collaborate with partners and stakeholders



Promote innovation and guide change Provide strategic advice on how to integrate character-

Achieve results based leadership successfully in the CRA organizational

culture.

 Review existing EX assessment tools used at CRA for re-

cruitment purposes and identify opportunities to integrate

Candidates who apply to EX positions are familiar with the

character-basedleadership inaddition to theassessment of

KLCs and are often trained by professional coaches and

KLCs [and] enhance these assessment tools to allow CRA

mentors to ensure candidates grasp the KLCs and are able

to assess character-based leadership and KLCs in the

to provide examples of behaviors in relation to each com-

recruitment of leaders at the EX-01 level.

petency in an EX interview. This often creates a rehearsed,

one-sided delivery with candidates listing accomplishments

The first author undertook the project which was

and examples of KLCs they have demonstrated in the past.

designed in four phases, as depicted in Fig. 2.

There is very little interaction with the staffing board

members conducting the interview, leaving the interviewers

PHASE 1: REVIEW, ANALYZE, AND

wanting to know more about who the candidate is and how

RECOMMEND

their leadership has developed over time –— one of the gaps

the character interviewing process can address.

fi

Côté had been exposed to the idea of elevating character The rst undertaking was to determine the scope of work and

alongside competency in leadership development and prac- review documents. The HR team decided that wherever

tice, so she decided to explore character leadership in a competence was mentioned in the selection process or

workshop with 400 CRA EXs in 2016. CRA’s senior leadership documents, the document or process would be reviewed.

had some exposure to leader character and were supportive of The team reviewed the following documents and processes:

the initiative; however, Côté, like many individuals who

 fi

introduce leader character in their organizations, felt like a Selection pro le (the content in the job posting that

pioneer. Elevating character alongside competence is a new related to the selection process)



frontier for most organizations. The science that informs Job poster

leader character and the practical experience of organiza-  Screening criteria and the report template for the screen-

fi

tions, like CRA, provide important insight and con dence in ing board

–—

character leadership; yet, it takes character Courage,  Interview questions, including the questions given to

–—

Humility, Humanity, Accountability, etc. to introduce a candidates in advance of the interview, additional

new set of ideas to an organization that is already aggressively questions provided to the interviewers on the screening

pursuing an agenda full of initiatives and demands. board, additional topics for questions, and an interview

Côté extended the following invitation to CRA EXs: assessment grid

 Communication to referees, reference check forms, and

As you may know, leadership development remains a

the reference check summary grid

priority at the Agency and in the Public Service. As a result,

 External assessment report in cases where candidates

in support of the development of our current leaders and in

undertook a third-party assessment

order to pave the way for our future leaders, CRA is hosting

its firstEXForum(EXF). TheEXF will be the opportunity [not

After reviewing the documents and processes that had

only] to generate discussion around the needs of the EX

been identified as needing to embed character alongside

Community and leadership of the future at CRA, but also to

competence, the consultant offered recommendations that

generate self-awareness and reflection on leadership style

were reviewed with the HR team. The HR team agreed that

and growth.

the Leader Character Framework was a scientifically robust

Leader character was well received at the Forum, and framework and adopted it as a framework for character

“

Côté and her HR team saw the opportunity to enhance selection. They also adopted the Leader Character Insight

” —

leadership selection by elevating character alongside Assessment (LCIA see Appendix B) as a foundational

competence in the EX-01 selection processes. The team felt tool against which leader character would be measured.

Figure 2 Project phases

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Elevating leader character alongside competence in selection 5

However, before implementing the adopted tools, the team foundation to manifest the competency of “upholding integ-

had some important considerations to address. rity and respect.”

Character and Competence Character and Values

Many organizations include character language in a Atthe CRA, Integrityalso appeared asa value in the documents

statement of competencies, and CRA was no different. and processes: “Integrity is the foundation of our administra-

The agency had adopted KLCs widely accepted in the Federal tion. It means treating people fairly and applying the law

Government and used those KLCs to build the agency’s fairly.” Thus, integrity, as used by the CRA, is an example of

competence model. As with many organizations, several how organizations might tease apart character and values.

of the words and phrases in the competency model include Integrity as a value is the foundation of CRA’s administration;

character language; these terms can co-exist so long as there integrity as character manifests in the behaviors of treating

is a meaningful understanding of the differences between people fairly and applying the law fairly.

the use of a term as applied to character and competence. The character is the individual’s habit of behavior that is

For example, a word such as “collaboration” can be used for revealed in practice, and the CRA was expecting individuals

both character and competence, but the word means dif- to have the character strength to treat people and apply

ferent things depending on how it is used. When referring to the law fairly. However, by hard-wiring integrity into the

character, collaboration is a “habit of being” as revealed in organization without profiling the other dimensions of

the behaviors of being cooperative, collegial, open-minded, character, the CRA was running the risk of integrity mani-

flexible, and interconnected. As defined in Appendix A, a festing as a vice instead of a virtue.

person with a high degree of collaboration “values and We did not advise changing any of the values, but

actively supports development and maintenance of positive recommended, instead, that CRA (and all organizations)

relationships among people. Encourages open dialogue and ensure there is a process for recruiting and developing the

does not react defensively when challenged. Is able to strength of character needed to support the organization’s

connect with others at a fundamental level, in a way that stated values.

fosters the productive sharing of ideas. Recognizes that what

”

happens to someone, somewhere, can affect all. Timing

Collaboration, viewed as a competence at CRA, refers to

collaboration with partners and stakeholders and means

Elevating leader character alongside competence takes

“building and maintaining an effective and constructive

time. While it is important to embed the language of

network with partners, stakeholders or contacts who may

leader character into corporate documents such as CRA’s

be helpful in achieving organizational goals.”

Corporate Business Plan and the Agency Workforce Plan,

Competence is about what someone can do on the job,

we reinforced that the most important way to elevate

whereas character is about who the person is. One of the

character alongside competence is to activate and

reasons that organizations are interested in character is

encourage the development of character of the individuals

the recognition that who someone is from a character

within the organization. Individuals who are developing

perspective influences the expression of what they can

character will begin to identify and change practices that

do from a competence standpoint. This is true for

are not character aligned. Organizational culture is a

collaboration but also true for other competencies such

reflection of the character of the individuals, and

as creating vision and strategy. Strategic competence, for

character leadership will be the driving force behind

example, will be amplified with strength of character

organizational transformation.

because individuals who have developed character dimen-

To start this transformation, we sought ways to encourage

sions such as Courage, Transcendence, Humility, and

conversations to understand what character is, why it

Humanity will tackle strategic challenges differently.

matters, how to develop it, and how to embed it in the

Conversely those who have weaker dimensions of charac-

organization. For most individuals and organizations, elevat-

ter may find their competence limited. For example, many

ing character alongside competence is a welcome change.

failures of strategy have been linked to errors of judgment

Therefore, there is no need to force implementation; rather

associated with lack of humility.

the transformation can be allowed to emerge through

At the CRA, one of the competencies was “upholding

the conversations and actions that arise from a variety of

integrity and respect,” which can be observed in behaviors

interventions, including workshops, seminars, management

such as exemplifying ethical practices, creating respectful

briefings, and experiential sessions.

and trusting work environments, and encouraging the

expression of diverse opinions. However, a person who has

not developed the needed underlying character may have Amendments to Selection Documentation

difficulty expressing this competency. A person with well-

developed character will be authentic, candid, transparent, The primary purpose of inserting character into selection

principled, and consistent (behaviors associated with the documentation is to signal to candidates that leader

character dimension of Integrity), but that person will also character matters to the organization. At the CRA, changes

have strength in the other character dimensions, such as were made to the selection profile and the notices of job

Humility and Humanity, to ensure Integrity does not operate opportunities by inserting the following paragraph under key

as a vice. This strength of character provides an important leadership competencies:

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

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6 M. Crossan et al.

Canada Revenue Agency seeks to attract candidates who deficiencies in character. Thus, a character-based interview

demonstrate leadership character. Dimensions of charac- can be evaluated against the set of behaviors in the Leader

ter include courage, drive, accountability, transcen- Character Framework. However, because character and its

dence, humanity, humility, collaboration, temperance, development vary by individual, unstructured questions are

integrity, justice, and judgment. needed to probe character.

CRA ran workshops for the interviewers, which included an

CRA also provided a link to G. Seijts, J. Gandz, M. Crossan,

introduction to character leadership along with practice ses-

and M. Reno, “Character Matters: Character Dimensions’

sions to foster comfort and familiarity with a character inter-

Impact on Leader Performance and Outcomes,” Organiza-

view. Our experience revealed that the primary challenge was

tional Dynamics 44 (2015): 65—74 as a reference to what

to help interviewers deconstruct their role as an interviewer, to

character is and why it matters. The article was translated

helpthemextendfromstructuredcompetence-basedquestions

into French to ensure the material was available in Canada’s

to focus on having a human to human conversation. Unconscious

two official languages.

bias by interviewers has been identified as a serious issue in

Character could also be incorporated in reference checks

selection, and an important outcome of focusing on the char-

conducted prior to the interviews. CRA used reference

acter development of interviewers is that it helps to expose and

checks prior to the interview to assess KLC’s and readiness

address unconscious bias. The definition of Humility draws

to be an executive, and on occasion reference checks after

attention to the issue of unconscious bias. “Allows accomplish-

the interview to cross reference the character interview.

ments to speak for themselves, acknowledges limitations,

understands the importance of thoughtful examination of one's

PHASE 2: INTERVIEWER AND CANDIDATE

own opinions and ideas and embraces opportunities for personal

PREPARATION growth and development. Does not consider oneself to be more

important or special than others, is respectful of others, and

Following the review, analysis, and recommendations in understands and appreciates others’ strengths and contribu-

Phase 1, CRA’s HR team consulted with senior leaders to tions.” Furthermore, developing the character dimension of

assess their interest in piloting character leadership at the Justice also helps toaddress unconscious bias: “Strivestoensure

EX entry level. Tw o key branches and one region that individuals are treated fairly and that consequences

volunteered. The Agency then brought together a character (positive or negative) are commensurate with contributions.

leadership advisory committee composed of senior execu- Remains objective and keeps personal biases to a minimum

tives, who represented all branches and regions, and HR when making decisions. Provides others with the opportunity to

professionals. All participants had already been exposed to voice their opinions on processes and procedures. Provides

character leadership at the EX Forum held the year before. A timely, specific, and candid explanations for decisions. Seeks

full day was dedicated to discuss the recommendations for to redress wrongdoings inside and outside the organization.”

elevating character alongside competence in candidate Indeed, reading through all the definitions reveals that

selection for positions at the EX-01 level. developing character is a significant way to reduce the

In our experience, character leadership is well received unwanted effects of unconscious bias in the selection process.

as part of the fabric of organizations, but people welcome To prepare candidates, they were invited to a voluntary

character leadership even more so when they have the workshop to introduce them to character leadership and help

opportunity to engage in it for themselves and personally them understand that the selection process would be different

arrive at the conclusion that character deeply matters for from the competence-based interviews the candidates had

themselves and the organization. Character selection could experienced in the past. In contrast to the typical questions

be initiated through HR, but it benefits from a broader sense that candidates would have prepared in advance of an interview

of considering how it will be infused in the organization. in a formal board setting with little interaction between candi-

Although therearefundamental differences between char- date and interviewer, the character-based assessment was

acter and competencies, insights can be derived from the designed as a conversation around a coffee table with comfor-

research around competence-based selection. For example, table chairs and couches. There were no papers or writing

deviations from rationality that foster bias in interview ratings instruments in evidence during the conversation, although

need to be avoided. This has largely been achieved in compe- notes were made directly after the candidate left the room.

tence-based interviews by using structured interviews based It was important to reinforce these differences for the

on a formal job analysis. Conventional thinking is that inten- candidates and ensure they understood that they were being

tions predict behavior; asking structured interview questions invited to be themselves. A candidate who was hired after

about critical job-related incidents can reveal what a candi- the first two pilots described his experience of the interview:

date’s intentions might be. A scoring guide allows interviewers “This was the first interview experience where I felt at ease,

to evaluate a candidate’s responses. to share who I am, provide context to my answers, and have

The critique of this patterned behavior description inter- an actual conversation with the person for whom I could end

view, which uses past behavior to predict future behavior, is up working. It was refreshing.”

that there is no systematic way to assess responses. However,

in the case of character, which is revealed in habit of beha-

PHASE 3: CHARACTER-BASED

viors, the character-associated behaviors can be used to

CONVERSATION/INTERVIEW

evaluate the strength of character. For example, a candidate

who does not demonstrate self-awareness (a behavior asso-

ciated with Humility), or who becomes agitated and does not When it comes to selecting for character, many people are

remaincalm (abehaviorassociatedwithTemperance),reveals interested in the interview itself and the questions to be

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Elevating leader character alongside competence in selection 7

used; however, the focus is on having a high quality, self-awareness and reflection when asked to unpack an idea;

candid, and authentic conversation rather than conduct others will struggle because they have not spent time

an “interview.” A character interview is as much a reflection exercising that element of character.

of the interviewer as the interviewee. Interviewers who have Because character functions in an integrated way, the

spent time reflecting on their own character will be in a dimensions of character must not only be assessed

better position to set the trusting conditions for a character individually but also examined holistically, to assess how

interview and identify character in others. Character the dimensions appear as a whole –— whether as a strong,

dimensions such as Humanity and Collaboration are particu- well-developed, moderate, or weak character. Strong means

larly important because if the interviewers are not genuinely that no character deficiencies were revealed; well-

interested in the candidate, the process becomes an developed means that no major deficiencies were revealed;

exercise of “ticking the box.” There will be little of moderate means that some deficiencies were revealed; and

substance the candidate will share or reveal, or that the weak means that many deficiencies were revealed. CRA’s

interviewer will detect. screening board made a final assessment of each individual’s

Conversations that reveal aspects of character are basic strength of character and the individual’s readiness for an

life conversations that have a quality of probing. It is not the executive role.

first exchange that matters; rather, it is a conversation that At the time of writing, CRA had conducted 65 interviews

is like peeling an onion that gets to the essence of who with three different business lines. Of the 65 persons inter-

someone is and why they are that way. It is less relevant viewed, 30 were deemed well-developed. In virtually all

where the interviewer starts and more important that the cases, there was unanimity on how interviewers observed

conversation probes with Who, What, When, Where, Why, the dimensions of character. In a few cases, there was

and How types of questions, such as Why do you think that discussion about some subtle differences that did not change

happened? What did you learn from that? How did that affect the overall assessment but served to enhance the feedback

you? It is important to keep in mind that questions which are to the candidate. The discussion about the candidate was

“off limits” in a competence interview are also inappropri- captured by the HR professional sitting on the screening

ate in character based interviewing such as asking someone board and served as the feedback that the board chair

about marital status or age. provided to the candidate. CRA viewed this interview

The focus is on an authentic conversation, not one that is process as an important development opportunity for

so programed that the candidate is merely telling the inter- candidates. Having a clear understanding of what character

viewer what they think is expected. Authenticity is revealed is, why it matters, and how it can be developed provides

largely in stories and situations that are coherent and deep. insight that few, if any, candidates would have received

The more the interviewers probe, the more likely they will given that character itself has been neglected in education

get to levels of detail and insight that reveal whether the and practice.

story is real or something that is programed or fabricated. All candidates were encouraged to seek one-on-one,

Programed stories do not have a richness to them because face-to-face feedback from the chair of the screening board

they are not lived, and the stories tend to break down after the character conversation interview. This was a

when probed. However, it is important to note that the unique opportunity because, successful or not, the feedback

conversation is not about testing whether someone is telling meeting could be the first occasion for a discussion

the truth; rather, the conversation is meant to provide prompting self-reflection. Character is revealed in beha-

an authentic opportunity to learn about the candidate’s viors, and often, people are not aware of the gap between

character. their intentions and behaviors. The debrief following the

Questions can be provided to launch and support the interview can therefore be a point of departure for personal

process, but the questions rarely guide the conversation, leadership development.

which tends to be more organic in nature. For one of the The debrief followed a similar orientation to the inter-

staffing processes at CRA, all candidates were required to view –— a candid conversation that respected the candidate.

submit a video about why they wanted to work for CRA, then Both strengths and weaknesses associated with the dimen-

something from the video was often the launch point for the sions of character were discussed, and, more specifically, the

conversation. In one instance, a candidate mentioned elements and behaviors that support the dimensions were

innovation and so there was an opportunity to engage the discussed. For example, it was common for the debrief to

candidate in a discussion about why innovation was encourage candidates to strengthen their authenticity (an

important and reveal how their life experiences shaped element of Integrity) because candidates often struggle with

who they are with respect to innovation. displaying their authentic selves when they are preoccupied

Through the probing conversation, interviewers become with what others think of them. This is particularly acute in

aware of strengths and deficiencies around character. The interview settings. The following is a quote from a candidate

questions tend to shift toward understanding whether what who was not successful. “The interview really was a

might be a virtue, such as strong Drive, was accompanied by conversation; the interview board was able to use informa-

the strength of Humility or Temperance so that the character tion from earlier steps in the process to formulate mean-

dimension was not operating as a vice. The behaviors that ingful questions that were specific to me as a candidate. I

embody the dimensions are the most revealing in this regard. had the opportunity to be myself and the final feedback was

For example, with respect to Humility, a person’s level of very useful focussing on both my strengths and areas that I

self-awareness, reflection, curiosity, openness to learning, should consider for my leadership development. The

and vulnerability are revealed. Candidates clearly differ character interview is a positive departure from the normal

on these behaviors: some will exhibit a great deal of hiring approach and I look forward to the next executive

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8 M. Crossan et al.

competition where I intend to apply again and pursue my well-balanced character dimensions to be effective

goal of becoming an executive leader in the CRA”. leaders. In comparison to the traditional process, I felt

less confined in getting to know the candidates and who

they are as leaders. I am more than satisfied with the

PHASE 4: EVALUATION AND OUTCOMES

performance of the individual that I hired based on

character leadership. What was observed during the

The initial success of the staffing pilots led to the creation of

interview proved to be accurate. The process also identi-

a new position within CRA –— Director of Character Leader-

fied minor gaps that were integrated into an effective

ship, currently held by Stephen Virgin –— and two assistant

development plan.

director positions that report directly to Virgin. The team

seeks to establish the predictive validity of the character

interview by tracking the effectiveness of leaders selected

Hiring EXs with the Potential to Grow

through this process. A deliberate approach will examine

several areas of evaluation and analysis, collaborating with

CRA is too early in the process to assess whether the candi-

partners on tools to explore character leadership in the

dates they hired have grown. We have cause to be optimistic

workforce.

but at the same time, recognize that a longer time horizon is

While there are many studies that have guided best

needed to track results. The Director of Character

practices in competence selection, few organizations have

Leadership stated:

examined the effectiveness of competence-based selection

in their own practices and whether their specific competen- We are optimistic on the new cohort of Executives hired

cies are predictive of leader effectiveness. Yet, we maintain, using the character approach. They were assessed on

organizations should ideally examine the effectiveness of competence, experience, and knowledge prior to the

both competence-based and character-based selection character interview. In the character interview, the can-

within the organization. Measurement of the effectiveness didates demonstrated well-developed character virtues

of the character leadership approach at CRA was identified and behaviors, and they showed the habit of being that

as a key component at the outset of this process. While will complement their competencies. There is a second

recognizing that implementation of a character approach to order impact here as well: collectively, this approach has

selection is a work in progress, three evaluation criteria were the workforce now keenly interested in developing and

established. activating character.

It will take time to infuse character from an institutional

aspect, but it is a very positive first step. By getting to

Efficiency of Staffing Processes

know these new Executives, the screening board chairs

report a much stronger sense of selecting leaders.

The first remit was the creation of the processes, tools,

However, it is recognized that an evaluation framework

and supporting framework to implement the character

is needed, and the domain of the qualitative measure-

interview, which could draw out who the candidates were

ment field is going to be a key component.

authentically. Executive staffing, similar to other hiring

processes, is under constant pressure to streamline. The

In addition, aframework was developed to follow candidates

team at CRA used innovative approaches, such as the video

as they grow in their leadership roles into the future.

submission, to evaluate the experience, knowledge, and

competencies of candidates to ensure a comprehensive

CHARACTER SELECTION: CORE INSIGHTS

assessment, allowing the one in-person interview to be used

solely for the character conversation.

Our case study can be summarized with four key insights:

Effective Processes and Tools

1 Character-based selection starts with, and is dependent

on, understanding and developing one’s own character.

Initial feedback on the processes and tools used was very

The process of selection requires elevating character

positive. A survey of both successful and unsuccessful

alongside competence throughout the process and plac-

candidates, screening board members, and HR professionals

ing in the foreground who people are in terms of charac-

showed strong support for the process and tools used to

ter, focusing less on what the process looks like. The who

evaluate candidates. The setting for the interview, the quick

will continue to guide the what with respect to key

and almost unanimous consensus of the screening board

choices. For example, the who means that the interview-

members, and the confidence in determining a candidate’s

er will be having a conversation with candidates as op-

readiness to lead as an executive all revealed the approach

posed to treating the engagement as an interview. The

to be effective. In short, there was strong face validity.

focus is less on being an interviewer than a person having

Mark Richer, Director General of CRA and chair of the

an in-depth conversation with another person.

screening board for the first character leadership executive

2 The more character leadership cascades throughout the

staffing process, described the process:

organization, the easier it is to select on character.

Appointing the right people to entry level EX jobs is Individuals who embody and demonstrate character lead-

crucial to the success of our organization. The use of ership have a better sense of seeing it in the behaviors of

character-based interviews left me with unwavering others. The more individuals embrace character leader-

fi fi

con dence that we had identi ed people who possessed ship, the more they understand its importance for well-

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Elevating leader character alongside competence in selection 9

being and sustained excellence in organizations. Charac- being fully evaluated along with feedback, consultation, and

ter leadership is not an afterthought but rather the main consideration of what the team learned and heard over the

thought. In the early stages of character-based selection, past years. What is clear is that there is a pent-up demand for

there is a need to educate both interviewers and inter- this approach. This demand extends well beyond the CRA,

viewees on character leadership prior to the interview. who are regularly and actively sought out by other organiza-

3 There are paradigm shifts in thinking about leadership tions to describe their experience with character leadership.

style and personality traits toward understanding people HR has made recommendations to their senior officials in

in a more holistic way and with a deeper sense of who they the CRA for the implementation of an enduring approach.

are, why they are the persons they have become, and The plan is founded on a deliberate, purposeful, and

what their aspirations are. One important facet of this progressive approach. The next steps are broken into four

shift is that all character dimensions matter for all broad areas. First, the CRA will examine the development of

individuals regardless of position or sector. character leadership in the workforce. This is consistent with

4 Character is a habit of being that is observed in behaviors. understanding that developing leader character is more

By behaviors, we mean a holistic way in which a person about the disposition to lead than the position to lead.

engages other people and the world. It is not simply about The Agency recognizes that from entry level to senior EXs,

what people say, but about a broader set of cues, whether this initiative is about more than selection and assessment.

that is a look in someone’s eye, a person’s capacity to To inculcate character leadership in the organization, delib-

listen, how they lean into a conversation, or the erate efforts will be needed. Over the next year, the CRA will

animation or lack of animation about the ideas a person examine options, work with partners in other government

is conveying. There is an authenticity to a person’s way departments, experiment, and begin this focused effort.

of being that is revealed in a character conversation Second, the CRA will examine the opportunities for

that, while not immune to the gaming that arises in a extending selection for character to other hiring processes.

competence-based interview, is more resistant to it. Given the positive experience with the staffing pilots, all EX

appointments at the EX-01/02 level will be conducted over

CONCLUSION AND NEXT STEPS the fiscal year 2019/2020 using the framework and interview

identified in this article. Over that same time period, the

We have described what amounts to a case study of the team will examine options for using character leadership

character selection process at CRA. This is a new frontier for assessment when selecting for higher level EXs and leaders of

selection, and while there are lessons that can be taken from leaders, and they will consider how the Agency might

fi

competence-based selection, there is a need for further conduct those interviews with speci c reference to the

research to examine the best approach to character contextual aspects of Judgment at higher levels. The Agency

selection. We note some promising areas for future research will also examine options and the feasibility of using the

including addressing whether developing character helps to character leadership assessment for non-EX ranks. At CRA

address the issues of unconscious bias. This would not only and other organizations, the volume of candidates may

apply to character selection, but also selection more gen- preclude character based interviews and therefore there

erally, as well as many organizational practices that require is a need to examine alternative approaches to assessing

some form of assessment. We also see potential for further character.

research that address the differences between character Third, the Agency will continue to embed character

and competence. Such research would not only serve the leadership in performance management, talent manage-

domain of selection, but also leadership development and ment, and succession planning.

performance management. Finally, in the 65 interviews Fourth, additional focus will be applied to long term

conducted with CRA and over 200 interviews with another effectiveness evaluation and an examination of the links

organization, there has been strong agreement on observa- between the character leadership approach and other key

tions about strength of character. There are opportunities workforce aspects such as well-being, respect, and civility. It

for future research to unpack how people observe character, is an exciting time and elevating character leadership to an

and importantly where there may be misconceptions. For institutional approach is now the focus.

example, without understanding what character is and how HR will continue to rely on a character leadership advisory

fi

it is revealed, interviewers may be misguided in their group in the CRA. Senior of cials and stakeholders across all

approach to assessing character. branches and regions will convene to share awareness and

Embedding leadership character alongside competence is take a collective view to steward the program and ensure a

at the essence of great leadership. CRA is at the forefront of pan-CRA approach. Although HR is the steward of the initia-

organizations on a global basis in undertaking this initiative. tive, the strategy to infuse character throughout the Agency

The organization is now formulating advice for the most focuses on a shared responsibility with business lines. Man-

senior bodies in the Agency to carry the enduring model agers are accountable for the leadership agenda; therefore,

forward. The EX staffing processes noted in this article are a collective approach to implementation is a key to success.

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SELECTED BIBLIOGRAPHY

This article builds on our prior work on leader character. A There are several articles that focus on leader character

representative publication includes M. Crossan, G. Seijts, development including S. Hannah and B. Avolio, “The Locus

and J. Gandz, Developing Leadership Character (New York, of Leader Character,” Leadership Quarterly 22 (2011): 979—

NY: Routledge Publishing, 2016). That research is influenced 983; S. Hannah and P. Jennings, “Leader Ethos and Big-C

by the work of Christopher Peterson and Martin Seligman, Character,” Organizational Dynamics 42 (2013): 8—16; M.

Character Strengths and Virtues: A Handbook and Classifica- Crossan, D. Mazutis, G. Seijts, and J. Gandz, “Developing

tion (New York: Oxford University Press, 2004). M. Crossan, Leadership Character in Business Programs,” Academy of

A. Byrne, G. Seijts, M. Reno, L. Monzani, and J. Gandz Management Learning & Education 12 (2013): 285—305;

designed an engaged scholarship, three-phase approach with and E. Sadler-Smith, “Before Virtue: Biology, Brain, Beha-

over 2,000 leaders from the public and private sectors, which vior, and the “Moral Sense,” Business Ethics Quarterly 22

produced the framework of leader character that forms the (2012): 351—376. These articles all emphasize that charac-

underpinnings for character-based leadership. The article, ter can be developed and that the development of character

“Toward a Framework of Leader Character in Organiza- is a life-long journey.

tions,” is published in the Journal of Management Studies Embedding leader character in HR practices was the focus

54, no. 7 (2017): 986—1018. of an article by G. Seijts, M. Crossan, and E. Carleton,

Several studies have shown the positive effects of char- “Embedding Leader Character in HR Practices to Achieve

acter on individual and organizational performance. Tw o Sustained Excellence,” Organizational Dynamics 46 (2017):

examples include K. S. Cameron, D. Bright, and A. Caza, 30—39. They describe the importance of leader character to

“Exploring the Relationships Between Organizational Virtu- HR practices and the role of biodata, reference checks, and

ousness and Performance,” American Behavioral Scientist 47 interviews associated with selection. They point out that the

(2004): 766—790; and J. J. Sosik, W. A. Gentry and J. U. usefulness of biodata is enhanced when applicants are asked

Chun, “The Value of Virtue in the Upper Echelons: A Multi- to provide supporting information to justify their answers.

Source Examination of Executive Character Strengths and This finding was reported in J. Levashina, F. P. Morgeson, and

Performance,” Leadership Quarterly 23 (2012): 367—382. M. A. Campion, “Tell Me Some More: Exploring How Verbal

The results that Fred Kiel obtained with CEOs are reported in Ability and Item Verifiability Influence Responses to Biodata

Return on Character (Boston, MA: Harvard Business Review Questions in a High-Stakes Selection Context,” Personnel

Press, 2015). Psychology 65 (2012) 359—383. They also point to the impor-

We have partnered with Sigma Assessment Systems to tance of structured reference checking –— the consistent use

develop a reliable and valid instrument (self-assessment and of measures across applicants and referees –— as having

360 assessment) to measure leader character, called the higher criterion-related validity compared to non- struc-

Leader Character Insight Assessment (LCIA). B. Furlong, M. tured approaches. They offer two relevant publications:

Crossan, J. Gandz, and L. Crossan, in their article R. D. Zimmerman, M. D. C. Triana, and M. R. Barrick,

“Character’s Essential Role in Addressing Misconduct in “Predictive Criterion-Related Validity of Observer Ratings

Financial Institutions,” Business Law International 18, of Personality and Job-Related Competencies Using Multiple

no.3 (2017), articulate the critical role of character as it Raters and Multiple Performance Criteria,” Human Perfor-

affects judgment and decision-making and encourage a pivot mance 23 (2010): 361—378; and P. J. Taylor, K. Pajo, G. W.

from viewing misconduct as arising from unethical people Cheung, and P. Stringfield, “Dimensionality and Validity of a

doing bad things, to failure of judgment and decision-making Structured Telephone Reference Check Procedure,” Person-

arising from deficiencies in character. nel Psychology 57 (2004): 745—772.

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APPENDIX A. CHARACTER DIMENSIONS DEFINED

Dimension Definition

Judgment Makes sound decisions in a timely manner based on relevant information and critical analysis of facts.

Appreciates the broader context when reaching decisions. Shows flexibility when confronted with new

information or situations. Has an implicit sense of the best way to proceed. Can see into the heart of

challenging issues. Can reason effectively in uncertain or ambiguous situations.

Courage Does the right thing even though it may be unpopular, actively discouraged, or result in a negative outcome

for oneself. Shows an unrelenting determination, confidence, and perseverance in confronting difficult

situations. Rebounds quickly from setbacks.

Drive Strives for excellence, has a strong desire to succeed, tackles problems with a sense of urgency,

approaches challenges with energy and passion.

Collaboration Values and actively supports development and maintenance of positive relationships among people.

Encourages open dialogue and does not react defensively when challenged. Is able to connect with others

at a fundamental level, in a way that fosters the productive sharing of ideas. Recognizes that what happens

to someone, somewhere, can affect all.

Integrity Holds oneself to a high moral standard and behaves consistently with ethical standards, even in difficult

situations. Is seen by others as behaving in a way that is consistent with their personal values and beliefs.

Behaves consistently with organizational policies and practices.

Temperance Conducts oneself in a calm, composed manner. Maintains the ability to think clearly and respond

reasonably in tense situations. Completes work and solves problems in a thoughtful, careful manner.

Resists excesses and stays grounded.

Accountability Willingly accepts responsibility for decisions and actions. Is willing to step up and take ownership of

challenging issues. Reliably delivers on expectations. Can be counted on in tough situations.

Justice Strives to ensure that individuals are treated fairly and that consequences (positive or negative) are

commensurate with contributions. Remains objective and keeps personal biases to a minimum when

making decisions. Provides others with the opportunity to voice their opinions on processes and

procedures. Provides timely, specific, and candid explanations for decisions. Seeks to redress wrongdoings

inside and outside the organization.

Humility Allows accomplishments to speak for themselves, acknowledges limitations, understands the importance

of thoughtful examination of one's own opinions and ideas and embraces opportunities for personal growth

and development. Does not consider oneself to be more important or special than others, is respectful of

others, and understands and appreciates others’ strengths and contributions.

Humanity Demonstrates genuine concern and care for others, and can appreciate and identify with others’ values,

feelings, and beliefs. Has a capacity to forgive and not hold grudges. Understands that people are fallible

and offers opportunities for individuals to learn from their mistakes.

Transcendence Draws inspiration from excellence or appreciation of beauty in such areas as sports, music, arts, and

design. Sees possibility where others cannot. Has a very expansive view of things both in terms of taking

into account the long term and broad factors. Demonstrates a sense of purpose in life.

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APPENDIX B. LEADER CHARACTER INSIGHT ASSESSMENT (LCIA), SAMPLE REPORT PAGES

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Mary Crossan is a Distinguished University Professor and Professor of Strategic Leadership at the Ivey Business

School at Western University in London, Ontario. Her areas of research include leader character, organizational

learning for strategic renewal, and improvisation. She has authored several books and over 100 articles and cases.

(Ivey Business School, Western University, 1255 Western Road, London, Ontario, N6G 0N1, Canada. Tel.: +1 519

661 3217; fax: +1 519 661 3485; e-mail: [email protected]).

Sonia Côté has built a proven track record of modernizing human resources management over the last 20+ years

in various government departments of the Federal Public Service of Canada. Whether it is contributing to a

change agenda, providing services to clients, or making employees see their own potential, she is present,

attentive, and ready to inspire. Over the course of her career, she has developed a keen interest in talent

management, leadership development, learning, and recruitment. She also teaches in the fields of organizational

development and change management. She is currently the Director General responsible for leadership and

learning within the Human Resources Branch.

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Stephen Virginjoined the Canada Revenue Agency in July 2018 as the new Director for Character Leadership. He

is a former senior naval officer in the Canadian Armed Forces; he joined the Public Service in 2015. During his

military career, he was fortunate to have a variety of leadership experiences including submarine captain, frigate

command, and a variety of strategic leadership appointments in National Headquarters in plans, policy, and

strategic resource management. His final appointment in the Forces was as the Deputy Commander of Canada’s

Special Forces Command.

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