In leadership, as in life, character matters. We know it when we see it. We feel it, even if we cannot put a label on it. It is palpable with a life-energy all its own. And for those of us with the responsibility of being leaders, character is a fundamental element that will greatly impact our effectiveness. Plato said: “The measure of a man is what he does with power.”

Leaders in the work place have a tremendous amount of power over their employees. They are the single most significant factor in determining the work environment. Is it a pleasant work place; do people like working here? Think of what our employees give up to come to work – each morning leaving their homes and families to serve employers and their stakeholders.

With so much power comes an awesome responsibility and at the heart of one’s ability to rise to this challenge is character. The best leaders have strong character. I was blessed with the opportunity to work with two exceptional leaders early in my career, Harry Ruffalo and Irwin Friedman. They both possessed this thing called character. Those of us fortunate enough to work closely with them knew with complete certainty that they cared deeply for their firms, their clients and their employees.

As I reflect about them and others I have known who possess strong character, it is apparent that they share certain traits and attributes. At the heart of character is a strong moral compass. As leaders, we can best demonstrate strong character if we consistently seek the answer to the question “What is the right thing to do?” and then act accordingly no matter how difficult. When we do this we earn the trust and respect of those around us, and give them the desire to contribute in a similar manner. When people are confident that we are committed to doing what is right their conviction to do so grows stronger.

As leaders we demonstrate character when we:

• Consistently follow through on our promises – we do what we say we will do. A leader with character will under promise and over deliver, knowing that in doing so people will come to know that they can rely on us.
• Are predictable – people learn they can count on us. The more we demonstrate consistency in how we respond to people and situations and if our actions are seen as “right-minded” we will be found to be trustworthy.
• Communicate – explain why we make the decisions we make. Even when employees disagree, if they know that we are generally deliberate in our decision making they grow to trust that we are sincere in our efforts to do what is right. It is when we feel we must hide the reasoning behind important decisions we foster distrust. Employees begin to think we are “up to something.”
• Establish clear expectations with direct communication about the desired outcomes. Employees won’t feel the need to second guess what the priorities are or where they should place their focus.
• Are fair – fairness is one of the most critical attributes of a leader with character. Do our decisions reflect a keen sense of fairness? Take compensation plans, nothing can do more to destroy morale than unfair actions with compensation. A company that lays off its employees to increase profits and awards management with bonuses does not reflect the actions of leaders with character. The employees who remain will feel bitter about the inequity of it all and will look for the first opportunity to leave. Until such time as they depart, they are far more likely to spend time in wasteful ways, complaining about management and being anything but productive.

One can be a leader without character, but one cannot be a good leader without it. A moral compass consistently pointing due north will build a leader’s reputation into the kind of person that people gladly follow and place their trust in.