How A Leader’s Personality Impacts the Ability to Win

built for growth

Built for Growth

Many business books are written on how to innovate, achieve faster growth, or beat the competition. I’ve not read many that focus on the personality of the leader. But the founder’s personality has a dramatic impact on all aspects of the company culture and its potential.

That’s the core focus of Chris Kuenne and John Danner’s new book, BUILT FOR GROWTH: How Builder Personality Shapes Your Business, Your Team, and Your Ability to Win.

If entrepreneurs understand their personalities, it will help them choose the right team to enhance their strengths and manage around their weaknesses.

I recently spoke with the authors about their fascinating research into personality in this context. John Danner is a senior fellow at the University of California Berkley’s Institute for Business Innovation. A faculty member, a business adviser, and an entrepreneur, he speaks widely on topics from innovation to strategy. Chris Kuenne is a member of Princeton University’s entrepreneurship faculty, a growth capital investor, an entrepreneur, and a speaker.

 

“To win in the twenty-first century, you must empower others.” -Jack Ma

 

3 Reasons Personality is Misunderstood

Personality is one of the least understood elements of entrepreneurial and business success. Why is that still the case after decades of study and research?

We think there might be three converging reasons. First, the business world often tends to overlook introspection and reflection in its bias for action and results, so the issue of who you are can get lost in the impatient focus on what you’ve done. The “do” trumps the “who.” But as any manager or leader knows, personality does matter . . . a lot; so that action-bias has left a void in our understanding.

Second, we love icons. Movies and the media naturally latch onto a compelling storyline, a fascinating individual, and retell that one person’s experience, character and personality. But icons can quickly become stereotypes, and those stereotypes reinforce the notion that you have to be an extraordinarily exceptional person to find success as an entrepreneur. That shorthand can substitute for a deeper understanding of what’s really at play here. In other words, every entrepreneur doesn’t have to be a Steve Jobs or Elon Musk to be successful; our research discovered there are four distinct personalities of successful entrepreneurs. And there are likely millions of individuals the world over who share those same personality patterns.

Third, although most people are intensely curious about who they are and how they’re wired, most personality assessments are ill-suited to the task of cracking the code of successful business building. Many address very broad issues, e.g., am I an extrovert or introvert, a Type A or Type B, etc. Or they’re designed to answer other questions in personal domains, like who might be a good match for me, what music might I like, etc.

Some broad-gauge tools can help people decide whether they might be cut out for entrepreneurship generally, e.g., are they comfortable with taking risks or working for themselves? But those resources don’t address the fundamental question: what are the key personality characteristics of the women and men who actually succeed in building lasting businesses of impressive scale? What makes those individuals tick, and am I like any of them?

And context is key here; people want to know about personalities in action in particular settings. That’s why we concentrated on examining personalities in the context of successful business ventures and used a patented Personality-ClusteringTM methodology that has proven its effectiveness in decoding specific customer behavior in hundreds of markets around the world.

But our research is just a first step in understanding the central mystery of the who of successful entrepreneurship. We invite others to build upon our findings as we refine our own work. After all, entrepreneurship is vital to economic growth and opportunity globally. We welcome others’ insights into this complicated and essential domain of human endeavor.

 

“Teams need captains, and vice versa-if you want to get things done.” -Mark Coopersmith

 

4 Types of Builder Personalities

Briefly walk through the four types of Builder personalities.

The Driver: Relentless, Commercially Focused, and Highly Confident – Drivers can’t help themselves. They have to become builders of business or social ventures of their own as a means of self-validation. Entrepreneurship is almost hardwired into their very identity. They are supremely confident individuals, fixated on their products, relentless in pursuing commercial success based on their uncanny anticipation of what markets and customers are looking for. Drivers – like Steve Jobs or Elon Musk – often don’t last long as employees in other people’s organizations. They eschew rules and bureaucracy, seeing them as tools to focus the average person, yet often confine the truly gifted, independent-thinking actor. These builders are willing to do whatever it takes to realize the commercial success inherent in what they believe is their unbounded potential, in fact their destiny.

The Power of the Simple

The Goal of Simplicity

Whether it’s design or instructions, we want things simple—not too simple to the point of insulting, but not too complex and thus confusing. What starts as an admirable goal – simplicity – is actually not a simple subject.

 

“Our life is frittered away by detail. Simplify, simplify.” -Thoreau

 

Dan Ward’s latest book, The Simplicity Cycle: A Field Guide To Making Things Better Without Making Them Worse, aims to help people make good decisions about complexity. After retiring as a Lieutenant Colonel from the US Air Force where he served for 20 years as an acquisition officer, Dan launched his own consulting firm. I recently had the opportunity to talk with Dan about the not-so-simple subject of simplicity.

 

Why Simplicity Matters

Define simplicity and tell us why it’s so important and a passion for you.

Simplicity is an ironically complex topic, and it means different things in different contexts. In a general sense, something is simple when it does not have a lot of interconnected parts. Of course, the definition of “a lot” changes depending on whether we’re talking about a spacecraft or a pencil sharpener. I write about both of those.

 

“Life is really simple, but we insist on making it complicated.” -Confucius

 

Simplicity matters because it has such a big effect on us, our technologies, and our ability to communicate. When it’s done well, simplicity makes communication clearer. It makes our technologies easier to use and more reliable. But when it’s done badly, simplicity can actually make things more confusing and harder to use, so it’s important to figure out how to do it well. Ultimately, that’s the point of the book.

 

Why We Overcomplicate