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If you want to succeed, there’s nothing like being persistent, efficient, and proactive, according to Steven Kaplan, Neubauer Family Professor of Entrepreneurship and Finance.
Kaplan shared the results of his research on successful CEOs with members of the Class of 2008 at spring convocation June 15 in Hyde Park. “If you are persistent, efficient and proactive, you will do great things in the future. Do not give up. Stick with an assignment until it’s done. Get a lot done in a short amount of time. And bring in a lot of ideas.”
Kaplan’s remarks came from his most recent research study, “Which CEO Characteristics and Abilities Matter?” coauthored with Mark Klebanov and Morten Sorensen.The study relied on assessments of more than 300 CEOs on more than 40 characteristics and abilities.
His study found that such “soft characteristics” as listening skills, flexibility, and teamwork “didn’t matter much” in determining success. Meanwhile, the “hard qualities” of persistence, efficiency, and a proactive style—or PEP—were strongly related to successful leadership.
“CEOs who score high on PEP succeed 65 to 75 percent of time. Those with low scores succeed less than half the time,” Kaplan said. “CEOs with PEP get things done—because if you don’t get things done, people get frustrated and leave.”
Jack Welch, former chairman and CEO of General Electric, would probably score high on “hard” characteristics, while his successor, Jeffrey Immelt, would score high on “soft” characteristics, according to Kaplan.
“The study’s results predict that Immelt will not be as successful as Welch,” he said. So far, GE’s value ahs declined by tens of billions of dollars under Immelt after increasing by tens of billions of dollars under Welch.
Kaplan assured students that they “all have acquired powerful and useful tools at the GSB. Having tools is important; how we use them also makes a big difference. Be persistent in what you do. Be efficient in getting things done, and be proactive with your ideas.”
He also urged students to choose work they like to do, and to work with people they respect.
“It’s difficult to be persistent, efficient, and proactive with work you don’t like and people you don’t respect,” he said.
Kaplan acknowledged that the Class of 2008 is entering the job market during “a turbulent economic time.” But he reminded students that the classes of 1989 and 2001 also graduated during similar economic downturns.
“Many of them went on to great success,” he said. “Abilities and talents are constant. I’m confident you will do as well as your predecessors. I have very high hopes for you.”
Read about Professor Kaplan's Research.
—Mary Paleologos