— Jim Collins, Good to Great
In addition, no matter how amazing and scalable your business idea may be, the sad truth is that most terrific ideas become mired into the quicksand of human failure or inherent shortcomings.
MUST HAVES
A would-be entrepreneur’s capability is best evaluated with psychometric measures, including a scientifically validated character (personality), risks for derailment, and motivational assessment instruments. It is important to note that personality characteristics are firmly rooted by the time an individual reaches adulthood. We develop these ingrained traits from infancy on up, based on our social/family environment and experiences on top of predispositions at birth. Once one reaches working age or adulthood, these character traits are fairly well set. Short of a mind-altering accident or injury, longevity studies of ten, twenty, and thirty years show that our character traits do not change in any marked way. That is why measuring character traits to determine entrepreneurial-fitness is the first hurdle to identify the “must haves.”
The myth espoused by many educators and consultants—that you can be anything you want to if you put your mind to it—is simply not true. We cannot teach fish to fly. So you need to find out what you are inherently well suited to do and then do (or develop) that.
Entrepreneurial leader profile ranges in Figure 3.1 highlight characteristics for success. The stars indicate where in the competency range a successful entrepreneur should be according to CDR Assessment Group’s research and profile studies.
Entrepreneurial Leadership Character and Competency Profile Ranges
Figure 3.1. The stars indicate the position a successful entrepreneur should hold for that characteristic. (Source: N. E. Parsons, CDR Leader & Entrepreneurial Character Profile Ranges (2002 Rev. 2014), CDR Assessment Group, Inc., Tulsa, OK.)
The most important character strengths for a successful entrepreneur are:
Leadership energy: natural leader, aggressiveness, confidence, achievement, and goal-drive
Intensity: burn in belly
Innovative, strategic, and clever
Compelling communicator: leader voice, initiator
Courageous: bold
Tough: indifferent to others
Risk taker
Adaptable: flexible, resilient
Quick study: resourceful
Moderately practical: logical
Many of these traits are obvious. However, what makes the entrepreneurial success profile so unique is that there are some unusual combinations or trait configurations needed that are not typical among leaders in general.
Clearly, you need to be a person who is leader-like. Being aggressive or pushy, having a sense of urgency, being confident as a decision maker, pushing ideas fervently, and being able to inspire others to act are part of the package. Achievement and goal drive are imperative too.
While having natural confidence as a leader and not regularly second-guessing decisions is important, having an “edge” on what is called the “adjustment” trait is critical. People with lower adjustment tend to have high levels of “burn in the belly” and tend to be self-critical, which provides them with extra intensity to out-perform. They dig deeper and are relentless in pursuit to prove themselves successful. So, achievement and goal drive alone fall short. A strong dose of intensity is required too.
The downside of lower adjustment is that people who are edgy and intense tend to be less stress tolerant. Therefore, they are prone to crack or become emotionally volatile. So, it is a fine line for the entrepreneur to maneuver. This is why having life balance and some productive outlets to relieve stress for the start-up entrepreneur can be pivotal to success. Since you will be on a tightrope in many ways, having a fair degree of life balance, support on the home front, and outlets for stress are needed. Undoubtedly, being innovative, seeing the future, and having the knack for creativity and cleverness are required to succeed. This is why the wannabe entrepreneur is moving forward in the first place— for the excitement of idea, the novelty, and the thrill of the chase. Risk taking is also second nature with the ability to turn on a dime to adapt to changing conditions or competitive forces.
Your leadership voice and talent as a compelling communicator can make or break the deal. This is where scientists, technology experts, and financial types often fall short. Being able to tell a story in a way that is convincing can be a tall order yet is essential for the entrepreneur. Being able to sell the idea and get the support of others—investors, customers, employees, and other stakeholders or contributors are musts. This character trait is called “high sociability,” and sub-factors of this trait that equip the entrepreneur well are known as “exhibitionist” and “entertaining.” Welcoming opportunities to be in the limelight, along with having the charm and the wittiness factor, will go a long way. If you are slightly lacking in this trait, you can develop some improved skills and techniques. However, if this is a sheer gap for you or sends shivers up your spine, another career path may be in order.
Being able to nurture, support, build, and sustain relationships and help others, on the surface, may seem like a reasonable trait for an entrepreneur. The truth is the highly successful entrepreneurs are not warm and sensitive. They tend to be tough, indifferent to the needs of others, and make difficult decisions on the fly. An example of one such leader with low interpersonal sensitivity advised me that, when it comes to tough people decisions, you just need to “rip them off like a Band-Aid.”
Be careful not to confuse warmth with charm. You need a leader voice with charm and charisma-like energy that pulls people towards your message. The positive, persuasive communications skills are like those exhibited by many politicians and trial lawyers. For the entrepreneur, having a deep sense of warmth, empathy, and caring tendencies towards others can easily thwart success.
People that care too much, often give too much. For example, they help others to the extent that it takes away from their own goals and time. Kind people struggle being direct. They hang onto problem employees too long before letting them go. Perhaps most injurious to the wannabe entrepreneurs who have a big heart is that they have difficulty making quick, objective, and sometime harsh people decisions. At times, entrepreneurs need to be pretty ruthless in their quest to succeed. It is far easier if they lack strong feelings or emotions for others that would become distractions or impediments to their goals. So, having a bit of the hard-ass factor (without being a total jerk) is more of an asset than a liability for the entrepreneur— providing you have the ability to communicate in a compelling way. You must be able to sell your vision and ideas. Frequently, charm is mistaken for caring. Entrepreneurs need the former.
The CDR Leadership Character Assessment is used for leader and employee selection, development, succession, team review, and more. This measures the “must haves” or inherent characteristics essential for success. Figure 3.2 is a graphic display of a candidate that, from this bright-side measure of strengths and acumen, appears to have potential to be a successful entrepreneur. Potential does not equal success, but at least the door is open.
CDR Character Assessment—Entrepreneur Suitability Score Ranges
Figure 3.2. This CDR Leadership Character Assessment is for a particular individual. The boxes represent the area within which the ideal candidate’s characteristics would fall. The diamonds represent this person’s results, all clearly within the boxes and thus, from this standpoint, having the potential of success in entrepreneurship. (Source: N. E. Parsons, CDR Leadership Character Assessment— Selection Report (1998, Rev. 2002, 2014), Tulsa, OK: CDR Assessment Group. Inc.)
CDR CHARACTER ASSESSMENT