A top-tier education is widely regarded as a prestigious qualification because it sets men and women on a path to future success. After all, United States News reported eight of this year’s Fortune 100 CEOs have MBAs from Harvard University, four from the Wharton School of the University of Pennsylvania and two from the Kellogg School of Management at Northwestern University.
Executive head hunter Bó Lè Associates noted that some of the notable leaders who made the list’s top 20 include John S. Watson of Chevron (University of Chicago), Tim Cook of Apple (Duke University), Jeffrey Immelt of General Electric (Harvard University), and Jamie Dimon of JPMorgan Chase (Harvard University).
Interestingly enough, 11 out of the 36 CEOs in the list who earned MBAs received their graduate degrees from a lower-tier public school. These top leaders head up some of the world’s most influential enterprises, such as C. Douglas McMillon of Wal-Mart Stores (University of Tulsa), John H. Hammergren of McKesson (Xavier University), and John G. Stumpf of Wells Fargo (University Of Minnesota). So what do these facts themselves suggest about today’s most powerful global leaders?
When it comes to the CEO position, experience and expertise are far more important than a diploma from a top-tier institution. While it is true that attending a prestigious university can go a long way in making favorable first impressions, the alma maters of CEOs have little to do with their success in the competitive business environment.
In a study by University of New Hampshire in 2010, there is virtually no evidence of a systematic relationship between CEO education and its role in long-term company performance. Fundamentally, these findings suggest that education is a poor indicator of a CEO’s ability to lead the company, even though a degree is generally a prerequisite to reach to the top of the corporate ladder.
Still, a high IQ doesn’t guarantee executive success, as research by Carnegie Institute of Technology shows that a remarkable 85 percent of an individual’s financial success is due to his or her personality and interpersonal skills, whereas IQ and technical skills only accounted for 15 percent.
As power is increasingly shifting to the hands of employees and external stakeholders, leaders must be willing to listen and challenge existing notions if they want to thrive in the future.
A study by National University of Singapore found that humble CEOs who were open to feedback and focused on others’ welfare were more likely to have top- and mid-level managers who felt empowered to do their job and collaborate with others.
According to Forbes, today’s leaders must be bold and courageous visionaries that are comfortable with change and able to reinvent themselves over and over again in order to stay ahead in the fiercely competitive corporate world.
More important, leaders must embrace diversity and exhibit the cultural intelligence needed to seize new opportunities for growth and sustainability. After all, today’s internal and external stakeholders are more demanding than ever, and leaders must be readily committed to a lifelong journey of learning that challenges them to think differently and implement innovative ways to earn their trust and loyalty.
Bó Lè Associates is the largest executive search firm in Asia with a well-developed network of 16 wholly owned local offices and 370+ staff in the region (Beijing, Chengdu, Chongqing, Dalian, Guangzhou, Shanghai, Shenzhen, Suzhou, Tianjin, Hong Kong, Taipei, Jakarta, Bangkok, Ho Chi Minh City, Kuala Lumpur and Manila).