PART TWO The Individual Elements of the Leadership Capital Index

Investors who recognize the importance of leadership pay attention to the personal characteristics of the leaders in the firms where they invest. Often they attend to one or two personal characteristics of a leader, such as the leader’s personal charisma, ability to set a vision and inspire people, ability to act with integrity, and so forth. As discussed in Chapter 2, we can identify five elements of personal proficiency that characterize effective leadership. For each of these elements, I will present key dimensions and indicators that may be tracked to assess leadership.

The assessments from this part will help investors and others determine if leaders demonstrate the personal qualities of effective leadership. The logic will follow Figure 2.2 (repeated on the next page for ease of reference), with a chapter on each element.