The most highly rated leaders and managers have the highest levels of knowledge about their industry, according to a new study.
The research conducted by Zenger Folkman looked at 57,000 leaders and managers, measuring their technical and financial acumen and gathering data on how staff perceived them. Their results indicate that those with greater levels of knowledge were more highly regarded as managers and leaders.
This represents a shift from traditional management theory, which saw management skills as highly transferable and distinct from the industry to which they were applied.
Jack Zenger of Zenger Folkman says this is due to changes in technology. He believes that “things have gotten substantially more complex.”
Source: Forbes
The chart emphasizes the role of technical knowledge and understanding in effective leadership. Those managers and leaders with the lowest levels of acumen were correspondingly less highly regarded by their employees.
At the other end of the scale, those managers that scored more highly for knowledge were in the top percentiles for leadership effectiveness.
Is there a link between potential and knowledge?
Using a different data set of 1,700 leaders, performance and potential ratings were compared to the acumen effectiveness rating. Interestingly, the pattern holds even for those in the most senior management positions.
Source: Forbes
So what should you do about it?
The research suggests two broad trends that explain how the best performers did it.
The best leaders set aside time for their own personal development. This could be reading around your industry, attending conferences or just asking others in the business who could help.
Zenger argues: “Leaders who assume they understand and then make poor technical decisions will invariably score poorly on acumen.”
Secondly, it’s not just about technical and cognitive abilities.
‘Star’ leaders use networking and communication to build their knowledge. Using your leadership and interpersonal skills will allow you to develop your acumen.
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