Character And Competence Are The Only KPIs That Actually Matter

Character and competence are two pillars that often go unnoticed in a world obsessed with metrics, analytics, and performance indicators. Yet, they are the silent forces that determine the success or failure of any individual, team, or organization. At their core, these qualities transcend the data-driven focus of modern workplaces and speak to the very essence of what it means to be effective and trustworthy. The question is not whether they matter but why they matter so profoundly and universally across all facets of life.

Character is often defined as the mental and moral qualities distinctive to an individual. It embodies traits like integrity, humility, perseverance, and respect. Competence, on the other hand, is about ability, skill, and knowledge. Together, they form a dynamic duo that can either elevate a person to greatness or, when absent, lead to failure and disarray. These two elements may seem simple on the surface, but their application and impact are complex and multifaceted.

Think of character as the foundation of a building. Without it, no matter how ornate or tall the structure is, it will eventually crumble under pressure. Competence acts as the materials and craftsmanship that make the structure functional and appealing. A person may be brilliant and skilled, but if their character is flawed, their brilliance will only serve to amplify the damage they cause. Conversely, someone with impeccable character but no competence may have noble intentions but lack the ability to bring their ideas to fruition. It is only when these two qualities are in harmony that true effectiveness emerges.

The interplay between character and competence becomes especially evident in leadership. A leader without character can be manipulative or even dangerous, no matter how skilled they are. History is replete with examples of charismatic leaders who had the competence to rally people and achieve short-term goals but whose lack of character ultimately led to ruin. On the flip side, leaders with high moral integrity but limited competence may inspire trust but struggle to deliver results. The balance of these traits is what distinguishes truly exceptional leaders from the rest.

The corporate world is a fertile ground for observing the importance of character and competence. In a workplace, competence is often easier to measure. It is demonstrated through results, performance metrics, and technical skills. Character, however, is harder to quantify but just as crucial. It shows up in how people treat their colleagues, how they handle pressure, and how they make decisions. A competent employee who lacks character might deliver impressive results in the short term but at the cost of team morale or ethical standards. On the other hand, an employee with strong character but insufficient competence might struggle to contribute effectively, despite their good intentions. Organizations that prioritize both character and competence in their hiring and development practices are the ones that achieve sustainable success.

Character is especially important in building trust. Trust is the currency of any relationship, whether personal or professional, and it cannot exist without character. When people trust you, they are more likely to collaborate, support, and follow you. Competence alone cannot build this trust. People want to know that you not only can do the job but also will do it with integrity and fairness. Trust built on character takes time to establish but can be destroyed in an instant by a single act of dishonesty or selfishness.

Competence is what ensures that trust is not misplaced. It is one thing to be trustworthy and another to be capable of delivering on promises. Competence provides the assurance that the trust others place in you is well-founded. In a team setting, this balance is what allows members to rely on one another and achieve their collective goals. When one team member lacks competence, others must pick up the slack, leading to frustration and inefficiency. When someone lacks character, it can create a toxic environment that undermines the entire team.

The real power of character and competence lies in their ability to amplify each other. When someone possesses both qualities, their impact is exponentially greater. A leader with strong character and high competence can inspire loyalty, drive innovation, and achieve extraordinary results. An employee with both qualities becomes a linchpin, someone whose presence elevates the entire team. In contrast, the absence of either quality not only diminishes an individual’s effectiveness but can also have a ripple effect that impacts everyone around them.

The challenge lies in cultivating both character and competence. While competence can often be taught through training, education, and experience, character is more deeply rooted. It is shaped by upbringing, values, and personal choices. However, this does not mean that character is static. People can grow and develop their character through self-reflection, feedback, and intentional effort. For organizations, this means creating an environment that encourages ethical behavior, accountability, and continuous personal growth.

One of the most significant obstacles to prioritizing character and competence is the modern obsession with quick results and superficial metrics. In many organizations, performance is judged primarily by numbers, whether it is sales figures, productivity levels, or other quantifiable outcomes. While these metrics are important, they often fail to capture the nuances of character and competence. This creates a culture where people are rewarded for short-term success, even if it comes at the expense of long-term trust and integrity. To truly value character and competence, organizations must look beyond the numbers and consider the broader impact of their employees’ actions.

Another challenge is the tendency to prioritize one quality over the other. Some people believe that competence is all that matters, as long as someone can get the job done. Others place so much emphasis on character that they overlook the importance of skills and abilities. The reality is that neither quality can stand alone. A surgeon with impeccable character but no medical knowledge is not someone you would trust with an operation. Similarly, a highly skilled surgeon with no regard for ethical standards could cause irreparable harm. The key is to recognize that character and competence are not mutually exclusive but mutually reinforcing.

The value of character and competence extends beyond the workplace. In personal relationships, these qualities are the foundation of meaningful connections. A friend who is kind and dependable but also reliable and capable is someone you can count on in any situation. In community settings, leaders with both character and competence can bring people together and drive positive change. Even in interactions with strangers, these qualities determine whether the experience is positive or negative. The impact of character and competence is universal, touching every aspect of life.

In education, the focus on character and competence can prepare students for success in both their personal and professional lives. Teaching technical skills and knowledge is essential, but it must be accompanied by lessons in ethics, empathy, and responsibility. Schools that emphasize both qualities produce graduates who are not only employable but also equipped to make a positive impact on society. This holistic approach to education is what creates well-rounded individuals who can navigate the complexities of the modern world.

The concept of character and competence also has profound implications for leadership. A leader sets the tone for their team or organization, and their character and competence are reflected in the culture they create. Leaders with both qualities inspire trust, loyalty, and respect. They make decisions that are not only effective but also ethical and fair. They understand that their actions have far-reaching consequences and take that responsibility seriously. In contrast, leaders who lack character or competence can create toxic environments, erode trust, and cause lasting damage.

One of the most powerful examples of character and competence in action is during times of crisis. When the stakes are high and the pressure is intense, these qualities become even more critical. A leader with strong character and high competence can navigate challenges with clarity, resilience, and empathy. They can rally their team, make tough decisions, and maintain morale even in the face of adversity. This is when the true value of character and competence becomes most evident.

The path to cultivating character and competence is not always easy. It requires self-awareness, discipline, and a commitment to continuous improvement. For individuals, this means seeking opportunities to learn, grow, and reflect on their actions and choices. For organizations, it means creating a culture that values integrity, accountability, and personal development. It also means recognizing and rewarding those who demonstrate both qualities, even if their contributions are not always immediately visible.

Ultimately, character and competence are the key performance indicators that matter most because they have a lasting impact. They determine not only what you achieve but also how you achieve it and the legacy you leave behind. They are the qualities that define you as a person and shape the relationships, teams, and organizations you are a part of. In a world that often values speed and superficial success, character and competence remind us of what truly matters. They are not just qualities to aspire to but principles to live by, guiding us toward a more effective and meaningful existence.

One of the great talents Steve Jobs had that every executive can learn from is his ability to recruit the greatest contributors. Below is a short video on how Steve Jobs approached recruiting talent and which I am sure played a significant role in all the innovations and success Apple has had over the decades.

We went through that state in Apple where we went out and we thought - "Oh we are gonna be a big company. Let's hire professional management". We went out and hired a bunch of professional managers. It didn't work at all. Most of them were bozos. They knew how to manage. But they didn't know how to do anything. And so, what if you're a great person why do you want to work for somebody you can't learn anything from? And you know what is interesting? You know who the best managers are? They are the great individual contributors who never ever want to be a manager, but decide they have to be manager. Because nobody else is going to be able to do as good a job as them.
~ Steve Jobs