Why Character May Be The Secret Ingredient For Future Success

Character is a timeless virtue, but even more timely these days as a key component of culture.

Angela Duckworth, co-founder of CharacterLab, defines character as “everything we do to help other people as well as ourselves.” She sees it as spanning three dimensions: “strength of heart,” including gratitude to support relationships; “strength of will,” such as grit and self-control to propel achievement; and “strength of mind,” or curiosity, for independent thinking.

In the business world, character determines how people treat colleagues, customers, and others, whether in making connections and building relationships or using discernment to make the right decisions.

A great litmus test for character can be found these days in a surprising place—the subscription business model that’s becoming increasingly prevalent for goods and services from software and digital entertainment to food deliveries and even healthcare. This model of generating monthly revenues in perpetuity was already on the rise before the pandemic, and since then has expanded even further across multiple industries.

But what happens when the subscription model runs afoul of a customer? Perhaps a customer is charged for a service that was either never delivered or turned out to be unnecessary? Should strict adherence to the rules be allowed to taint the customer experience? Or does the corporate culture put an emphasis on character, so that employees are empowered to take a step back and decide what’s the right thing to do.

I had personal experiences with both extremes recently, revealing the best and worst of character and the subscription model. In the first instance, I discovered that a credit card I rarely use was being charged monthly for delivery of a major newspaper, which I never received—for three years. I called customer service multiple times, speaking to junior and senior people, only to be told that, essentially, it was my problem. The newspaper offered to refund only about $150 out of $1,500 in cumulative charges. Their rationale was that I should have known I was not receiving a physical newspaper. It was up to me to claim what I had paid for—not their obligation to deliver value.

In sharp contrast, during the pandemic one of my daughters subscribed to an online health and wellness service from a relatively new company. She put it on her debit card, which is linked to her savings account—then forgot about it and never logged in again. The monthly subscription was $1 less than her monthly spending allowance, but none of us noticed because during the pandemic she rarely used any money. When my daughter, by chance, checked her savings account, she was shocked. She thought she had saved almost all of her monthly allowance during the pandemic. I called the company and explained the situation. The first person to whom I spoke said, “This doesn’t sound right,” and immediately processed a full refund of almost $900.

The differences between these two experiences is measured in far more than dollars and cents. The true differentiators are how these two companies listened and responded to a customer and decided to keep their promises—clearly, a reflection of character.

Policy and Disposition: A Matter of Education

Every company has policies that establish how employees are expected to treat colleagues, customers, vendors, and others. There are probably rules around such things as subscriptions and refunds. But they should be guidelines, not set in stone.

Discernment comes down how people are educated and trained—not only knowing the rules, but also engaging in critical thinking. The 21st century workplace needs more than robotic adherence to the policies. People should be empowered to make decisions based on circumstances and the desire to do the right thing.

The example is set from the top, with leaders who emphasize the importance of character and hold themselves to a standard. The How Institute for Society observes that organizations and institutions in society work best when leaders have moral authority. “While formal authority can be seized, won, or bestowed, moral authority must be earned by who you are and how you lead,” the institute states.

Character is both nature and nurture, as I discussed not long ago with author Esther Wojcicki, who is a friend and an advisor to our company. In her work with students and professionals alike, Esther has used her “TRICK” model—trust, respect, independence, collaboration, and kindness—to develop character and encourage the kind of behaviors that help people be more successful. Of the five areas, kindness speaks to the need for compassion, empathy, and caring—for employees and customers, alike. It’s not just a good thing to do; it also builds character and distinguishes culture.

Deliberately Practicing the Right Thing to Do

Like many parents, I’ve tried to capture teachable moments to impart lessons around character, ethics, and desired behaviors. One example was years ago, when one of my daughters was about four, and I took her to a favorite Danish sausage stand for a quick lunch. I paid for our food with a 100-kroner note and got back about 90 kroner in change—the equivalent of giving someone $20 and receiving $19 back. Instantly, I said to the server, “You’ve made a mistake. You’ve given me too much money.” The grateful server took back the money and handed me the correct change.

“Why didn’t you just keep the money?” my daughter asked me.

“Because that would be taking something that does not belong to us, and it’s the same as stealing,” I told her. “Maybe that server would get in trouble at the end of the day and have to replace the missing money out of her own pocket.”

This became the perfect moment to not only talk about right and wrong, but also put it into practice. Everyday experiences and lessons in the moment can make a lasting difference, as research shows how committing small wrongful acts can lead to far larger infractions as the brain adapts to dishonesty. Therefore, it is critical to be deliberate about being watchful for and catching even small incidents that undermine character.

In K-12, higher education, and the workplace, people need to be instructed in how to distinguish between what is right and wrong, and then given ample opportunities to put that learning into practice. This approach mirrors what the late Anders Ericcson, the Swedish psychologist and researcher, believed about the value of “deliberate practice” as the secret of how people can improve their skills and achieve mastery.

It’s a matter of character and having the right disposition to be mindful of others and responsive to their needs. When character its lacking, an organization and its culture suffers—and it won’t just be the customers who notice.