Book Review: 'The Leadership Capital Index' by Dave Ulrich
Like Jeffrey Pfeffer, Dave Ulrich worries that our approach to leadership is too subjective. Investors know that the quality of leadership significantly affects a company’s market value. But how do you put numbers on something so intangible? In this book, Ulrich, a business professor at the University of Michigan, proposes the creation of a leadership capital index-akin to financial confidence indexes such as Moody’s or Standard & Poor’s-that would “move beyond casual and piecemeal observations of leaders to more thorough assessment of leadership.”
Ulrich divides the index into two domains: the individual (personal traits and competencies of the CEO and key team members) and organizational (systems designed to manage leadership throughout the organization). As Ulrich works his way through everything from physical presence to management of information flows, he lays out what may be the most exhaustive analysis of the nuts and bolts of leadership every committed to print. The book’s utility for investors is obvious.
Editor's note: This review was written by Robert Morris and has been published with his permission.Like what you read? Subscribe to the SFRB's free daily email notice so you can be up-to-date on our latest articles. Scroll up this page to the sign-up field on your right.