Why are Scorecard Competencies and Culture Critical? 

Why Talent Isn't Enough

You can hire the most technically brilliant, results-driven professional in the world, and they can still fail spectacularly. Why? Because skill is useless without fit.

In our interviews with captains of industry, fully one in three told us that not evaluating cultural fit was one of the biggest reasons for their hiring mistakes. People who don't fit fail on the job, even when they are talented in all other respects. This is why Competencies are the indispensable third element of the Scorecard.

Competencies define how your new hire is expected to operate in fulfilling the mission and achieving the outcomes. They are the behavioral guardrails for your culture.

Two Levels of Competency: Universal and Specific

Competencies function at two levels, both of which must be tailored to the Scorecard:

1. Foundational Competencies (The A Player DNA)

Based on our research with the University of Chicago and top leaders, certain traits consistently predict success. These should be considered for nearly all roles:

• Efficiency: Able to produce significant output with minimal wasted effort.
• Honesty/Integrity: Does not cut corners ethically; speaks plainly and truthfully.
• Intelligence: Learns quickly; proficiently understands and absorbs new information.
• Persistence: Demonstrates tenacity and willingness to go the distance to get something done.
• Aggressiveness: Moves quickly and takes a forceful stand.

Leaders like Bill Johnson, CEO of Heinz, also emphasize traits like coachability and having their ego under control.

2. Cultural Competencies (The Organizational Fit)

Your Competencies section must explicitly reflect your unique company culture and values.

• Guard Your Culture: The Scorecard ensures that a new hire's behavior aligns with your company's values. George Hamilton, head of the Institute for Sustainable Communities, described letting go of a brilliant but "unbelievable pain to work with" executive whose behavior undermined the collaborative culture. Culture is not a soft skill; it's a bottom-line factor.
• Discipline for Fit: Centerbridge Partners, L.P. defined their culture as requiring building trust rather than bullying management teams. They explicitly listed "treats people with respect" on every Scorecard, which gave them the discipline to pass on a highly talented but challenging investor. Scorecards are the guardians of your culture.

The Cheetah vs. The Lamb: A Strategic Insight

A study with the University of Chicago matched CEO traits to financial performance, uncovering a critical competency insight:

• The Lamb: CEOs prioritizing "soft skills" like Respectful, Listening Skills, and Open to Criticism (and lacking aggression) were successful 57% of the time.
• The Cheetah: CEOs defined by Moves Fast, Aggressive, Persistent, Work Ethic, and High Standards were successful 100% of the time.

This research suggests that success depends on Cheetah traits—emotional intelligence matched with a fierce propensity to get things done. When developing Competencies, ensure you are hiring a leadership profile that matches the speed and intensity required by your strategy.

Key Takeaways

• Cultural Fit is a Must-Have: Competencies filter for Cultural Fit, a factor so critical that talented misfits often fail.
• Cheetah Traits Drive Value: Research shows that Cheetah traits (Aggressiveness, Persistence, High Standards) correlate with a 100% success rate in creating value, far outpacing the softer Lamb traits.
• Scorecards are Guardians: Use Competencies to explicitly state your non-negotiable cultural values (like "treats people with respect").
• Tailor the List: Do not use a generic list. Tailor cultural competencies to match your current strategy and organizational phase.