Recruiting effective managers, by promoting people from within the organization or going outside, can be difficult so knowing how to identify people with management potential is a key attribute for a business leader. I developed five essential criteria for doing that.

The criteria are:

1) Character
2) Technical knowledge and present performance
3) People skills
4) Team play
5) Chemistry.

Character should be the first thing to evaluate for someone being considered for management. In a nutshell, character refers to the person’s honesty and integrity. It is the foundation for a successful manager. People have to trust this person. We can always legislate ethics, but not integrity and there is a big difference between the two. Ethics may be defined as moral principles that govern a person or the behaviour of a group. Integrity is the quality of being honest, and with that comes strong moral principles and uprightness.

Technical knowledge and present performance are often lumped under “qualifications” and while important, it is secondary to character. Why? You want someone who can manage more than do and that means coach. As everyone knows, a coach doesn’t play in the field, but manages from outside the field. So, evaluate technical experience and present performance, but don’t make it the prime criteria for choosing a manager.

Next, people skills. In business we like to say so-and-so is a people person with leadership ability. By that we mean they can communicate, direct, motivate, encourage, support, teach, develop, train and coach others. Whether they are an introvert or extrovert doesn’t matter since both types can be effective when dealing with others.

No. 4, good team player. Any good manager must be that. Think of a team sport where team performance is the priority. Team play should be carefully defined. It includes team play going upward, downward and laterally. That means the person must excel at team play on all three dimensions, which means being a good team player when dealing with superiors, subordinates and colleagues.

Finally, chemistry. This refers to the degree of fit with the organization. It includes chemistry with the superior, the team, and the company culture, and it is more subjective than objective.
In summary, here is the formula for promoting and recruiting effective managers. Evaluate the person’s character. Examine their record and appraise their experience. Select applicants who possess good people skills. Take a close look at team play. Assess the ‘fit’ of this person. Add it all up and chances are good you made a sound choice.

[This is an edited version of Hugh Latif’s Leadership Lab column published in The Globe and Mail on May 21. He had another column called ‘The flu shot for business’ about common ‘bugs’ faced by business leaders and entrepreneurs published on February 28.]