According to a January 2018 article in the Harvard Business Review, “Self-Awareness Can Help Leaders More Than an Elite MBA Can.” The article says that approximately 40% of CEOs are MBAs. Many large-scale studies have found that leadership based solely on MBA-trained logic is not always sufficient for delivering long-term financial and cultural results. Indeed, focusing on classic business management principles without paying attention to strategic self-awareness is often detrimental to an organization’s productivity.”
Self-awareness, on the other hand, is essential. It’s not enough for CEOs to lead with prevailing business theories. Leaders must convince others of their vision and make them comfortable with change. And they need to do so authentically. A study by Dr. Tasha Eurich, which included thousands of individuals, concluded that 95% of us believe we are self-aware, but only 15% of us actually are. One would think C-Suite leaders are more self-aware than others. However, several studies have found this not to be the case.
In 2013, the Korn Ferry Institute conducted a study that highlights the importance of self-awareness in leadership and corporate performance. The study analyzed 6,977 self-assessments from professionals at 486 publicly traded companies to identify “blind spots” in leadership characteristics. These blind spots are skills individuals believe are strengths that coworkers identify as weaknesses. Key findings from the study include:
• Companies with higher rates of return (ROR) employ professionals with higher levels of self-awareness.
• Poorly performing companies’ professionals had 20% more blind spots compared to those at financially strong companies.
• Professionals at poorly performing companies were 79% more likely to have low overall self-awareness.
The study also suggests that self-awareness can be developed through 360-degree performance appraisals and effective coaching. These activities can lead to improved engagement and greater work satisfaction, ultimately leading to better performance for individuals and organizations. Indeed, the insights gained from these practices promote accountability, foster empathy, and ultimately reveal blind spots.
[1] Hougaard, R., Carter, J., & Afton, M. (2018, January 12). Self-Awareness Can Help Leaders More Than an MBA Can. Harvard Business Review. [1] Eurich, T. (2017). Insight: The Surprising Truth About How Others See Us, How We See Ourselves, and Why the Answers Matter More Than We Think. Crown Business. [1] Zes, D., & Landis, D. (2013). A better return on self-awareness. Korn Ferry Institute.
Contrary to what one might assume, CEOs and top-tier leaders are less likely to be in that top fifteen percent. This is partly because people in executive positions often find it harder to gather continuous and honest feedback. We’ve said it before: “It’s lonely at the top.” Power dynamics and fear of repercussions can dissuade the average worker from speaking up about a CEO’s blind spot. Furthermore, people who have reached the upper echelons of leadership may have a skewed self-perception driven by years of being surrounded by yay-sayers. As a result, innovation, risk-taking, and psychological safety may be affected, and the CEO may miss out on growth and development opportunities.
Boards increasingly recognize the power of self-awareness in CEOs, with many top leaders now working with permanent executive coaches. As of 2025, the global executive coaching market is worth around $9.3 billion, with projections suggesting it could grow to $27 billion by 2032. This growth is driven by increasing demand for leadership development and personal growth. The industry continues to expand with diverse niches and specializations. The desired outcomes from working with an executive coach are:
• Enhanced Leadership Skills: Coaches help executives develop critical leadership competencies, such as strategic thinking, decision-making, and effective communication.
• Improved Self-Awareness: Through coaching, leaders gain deeper insights into their strengths, weaknesses, and behavioral patterns, enabling them to make more informed choices. Better decision-making and behavior under stress allow leaders to become more dynamic in their roles.
• Increased Productivity: Executives can improve their time management and prioritize tasks more effectively by focusing on personal and professional goals.
• Better Conflict Resolution: Coaching provides tools and techniques for managing and resolving conflicts within teams and organizations.
• Greater Emotional Intelligence: Executives learn to understand and regulate their emotions and the emotions of others, leading to improved relationships and a more positive work environment.
• Career Advancement: Personalized coaching can prepare executives for higher-level roles and responsibilities, facilitating career growth.
[1] Future Market Insights. (2023, August). Elevating talent: Executive coaching certification market to surpass US$27 billion by 2032. Market Research Blog.
Conclusion
There is much more to self-awareness coaching than helping an executive grow emotional intelligence. A coach must also have a commonsense business background to help clients identify strategic and operational opportunities. The Center for Executive Performance has advised on several business and organizational situations, including:
• Growing the business with minimal capital investment through increasing strategic self-awareness at multiple levels throughout the organization
• Addressing sub-optimal organization design, such as too many direct reports or blurred lines of authority, by exploring roles, task requirements, and individual needs and values.
• Identification of promotable individuals two or three levels down in the organization.
• Identification of opportunities to increase team motivation through an understanding of group motivators, values, preferences, and natural tendencies
• Surface hidden talent by recognizing emotional intelligence, adaptability, and leadership potential early
• Foster a culture of integrity and self-awareness that discourages dishonesty and manipulation
• Identification of misplaced confidence in one or more direct reports.
• Empower the workforce with tools for assertive communication, boundary-setting, and conflict resolution
• Managing Board members, peers or others who are bullies.
Hearing negative or constructive feedback is difficult for anyone, and combined with significant behavior change, makes developing self-awareness even more challenging. Self-awareness sets great leaders apart from their competitors. Without it, even the most brilliant strategy won’t succeed. Surrounding yourself with highly self-aware people can yield even better returns for your organization. Of course, the journey to self-awareness is just that, a journey. Self-awareness isn’t something that can be achieved in one day. It is a constant process. There is always more to discover.
Coming next in our leadership series – Methods for Developing Self-Awareness