We never ask candidates to demonstrate their skill. We ask lots of questions about past experience, but simply looking at the results of their decisions does not let us understand the process that they used to make the choice in the first place. A good analogy is sports. If you wanted to know how well a person plays basketball, for example, you could look at statistics like shooting percentage or blocked shots. But, this is just an historical account of how well the individual played in the past - the numbers do not tell us much about how that individual plays basketball now.

We often say that someone has exceptional political or social savvy, but what specific cognitive skills allow these people to handle interpersonal situations so effectively? Typically, socially skilled people are exceptional at recognizing underlying agendas, anticipating the probable effects and likely unintended consequences of a chosen course of action. These specific capabilities determine one's "people smarts."

Once an individual is given a taste of the gratification that comes from triumph, and the tools to bring it about, they will spend a lifetime in its ongoing pursuit.

Business schools need to help students learn how to thrive under pressure. To understand themselves and their psychological vulnerability that might inhibit their ability to be effective in roles that involve ongoing complexity and duress. Preparation is essential.

Individuals with high executive intelligence cannot reach their potential unless surrounded by others with a similar level of skill. Without a concerted effort on the part of businesses to seek out those with exceptional decision-making abilities, the gap between who businesses actually need, and who they hire and promote, will remain wide.

In a business setting, one's intelligence is crucial. Many problems faced by today's executives are unique and ill-defined. So, one's ability to analyze information and render a decision based upon the probability of success is imperative. What it comes down to is that all the knowledge in the world is useless if one has no means of processing and applying it. Organizations run on the brainpower of their people.

CEOs must master three essential attributes, realistic optimism, subservience to purpose, and finding order in chaos. One's capacity in each determines their ability to cope with today's business environment.