Those who have high business acumen display specific, identifiable cognitive skills that permit them to perform better than their peers. Once we understand that street smarts is skill-based, we can measure it, compare it, and improve it in the general population.

Leadership means realizing potential-in yourself and in the people you lead.... The leader and followers cocreate their identities and performance.

I was working with an extraordinarily successful company that was doing a CEO succession, and the board was discussing the threats to the business. They were enormous, despite the company's strong market position. I then realized that there were no longer just turn-around periods for companies in trouble, that now variables that could drastically effect any business's profitability were not going to go away.

The central premise of great leadership is recognizes that fundamental fact, that not of us are fixed entities, and taking responsibility for making sure that we bring out our people's best selves.

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.

Most people define "street smarts" as some innate ability to make savvy decisions, or one that has developed as a result of a person being confronted with very challenging circumstances in the past. I think another common term that is used is one who has amazing "business acumen." But, whatever we call it, it is always associated with some mysterious ability, only a few possess, that allow them to make better decisions than the rest of us.

The principles that make someone a master in the chief executive role deal with whether or not they can thrive in an environment of ongoing duress, and teach others how to do so.