Illustration by Robin Good

By Alisa Robertson

“Harvard and Wisconsin Tie in Turning Out the Most CEOs in U.S.”

That was the headline in the September 2004 issue of Bloomberg Markets magazine. The article showed the University of Wisconsin tied with Harvard for educating the most CEOs of S&P 500 companies. Both schools outranked Princeton, Stanford, Yale and other prestigious universities.

To most people, it probably came as no surprise that Harvard turned out a large number of corporate leaders. Harvard students often grow up in families with parents who lead businesses. Many move from prep school to Harvard Yard, all with the understanding that they, too, will one day lead an organization.

But Wisconsin? A public university perhaps known more for “beer, bicycles and Birkenstocks” and less for gold-plated pedigrees? Yes, Wisconsin was right up there with the best the Ivy League could offer when it came to CEO production.

So what is it about Wisconsin that seems to breed leadership? Why are Wisconsin alumni more apt to rise to the role of leader than graduates of other top schools?

Let’s come back to those questions. First, we need to consider what it takes to be a leader. Amazon.com lists more than 95,000 books on the subject of leadership. Nearly everyone has an opinion on how leaders are created. Some say charisma is key, others argue intelligence is most important. Some say education makes the difference, others argue the “school of hard knocks” creates the best leaders. Still others argue that while technical skills may be important, the most knowledgeable individuals do not necessarily make the best leaders.

The concept of leadership is very complex, and many people are struggling to find the magic recipe for creating a leader. Jack Welch, the renowned former CEO of GE, summed up leadership in a catchy phrase. According to Welch, leaders should exhibit four “E’s” wrapped in a “P” – Energy, Energize, Edge, Execute, all wrapped up in Passion.

To make the discussion even more complicated, everyone from parents to professors disagree on whether a person is born with leadership qualities or learns to be a leader. It’s the classic nature vs. nurture argument. On the nature side, supporters argue genetics play a big role in determining the personality of leaders. Those with charisma, intelligence and drive will succeed as leaders. On the nurture side, supporters argue life experiences determine leadership ability. A person who is exposed to challenges will work hard to overcome those obstacles. In doing so, his or her leadership qualities are developed over time.

Both camps can cite research that supports their claims.

While the origin of leadership ability is a hotly debated topic, researchers are coming to a consensus on the type of leaders who are successful. There are two primary types of leaders: transactional and transformational.

The concept of transactional and transformational leadership was first published by Professor Bernard Bass in 1985. Since then, much conceptual and empirical work has been done to specify the differences between a transactional and transformational leader. (See box below).

By definition, transactional leaders accept the goals, structure and culture of an existing organization. They typically use traditional methods of motivation, including rewards and punishment to gain compliance for those they supervise.

In contrast, a transformational leader motivates people to go above and beyond what is asked of them. They challenge existing structure and lead organizations to a future that is quite often different from the past. Words like “visionary” and “inspiring” are often used to describe transformational leaders.

“Research shows that leadership effectiveness of transformational leaders is greater in today’s business world than that of transactional leaders” said Alex Stajkovic, assistant professor of management and human resources at the UW-Madison School of Business. “Transformational leaders take employees and an organization as a whole to the next level. They motivate others to participate in the transformation.”

Transformational leaders are made up of a combination of intrinsic attributes like charisma and drive, and social skills that are honed through life experiences.

Now, back to our key questions: What is it about the University of Wisconsin that seems to breed leadership? Why do Wisconsin alumni seem more apt to rise to the role of leader?

First and foremost, the university has great input. While the university draws students from all over the world, most students who attend the University of Wisconsin share a strong work ethic. Many students hold a part-time job while in school to help pay for their tuition. Wisconsin students are not afraid to work hard to overcome the challenges they encounter.

In addition, Wisconsin students have what it takes to make smart decisions. The State of Wisconsin places a high value on education and provides strong public funding to prove it. The state’s K-12 education system is consistently ranked as one of the best in the nation. Combined with the competitive and selective admissions policies of the university system, students who end up at the University of Wisconsin are extremely qualified.

Once students arrive on campus, they are exposed to an atmosphere that both stimulates and challenges them. The State of Wisconsin, as well as the university, is known for pushing boundaries and challenging existing structures. Among its innovations: a civil service system and workers’ compensation. A strong tradition of campus scientific research adds to the atmosphere of discovery.

Students, faculty and staff on campus also are motivated by a tradition known as the “Wisconsin Idea,” that the borders of the university are the borders of the state. This approach challenges those who are a part of the university to actively share their knowledge and make valuable contributions. It’s a far cry from the traditional image of a research university functioning as an ivory tower.

Wisconsin students are known for being socially active. UW-Madison has sent more graduates to the Peace Corps than any other university in the nation. Students are active in more than 400 student organizations on campus that provide invaluable leadership opportunities.

Students are exposed to diversity, both culturally and socio-economically. The blending together of students from a variety of backgrounds in an atmosphere that is socially active and proud of breaking down boundaries provides a perfect environment for creating leaders.

Carol Bartz, CEO of Autodesk, a Fortune 100 company and the world’s leading supplier of design software, expressed similar sentiments during a recent campus visit. “I would hire someone from the Midwest any day, over other areas of the country,” Bartz said, lauding Midwest graduates’ competence and eagerness to succeed. (Of course the very success of Bartz, a 1971 UW-Madison graduate in Computer Sciences, proves her point that the Midwest produces outstanding business leaders.)

Stajkovic agrees: “Wisconsin provides a terrific atmosphere for cultivating transformational leaders. Taking very bright students and exposing them to leading research, a challenging academic program, ethical and successful role models and enriching social context is what it takes to help one become a transformational leader. That’s what we’re doing here.”

While the recent Bloomberg Markets article focused on the 15 University of Wisconsin alumni who are currently CEOs of S&P 500 companies, Wisconsin grads are leading companies large and small every day. More than 1,050 UW-Madison alumni currently serve as a CEO of an organization. And, nearly 16,000 of the university’s alumni are serving in an executive management position. Many more are leading in other ways, through community service, education and research.

Wisconsin students are building on their campus education and experience to become not just leaders, but transformational leaders. They may go on to lead an S&P 500 company, an entrepreneurial venture, their families, a non-profit organization or the nation. But there’s no doubt about it: Wisconsin alumni will continue to lead.

Alisa Robertson, MBA ’03, is director of Alumni Relations at the UW-Madison School of Business.

To view the Bloomberg Markets story, visit www.bus.wisc.edu/wbanews/august2004/ceos.asp.