Leader's FICO Score (#1 of 4)

In the world of financial credit, we all have a FICO score which indicates how much risk there is in lending money to us. FICO scores (named after the Fair Isaac Company which developed the credit scoring system) range from 300 to 850 with anything above 750 considered to be excellent and anything below 580 considered to be very risky.

Eighty percent (80%) of an individual’s FICO score is based on:

Payment history
Total amount owed
Length of credit history

So, if you have a long track record of paying on time and aren’t asking to borrow too much, your FICO score will be good and financial institutions will be willing to extend you credit.

Leaders have a credit score. It is their “credit-ability” which we call credibility. How important is credibility?

“…if he has not built credibility with his people,
it doesn’t really matter how great a vision he has.”
John Maxwell

“The most essential quality for leadership is…credibility.”
Rick Warren

Credibility is the single most important attribute of leadership. Without credibility, you can’t lead because no one will follow you—not willingly.

So if you want to lead, you need to be concerned about your Leader’s FICO Score. Is it above 750 and people line up to follow you willingly, or is it below 580 and people grudgingly follow only when they have no other choice?

If it is that important (and it is), it needs more than one post. The Leader’s FICO Score #2 (next week) will cover what credibility is and how you get it.