Art retrieved from Telegraph

Military Experience in Corporate America

by William "Frank" Villanueva, Ph.D., MBA

Research has suggested that having military leadership training and experience can be instrumental in managing firms.[1]  However a shift has taken place and the presence of military experience among corporate executives -especially those at the CEO level- has significantly diminished.  In the 1980s, about 59% of all CEOs had prior military experience compared to only 8% in early 2012.[2]  While there is no particular explanation for this shift, the fact is that most top management positions are no longer being filled by senior executives with military experience.  Scholars have made the argument that the time spent in the military dramatically affects the likelihood of reaching a top-level management position such as CEO.[3]  The lack of sufficient time progressing through the corporate ladder –due to military service- may have an adverse impact on the ability of military veterans to reach top management positions.

 Nevertheless, military experience continues to be viewed as a valuable asset to managing and leading in the corporate sector. Military experience provides managers with extensive leadership training and hands-on experience.  Duffy (2006) argues that military-experienced business executives (such as CEOs) might perform better than those without military experience because of their ability to perform under stressful situations, their organizational commitment, and ethical values. Military personnel learn to make complex decisions at an early stage in their military careers—especially those who served as commissioned officers and senior enlisted/non-commissioned officers. From the onset, service members receive training on leadership, ethics, teamwork, and overall adherence to rules and regulations.  Military-learned leadership and management skills allow veterans to enter the civilian workforce with the training and experience required to perform at a high level and achieve greater success. Business executives with military experience are known to possess superior leadership and communication skills.[4]  Those companies seeking to hire military veterans consider it a competitive advantage and a privilege to be able to employ those who sacrificed so much for to serve our country.

 

Dr. William "Frank" Villanueva is a freelance writer, former business owner, and U.S. Navy veteran with over 25 years of leadership and management experience.

 

 

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[1] Duffy, T. (2006). Military Experience & CEOs: Is There a Link? Korn/Ferry

   International. Retrieved from

   http://www.kornferryinstitute.com/sites/all/files//documents/briefings-magazinedownload/Military%20Experience%20and%20CEOs-

   %20Is%20There%20a%20Link%3F%20.pdf

 

[2] Benmelech, E. & Frydman, C. (2012). Military CEOs. Retrieved from

    http://www2.gsb.columbia.edu/faculty/rfisman/papers/militaryceos_April_16_2012.pdf

 

[3] Schoar, A., & Zuo, L. (2011). Shaped by booms and busts: How the economy impacts CEO careers and management styles. Cambridge, MA:

  National Bureau of Economic Research. (No. w17590) doi: 10.3386/w17590

[4] Purdum, T. (2006). Ex-military CEOs shine. Industry Week, 255(8), 14.