An internal data analysis at McKinsey revealed that resilience—specifically, having a setback and recovering—is a better predictor of making partner than perfect grades. The firm has changed its hiring process to actively screen for this trait.

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In extreme environments like concentration camps, survivors observed that strength of character was the primary determinant of survival, more so than physical strength or intelligence. This principle applies universally; investor Arnold Van Den Berg prioritizes hiring for character indicators like discipline over traditional credentials.

Resilience isn't a vague trait; it's a measurable ability to recover from setbacks. Golfer Scotty Scheffler bounces back from a bad hole with a good one 62% of the time, versus the tour average of 18%. This shows how a strong 'why' directly translates to superior, quantifiable performance under pressure.

Resilience isn't about avoiding failure but about developing the ability to recover from it swiftly. Experiencing public failure and learning to move on builds a crucial 'muscle' for rebounding. This capacity to bounce back from a loss is more critical for long-term success than maintaining a perfect record.

To succeed in its proprietary sourcing model where the default answer is often "no," TA Associates specifically hires individuals who have overcome adversity. They believe this trait builds the necessary resilience and motivation to persist through constant rejection without losing drive.

When evaluating senior candidates, don't view a failed entrepreneurial venture as a negative. It often indicates valuable traits like risk-tolerance, scrappiness, and resilience. These leaders have learned hard lessons on someone else's dime, making them potentially more effective in a new organization.

High-stakes business requires not just intellect but the capacity to handle immense emotional pressure. This 'emotional endurance,' often forged through personal hardship, provides a critical competitive edge during moments of extreme stress, such as a multi-billion dollar negotiation where the outcome is uncertain.

Ken Langone's primary investment criterion is people, specifically their resilience. He likens it to a golf coach who recruits the player who makes a birdie right after a bogey, not the one with the perfect swing. He seeks out leaders who have faced failure, like being fired, and have the grit to bounce back.

By adding resilience as a core hiring criterion, Pinterest naturally attracts diverse candidates from non-traditional backgrounds who have overcome adversity. This focus shifts hiring away from traditional signals of success, increasing diversity and bringing in employees who are better equipped for business challenges.

Success at the leadership level requires a developed tolerance for pressure and uncertainty—a skill the CEO calls a 'stomach' for it. This resilience is a distinct capability, and its absence can cause even the most intelligent and talented individuals to fail under pressure, making it a crucial trait for high-stakes roles.

Beyond IQ and EQ, interview for 'Resilience Quotient' (RQ)—the ability to persevere through setbacks. A key tactic is to ask candidates about their proudest achievement, then follow up with, 'What would you do differently?' to see how they navigated strife and learned from it.