Ulrich in the forward to the Zenger and Folkman (2002) book, ''The Extraordinary Leader'', wrote about the importance of character in leadership stating, ''Everything about great leaders radiates from character. Character improves the probability of exhibiting strong interpersonal skill. Some of this perceived character is innate . . . but more is driven by the leader's self-awareness and interactions with others'' (p. ix). The purpose of this study was to explore the relationship between leadership effectiveness and character using leader-managers of knowledge workers as the subject sample. Findings indicated that character, particularly those factors associated with honesty, setting the example, and valuing and strengthening others, were what set the most effective leader-managers apart from their peers. Technical competence and self-efficacy were found to be common characteristics of the study sample as was a drive for results. Who a leader-manager is, his/her substance, was found in this study to differentiate the ''best'' leader-managers at the Lawrence Livermore National Laboratory. By their character, leader-managers establish the environment in which knowledge workers contribute and grow. As found by Pfeiffer (2000), Leaders of companies that experience smaller gaps between what they know and what they do (to turn knowledge into action), understand that their …