What if the board of Sunbeam could have gazed into the psyche of “Chainsaw Al” Dunlap before they hired him? Could they have predicted that he would alienate his entire senior management and drive the company into the ground? Was WorldCom’s Bernie Ebbers destined for disaster? Could anyone have suspected that Enron’s Kenneth Lay and his staff would enrich themselves while leaving their employees destitute?

Absolutely, say psychological testers like Robert Hogan, former chair of the psychology department at University of Tulsa and co-editor of Personality Psychology in the Workplace, a book often referred to as the bible of the assessment industry. Hogan believes that Dunlap, Ebbers, and Lay were handicapped by what industrial psychologists call derailers—fatal flaws in their personalities such as narcissism, rigidity, and aggression that are sure to wreak managerial havoc.

Hogan makes a living from finding such personality flaws. His firm, Hogan Assessment Systems, has sold his assessment tools to most of the companies in the Fortune 500, including Dell, PepsiCo, Bank of America, and Cisco. Since 1989, says Hogan, his business has grown at an annual rate of 30 to 40 percent.

With a spate of corporate scandals, as well as top executives’ being pressured to reduce management turnover, corporate America is rethinking how it approaches hiring, training, and promoting its leaders, beginning with its C.E.O’s. In recent years, a vast industry has sprung up in support of that effort, offering everything from psychological profiles to real-world simulations aimed at weeding out managers who choke under pressure. Though there is no accurate measure of the industry’s size, according to some estimates there are currently as many as 2,500 such organizations of varying degrees of legitimacy, up from just a handful a little more than a decade ago.

Of course, performance, intelligence, and personality profiling isn’t exactly new. Roughly 3,000 years ago, China gave civil service candidates intelligence tests. During World War II, the U.S. Office of Strategic Services, which later morphed into the Central Intelligence Agency, subjected its agents to psychological screening. It wasn’t until the early 1990s, though, that psychologists finally reached a consensus on the traits that constitute personality. They termed them the Big Five: self-esteem, social potency (leadership), charm, integrity, and creativity (imagination).

Once these qualities were named, an entire industry grew up around creating the tools for assessing them. The scandals at Enron and WorldCom—along with a growing overall awareness that management turnover is costly and increasingly common—prompted more and more firms to take advantage of the new techniques. The repertoire among so-called talent management companies ranges from Hogan’s “dark side” test to what’s generally known as the 360, in which superiors, subordinates, and peers fill out anonymous questionnaires about a given manager. Costlier alternatives include elaborate “assessment centers,” where potential leaders actually run a simulated office for a day, receiving distracting emails, phone calls, subordinate complaints, and real-time crises.