This article reviews the background and development of Upper Echelon Theory, and serious challenges have to be faced with. Under the pressure, Upper Echelon Theory has further broadens its width and depth, and develops into strategic leadership. The most prominent improvements of empirical studies are methods adopted to directly measure the underlying psychological construct. Many studies apply these methods to exploring the relationship between CEO personalities and strategic outcomes. We also summarize some limitations of the research in this field and make some suggestions.