Walsh, who is one of the club's two assistant managers in addition to being head of recruitment, agreed a new contract on Sunday, having been widely credited with finding bargain signings such as Riyad Mahrez, signed from French second-tier club Le Havre for £400,000 in January 2014.
Leicester's squad as a whole was assembled for £57m, making it the cheapest of any in the top half of this season's Premier League.
Walsh said: "If you just needed to get all the best players, talent scouting would be easy, wouldn't it? You've got to look at the players maybe through different eyes and see what they can achieve. That's the skill.
"We have a DNA. For me, it's not just about their ability on the ball. It's what they're prepared to give to the team when we haven't got it.
"Obviously, the character of the person shines through. If you're prepared to put in a shift when we haven't got the ball, that says a lot about you in terms of your work ethic."
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