Many HR professionals struggle to identify the specific skills they should look for and develop in their leaders.
Without knowing these competencies, your company could face:
- Ineffective or weak leadership
- Unmotivated teams
- Slower growth
The solution? Identifying the most impactful leadership competencies to focus on.
In this post, we’ll review the top 45 leadership competencies across 4 different types to help your leaders succeed.
We’ll also explore how you can use the talent management tool Peoplebox to develop and manage these competencies.
What Is Leadership Competency
Leadership competency refers to key skills, behaviors, and attributes that leaders need to help inspire others, guide their teams, and drive business success.
While there are some common leadership competencies (which we will cover below), your organization’s leadership competencies should align with your company’s goals, culture, industry, and leadership level.
Aligning Leadership Competencies with Company Goals
When leadership competencies match company goals, goals are achieved faster because leaders are equipped with the right skills to execute strategies.
For example:
- If the business goal is innovation, leaders should show skills like creativity, taking risks, and thinking ahead.
- If the business goal is efficiency, leaders should focus on improving processes, being efficient, and paying attention to detail.
Aligning Leadership Competencies With Company Culture
Leadership skills should also match the company’s culture, which is how people work and interact based on shared values and behaviors.
For example:
- In a collaborative culture, leaders should have skills like teamwork, empathy, and good communication skills.
- In a performance-driven culture, leaders need skills like taking responsibility, focusing on results, and staying strong under pressure.
Leadership Competencies Based On Leadership Level
The skills leaders need to change depending on their leadership level.
As leaders move up in a company, their skills should grow to match their new roles and responsibilities.
Here are some examples:
- Entry-level leaders (Team Leaders, Supervisors): Need skills like managing people and improving daily tasks.
- Mid-level leaders (Managers, Department Heads): Need to work well with other teams and make sure plans are carried out.
- Senior leaders (Directors, VPs): Should have business acumen and strategic skills.
- Executive and business leaders (CEOs, Presidents): Need to have an entrepreneurial mindset and think globally.
Matching Leadership Competencies with Industry Needs
Each industry has its demands, trends, and challenges, so leaders need skills that help them succeed in their specific industry.
For example:
- In highly regulated industries like healthcare or finance, leaders need skills in risk management, following rules, and ethics because mistakes can lead to serious problems.
- In fast-changing industries like tech or media, leaders must be adaptable, creative, and quick to adjust to new trends.
- In competitive industries like retail or consumer goods, leaders need to focus on customers and have strong strategic thinking to stand out and win in the market.
Importance of Leadership Competencies
Identifying, developing, and managing leadership skills in your organization is important for many reasons:
Achieving Company Goals
One of the most important leadership competencies revolves around effectively leading the organization.
Leadership development based on key leadership competencies helps ensure that they are contributing to the organization’s strategic goals.
Maintaining Company Culture
By using leadership competencies that match your company’s culture, you can instil these values in your leaders.
It helps keep your company culture strong and sustainable, fostering consistency and alignment across all levels.
Clear Path for Leadership Development
The top HR priority is leadership development and succession management.
Leadership competencies provide a clear pathway for both.
It helps HR create programs to train, mentor, and develop leaders at every level. This also includes identifying future leaders early and getting them ready for bigger roles.
Better Leadership Evaluations
Leadership competencies provide clear ways to measure a leader’s performance.
This makes it easier to see where leaders are doing well and where they need to improve, leading to fairer performance reviews.
Improving Employee Engagement and Retention
When leaders are trained in important skills like people management and self-leadership, they create a positive work environment.
This keeps employees happy, engaged, and less likely to leave.
Types of Leadership Competencies
There are many frameworks and models developed through extensive research on leadership competencies, each offering different ways of categorizing the essential skills and behaviors for effective leadership.
One well-known model is from the Center for Creative Leadership (CCL). It splits leadership skills into three main categories: Leading Self, Leading Others, and Leading the Organisation.
To address the growing complexity of global businesses and remote work, we’ve added a fourth category: Leading Globally.
Here’s a breakdown of these categories:
1. Leading Self
An effective leader should be able to manage their actions, emotions, and behaviors. It includes being aware of their strengths and weaknesses and working to improve themselves.
Leaders need to understand and lead themselves before they can lead others and succeed in the leadership role, making self-leadership the foundation of all leadership skills.
2. Leading Others
This category is about how leaders work with and guide their teams and direct reports. It includes:
- Building strong relationships
- Encouraging teamwork
- Motivating people to reach common goals.
Good leaders inspire and support others, creating a trusting and cooperative environment where everyone feels empowered to succeed.
3. Leading the Organization
Leading the Organisation is about a leader’s ability to guide and manage the entire organization. It includes:
- Creating a vision
- Aligning teams with company goals
- Driving success through change and new ideas
Leaders need to handle the complexities of running a company and make sure resources and people are working toward the company’s long-term goals for continued growth.
4. Leadership Globally
A global leader is someone who:
- Grows business in foreign markets
- Sets global strategies
- Manages teams from different backgrounds
Working in international settings means working across different cultures, locations, and rules. In today’s global and remote-working world, an effective leader should have a global mindset and the ability to work well across borders—both in-person and online—to ensure success in different regions.
45 Key Leadership Competencies
While the best leadership model is one that fits your specific company, starting with well-known frameworks can help you create your model faster.
Below are 45 of the most common and effective leadership competencies, divided into the four categories discussed above.
Self Leadership Competencies
Here are the important leadership competencies related to managing the self:
# | Competency | Definition | Defining Characteristics | Example |
1 | Self-Awareness | Understanding your strengths, weaknesses, and emotions to manage yourself well. | Self-reflection, emotional intelligence, insight. | A manager asks for feedback to get better at leading, knowing there are areas to improve. |
2 | Adaptability | Being able to adjust to new conditions, challenges, or environments with ease. | Flexibility, openness to change, problem-solving. | A leader quickly changes their approach and shifts resources during an unexpected company change to keep the team performing well. |
3 | Integrity | Staying honest and following ethical principles. | Honesty, ethics, reliability. | A leader sticks to the company’s values, even when pressured to do something else for quick results. |
4 | Resilience | Bouncing back from difficulties quickly. | Persistence, mental toughness, optimism. | A project leader faces many problems but stays focused and motivated. |
5 | Self-Motivation | Staying focused and driven without needing outside pressure. | Drive, initiative, discipline. | A leader pushes projects forward, sets big goals, and stays focused without needing reminders or supervision. |
6 | Continuous Learning | Constantly seeking to improve and learn new skills. | Curiosity, adaptability, growth mindset. | A leader looks for new knowledge, regularly learns new skills, and stays updated on industry trends to improve their team or company. |
7 | Emotional Regulation | Controlling your emotions in tough situations | Emotional control, composure, patience. | A supervisor stays calm and in control during a stressful negotiation. |
8 | Work-Life Balance | Effectively managing time and energy between work and personal life. | Time management, boundaries, prioritization. | An executive makes sure weekends are spent with family, balancing work and personal time. |
9 | Humility | Recognizing your limits and being open to feedback. | Openness, humility, and willingness to learn. | A team leader admits a mistake and asks for advice to improve. |
10 | Learning Agility | Learning quickly and applying new ideas in different situations. | Curiosity, adaptability, quick thinking. | After a sudden change in the market, a leader quickly learns new strategies and adjusts the business plan. |
11 | Personal Accountability | Taking responsibility for your actions and decisions. | Ownership, reliability, responsibility. | A leader takes full responsibility for a failed project and helps the team learn from it. |
People Leadership Competencies
Here are the key competencies for managing others:
# | Competency | Definition | Defining Characteristics | Example |
12 | Emotional Intelligence | The ability to recognize, understand, and manage one’s own emotions and those of others. | Self-awareness, empathy, emotional control | A leader stays calm during a tense meeting and helps the team resolve frustrations with empathy and communication. |
13 | Team Building | Creating and nurturing a collaborative and high-performing team. | Collaboration, leadership, unity | A manager organizes activities that encourage teamwork and trust among team members. |
14 | Conflict Resolution | The ability to mediate and resolve conflicts between individuals or groups. | Mediation, patience, objectivity | An HR leader mediates a conflict between two departments and finds a fair solution for both. |
15 | Relationship Building | Developing strong, positive relationships with colleagues and stakeholders. | Networking, trust, relationship-building | A sales manager builds close relationships with clients to ensure long-term partnerships. |
16 | Communication | Effectively sharing information and ideas in a clear, concise manner. | Clarity, active listening, persuasion | A project manager clearly explains expectations and keeps the team updated on changes. |
17 | Motivation | Inspiring others to achieve their best through encouragement and enthusiasm. | Inspiration, encouragement, recognition | A supervisor energizes the team by praising achievements and providing encouragement. |
18 | Coaching and Mentoring | Guiding and developing others to reach their full potential. | Development, feedback, mentorship | A leader helps a junior employee grow by offering guidance and development opportunities. |
19 | Empathy | Understanding and sharing the feelings of others to foster a supportive environment. | Compassion, understanding, support | A manager supports a team member during a tough time by showing empathy and offering flexibility. |
20 | Influencing Others | The ability to persuade and guide others towards a shared goal. | Persuasion, guidance, influence | A department head persuades teams to follow a new company strategy. |
21 | Active Listening | Fully concentrating on what others are saying to understand and respond effectively. | Concentration, understanding, responsiveness | A team leader listens carefully during feedback sessions to ensure team members feel heard. |
22 | Delegation | Assigning tasks to others based on their strengths while managing workload effectively. | Task management, responsibility, trust | A manager assigns tasks to team members based on their strengths, improving team efficiency. |
23 | Building Trust | Establishing and maintaining trust through consistent actions and communication. | Consistency, transparency, reliability | A leader builds trust by being transparent about challenges and keeping promises. |
24 | Performance Management | Setting expectations, monitoring performance, and providing feedback to ensure goals are met. | Goal-setting, feedback, improvement | A manager conducts regular reviews, sets goals, and offers actionable feedback. |
25 | Accountability | Holding oneself and others responsible for their actions and outcomes. | Responsibility, ownership, reliability | A team leader holds individuals accountable for missed deadlines and helps them improve. |
26 | Employee Engagement | Creating a work environment where employees feel committed, valued, and motivated. | Engagement, recognition, motivation | A leader boosts engagement by recognizing contributions and creating a positive work culture. |
Organisational Leadership Competencies
Key skills needed to manage and lead an organization include the following:
# | Competency | Definition | Defining Characteristics | Example |
27 | Visionary Thinking | Creating a strong, future-focused plan for the organization. | Future focus, innovation, long-term vision | A CEO makes a plan to expand into new markets and leads the company toward global growth. |
28 | Strategic Planning | Developing long-term strategies that match business goals and trends. | Analytical thinking, goal-setting, execution | A leader creates a five-year plan that fits with market trends and company goals. |
29 | Change Management | Leading the organization through change and making sure it works well. | Adaptability, leadership, transformation | A manager helps the team switch to new technology smoothly. |
30 | Business Acumen | Understanding the financial and market side of running a business. | Market understanding, strategic insight, financial literacy | A leader uses market research and financial knowledge to guide product decisions. |
31 | Decision-Making | Making smart decisions by evaluating risks and opportunities. | Critical thinking, problem-solving, judgment | A manager quickly shifts resources after finding risks in the project plan. |
32 | Innovation | Encouraging new ideas and creative problem-solving for improvement. | Creativity, forward-thinking, adaptability | A director encourages the team to come up with creative ideas to improve processes. |
33 | Risk Management | Identifying and managing possible risks to the organization. | Risk assessment, foresight, prevention | An executive finds possible regulatory risks and makes a plan to avoid them. |
34 | Crisis Management | Leading the organization through high-pressure situations. | Calmness, leadership, quick decision-making | A leader guides the organization through a major problem with minimal disruption. |
35 | Financial Acumen | Understanding and managing the financial side of the business. | Financial literacy, cost management, profitability | A CFO finds ways to save costs while keeping the business running smoothly. |
36 | Data-Driven Decision-Making | Using data and facts to guide business decisions. | Analytical skills, evidence-based decisions, data fluency | A marketing leader uses customer data to create better strategies, leading to higher profits. |
37 | Operational Excellence | Focusing on making the organization more efficient and productive. | Efficiency, continuous improvement, productivity | An operations manager improves workflows, saving time and money. |
38 | Organisational Design | Structuring the organization for better performance and growth. | Organizational structure, alignment, scalability | A leader changes the organizational structure to better align teams with company goals. |
Global Leadership Skills
Effectively leading globally requires the following skills, traits, and behaviours:
# | Competency | Definition | Defining Characteristics | Example |
40 | Cultural Intelligence | The ability to understand and work well with people from different cultures. | Cultural sensitivity, open-mindedness, adaptability | A manager leads a multicultural team by understanding and respecting different cultures. |
41 | Global Mindset | Recognizing global business opportunities while respecting local differences. | Global thinking, local action, adaptability | A global executive adjusts the company’s strategy to fit both international and local markets. |
42 | Cross-Cultural Communication | Communicating clearly across cultural and language barriers. | Language skills, clarity, adaptability | A leader changes communication styles to connect well with people from different cultures. |
43 | Geopolitical Awareness | Understanding how politics and social issues in different regions affect business. | Political awareness, strategic insight, global thinking | A business leader prepares for how political tensions might impact the company’s operations in certain regions. |
44 | Leading Virtual Teams | Effectively managing teams that work remotely across different locations. | Remote leadership, collaboration tools, clear communication | A director manages a remote team across time zones, making sure they work together well and stay productive. |
45 | Global Talent Management | Managing talent worldwide, understanding diverse workforces, and aligning with global business needs. | Global HR strategies, cultural understanding, employee engagement | A global HR leader creates a hiring plan that fits regional talent and labor laws. |
Steps to Build Leadership Competencies
Effectively identifying, developing, and managing leadership competencies is essential for nurturing strong leaders who can drive business success.
Here’s a step-by-step guide:
- Identify Leadership Competencies
Find the key leadership skills that are most important for your organization.
- Assess Current Leaders
Evaluate how well current leaders are performing to find any gaps in their skills.
- Develop Leadership Competencies
Create training sessions, workshops, and coaching focused on building the needed skills.
Give leaders chances to lead projects or teams to practice their skills.
- Provide Real-Time Feedback
Set up feedback systems, like 360-degree reviews, to give leaders continuous feedback on their performance.
- Track Progress
Use performance reviews and competency assessments to measure growth.
- Adjust Development Plans
Update training plans based on assessments to fill gaps and meet new leadership needs.
- Reward Competency Growth
Recognize and reward leaders who successfully build and demonstrate important skills.
- Ensure Succession Planning
Use competency assessments to find and prepare potential future leaders for key roles.
How to Use Peoplebox to Develop and Manage Leadership Competencies
Peoplebox provides a powerful platform to help organizations identify, develop, and manage leadership competencies across all levels.
With a range of advanced tools and integrations, it simplifies performance management while fostering continuous leadership growth. Here’s how Peoplebox supports organizations in building and managing leadership competencies:
1. 360-Degree Feedback for Leadership Growth
- Peoplebox offers a comprehensive 360-degree feedback system that enables organizations to conduct thorough reviews, focusing on leadership skills and competencies.
- With AI-driven summaries, pre-built templates, and advanced tools like calibration and 9-box grids, HR teams can assess leadership capabilities efficiently and reduce administrative workload by up to 90%.
- This process gives leaders clear and unbiased feedback from peers, direct reports, and managers, helping them understand their strengths and areas for improvement.
2. Goal Management & Alignment
- The platform helps align leadership goals with broader company objectives through OKR (Objectives and Key Results) management. Leaders can set and track their personal development goals that contribute to organizational success.
- Peoplebox allows real-time tracking of these goals across departments, ensuring that leaders remain focused on key priorities while adapting to changing business needs.
3. Leadership Development Paths
- With 1:1 meeting tools and development path tracking, managers can set up structured growth plans for emerging leaders.
- The platform facilitates regular check-ins to review progress, ensuring ongoing support and development.
4. Performance Management Tailored for Leadership
- Peoplebox’s customizable performance management system allows organizations to run leadership-focused performance reviews, with features like competency-based evaluations and automated goal tracking.
5. Advanced Analytics for Continuous Leadership Insights
- The platform’s real-time people analytics provide valuable insights into leadership effectiveness and development progress.
- With real-time engagement data and comprehensive reports, organizations can easily track leadership performance and pinpoint areas that need attention, fostering a data-driven approach to leadership development.
6. Seamless Integration with Everyday Tools
- Peoplebox integrates seamlessly with everyday workplace tools like Slack, Microsoft Teams, and Jira, enabling leadership reviews and goal management to happen in real time, right where work happens.
- This boosts user adoption and makes leadership development an ongoing, embedded part of company culture rather than a once-a-year event
To use Peoplebox for managing leadership competencies in your organization, contact us today.
Conclusion
Leadership competencies are key to organizational success, guiding leaders to excel in areas like self-management, team leadership, organizational leadership, and global strategy. Use talent management software Peoplebox to identify, develop, and manage leadership competencies easily and swiftly.