The Power of Leadership

Defined as the ability to inspire, influence, and guide others towards a common goal, leadership skills relate to a range of qualities such as communication, decision-making, and emotional intelligence.

And these qualities matter.

In fact, research consistently demonstrates a significant correlation between effective leadership and organizational success. And even without the studies, it doesn’t take a big leap of faith to see that exceptional leaders drive exceptional results.

Effective leaders inspire and empower their teams. They understand human behavior and motivation, and can even drive transformative change. Some companies sink or swim depending on who is at the helm.

In this context, we want to explore “what makes a good leader”. What are the skills that effective leaders employ. What turns one leader into a rainmaker, and another into a liability?

And above all else: “what skills open the door to leadership opportunities?“.

Popular Definitions of Leadership Skills

Let’s begin by examining popular perspectives on effective leadership…

According to IMD (International Institute for Management Development), a renowned business school that focuses solely on executive education, eight key leadership skills are:

  1. Relationship Building: Cultivating strong connections and fostering collaboration among team members.
  2. Agility and Adaptability: Being flexible and responsive to change, navigating uncertainty with ease.
  3. Innovation and Creativity: Encouraging fresh thinking and fostering an environment conducive to innovation.
  4. Employee Motivation: Inspiring and empowering team members to perform at their best.
  5. Decision-making: Making sound judgments based on analysis and intuition.
  6. Conflict Management: Resolving disputes effectively and promoting harmonious working relationships.
  7. Negotiation: Facilitating win-win outcomes through effective negotiation techniques.
  8. Critical Thinking: Analyzing situations thoughtfully and making informed decisions.

All of it makes sense. But it’s also quite broad and far reaching.

Perhaps we should explore a more colloquial definition of leadership skills. This next one comes from Forbes, which highlights five essential leadership skills:

  1. Communication: Articulating ideas clearly and fostering open dialogue within the team.
  2. Interpersonal Skills: Building rapport and cultivating positive relationships with team members.
  3. Problem-Solving: Addressing challenges and finding effective solutions.
  4. Decision-making: Making timely and informed decisions to drive progress.
  5. Delegation: Empowering team members by assigning tasks and responsibilities.

Still broad, but perhaps a bit more relatable… But is it useful?

While both of these lists offer valid perspectives, they also show that leadership is a diverse skill set that touches on multiple high level cognitive as well as human interaction functions. They are almost like saying: “works with people” and “thinks analytically”. They are too broad.

By the way – we’re sharing these common definitions of leadership skills not because we think they’re set in stone, but because they reflect what most people generally believe… They get you ready for our discussion that follows.

Our Take On Leadership Skills

There is no such thing as “leadership skills” per se.

Or more accurately, every one of the 5 high-value skills we discuss throughout our material are leadership skills. These are the most sought after and most automation proof skills in the workforce, that are also the highest compensated.

Here’s the key: the difference between an ordinary employee and a leader isn’t in the skills they use, but in the scale of what they do, the scope of their operation and how much they influence outcomes.

For instance, both a chief technology officer and a programmer use the high-value skill of “critical thinking” in their work. But the real difference lies in where they apply this skill…

While the programmer may use critical thinking to craft clever code and algorithms, the chief technology officer applies it to tackle larger-scale problems and strategic decisions.

It’s still the same core skill, but applied to a bigger, more complex problem set. That’s the secret.

In fact, because of this understanding, we’re not overly concerned with skills that are typically labeled as “leadership skills.” Instead, we are concerned with the traits, credentials, and skills that enable leadership positions in the first place.

Why? Because getting into a leadership position ultimately boils down to power.

As we often emphasize in our events: if you have power, you’ll “learn the required skills on the job” to justify your hire. But if you lack power, you’ll be told “you lack the relevant experience” to justify your rejection.

In this context, let’s analyze which skills truly matter to employers and pave the way to leadership positions.

Not All Leadership Is The Same

Leadership isn’t a one-size-fits-all concept. Different organizations gravitate toward, expect and reward different leadership styles.

While we don’t have a lot of research on how leadership styles impact job prospects, there’s evidence that certain styles work better in certain situations. For instance, one study showed that only one aspect of a leadership style called transformational leadership helped long-term support staff workers with job security.

Interestingly, that aspect ended up being: “occupational expertise”…

In other words, your employability as a leader is going to primarily depend on the material, measurable value you provide, followed by the way your leadership style fits the company’s culture – not on some abstract collection of “leadership skills”.

So, when you’re looking at potential employers, first think about what leadership style they use. And then, based on the leadership style, you should decide on the skills you want to highlight.

Leadership Styles

Each leadership style has its own unique approach to motivating and guiding followers. While there isn’t always clear consensus on these leadership styles, the following styles are commonly used in the literature:

  1. Democratic Leadership: In this style, leaders involve their team members in decision-making processes, encouraging participation and collaboration. (What do you think?)
  2. Autocratic Leadership: Autocratic leaders make decisions independently, with little input from their team. They typically have strict control over their followers and enforce compliance through authority. (I said so)
  3. Laissez-Faire Leadership: This style is characterized by a hands-off approach, where leaders provide minimal guidance or direction to their team members, allowing them to make decisions independently. (You decide)
  4. Charismatic Leadership: Charismatic leaders inspire and motivate their followers through their personal charm, enthusiasm, and vision. (Follow me)
  5. Situational Leadership: Leaders adapt their style based on the specific needs of the situation and the needs of their team members. (Let’s adjust based on the context)
  6. Transformational Leadership: Transformational leaders inspire and motivate their followers by articulating a compelling vision and empowering them. (Let’s innovate)
  7. Transactional Leadership: Transactional leaders focus on establishing clear expectations and using rewards and punishments to motivate their followers. (Quid pro quo)
  8. Bureaucratic Leadership: Bureaucratic leaders rely on established rules and procedures to guide their team members, prioritizing consistency and protocols. (The rules say so)
  9. Servant Leadership: Servant leaders prioritize the needs of their team members, focusing on serving and empowering them to succeed. (What do you need from me?)

Each leadership style has its own strengths and weaknesses. The effectiveness of each strategy depends on the environment it’s deployed. The type of organization, type of work involved, experience and skill of the team all dictate what type of leadership is best fit for an organization.

Of course, organizations, hiring managers and HR gatekeepers all have their own biases, opinions, and preferences when it comes to leadership styles. It is also crucially important to note that: what’s actually best fit for an organization does not necessarily match the biases and preferences of it’s current leaders or HR culture.

Which is why, as far as getting a leadership position is concerned, having a fit between your leadership style and your boss’ leadership style, while also matching the gatekeeper expectations for leadership culture, pays dividends…

Leadership Styles & Leadership Skills

As you might imagine, different leadership styles prioritize different sets of skills. We group leadership styles into three distinct groups, based on the most important skills associated with them.

When seeking a leadership role at an organization, it’s very useful to identify the leadership style group they seek, and emphasize the skills they value. There are 3 leadership style groups.

Group 1: Relationship-Oriented Leadership Styles

  1. Democratic Leadership
  2. Charismatic Leadership
  3. Servant Leadership

These styles prioritize building strong relationships and teamwork. Leaders focus on creating an effective environment where communication is open, empathy is valued, and collaboration is encouraged. This group is primarily about making decisions, and getting others to “buy into” your decisions through a variety of processes.

Skills Valued:

  • Communication
  • Empathy
  • Collaboration
  • Emotional Intelligence
  • Relationship Building

How to Develop:

To develop your relationship-oriented leadership skills, prioritize building strong connections with your team members. Enhance your communication skills by actively listening to their concerns and providing constructive feedback. Practice empathy by putting yourself in their shoes and understanding their perspectives. Work on your emotional intelligence by recognizing and managing your emotions effectively and understanding the emotions of others.

Ultimately, invest time in relationship-building activities such as rapport building activities, one-on-one meetings, and mentoring opportunities to cultivate trust with the individuals you work with. (Pro tip: Explore the high value domain of behavioral psychology for optimal results.)

How to Signal:

To signal your proficiency in relationship-oriented leadership skills, demonstrate your ability to communicate effectively with team members and stakeholders. Showcase your active listening skills by providing thoughtful responses and asking clarifying questions during discussions. Highlight instances where you have shown empathy towards others, such as understanding their perspectives and addressing their concerns with sensitivity. Emphasize your collaboration skills by discussing successful team projects and your role in fostering cooperation. Provide concrete examples of how you have leveraged emotional intelligence to manage conflicts and built strong relationships.

Group 2: Decision-Making-Oriented Leadership Styles

  1. Autocratic Leadership
  2. Transactional Leadership
  3. Bureaucratic Leadership

This group focuses on making decisions efficiently and ensuring that tasks are carried out according to established rules. Leaders prioritize clarity, structure, and efficiency in achieving organizational goals. This group is about making decisions, and enforcing those decisions through various authority structures.

Skills Valued:

  • Decision-Making
  • Strategic Thinking
  • Problem-Solving
  • Organization
  • Attention to Detail

How to Develop:

To strengthen decision-making-oriented leadership skills, focus on improving your analytical abilities and strategic thinking. Seek out opportunities to make informed choices and reflect on their outcomes. Set clear goals and objectives, analyze market trends, and identify opportunities for growth. Break down complex issues into smaller components and explore creative solutions to each part. Practice organization and attention to detail by establishing systems that streamline workflows.

How to Signal:

To signal your competency in decision-making-oriented leadership skills, highlight your track record of making informed and effective decisions. Discuss situations where you were faced with complex problems and describe the strategies you employed to analyze the issues. Explain your thinking and how you arrived at solutions. Showcase your strategic thinking abilities by outlining your approach to setting goals, identifying priorities, and aligning them with organizational objectives. Provide examples of times when your organizational skills and attention to detail enabled you to streamline processes and improve efficiency.

Group 3: Adaptability-Oriented Leadership Styles

  1. Laissez-Faire Leadership
  2. Situational Leadership
  3. Transformational Leadership

These styles focus on adapting to change, inspiring innovation, and empowering others to reach their full potential. Leaders embrace flexibility and encourage creativity in navigating evolving circumstances. This group is about creating systems where other individuals can make the decisions for you.

Skills Valued:

  • Adaptability
  • Flexibility
  • Creativity
  • Visionary Thinking
  • Change Management

How to Develop:

To cultivate adaptability-oriented leadership skills, embrace change. Be open to new ideas and willing to adjust your plans as needed. Encourage innovation and experimentation within your team. Develop visionary thinking by articulating a compelling vision for the future and inspire others to join you. Learn how to guide individuals and teams through periods of transition.

How to Signal:

To convey your proficiency in adaptability-oriented leadership skills, emphasize your ability to thrive in uncertain environments. Discuss instances where you successfully adapted to changes in project requirements, team dynamics, or market conditions. Highlight your flexibility by showcasing your willingness to embrace new ideas and approaches, as well as your openness to feedback and constructive criticism. Demonstrate your creativity by sharing innovative solutions you have implemented (make sure those solutions had positive ROI). Provide examples of how you have effectively managed change by guiding others through transitions and maintaining a positive attitude amidst uncertainty.

Conclusion

The path to demonstrating effective leadership skills is straightforward:

  • Target the Company & Boss: Each company and each boss is different. Your approach will depend on your target.
  • Identify Company Style: Analyze the overall leadership culture of the organization.
  • Understand Boss’s Style: Analyze the boss’ preferred leadership style within the organization.
  • Adapt Your Style: Either match the target leadership styles, or adopt styles that complement their expectations.
  • Develop Relevant Group Leadership Skills: Identify and highlight the specific skills associated with your targeted leadership style, based on the groupings listed above.
  • Signal Those Skills: Clearly demonstrate your proficiency in these skills through your actions and communication.

By following these steps, you can position yourself as the type of leader organizations are looking for.