Business

Leadership Competencies: 7 Essential Leadership Competencies

Written by MasterClass

Last updated: Jan 20, 2022 • 3 min read

Leadership competencies are qualities effective leaders display that instill trust in team members and create a healthy work environment, allowing for company growth.

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What Are Leadership Competencies?

Leadership competencies are the interpersonal skills leaders need to succeed. Each industry and field will require its own set of unique talents for those working at higher levels, but leadership competencies act as the universal core requirements for ensuring the well-being of a team and developing others' strengths.

These competencies are the building blocks of effective leadership. Leadership competencies are different from business acumen: While the latter refers to expertise in one's field, the former are people skills, or soft skills, that prioritize emotional intelligence. Certain leadership competencies come more naturally to some leaders than others, such as mentoring, problem-solving, or communication skills. These competencies are prized skills to hone, and many leadership development programs—including conferences and webinars—help those in leadership positions fortify these competencies.

7 Leadership Competencies

There are several distinct leadership competencies that junior team members and overseeing stakeholders alike will expect in company leaders:

  1. 1. Decision-making: Leaders make decisions all the time, and how they lead decision-making can influence others' opinions of them. Team members should feel included in the decision-making process, but leaders typically have the final say at the end. Leaders should give each point of view weight and consideration, and junior levels tend to need a clear sense of who they are reporting to so they know how decisions are eventually made within the hierarchy.
  2. 2. Communication skills: Communication spans many mediums, including email, phone, and in-person conversations. Team members will look for leaders who listen to them, offer praise when the timing is right, and only email or call during office hours. Communication skills help you set clear expectations when delegating tasks, so your direct reports feel empowered and know exactly what is required of them.
  3. 3. Conflict management: Offices are dynamic places where differing personalities and opinions make for rich diversity. Nonetheless, disagreements can sometimes arise, and leaders will do well to hear both sides before rushing to resolve conflicts. The leader can get a professional opinion from human resources on how to proceed, reinforcing their credibility in conflict management.
  4. 4. Emotional intelligence: Part of being a leader means being able to read emotional cues. If an employee recently suffered a loss or is displaying emotions outside their norm, it is important to take note of these tonal shifts but not call them out publicly. Instead, engage the person in a one-on-one meeting, ask how they are doing, and be sympathetic to their needs. Letting workers know you care, and asking how you can help, earns your trust and shows workers you are more than just concerned with their daily grind.
  5. 5. Proactivity: Often, leaders will handle big-picture thinking while the staff oversees execution and details. Nonetheless, strong leaders can show initiative by going above and beyond to help their staff and be a team player. Volunteer to fix little issues that arise, or conduct the research before an original pitch.
  6. 6. Adaptability: A sense of adaptability connotes self-awareness and the ability to change, making it among the more important leadership skills. New employees will come in with their own ideas, providing you with the opportunity to listen, change, and grow. This shows humility and can also build trust.
  7. 7. Integrity: Integrity is one of the most important leadership competencies. For business leaders, integrity means upholding the values of an organization, owning up to mistakes instead of placing blame, and prioritizing the well-being of each and every employee.

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