Key Takeaways:
- Strong communication skills are key for leaders, enabling clear, concise idea sharing and active listening across all organizational levels, fostering alignment and understanding.
- Effective leaders need to excel at strategic thinking when making data-driven, holistic decisions – crucial for meeting short- and long-term goals, amid complex organizational changes.
- Leaders must be able to inspire and motivate teams by recognizing achievements and instilling confidence. This is crucial for driving engagement and productivity.
- Staying digitally literate helps leaders navigate and lead through technological shifts, ensuring cohesive, forward-thinking teams in a rapidly changing digital landscape.
Leaders know more than anyone that today’s organizational landscape covers hugely complex terrain.
They are called upon to set direction, inspire confidence, strategize for growth, foster innovation, and empower others to succeed – to name but a few roles.
And navigating their rapidly-evolving environments with a polished display of effective leadership takes a host of hard-earned qualities and skills.
The difference between leadership skills and leadership qualities often causes confusion. Leadership skills are what you need to apply knowledge to perform a task well; leadership qualities are personal traits or attributes, usually refined over time.
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Must-have examples of leadership qualities would include being self-aware, authentic, adaptable, open minded, curious, driven, and having analytical prowess and presence.
But in this article, we will focus on the top 10 key skills an effective leader needs to possess; why they matter, where and when they can be applied and tips for developing them.
1. Communication Skills
Why are these essential?
Effective communication is necessary to drive any business or organization forward. Communication is a reciprocal activity; the sending and receiving of information using verbal or nonverbal methods.
Successful leaders must be able to impart information and ideas clearly and concisely at all levels, using various communication styles.
And, at the same time, they need to master active listening when presented with information in return.
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In what situation would these skills be valuable?
The company is facing a significant organizational change, and, as the CEO, you need to disseminate the vision and rationale behind the change to employees, stakeholders, and the board – checking understanding, addressing concerns and ensuring alignment.
What can I do to develop these skills?
Demonstrate openness and honesty with your team using Transparent Communication techniques.
Practice delivering information in different ways to different audiences, by adjusting your language, content and detail. Apply the “Three Vs” when communicating – project a clear and confident voice, be aware of your nonverbal visuals (your body language), and use a clear, concise and motivational verbal style.
2. Strategic Thinking
Why is this an essential skill?
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Strategic thinking is an intentional and rational thought process that focuses on the analysis of critical factors and variables.
Effective leaders learn to rely on solid data rather than just instincts to make informed decisions. Thinking strategically means taking a broad and holistic view of the tasks at hand and being able to progress actions and resolve a range of challenges, while also keeping focused on short and long-term goals.
In what situation would this skill be valuable?
The company needs to implement a new system of working and to upgrade internal processes to support the deployment. This is necessary as the old system does not reflect the new company vision, nor enable strategies to improve customer service.
Relying on data analysis and applying holistic strategic thinking is essential to ensure all company goals are met.
What can I do to develop this skill?
Demonstrate Critical Thinking techniques to objectively analyze, question, interpret, evaluate, and make reasoned judgements based on evidence.
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Research and practice hosting a formal strategic planning session in order to develop your and your team’s strategic thinking skills.
Tip:
According to Canadian academic and business author Henry Mintzberg, an effective strategy is multilayered and designed by employing a range of different approaches. For more on this approach see our article, Mintzberg's 5 Ps of Strategy.
3. Decision Making
Why is this an essential skill?
When it comes to decisions, the buck stops with leaders. Good decisions are born of assessing all the available facts, understanding the company’s current state and future goals, and choosing the best course of action – after considering a range of alternative solutions.
Leaders with good decision-making skills make informed, rational choices that benefit their team and the organization.
In what situation would this skill be valuable?
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The company want to upgrade their product offering in line with industry trends. Different teams in the organization present the company’s directors with a range of proposals, with suggestions for that new product range. The directors will need to decide on the best way forward.
What can I do to develop this skill?
Demonstrate good decision making by taking a process-orientated approach, fostering a collaborative mindset and involving your team.
Practice using a variety of decision-making techniques such as Decision Matrix Analysis, Decision Tree Analysis, Pareto Analysis, SWOT Analysis, Brainstorming, and Six Thinking Hats.
4. Team Motivation
Why is this an essential skill?
Team Motivation calls on a leader to use emotion to drive actions and performance, and to help the team work together to achieve shared goals.
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Successful leaders inspire their colleagues to go above and beyond, through giving positive feedback and highlighting their achievements.
They ensure colleagues are more involved and less isolated, making them feel valued and appreciated. This, in turn, brings out the best in people, leading to enhanced creativity and productivity.
In what situation would this skill be valuable?
The company has just announced that sales targets are to be increased from next month. But over recent months, the team have found it hard to achieve existing targets and are worried the new targets are not achievable.
As the senior leader you need to inspire the team by delivering a positive, upbeat message and by setting out a clear roadmap on how you will meet this “stretch,” shared goal.
What can I do to develop this skill?
Demonstrate a willingness to recognize success and spend time instilling confidence in your people that they can achieve the desired results. Give positive feedback during meetings and detail specific achievements on a social platform.
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5. Change Leadership
Why is this an essential skill?
Change Leadership focuses on the people side of change, when you're leading an organization through a significant transition or transformation.
Change leadership is not to be confused with change management, which is more tactical and focuses on the practicalities of operationalizing the change.
Effective change leaders use their influence to guide teams, inspire trust, and manage resistance to ensure a smooth transition through the change.
In what situation would this skill be valuable?
Your company has announced a merger with another multinational. It is up to you and the board of directors to lead your team through all aspects of this significant transformational change. Utilizing your change leadership skills will be vital in supporting colleagues during this uncertain time.
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What can I do to develop this skill?
Demonstrate that you are embracing the change and communicate a clear vision of what the future will look like. Use storytelling techniques to do this. Also review and practice Kotter’s 8-Step Change Model.
6. Relationship/Partnership Building
Why is this an essential skill?
Relationship building is the process of establishing and creating mutually beneficial connections. It is not about becoming best friends with everyone, but developing and maintaining healthy and respectful bonds.
Effective leaders not only need to build strong relationships with colleagues, but also to create a robust, collaborative stakeholder/partnership network. Building lasting relationships that add value and increase transparency helps any organization run more smoothly.
In what situation would this skill be valuable?
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You’ve been appointed as the Head of Department in a new organization. During your initial weeks it is important that you establish the trust and respect of your team colleagues, stakeholders and external partners.
Doing this will form the basis of long-term working relationships and help break down any barriers to effective communication.
What can I do to develop this skill?
Demonstrate and focus on your soft skills – like empathy, active listening, and Emotional Intelligence – to help build trust and form positive relationships. The more comfortable team colleagues are with their leader, the more vocal they will be about their concerns and new ideas.
Practice the 3 Cs of relationship building: communication, compromise and commitment. And see our article How to Build Lasting Relationships.
7. Conflict Management
Why is this an essential skill?
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The ability to identify and resolve disagreements in a fair and efficient manner is a defining trait of an effective leader. Good leaders manage disputes by limiting the negative aspects of conflict. Doing this helps ensure the cohesion and productivity of their teams.
In what situation would this skill be valuable?
As part of a larger program of work, two project managers present very different, opposing views about the best way to handle a significant element. And their opinions are starting to divide the team.
Your role as the Program Lead is to listen to both sides and mediate a compromise between the project managers, by displaying empathy and fairness.
What can I do to develop this skill?
Apply different conflict management approaches to create stronger relationships.
Practice assertive speaking and exercise active listening during meetings and conflict situations.
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Tip:
For more detailed advice on managing conflict resolution, see our articles: Conflict Resolution, The Conflict Layer Model, How to Manage Workplace Conflict, and Managing Conflict in Meetings.
8. Problem Solving
Why is this an essential skill?
Successful leaders should know how to dissect a problem and look at possible solutions from various angles, which often requires them to think creatively.
Problem solving begins with identifying and defining the issue, then determining the root cause. Once you've done this, you can generate, prioritize and select solution alternatives.
Then, finally, you can implement a solution and evaluate the results to determine whether you have, in fact, solved the problem.
In what situation would this skill be valuable?
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Recently you performed an exercise to identify process inefficiencies and customer service pain points. These have been grouped into common themes, and you have now agreed a continuous improvement priority plan with the directors.
Applying problem-solving techniques will be essential to determine the root cause of each problem, and to agree to a course of action to achieve a solution.
What can I do to develop this skill?
Utilize a range of problem-solving approaches, follow a structured problem-solving step process to achieve results, and rely on logic, creativity and determination to successfully complete the task.
Develop your team by practicing guiding colleagues through strategic thinking and problem-solving processes – instead of automatically fixing every problem that arises yourself.
TIP:
For further guidance on this subject, see our articles: What Is Problem Solving?, 8D Problem Solving Process, and Creative Problem Solving. And to see whether this is a skill you need to improve, take our How Good Is Your Problem Solving? assessment.
9. Innovation and Creativity
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Why is this an essential skill?
Innovation in leadership is crucial for continued success in any organization; it creates value, improves upon existing solutions, and drives growth.
Innovation is the practice of introducing new ideas, products, services, or processes. This can be coupled with creativity, which is applying imagination to produce something inventive.
The process starts with identifying problems or opportunities, generating and developing new ideas and solutions, and implementing them in a way that creates positive change.
In what situation would this skill be valuable?
The company has noticed that other organizations delivering the same business solutions are starting to emerge in the local area; their market share is becoming diluted.
As a leader, you run sessions to encourage idea generation and innovation initiatives that will help develop the company’s product and services set. This will help to retain the company’s competitive advantage.
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What can I do to develop this skill?
Creative leaders foster an innovative culture and encourage teams to showcase ingenuity.
So practice taking some informed risks; open up discussions with your teams around new areas that you may not have considered otherwise. Encourage people to think differently and creatively to generate unique solutions.
TIP:
For further guidance on this subject, see our articles:
Doblin's 10 Types of Innovation®
10. Digital Literacy
Why is this an essential skill?
Digital literacy is the ability to navigate, understand, evaluate, and effectively use devices or software to produce outputs and information using digital technologies.
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Leaders who are digitally literate are successful because they have the competence to engage responsibly and effectively in the digital world.
It is essential that leaders are adaptable and keep up with digital innovations, so they can support their teams effectively.
In what situation would this skill be valuable?
The company is looking to introduce Artificial Intelligence to upgrade their online self-help manuals.
The technical development is undertaken by a team operating a hybrid work approach, while other teams are offsite and fully remote.
You are leading this innovative program of work and need to understand the AI digital technologies available to make an informed choice on the best product.
You will also need to put in place effective digital practices and ways of working to ensure the cohesion of remote cross-functional teams.
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What can I do to develop this skill?
Demonstrate digital literacy by tasking yourself each quarter to research the latest technological advancements in your industry, and learn new digital skills.
Practice digital agility by exploring and experimenting with different tools and platforms to find out what works best for your organization’s changing needs.
For more information on what AI is and how to implement it, see our articles What Is AI? and How to Use AI as a Manager.
Frequently Asked Questions
What’s the difference between leadership skills and qualities?
Leadership skills enable task performance using learned knowledge, while qualities are personal traits like adaptability and authenticity, developed over time.
Why is communication important for leaders?
Effective communication helps leaders convey ideas clearly, foster alignment, and actively listen to team feedback. Crucial for driving organizational success.
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How can leaders develop strategic thinking?
Leaders can build strategic thinking by practicing critical analysis, hosting strategic planning sessions, and applying data-driven decision making.
Why do leaders need digital literacy?
Digital literacy allows leaders to stay current with tech advancements, supporting cohesive, digitally agile teams across generational and remote divides.
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