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“To add value to others, one must first value others.”
— John Maxwell

What Are the Most Important Leader Competencies? It Depends.

When it comes to leadership team and leader development, there’s no formulaic approach or silver bullet, or established one-size-fits-all approach. Maybe in marketing and selling those development programs, but certainly not in the design, development, and deployment of development options that will add sustainable value for that leadership team, leader, or organization. And even though this article focuses on leader competencies, a caveat: leader competencies are certainly not the end-all-be-all for the leadership team and leader development efforts. However, competency models can give us a target — though potentially a moving target — of the behaviors and skills that may be especially critical for a time, given organizational needs.

Leader Competencies, Skills, and capabilities

Leader competencies and skills are related but different concepts. Competencies refer to a set of underlying characteristics, such as knowledge, abilities, and personality traits, that enable a leader to perform effectively in a given context. Skills, on the other hand, refer to specific learned behaviors that can be applied in a variety of situations.

According to the Center for Creative Leadership, "competencies are the underlying characteristics that enable performance, whereas skills are the observable behaviors that result from those underlying characteristics" (Campbell, 2008, p. 1). For example, communication is a skill that a leader can develop through training and practice, but the underlying competencies that enable effective communication, such as empathy, active listening, and clarity, are more difficult to teach and develop.

Another way to differentiate between competencies and skills is that competencies are more general and transferable across different contexts, while skills are more specific and context-dependent. For example, strategic thinking is a competency that can be applied in different industries and functions, while financial analysis is a skill that may be more relevant in finance or accounting roles.

And let’s add to this mix leader capabilities. Leader capabilities are what a leader can do or is expected to do and the leader’s potential to develop the necessary skills. A leader capability model is a framework that outlines the specific capabilities, or higher-level attributes, that are necessary for effective leadership in a particular context. A capability model can provide a roadmap for developing and assessing leadership potential, as well as guide talent management and succession planning efforts.

Many organizations have developed their own leader capability models based on their unique business context, culture, and strategy. For example, the US Army developed a leader capability model that emphasizes attributes such as "character, presence, and intellect,” while Microsoft developed a leader capability model that includes attributes such as "customer focus, drive for results, and collaboration.”

Leader capability models often include multiple levels or tiers of capabilities, with higher levels reflecting greater complexity and responsibility.

Organizational Context

Organizational context plays a crucial role when focusing on leader competencies, skills, and/or capabilities because organizations have different needs, goals, cultures, and challenges, which require different leadership styles, skills, and behaviors to be effective. For example, a startup may require an entrepreneurial leader who can take risks, adapt quickly to changes, and inspire creativity, while a mature company may need a leader who can manage complexity, drive efficiencies, and foster a culture of accountability.

According to a study by the Center for Creative Leadership, "leadership competencies are not universal; instead, they are closely tied to the specific context in which they are exercised" (Campbell & Lee, 2011, p. 2). The study found that the most critical leadership competencies for one context may not be as important or effective in another context, and that effective leaders are those who can adjust their style and approach to fit the context they are in.

Similarly, a meta-analysis of 99 studies on leadership effectiveness by Judge and Bono (2000) found that the relationship between leadership behaviors and effectiveness is stronger when the behaviors are matched to the specific organizational context. They concluded that "organizational context is a critical moderator of the relationship between leadership behaviors and effectiveness" (p. 772).

Leader competencies must be aligned with the business context to maximize their impact on organizational performance. Leaders who are aware of the context they are in, and who can adapt their behaviors accordingly, are more likely to be successful.

References:

  • Campbell, E., & Lee, C. (2011). The context of leadership. Center for Creative Leadership.

  • Silzer, R., & Church, A. H. (2009). The pearls and perils of identifying potential. Industrial and Organizational Psychology, 2(4), 377-412.

  • Campbell, E. (2008). Competencies and leadership: A brief overview. Center for Creative Leadership.

  • Judge, T. A., & Bono, J. E. (2000). Five-factor model of personality and transformational leadership. Journal of Applied Psychology, 85(5), 751-765.

 
 
Daniel Burns