Articles / What Are Leadership Competencies? Definition, Examples, and Development
Leadership SkillsDiscover what leadership competencies are and why they matter. Learn the core competencies every leader needs and how to develop them for career success.
Written by Laura Bouttell • Tue 30th December 2025
Leadership competencies are a combined set of knowledge, skills, and abilities that constitute effective leadership within an organisation—the essential capabilities that enable leaders to influence, inspire, and guide their teams toward achieving organisational goals. Unlike technical skills that might apply to specific roles, leadership competencies represent the foundational capabilities required for leadership effectiveness regardless of industry, function, or level.
Consider what research consistently reveals: employees who trust their leadership are four times as likely to be engaged in their work. Yet this trust doesn't emerge from job titles or organisational charts—it develops when leaders demonstrate the competencies that inspire confidence. In a world where competition is fierce and change is constant, organisations need leaders who can make the right call at the right time.
The challenge many organisations face isn't identifying what leadership competencies matter but developing them systematically across their leadership population. Understanding what these competencies are—and how they translate into observable behaviours—provides the foundation for both assessment and development.
Leadership competencies represent a composite of knowledge, skills, and abilities required to perform effectively in a leadership role. They describe both what effective leaders know and what effective leaders do.
Knowledge refers to the information and understanding leaders need—awareness of business fundamentals, understanding of human behaviour, grasp of industry dynamics, and comprehension of organisational systems.
Skills describe the learned capabilities leaders apply—communication abilities, analytical proficiency, problem-solving techniques, and interpersonal effectiveness.
Abilities encompass the natural or developed capacities leaders possess—emotional intelligence, cognitive flexibility, resilience under pressure, and capacity for complex reasoning.
Leadership competencies differ from leadership traits in an important way: competencies can be developed, whilst traits tend to be more stable personal characteristics.
| Element | Nature | Example | Developability |
|---|---|---|---|
| Traits | Innate characteristics | Extraversion, openness | Relatively fixed |
| Competencies | Learned capabilities | Communication, delegation | Highly developable |
| Skills | Specific abilities | Public speaking, coaching | Directly trainable |
| Behaviours | Observable actions | Providing feedback | Immediately changeable |
This distinction matters because it means leadership effectiveness isn't determined by personality alone—leaders can deliberately develop the competencies that produce better outcomes.
Multiple frameworks exist for organising leadership competencies, but most converge on similar categories that address different aspects of leadership responsibility.
The Society for Human Resource Management (SHRM) and other major frameworks distinguish three competency categories:
1. Leading the Organisation Competencies focused on organisational direction and systems:
2. Leading Others Competencies focused on interpersonal effectiveness and team development:
3. Leading Self Competencies focused on personal effectiveness and growth:
The Center for Creative Leadership (CCL) adds a fourth category to address global complexity:
| Domain | Focus | Key Competencies |
|---|---|---|
| Leading Self | Personal effectiveness | Self-awareness, learning agility |
| Leading Others | Team and relationships | Communication, coaching |
| Leading the Organisation | Systems and strategy | Strategic thinking, change leadership |
| Leading Globally | Cross-cultural effectiveness | Cultural intelligence, virtual leadership |
This expansion recognises that contemporary leaders increasingly operate across geographic, cultural, and virtual boundaries.
Whilst comprehensive frameworks identify dozens of competencies, research consistently highlights certain capabilities as particularly critical for leadership effectiveness.
According to CCL research, four foundational leadership skills are needed regardless of industry or career stage:
These core skills are essential whether you're an individual contributor, a first-line manager, a mid-level leader, or a senior executive.
Beyond the fundamentals, several competencies emerge as particularly important:
Decision-Making Decision-making is at the core of a leader's responsibilities. A good leader knows when to make a decision independently, when to consult team members or peers, and when to step back and let others decide.
Emotional Intelligence Understanding and managing emotions—both your own and others'—enables effective relationship building, conflict resolution, and team motivation.
Coaching and Developing Others One of the key leadership competencies is the ability to be an effective coach—knowing when to push someone past their comfort zone, giving useful feedback when necessary, and helping people find their personal vision.
Strategic Thinking The capacity to see beyond immediate concerns, identify patterns and trends, and position the organisation for future success.
Adaptability The ability to adjust approaches, embrace change, and remain effective when circumstances shift unexpectedly.
Leadership competencies and management skills overlap but serve distinct purposes. Understanding the distinction helps organisations develop both capabilities appropriately.
| Dimension | Management Skills | Leadership Competencies |
|---|---|---|
| Primary focus | Task execution | People inspiration |
| Orientation | Operational efficiency | Strategic direction |
| Key activities | Planning, organising, controlling | Visioning, aligning, motivating |
| Success measures | Performance metrics | Engagement and transformation |
| Development path | Training and practice | Experience and reflection |
Certain capabilities serve both management and leadership functions:
Effective organisations need both strong management and strong leadership. Management ensures execution; leadership ensures direction. The most effective executives develop competencies in both domains, recognising when each serves best.
Leadership competency models provide frameworks that organisations use across multiple talent management functions.
Selection and Hiring Competency models inform interview questions, assessment exercises, and candidate evaluation criteria. By defining what competencies matter, organisations can evaluate candidates more objectively.
Performance Management Competencies provide clear ways to measure a leader's performance, making it easier to see where leaders are doing well and where they need to improve. This leads to fairer performance reviews.
Development Planning Competency assessment identifies specific development needs, enabling targeted interventions rather than generic training. Leaders can focus on competencies most relevant to their roles and career aspirations.
Succession Planning Competency models help organisations evaluate leadership bench strength and identify gaps. Potential successors can be assessed against competency requirements for target roles.
Promotion Decisions Rather than promoting solely on technical expertise or tenure, organisations can evaluate leadership competency readiness.
| Benefit | Description |
|---|---|
| Clarity | Everyone understands what effective leadership looks like |
| Consistency | Common language and standards across the organisation |
| Objectivity | Assessment based on observable behaviours, not impressions |
| Development focus | Clear targets for improvement efforts |
| Strategic alignment | Competencies reflect what the organisation actually needs |
Self-assessment provides starting point for development, though it should be supplemented with feedback from others.
Reflection Questions For each competency area, consider:
Behavioural Indicators Rate yourself against specific behaviours associated with each competency. For example, for communication:
360-Degree Assessment Gather perspectives from supervisors, peers, direct reports, and others who observe your leadership. Multiple viewpoints reveal blind spots that self-assessment misses.
Coaching Conversations Work with a coach or mentor who can provide objective observations and help interpret feedback.
Performance Data Examine concrete outcomes—team engagement scores, retention rates, goal achievement—that might indicate competency strengths and gaps.
When reviewing competency assessments:
Competency development requires deliberate effort across multiple learning channels. The 70-20-10 model suggests most leadership development occurs through experience (70%), relationships (20%), and formal learning (10%).
Stretch Assignments Take on challenges that require competencies you're developing. If building strategic thinking, seek opportunities to participate in planning processes.
Cross-Functional Projects Working across boundaries develops adaptability, influence, and communication competencies simultaneously.
New Situations Unfamiliar contexts force learning agility and reveal development needs that comfortable situations obscure.
Mentoring Learn from experienced leaders who've developed the competencies you're targeting. Their guidance accelerates development.
Coaching Work with a coach who provides feedback, accountability, and new perspectives on your development.
Peer Learning Engage with colleagues facing similar development challenges. Shared experience and mutual support enhance learning.
Training Programmes Build foundational knowledge and skills through structured learning experiences.
Reading and Research Deepen understanding of competency areas through books, articles, and case studies.
Feedback Integration Formal feedback mechanisms like 360 assessments provide structured input for development focus.
For each priority competency:
Abstract competency definitions become meaningful when connected to observable behaviours.
Ineffective Demonstration:
Effective Demonstration:
Ineffective Demonstration:
Effective Demonstration:
Ineffective Demonstration:
Effective Demonstration:
Leadership competencies are the knowledge, skills, and abilities that enable effective leadership. They include capabilities like communication, decision-making, emotional intelligence, strategic thinking, and developing others. Unlike personality traits, competencies can be developed through experience, relationships, and formal learning. They provide a framework for assessing and developing leaders at all levels.
Leadership skills are specific learned abilities (like public speaking or delegation), whilst competencies are broader combinations of knowledge, skills, and behaviours that produce effectiveness. A competency like "developing others" encompasses multiple skills (coaching, feedback, delegation) plus underlying knowledge and appropriate judgement about when to apply each. Competencies are more comprehensive than individual skills.
Research identifies self-awareness, communication, influence, and learning agility as foundational competencies needed at all career stages. Beyond these fundamentals, decision-making, emotional intelligence, strategic thinking, developing others, and adaptability emerge as particularly critical. The relative importance varies by role—senior leaders need stronger strategic competencies; front-line leaders need stronger coaching competencies.
Improve competencies through a combination of challenging experiences (70%), developmental relationships (20%), and formal learning (10%). Seek stretch assignments that require competencies you're developing. Work with mentors and coaches who provide feedback and guidance. Participate in training programmes that build knowledge and skills. Consistently seek and integrate feedback to calibrate your development.
Leadership competencies matter because they directly impact organisational performance. Competent leaders drive team performance, foster positive culture, and enhance employee engagement. Competency frameworks provide common language for selection, development, and succession planning. They enable objective assessment and create clear development targets. Organisations with strong leadership competencies outperform those without.
Assessment methods include self-evaluation, 360-degree feedback from multiple perspectives, behavioural interviews, assessment centre exercises, and performance data analysis. Effective assessment combines multiple methods—self-perception alone is insufficient. Assessment should evaluate observable behaviours, not just self-reported capabilities. Results should inform development planning rather than just evaluation.
Yes—leadership competencies can be developed through deliberate practice and appropriate experience. Research demonstrates that competencies improve when leaders receive feedback, engage in challenging experiences, and reflect on their learning. Some people may have natural advantages in certain competencies, but all can improve through focused development effort.
Leadership competencies provide the foundation for leadership effectiveness—they're what enables some leaders to inspire exceptional performance whilst others struggle despite similar positions and resources. The business benefits of developing leadership competency are clear: stronger team performance, healthier culture, higher engagement, and ultimately better organisational outcomes.
The encouraging reality is that these competencies can be developed. Unlike fixed traits, competencies respond to deliberate effort, challenging experience, and meaningful feedback. The leaders who invest in their development—who honestly assess their gaps and systematically address them—continuously expand their effectiveness.
For individuals, understanding leadership competencies clarifies what to develop and how to develop it. For organisations, competency frameworks provide structure for identifying, selecting, developing, and promoting leaders who can deliver results.
In a world that demands ever-more capable leadership, competency development isn't optional—it's the path to both personal effectiveness and organisational success.