Explore leadership skills vs competencies. Learn the key differences, when to use each framework, and how to develop both effectively.
Written by Laura Bouttell • Tue 4th November 2025
Leadership skills and competencies are often used interchangeably, yet they represent distinct concepts with different implications for development and assessment. Research from the Society for Human Resource Management indicates that organisations using competency-based frameworks achieve 25% higher leadership effectiveness than those using skill-based approaches alone. Understanding the difference between skills and competencies—and when each matters—enables more strategic approaches to leadership development and talent management.
This guide clarifies the distinction and provides practical guidance for applying both frameworks effectively.
Leadership skills are specific, learned abilities that enable leaders to perform particular tasks effectively. Skills represent what leaders can do—the capabilities developed through training, practice, and experience.
Characteristics of leadership skills:
Task-specific: Skills relate to particular activities. Communication skills apply to communication tasks; decision-making skills apply to decisions.
Observable: Skills can be demonstrated and assessed. Performance reveals skill levels.
Developable: Skills can be acquired and improved through deliberate practice and training.
Measurable: Skill proficiency can be assessed against defined standards.
Transferable: Skills often apply across contexts. Communication skills matter in any leadership role.
Common leadership skills include:
Leadership competencies are broader clusters of knowledge, skills, abilities, and behaviours that enable effective performance in leadership roles. Competencies represent not just what leaders can do but how they apply capabilities in context.
Characteristics of leadership competencies:
Integrative: Competencies combine multiple elements—knowledge, skills, behaviours, and sometimes values or traits.
Role-related: Competencies define requirements for effective performance in specific roles or contexts.
Behavioural: Competencies describe how capabilities are demonstrated in practice.
Developable: Competencies can be strengthened through varied experiences and targeted development.
Organisation-specific: Competency definitions often reflect organisational context and strategy.
Common leadership competencies include:
| Dimension | Skills | Competencies |
|---|---|---|
| Scope | Narrow, task-specific | Broad, integrative |
| Components | Single capability | Multiple elements |
| Focus | What you can do | How you perform |
| Context | Generally transferable | Often role-specific |
| Measurement | Proficiency levels | Behavioural indicators |
Skills and competencies relate in important ways:
Skills as components: Skills are often components within broader competencies. The "Leading Change" competency might include communication skills, influence skills, and planning skills.
Different levels: Skills represent granular capabilities; competencies represent higher-level performance patterns.
Complementary frameworks: Organisations may use both—competencies for role definition and assessment, skills for specific development targeting.
Development connection: Developing specific skills contributes to broader competency development. Strengthening communication skills builds the "Strategic Leadership" competency.
Skill focus is appropriate when:
Specific gaps exist: When particular capabilities need development. Communication training addresses communication skill gaps.
Tasks require attention: When specific tasks aren't performed well. Problem-solving training for leaders struggling with complex problems.
Quick development needed: Skills can often be developed faster than competencies. Targeted skill training produces quicker results.
Standardised training works: Skills often lend themselves to standardised development. Communication workshops work similarly across contexts.
Measurable improvement desired: Skill improvement is relatively easy to measure. Pre-post assessment shows skill gains.
Competency focus is appropriate when:
Roles are being defined: Competencies describe what effective performance looks like in specific roles.
Strategic alignment needed: Competencies can connect leadership development to strategic priorities.
Holistic development intended: Competencies encourage integrated development addressing knowledge, skills, and behaviours together.
Culture is being shaped: Competencies communicate expectations about how leaders should behave.
Selection decisions required: Competencies provide frameworks for assessing leadership potential and fit.
Performance management applies: Competencies structure leadership performance evaluation.
Confusing skills and competencies creates problems:
Insufficient development: Training skills alone may not develop the broader capability competencies represent.
Assessment gaps: Assessing skills doesn't capture whether competencies are demonstrated in practice.
Role mismatch: Hiring for skills may miss competency requirements for role success.
Narrow focus: Skill focus may neglect the behavioural and contextual elements competencies include.
Development fragmentation: Addressing skills without competency context produces scattered development.
Quality competency models share characteristics:
Strategic alignment: Competencies connect to organisational strategy and values. What leaders need reflects where the organisation is heading.
Behavioural specificity: Competencies are described through observable behaviours. Abstract competencies can't be developed or assessed.
Level differentiation: Competencies may vary by level. Executive competencies differ from front-line leader competencies.
Manageable number: Effective models include 8-12 competencies. Fewer lack comprehensiveness; more become unmanageable.
Evidence basis: Competencies are validated through research on what actually differentiates effective leaders.
Usability: Models must be practical for selection, development, and assessment applications.
Competency model development involves:
1. Clarify purpose: Define how the model will be used—selection, development, performance management.
2. Connect to strategy: Identify leadership capabilities required by organisational strategy.
3. Research excellence: Study what distinguishes high-performing leaders in your context.
4. Draft competencies: Create initial competency definitions with behavioural indicators.
5. Validate: Test whether competencies predict leadership effectiveness.
6. Communicate: Share the model broadly with clear explanations.
7. Integrate: Connect competencies to HR systems and processes.
8. Review: Periodically update the model as strategy and context evolve.
| Development Step | Key Activities | Output |
|---|---|---|
| Clarify purpose | Define applications | Usage framework |
| Connect to strategy | Identify strategic needs | Strategic competencies |
| Research excellence | Study effective leaders | Evidence base |
| Draft competencies | Write definitions | Draft model |
| Validate | Test predictive validity | Validated model |
| Communicate | Share broadly | Understood model |
| Integrate | Connect to systems | Applied model |
Skill assessment approaches include:
Performance tests: Direct demonstration of skills in controlled settings. Presentation skills assessed through actual presentations.
Situational exercises: Skill application in simulated scenarios. Decision-making skills assessed through case exercises.
Work samples: Review of actual work products demonstrating skills. Written communication assessed through actual documents.
Self-assessment: Individual evaluation of own skill levels. Useful for development planning though less reliable for evaluation.
Manager observation: Direct supervisors assess skill demonstration. Practical but potentially biased.
Skill inventories: Structured questionnaires about skill proficiency. Efficient but rely on self-report accuracy.
Competency assessment approaches include:
360-degree feedback: Multi-rater assessment of competency-related behaviours. Multiple perspectives provide comprehensive view.
Assessment centres: Multiple exercises simulating leadership situations. Trained assessors evaluate competency demonstration.
Behavioural interviews: Structured questions eliciting evidence of past competency demonstration. Past behaviour predicts future performance.
Performance review: Manager assessment of competency demonstration in role. Connected to ongoing performance.
Psychometric instruments: Assessments measuring underlying attributes related to competencies. Supplement behavioural data.
Development centres: Assessment-focused development experiences. Combine assessment with development.
| Assessment Type | Best For | Limitations |
|---|---|---|
| Performance tests | Specific skills | Controlled setting differs from work |
| 360-degree feedback | Competency behaviours | Rater biases possible |
| Assessment centres | Selection, development | Resource-intensive |
| Behavioural interviews | Hiring decisions | Past context may differ |
| Psychometric instruments | Underlying attributes | Don't assess actual performance |
Effective skill development involves:
Targeted training: Focused learning addressing specific skill gaps. Communication skills workshops for communication development.
Deliberate practice: Repeated skill application with feedback. Practice develops proficiency.
Coaching support: Individual guidance for skill improvement. Coaches provide personalised feedback.
On-the-job application: Opportunities to apply skills in actual work. Application cements learning.
Feedback loops: Regular input on skill demonstration. Feedback guides continued development.
Progress measurement: Assessment showing skill improvement. Measurement motivates and guides.
Effective competency development involves:
Experiential learning: Challenging assignments requiring competency application. Experience develops competencies most powerfully.
Integrated development: Addressing knowledge, skills, and behaviours together. Competencies require holistic development.
Multiple methods: Combining training, experience, coaching, and feedback. Single methods rarely develop competencies fully.
Long-term perspective: Competency development takes time. Quick fixes don't build deep capability.
Context relevance: Development connected to actual role challenges. Decontextualized development transfers poorly.
Reflection and learning: Processing experiences to extract learning. Experience alone doesn't develop competencies.
Support structures: Mentoring, coaching, and peer learning supporting development. Development is social.
Organisations benefit from using both frameworks appropriately:
Competencies for architecture: Use competencies to define what effective leadership looks like. Competency models provide the overall framework.
Skills for specificity: Use skills to identify specific development needs within competency areas. Skill focus enables targeted development.
Competencies for selection: Assess competencies when making hiring and promotion decisions. Competencies predict role success.
Skills for development planning: Identify skill gaps for individual development planning. Skill focus creates actionable plans.
Competencies for culture: Communicate competencies to shape leadership culture. Competencies signal expectations.
Skills for training design: Design training to build specific skills within competency areas. Skill focus enables practical training.
Common mistakes in applying these frameworks:
Using terms interchangeably: Treating skills and competencies as synonyms creates confusion. Be precise about which framework applies.
Developing skills without competency context: Building skills without connecting to broader competencies produces fragmented development.
Creating unmeasurable competencies: Abstract competencies that can't be assessed have limited utility. Ensure behavioural specificity.
Overcomplicating models: Too many competencies or skills become unmanageable. Keep frameworks practical.
Ignoring context: Generic frameworks may not fit specific organisational needs. Customise appropriately.
Static approaches: Frameworks become outdated. Update as strategy and context evolve.
Leadership skills are specific, learned abilities enabling particular tasks—like communication or decision-making. Competencies are broader clusters combining knowledge, skills, abilities, and behaviours that enable effective role performance—like "leading change" or "strategic leadership." Skills are components within competencies; competencies describe integrated performance patterns.
Both matter. Skills provide specific capabilities leaders need. Competencies describe how those capabilities combine for effective performance in context. Focus on competencies for role definition, selection, and holistic development. Focus on skills for targeted development of specific gaps. Most organisations benefit from using both frameworks appropriately.
Assess leadership competencies through: 360-degree feedback gathering multi-rater perspectives, assessment centres using simulated leadership situations, behavioural interviews exploring past competency demonstration, performance reviews evaluating on-the-job behaviours, and psychometric instruments measuring underlying attributes. Multiple methods provide comprehensive assessment.
Important leadership competencies vary by context but commonly include: strategic leadership, leading change, building and developing teams, driving results, collaboration and influence, business acumen, and innovation. Effective competency models connect to organisational strategy—the most important competencies are those enabling strategic success.
Develop leadership competencies through: challenging experiences requiring competency application, targeted training addressing specific knowledge and skill elements, coaching providing personalised feedback and support, mentoring offering guidance from experienced leaders, and reflection processing experiences to extract learning. Competency development requires multiple methods over extended time.
A competency model is a framework defining the competencies required for effective performance in an organisation or role. Quality models include 8-12 competencies, connect to strategy, describe competencies through observable behaviours, differentiate by level where appropriate, and integrate with HR processes for selection, development, and performance management.
Generally yes. Skills represent specific capabilities that can often be developed through targeted training and practice. Competencies represent integrated performance patterns requiring development of multiple elements—knowledge, skills, behaviours—in combination. Skill development happens faster; competency development requires longer-term, multi-faceted approaches.
Leadership skills and competencies represent related but distinct concepts. Skills are specific capabilities; competencies are integrated performance patterns. Both matter for leadership effectiveness.
Use competency frameworks to define what effective leadership looks like, guide selection decisions, and shape leadership culture. Use skill frameworks to identify specific development needs, design targeted training, and measure capability improvement.
Understanding when each framework applies enables more strategic approaches to leadership development. Neither alone suffices—effective organisations use both appropriately.
Define competencies strategically. Develop skills deliberately. Build leadership capability comprehensively.