Understand the difference between leadership skills and competencies. Learn how they relate, why the distinction matters, and how to develop both effectively.
Written by Laura Bouttell • Fri 9th January 2026
Leadership skills and competencies are related but distinct concepts—skills are specific learned abilities, while competencies are broader combinations of skills, knowledge, and behaviours that enable effective performance in particular contexts. Understanding this distinction matters significantly for development, assessment, and talent management. Confusing the two leads to incomplete development programmes and misaligned performance expectations.
The terminology confusion pervades organisations. HR departments create "competency frameworks" that list skills. Training programmes promise "competency development" while teaching isolated skills. Assessment centres measure competencies but report skill scores. This conceptual muddle undermines effective leadership development.
Clarity serves everyone. When you understand what competencies actually comprise and how skills relate to them, you can design better development approaches, assess leadership potential more accurately, and build capability more efficiently.
Leadership skills are specific, discrete abilities that enable particular leadership actions. They represent learnable capabilities focused on defined tasks or functions.
Skills are relatively narrow capabilities that can be isolated, taught, and assessed independently. Communication skill, for instance, involves specific techniques for conveying information effectively. Strategic thinking skill involves analytical approaches for understanding competitive dynamics. Each skill represents a distinct ability.
Key Characteristics of Skills:
| Category | Example Skills | Development Methods |
|---|---|---|
| Cognitive | Analysis, problem-solving, decision-making | Training, practice, feedback |
| Interpersonal | Communication, negotiation, influence | Practice, coaching, role-play |
| Technical | Financial analysis, industry knowledge, technology | Education, experience, study |
| Self-Management | Time management, stress management, self-awareness | Coaching, reflection, practice |
Skills can be developed relatively independently. You might improve presentation skills without changing your strategic thinking. You might build negotiation capability without enhancing your financial literacy. This modularity makes skills accessible development targets.
Competencies are integrated combinations of skills, knowledge, behaviours, and attitudes that enable effective performance in specific roles or situations. They represent holistic capability packages.
Competencies go beyond single skills to encompass everything needed for effective performance in particular domains. "Strategic Leadership" as a competency includes strategic thinking skills, industry knowledge, change management behaviours, comfort with ambiguity, and the judgement to know when and how to apply these elements.
Key Characteristics of Competencies:
Every competency comprises multiple elements working together:
The whole exceeds the sum of parts. Possessing all the skills within a competency doesn't guarantee competent performance—integration and judgement matter enormously.
Skills and competencies exist in hierarchical relationship. Skills are components; competencies are composites. Understanding this relationship clarifies how to develop each.
| Dimension | Skills | Competencies |
|---|---|---|
| Scope | Narrow, specific | Broad, integrated |
| Components | Single capability | Multiple skills + knowledge + behaviours |
| Context | Generally transferable | Often context-specific |
| Assessment | Can be tested directly | Require holistic evaluation |
| Development | Focused training | Integrated development |
Consider the competency "Change Leadership":
Underlying Skills:
Required Knowledge:
Associated Behaviours:
Supporting Attitudes:
Judgement Elements:
Someone might possess excellent communication skills yet lack Change Leadership competency because they miss the knowledge, attitudes, or judgement to integrate skills effectively.
Understanding the skills-competencies distinction has practical implications for multiple leadership activities.
Skills Development Skills respond well to focused training. A presentation skills workshop can genuinely improve presentation capability. Deliberate practice with feedback builds specific abilities efficiently.
Competency Development Competencies require broader, longer-term development. You cannot build "Change Leadership" competency through a workshop. It requires experience leading change, reflection on that experience, feedback from others, knowledge acquisition, and the integration of multiple skills through practice.
Development Design Effective leadership development programmes distinguish between skill building (focused, efficient, training-based) and competency development (integrated, experiential, long-term). Treating competencies as skills leads to superficial development that doesn't transfer to performance.
Skills Assessment Skills can be assessed through direct demonstration or testing. Can you analyse this financial statement? Can you deliver a persuasive presentation? Skill assessments have clear criteria and relatively objective evaluation.
Competency Assessment Competencies require holistic evaluation against performance standards. Does this person demonstrate effective Change Leadership? Assessment requires evidence across situations, multiple perspectives, and judgement about integration and application.
Assessment Design Assessment approaches should match what they measure. Skill assessments suit tests, demonstrations, and structured exercises. Competency assessments require observation over time, multi-source feedback, and expert judgement.
Hiring Decisions Skills predict task performance; competencies predict role effectiveness. For senior roles where integration and judgement matter most, competency assessment provides more relevant information than skill testing alone.
Succession Planning Identifying future leaders requires competency assessment. Skills can be developed quickly; competencies require longer development trajectories. Succession candidates need competency potential, not just current skill levels.
Performance Management Performance expectations should reflect competencies for the role. Evaluating leaders solely on skills misses the integration and judgement that distinguish effective leadership.
Since competencies comprise multiple elements, development must address all components and their integration.
Step 1: Clarify the Target Competency Define precisely what competent performance looks like. What skills, knowledge, behaviours, and attitudes comprise this competency? What does effective demonstration look like?
Step 2: Assess Current State Evaluate current capability across all competency components. Which skills are strong? Which knowledge gaps exist? What behaviours need development? What attitudes require adjustment?
Step 3: Build Component Skills Develop underlying skills through appropriate methods. Training, practice, coaching, and feedback build discrete capabilities that competency requires.
Step 4: Acquire Relevant Knowledge Fill knowledge gaps through reading, courses, mentoring, and experience. Competent performance requires understanding, not just ability.
Step 5: Practice Integration Apply skills and knowledge together in realistic situations. Competency develops through integrated practice, not isolated skill application.
Step 6: Develop Judgement Build judgement through experience, reflection, and feedback. Knowing when and how to deploy capabilities comes from practice with guidance.
Step 7: Seek Feedback Gather multi-source feedback on competency demonstration. Others' perspectives reveal blind spots and validate development progress.
Most organisations employ competency frameworks to structure leadership expectations and development. Understanding framework purposes helps you engage with them effectively.
Common Language Frameworks provide shared vocabulary for discussing leadership expectations. Everyone means the same thing when discussing "Strategic Thinking" or "People Development."
Performance Standards Frameworks define what good looks like. They translate abstract leadership ideals into observable, assessable competencies.
Development Guidance Frameworks indicate where to focus development effort. They prioritise competencies for different role levels and functions.
Selection Criteria Frameworks inform hiring and promotion decisions. They specify the competencies required for particular roles.
Competency frameworks help but don't guarantee effective leadership development:
Competency assessment requires different approaches than skill assessment. Multiple methods and perspectives provide the most valid evaluation.
Behavioural Interviews Structured interviews exploring past competency demonstration. Questions probe specific situations, actions, and results to reveal competency patterns.
Multi-Source Feedback Perspectives from bosses, peers, reports, and others who observe competency demonstration. Different viewpoints reveal consistent patterns and contextual variations.
Assessment Centres Multiple exercises simulating leadership situations. Trained assessors evaluate competency demonstration across scenarios.
Performance Data Actual results and outcomes reflecting competency application. Track record indicates competency effectiveness over time.
Development Centres Assessment combined with feedback and development planning. Identifies competency strengths and development priorities.
No single method captures competencies fully. Effective assessment combines:
| Method | Strengths | Limitations |
|---|---|---|
| Behavioural Interview | Past behaviour evidence | Self-report bias |
| Multi-Source Feedback | Multiple perspectives | Perception-based |
| Assessment Centre | Controlled observation | Artificial context |
| Performance Data | Actual results | Attribution challenges |
Triangulating across methods provides the most accurate competency assessment.
Skills are specific, learnable abilities focused on particular tasks—like communication or analysis. Competencies are broader combinations of skills, knowledge, behaviours, and attitudes that enable effective performance in particular contexts. Skills are components; competencies are composites. You might possess all skills within a competency yet lack competent performance because integration and judgement are missing.
Competencies necessarily include skills as components. You cannot demonstrate "Strategic Leadership" competency without underlying strategic thinking skills. However, possessing skills doesn't guarantee competency—you also need knowledge, appropriate behaviours, supporting attitudes, and the judgement to integrate everything effectively in context.
Competency development typically requires months to years rather than days to weeks. Skills can often be built quickly through focused training, but competencies need experience, practice, reflection, and integration. Expect significant competency development to require sustained effort over extended periods, usually including practical application in real leadership situations.
Most organisations benefit from using competencies in job descriptions, particularly for leadership roles, while recognising that specific skills may also be required. Competencies communicate holistic expectations for role success. Essential skills can be listed separately when specific technical capabilities are mandatory. The combination provides clearest guidance for candidates and hiring decisions.
Most competency frameworks define expected competency levels by organisational level. Entry-level roles might require basic demonstration of fewer competencies. Senior roles typically require advanced demonstration across more competencies. Frameworks usually provide level descriptions indicating what competency looks like at different career stages, guiding both development and assessment.
Both. Certain core competencies apply broadly across leadership contexts—like communication effectiveness or decision-making capability. However, specific competency requirements vary by industry, organisation, function, and level. Effective leaders understand universal requirements while adapting to contextual specifics. Development should address both core and context-specific competencies.
Multi-source feedback provides valuable insight into competency gaps. Seek perspectives from those who observe your leadership—bosses, peers, direct reports. Compare their assessment against role requirements in your organisation's competency framework. Self-reflection, performance reviews, and formal assessments like 360-degree feedback or development centres provide additional perspective on where gaps exist.
The distinction between skills and competencies isn't semantic—it fundamentally shapes how we develop, assess, and think about leadership capability. Skills are necessary but insufficient; competencies represent the integrated capability that actually drives leadership effectiveness. Development must address both: building skills efficiently while cultivating competencies through experience, integration, and judgement development. Organisations that understand this distinction design more effective leadership development and make better talent decisions.