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Leadership Skills

Leadership Skills That Matter: Essential Competencies for Success

Discover the leadership skills that matter most. Learn essential competencies that separate effective leaders from the rest and how to develop them.

Written by Laura Bouttell • Sat 10th January 2026

The leadership skills that matter most include communication, self-awareness, empathy, integrity, decision-making, and strategic thinking—research from the Center for Creative Leadership confirms that these competencies distinguish effective leaders from those who struggle, with communication consistently ranking as the foundational capability upon which other skills depend. Understanding which skills truly matter enables focused development that produces measurable results.

Leadership skills proliferate across countless lists and frameworks, creating confusion about where to focus development efforts. Not all skills carry equal weight. Some capabilities prove essential across virtually all leadership contexts; others matter in specific situations. Executives who invest development time wisely concentrate on skills that deliver the greatest impact for their particular roles and challenges.

This guide examines the leadership skills that research and practice confirm as genuinely essential, explaining why each matters and how to develop it effectively.

Core Communication Skills

Communication forms the foundation of all leadership effectiveness.

Why Communication Matters Most

"Effective leaders are strong communicators, adept at articulating goals, speaking in public and at listening, which is just as important as speaking. Communication skills are among the top soft skills you'll need as a leader."

Communication enables:

Communication Dimensions

Dimension Application
Verbal Meetings, presentations, conversations
Written Emails, reports, proposals
Listening Understanding, empathy, gathering input
Non-verbal Body language, presence, tone
Public Speaking Town halls, conferences, media

Developing Communication Skills

Development approaches:

  1. Seek Feedback - Ask for specific input on communication effectiveness
  2. Practice Deliberately - Take every speaking opportunity
  3. Study Excellence - Observe and learn from effective communicators
  4. Adapt Audiences - Adjust style for different stakeholders
  5. Listen Actively - Focus on understanding before responding

Self-Awareness and Emotional Intelligence

Understanding yourself enables understanding and leading others.

The Self-Awareness Foundation

"Self-awareness is the understanding of yourself, including personality traits, behaviors, anxieties, and emotions. While this is a more inwardly focused trait, self-awareness and humility are paramount qualities of leadership. The better you understand yourself and recognize your own strengths and weaknesses, the more effective you can be as a leader."

Self-awareness includes:

Emotional Intelligence Components

"Emotional Aperture captures the ability to understand and tune into the emotional dynamics of your people. It's about reading the room, gauging the collective mood, and recognizing the emotional landscape of your team."

EI dimensions:

Component Definition Application
Self-Awareness Recognising own emotions Managing reactions
Self-Regulation Controlling impulses Maintaining composure
Motivation Internal drive Sustaining effort
Empathy Understanding others Building relationships
Social Skills Managing relationships Influencing effectively

Building Self-Awareness

Development practices:

  1. Seek 360 Feedback - Gather perspectives from all directions
  2. Reflect Regularly - Schedule time for self-examination
  3. Work with a Coach - Get objective external perspective
  4. Journal - Record observations and insights
  5. Request Real-Time Feedback - Ask for input in the moment

Empathy and Relationship Building

Connection with others drives engagement and results.

Why Empathy Matters

"Leaders who practice empathy in the workplace are more successful than those who don't. They care about their employees' wellbeing which is why they tend to have stronger relationships with their teams."

Empathy enables:

Relationship Building Skills

"Relationship building is potentially one of the most important skills in a leadership role as it makes the communication of tasks, responsibilities and goals more effective. Once you understand each other, you will benefit by being able to assess strengths, delegate tasks and complete your goals more seamlessly."

Relationship capabilities:

Developing Empathy

Empathy development approaches:

  1. Listen to Understand - Focus on the other person's perspective
  2. Ask Questions - Seek to learn about others' experiences
  3. Suspend Judgment - Avoid immediate evaluation
  4. Observe Non-Verbals - Notice what isn't being said
  5. Practice Perspective-Taking - Imagine others' positions

Integrity and Values-Based Leadership

Character forms the bedrock of sustainable leadership.

The Centrality of Integrity

"Integrity is at the top of the list as one of the most critical leadership qualities. According to the Center for Creative Leadership, integrity is particularly critical for those who wish to serve in an executive leadership position. A leader with integrity is honest and relies on their own moral compass and values to make decisions for the organization."

Integrity encompasses:

Building Trust Through Integrity

Trust-building behaviours:

Behaviour Impact
Keeping Promises Reliability established
Admitting Mistakes Authenticity demonstrated
Sharing Credit Team valued
Maintaining Confidences Safety created
Acting Consistently Predictability provided

Demonstrating Integrity

Practical applications:

  1. Say What You Mean - Be direct and honest
  2. Do What You Say - Follow through on commitments
  3. Own Your Mistakes - Acknowledge when wrong
  4. Give Credit Generously - Recognise others' contributions
  5. Stand for Principles - Maintain values under pressure

Decision-Making and Problem-Solving

Leaders must make good decisions and solve problems effectively.

Decision-Making Importance

"Decision-making is a critical component of great leadership, and the best leaders can swiftly make clear and fair decisions. When you are in a leadership position, your team is relying on you. You are the person that they look to for guidance."

Decision-making requirements:

Problem-Solving Skills

"Good leaders are skilled at problem-solving issues that arise on the job. Effective problem solving often requires staying calm and identifying a step-by-step solution. Problem-solving skills can help leaders make quick decisions, resolve obstacles with their team and external teams alike, and ensure projects are completed on time."

Problem-solving process:

  1. Define the Problem - Clarify what needs solving
  2. Gather Information - Collect relevant data
  3. Generate Options - Brainstorm possibilities
  4. Evaluate Alternatives - Assess pros and cons
  5. Decide and Act - Choose and implement
  6. Review Results - Learn and adjust

Improving Decision-Making

Development strategies:

Strategic and Innovative Thinking

Leaders must see the big picture and drive progress.

Strategic Thinking

"Great leaders can see the bigger picture. They know how to think strategically and in the best interest of the business."

Strategic thinking involves:

Innovation Skills

"When thousands of Americans evaluated 30 traits to determine their importance in being a successful leader, innovation was ranked high on the list. Innovation is vital for staying competitive and driving progress."

Innovation capabilities:

Developing Strategic Perspective

Strategic thinking development:

  1. Read Widely - Consume diverse information sources
  2. Network Externally - Learn from other industries
  3. Study Competitors - Understand competitive dynamics
  4. Think Long-Term - Consider extended time horizons
  5. Challenge Assumptions - Question accepted wisdom

Continuous Learning Orientation

The best leaders never stop developing.

Why Continuous Learning Matters

"Perhaps the most important characteristic of good leaders is that they're continuous learners. They put their education first, whether through formal learning like building their skills through management degree programs or through day-to-day attention to other departments and roles. A good leader always wants to know more."

Learning orientation demonstrates:

Learning Approaches

Development methods:

Approach Examples
Formal Learning Degrees, certifications, courses
Experiential Learning Stretch assignments, new roles
Social Learning Mentoring, coaching, networking
Self-Directed Reading, reflection, observation
Feedback-Based 360 reviews, performance discussions

Cultivating Learning Habits

Practical learning practices:

  1. Schedule Learning Time - Protect development time
  2. Read Regularly - Books, articles, research
  3. Seek Challenging Assignments - Volunteer for stretches
  4. Find Mentors - Learn from experienced leaders
  5. Reflect on Experience - Extract lessons deliberately

Skill Development Priorities

Focus development efforts strategically.

Assessing Current Capabilities

Self-assessment approach:

  1. Identify role requirements
  2. Gather feedback from stakeholders
  3. Compare against skill frameworks
  4. Identify significant gaps
  5. Prioritise development focus

Development Planning

Effective development planning:

Measuring Progress

Progress indicators:

Frequently Asked Questions

What are the most important leadership skills?

The most important leadership skills include communication (verbal, written, listening), self-awareness and emotional intelligence, empathy and relationship building, integrity and values-based decision making, decision-making and problem-solving, and strategic thinking. Communication consistently ranks as foundational, with other skills building upon this capability.

What leadership skills matter most for executives?

For executives, strategic thinking, decision-making under uncertainty, stakeholder management, and executive presence matter most. Executives must also demonstrate integrity, build relationships across complex organisations, and communicate effectively with boards, investors, employees, and external audiences simultaneously.

How do I develop leadership skills that matter?

Develop leadership skills through a combination of experiential learning (stretch assignments, new roles), formal education (courses, certifications), social learning (mentoring, coaching), self-directed study (reading, reflection), and feedback-based development (360 reviews, coaching). Focus on 2-3 priority skills rather than attempting comprehensive development.

Which leadership skills can be learned?

All leadership skills can be learned and developed, though some may come more naturally to certain individuals. Research confirms that leaders are made rather than born, with effective development approaches producing measurable improvement in communication, decision-making, emotional intelligence, and other critical competencies.

What is the difference between leadership skills and management skills?

Leadership skills focus on inspiring, influencing, and guiding others toward vision and change. Management skills focus on planning, organising, and controlling resources for operational effectiveness. Both matter, but leadership skills emphasise people and direction whilst management skills emphasise systems and execution.

How do I know which leadership skills to develop?

Identify which leadership skills to develop by gathering feedback (360 reviews, stakeholder input), assessing role requirements, comparing against frameworks, and honest self-reflection. Focus on skills that will most impact your effectiveness and that address your most significant gaps relative to current or aspired responsibilities.

Can emotional intelligence be developed?

Yes, emotional intelligence can be developed through deliberate practice. Development approaches include seeking feedback, working with coaches, practicing self-regulation techniques, deliberately building empathy through perspective-taking, and reflecting on emotional patterns and their impacts. Improvement requires sustained effort over time.