Leadership competences, or what makes a good leader?

Leadership competences, leadership skills, leadership abilities - are they the same thing or is there a difference? In this article, we not only look at the answers to these questions, but also at the most important leadership competencies. 

Competence, skill, ability - what is the difference?

The meaning and use of these three terms are often confused in common parlance - but they are not actually exactly the same. 

Ability is the set of physical and knowledge factors and conditions needed to perform an activity. Capability is the ability to perform an activity effectively. For example, all healthy people over the age of three have the ability to ride a bicycle.

A skill is the ability to function automatically through frequent repetition of an activity, without conscious recall. To use the previous example, when someone is already riding a bicycle safely, routinely and automatically, they are operating at a skill level.

Of the three, competence is the broadest concept. Competences are the skills, competences and aptitudes that enable someone to perform tasks and solve problems effectively in a given area. So, competence is not synonymous with ability, but with the ability to perform complex tasks effectively in a given context.

Competence includes the skills needed to solve problems:

  • knowledge, 
  • physical abilities, 
  • skills, 
  • skills 
  • and personal qualities. 

Having clarified the meaning of these three basic concepts, let's look at the most important leadership competences. 

Key leadership competences

  • Self-awareness, self-control

It is not by chance that the Delphoi oracle's façade reads "Know thyself". The text was longer, according to tradition, and included the words "Be master of your soul".

A good leader doesn't get carried away in unexpected situations, and doesn't get carried away by emotions and emotions. They also lead by example. Self-awareness and self-control are essential. 

  • Perseverance, determination, determination

One of the most important characteristics of a good leader is that the collective or organisation he or she leads reliably delivers results, "delivers the numbers". Come rain or shine. 

This requires both the right professional skills and a certain confidence. In other words, a determined, goal-oriented attitude that enables the manager to positively influence the performance of the organisation under his or her control, even in adverse circumstances. 

  • Decision-making

As well as risk-taking, perhaps the most important characteristic of a good leader is the ability to make decisions quickly and decisively. He or she does not spend too much time reflecting before making a decision, even under pressure, and this requires the ability to cope with stress. A competent leader also has a good sense of when it is appropriate to make decisions alone and when to involve others. 

  • Problem-solving skills 

The solution to unexpected situations and unforeseen problems is often left to the leader. Questions that could not be answered at lower levels of the company hierarchy also require the intervention of the manager. Paradoxically, good problem-solving skills require a solution-oriented mindset. 

  • Strategic thinking

A good leader thinks in larger scales and perspectives, and part of this attitude is proactivity and strategic thinking. The goals of the organisation or department he or she manages are long-term and are part of a well thought-out strategy. The strategy can then be broken down into smaller objectives, activities and tasks, thus setting the framework and direction for day-to-day operations. 

  • Communication skills, networking

For an organisation made up of different units to function well, it is essential that cooperation between sub-units is as effective as possible. This requires a leader who can find common ground with everyone and who can resolve any conflicts of interest and conflicts effectively and permanently. 

Good communication skills are therefore essential for the organisation to work as a team. But it also has a significant impact on the effectiveness of negotiations with partners, competitors, authorities, etc. 

  • Skills to motivate others

A good leader knows that the key to effective operations is the efficient, well-oiled work of his or her subordinates. An unmotivated employee not only suffers a decline in his or her own performance, but also affects the company as a whole. However, with the ability to motivate others, a manager can push a low-performing employee through the difficulties. This in turn will stabilise and improve their performance in the long term. 

Management competences at different levels of the company hierarchy

There can be significant differences in managerial competences depending on the level of the manager in the company hierarchy. 

Team leader competences

The first step up the corporate ladder is when someone is promoted from a "rank and file" employee to a team leader. At this level, the following leadership competencies are the most important:

  • avoiding over-management, micromanagement and the ability to delegate tasks,
  • supporting and motivating the development of subordinates,
  • excellent conflict management,
  • receptiveness to feedback, feedback.

Middle management competences

A middle manager faces many new challenges and expectations compared to a team leader. For example, the people they manage are themselves managers. In addition, as a middle manager, you may inherit a number of dysfunctional or hindering circumstances from your predecessor. As a middle manager, you may also find yourself in a number of difficult decision-making and conflict situations (e.g. downgrading a team leader to an employee, managing redundancies, etc.)

The leadership competences required for a middle manager:

  • analytical approach,
  • selecting information, identifying trends, 
  • good planning skills, 
  • outstanding decision-making skills,
  • conflict tolerance, effective conflict management, 
  • risk appetite, 
  • autonomy, responsibility.

Senior management competences

Senior managers make much riskier decisions, with high stakes and high consequences. Their decisions can affect the fate of many workers (whether in the form of redundancies or job cuts), but they can also be the starting point for huge capital movements, stock market movements, for example in the case of a takeover of a competitor. 

Accordingly, at the top management level, the following leadership competences are the most prominent:

  • strategic approach, 
  • excellent forecasting ability, ability to anticipate future trends,
  • excellent communication and negotiation skills, 
  • an open mindset,
  • receptiveness to innovation, change and their implementation, 
  • crisis management competences, 
  • financial acumen, 
  • a willingness to streamline operations and increase efficiency, 
  • excellent stress tolerance, 
  • determination, perseverance, persistence,
  • competitive personality.

The most important leadership skills and competences were mentioned in our article, but of course some of the leadership skills were left out. In a way, this is understandable, as it is almost impossible to list all the leadership competences. However, we are confident that the leadership qualities included in this article have helped to outline what a good leader looks like. 

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