Today, exceptional leaders not only possess strategic direction skills but must also possess empathy, inspire, motivate, and build a positive work environment, driven by a shared desire for success. Join SKALE in exploring 6 essential leadership and management competencies that enable team development, fostering individuals who are not merely ‘drivers’ but also coaches, shaping future leaders for the organization. Rather than just being ‘followers’, they play a crucial role in driving performance.
One of the key differentiators between managers and employees is team leadership competency. So, what is leadership competency? Leadership and management competency is a combination of an individual’s abilities and trained skills in managing, operating, and leading a team or organization to achieve common goals.
This competency includes both inherent qualities and skills developed through training and experience, such as inspiring and building plans, organizing, decision-making and oversight, results-oriented thinking, etc. Through these capabilities, managers can lead their teams to navigate unforeseen challenges and volatilities.
Developing leadership and management competencies within an organization requires continuous learning and in-depth training programs, which help bridge the gap between current performance and potential. In addition, in today’s rapidly changing business landscape, leaders should also prioritize digital transformation and fostering a culture of innovation.
Why Develop Leadership and Management Competencies?
To meet the increasingly demanding requirements of their roles within the organization, leaders need to continuously learn, train, and develop their capabilities. Developing leadership and management competencies brings many practical benefits, contributing to the organization’s success:
- Enhance Decision-Making Effectiveness: Competent leaders are equipped with strategic thinking and the ability to objectively analyze and evaluate information, thereby making wise decisions that align with the actual situation. As a result, organizations can overcome challenges, seize opportunities, and achieve stated goals.
- Boost Morale and Engagement: Good leaders inspire, motivate, and ignite passion in each individual. They build a positive work environment where every member feels respected, trusted, and can maximize their potential. As a result, employee morale is enhanced, contributing to the overall performance of the organization.
- Enhance Adaptability: Competent leaders always proactively learn, keep up with new knowledge, and adapt to changes in the business environment. As a result, they can guide the organization through turbulence and achieve long-term success.
- Build an Effective Corporate Culture: Leaders play a crucial role in building and disseminating corporate culture. Competent leaders will foster a positive culture that values collaboration, creativity, and innovation. As a result, the organization attracts talent, retains employees, and builds a competitive advantage in the market.
Leadership development is a continuous process of learning and training. Leaders can participate in training courses, learn from experienced individuals, or self-train through reading books and attending specialized seminars. In addition, organizations also need to create favorable conditions and provide supportive policies to encourage leaders to develop their capabilities.
List of 6 Leadership and Management Competencies to Drive Organizational Performance
To succeed in today’s highly competitive business environment, organizations need excellent leadership and management. These are individuals who possess the necessary competencies to lead and motivate employees to achieve common goals. Below are 5 leadership and management competencies that enhance organizational performance, based on research from Zenger Folkman – a leading US leadership development organization.
Establishes stretch goals
According to Zenger Folkman, a leading organization in leadership development, the ability to establish stretch goals plays a crucial role in enhancing leadership effectiveness and employee engagement. Their research has demonstrated that leaders who excel at setting challenging goals typically receive higher ratings for leadership effectiveness and possess more engaged teams.
Data collected from over 76,000 leaders shows that those rated highest in their ability to establish stretch goals (from 10% to 100%) have significantly higher scores for leadership effectiveness and employee engagement compared to those rated lowest (from 1% to 9%).
Drives for results
The “Drives for Results” competency is one of the core qualities emphasized by Zenger Folkman in their competency model. According to this reputable organization’s research, leaders who possess this competency typically achieve higher performance and have the ability to inspire and guide their teams to effectively achieve goals.
Zenger Folkman has observed an interesting trend: young managers under 30 often show a greater focus on results compared to previous generations. Specifically, in a survey of 4,298 managers over 45 and 455 managers under 30, the younger group was rated more positively on their ability to achieve results. This suggests that the dynamism and proactive spirit of young managers can be a significant factor contributing to their success.
Inspires and Motivates Others to Get High Performance
According to Zenger Folkman’s research, the ability to inspire and motivate others for high performance is one of the decisive factors differentiating excellent leaders from others. In one study, they analyzed 1,000 leaders with the highest scores in this competency and found that these leaders were able to generate high commitment and engagement from employees, leading to superior work performance.
Specific data from the study shows that inspiring leaders are able to increase employee satisfaction and reduce employee turnover rates. For example, the employee commitment rate is 20% higher and the turnover rate is 15% lower compared to leaders who lack the ability to inspire. This confirms that inspiring and motivating others is not just a soft skill but also directly impacts business results.
The research also indicates that inspiring leaders often possess strong communication skills, know how to listen, and show concern for employees. They regularly provide positive feedback and encourage the personal development of each individual. As a result, they create a positive work environment that fosters high performance.
Makes decisions
To affirm that decision-making is an essential leadership and management competency, Zenger Folkman has conducted numerous studies and collected data from thousands of leaders globally, to identify the qualities that determine sound decision-making ability.
One study indicates that leaders with strong decision-making abilities typically have a 25% higher success rate compared to those with limited skills in this area. They also found that these leaders are often able to analyze situations quickly, comprehensively evaluate options, and make decisions based on accurate data and information.
At the same time, Zenger Folkman also points out that effective decision-making not only depends on individual competency but also requires a supportive work environment where opinions and information are exchanged openly and transparently, contributing to increased confidence and strengthening leaders’ ability to make sound decisions.
Takes Initiative
An excellent leader not only needs strategic vision but must also possess the ability to take initiative in all situations. This is considered a key factor in guiding the organization through all challenges and achieving common goals.
Zenger Folkman’s research data analysis has indicated that leaders with high scores in initiative are often among the top 10% of excellent leaders. They not only complete tasks efficiently but also motivate their teams to achieve better results.
Research data also shows that proactive leaders often possess the ability to solve problems quickly and creatively. They do not wait for instructions from superiors but proactively seek solutions and take action themselves. As a result, the organization becomes more flexible, easily adapting to changes in the volatile business environment.
Solves Problems and Analyzes Issues
Based on data from over 1.5 million 360-degree assessments globally, Zenger Folkman has identified eight consistent behaviors of effective problem-solvers. These behaviors include the ability to anticipate and react quickly to problems, using good judgment in decision-making, and early detection of new trends and opportunities.
Another study by Zenger Folkman shows that women are often rated higher than men in problem-solving ability, although men are often rated higher in technical expertise. This indicates that problem-solving skills are not solely based on specialized knowledge but also depend on judgment and flexible response.
Thus, this article has highlighted 5 key leadership and management competencies that play a decisive role in driving business performance. Cultivating and developing these competencies for the leadership team is the key to elevating the organization to new heights, overcoming all challenges, and achieving sustainable success.
Leadership and Management Competencies to Drive Organizational Performance
In addition, to enhance leadership capabilities, collaborating with reliable organizations to offer tailored solutions is crucial. SKALE is a reputable entity in the field of human capability development in Vietnam, in exclusive partnership with Zenger Folkman, a leading US organization for leadership assessment and development.
Notably, the “Extraordinary Leaders” training program helps enhance leadership competencies by focusing on strengths and developing skills based on business needs. Contact SKALE to discover the assessment criteria for leadership and management competencies, and optimal leadership assessment and development programs for your organization.
>>> See more:
