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Leading an organization has never been an easy task, and there has never been an "easy" time to be a leader. But in recent years, leaders have had to navigate far more change and shoulder a far heavier burden. First, the pandemic and remote work created a big disconnect in the workforce, then return-to-office policies created an even bigger sense of distrust among employees who had begun to enjoy the flexibility of remote or hybrid work. Meanwhile, disruptive technologies such as generative AI are posing an existential threat to individual workers and the businesses—or even entire industries—that employ them.
Clarifying leadership with competencies
Defining leadership using competencies can help your organizational leaders understand what their employees, investors, and other stakeholders need from them. It can also help those leaders take specific actions that enable them to excel in their roles.
Here are some of the main benefits of applying competencies to leadership profiles.
Clarity and consistency: Clearly defined competencies provide a consistent understanding of what is expected from leaders across the organization. This can lead to greater consistency in leadership behaviors and practices, making it easier to establish and maintain a strong leadership culture.
Objective assessment: The competency-based approach allows for a more objective assessment of leadership performance. Rather than relying on subjective judgments or perceptions, leaders can be evaluated based on their demonstration of specific, observable competencies.
Personalized development: By identifying the specific competencies that each leader needs to develop, it becomes possible to provide more personalized and targeted development opportunities. This can improve the efficiency and effectiveness of leadership development efforts.
Improved selection processes: Using competencies as a basis for selecting leaders can lead to more effective recruitment and selection processes. Candidates can be evaluated based on their potential to develop the necessary competencies, rather than simply their past experience or qualifications.
Succession planning: Competency-based leadership also supports effective succession planning. Potential future leaders can be identified based on their existing competencies and their potential to develop further, helping to ensure the organization's leadership pipeline remains strong.
Increased employee engagement: When leaders consistently demonstrate key competencies, it can lead to increased employee engagement and morale. This, in turn, can lead to improved productivity, lower turnover, and higher job satisfaction.
Alignment with organizational goals: By linking leadership competencies directly with organizational outcomes and goals, competency-based leadership helps ensure that leadership practices are aligned with the strategic direction of the organization.
Helping leaders evolve and succeed
One of the greatest advantages of using competencies to define leadership is that the resulting competency profiles can be used to drive the full range of talent-management activities. These activities support the development and successful performance of the organization's leaders as well as the achievement of specific organizational outcomes and goals.
Selection and recruitment: Choosing leaders based on their existing competencies or potential to develop them.
Performance management: Assessing leaders' performance based on their demonstration of key competencies.
Training and development: Providing opportunities for leaders to develop the competencies they need to be effective.
Succession planning: Identifying potential future leaders based on their competencies.
Career development: Helping leaders to plan their careers based on their current competencies and future aspirations.
This model of leadership is intended to provide a clear framework for effective leadership, promote consistency across an organization, and facilitate the development of leaders. However, it's important to note that it also needs to be flexible and adaptive to the specific needs and culture of the organization.
A future built on leadership competencies
The leaders of today have already weathered extraordinary events. But the future looks equally challenging, as trends such as remote/hybrid work, climate change, economic volatility, and technological change continue to generate unpredictable consequences for the business world.
The competencies these leaders will need to navigate these challenges will depend on the organizational culture, industry, and other factors, but these three competencies are among the most valuable for leaders facing the kind of rapid technological and cultural change the future will bring.
Adaptability - Adapting in order to work effectively in ambiguous or changing situations, and with diverse individuals and groups.
Acting with empathy and compassion - Genuinely seeking to understand and respect others’ perspectives and emotions; encouraging a culture of compassion, empathy and support within and beyond the organization.
Inspiring others - Energizing and inspiring others to strive for excellence and commit to common goals and purposes, creating a sense of self-efficacy, resilience, and persistence in followers.
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