Category: Behavioral Economics.

Becoming a great leader means honing in on the actions that create one. Leadership is essential in driving meaningful change and progress in every organization, and techniques must adapt to the specific context and the phase of business development.

Read on to learn and master the essential leadership qualities and styles that can help you tackle any challenge.


Leadership is an achievement of trust.

Peter Drucker

What is Leadership?

Leadership is influencing a group of individuals to work toward a common objective. In a professional setting, leadership may entail leading coworkers and employees with a plan to meet the organization’s needs or business strategy.

Leadership occurs among people who hold designated leadership roles and at all levels of organizations. Thus, no matter the position you have in a company, with the right abilities, you may influence others to follow you.

Leadership is a skill you can develop and not a personality trait. Many people who exercise leadership need more formal authority, while some people in positions of formal authority need to be more effective leaders. Leadership, therefore, is more of your actions rather than something you are.

Influential leaders often employ several leadership qualities, including the following.

  • Creativity
  • Foresight
  • Motivation
  • Empathy
  • Good communication
  • Emotional intelligence


Leadership Styles

It is possible to motivate team members and accomplish goals using a variety of leadership styles. There are various styles of leadership, but there are eight that are most prominent.

The following are optional leadership styles you can utilize on your leadership journey.

1. Democratic leadership

This leadership approach involves the team leader asking each team member for their views and considering their thoughts before making a final decision. Each individual gets involved in decision-making. Democratic leadership can improve engagement, job satisfaction, and group spirit.

2. Autocratic leadership

This leadership style involves the leader making decisions without seeking input from the other members. The autocratic leadership style, often called an authoritarian style, works well when there is a need for quick decision-making.

3. Bureaucratic leadership

Bureaucratic leadership is a “by the books” type of leadership. Bureaucratic leaders adhere to business policy and procedures and establish clear guidelines. This method of leadership is steady, organized, and works well in organizations with strict regulations.

4. Laissez-Faire leadership

Laissez-faire leadership is a “hands-off” style of leadership in which the leader delegates decision-making and responsibility to the team with little interference or oversight. This leadership style can promote creativity and innovation by enabling people to pursue their hobbies and interests.

5. Charismatic leadership

Charm and personality are vital qualities for charismatic leaders in motivating team members and communicating targets. These leaders are exceptionally skilled at motivating team members through an upbeat speech or contagious enthusiasm.

6. Transformational leadership

The desire of the leader to enhance or “transform” the business defines the transformational leadership style. Leaders who practice this style usually aim to inspire their team members to improve or streamline organizational procedures.

With this strategy, company growth comes above all else, and the leader spends time on the overall company objectives rather than the small details of management.

7. Transactional leadership

Offering rewards for successful performance and disciplinary measures or penalties for subpar performance constitutes a transactional leadership approach. Transactional leadership can be a highly strategic tactic when you need to meet specific performance-related criteria.

8. Servant leadership

Servant leadership puts the well-being of team members above all else. Servant leaders believe people’s personal and professional contentment will lead to greater productivity.

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Skills and Traits

Most reputable businesses seek individuals with polished leadership abilities to occupy their most coveted leadership positions. Honing these skills and traits will allow your ability to flourish.

These valuable skills and traits include the following.

1. Relationship building

As a leader, you need interpersonal skills to establish trusting working connections with your team members to create a more unified and engaged team. Spending time fostering relationships strengthens your leadership abilities and lays the groundwork for success. It is very important that the Leader vs Manager distinction is clearly drawn in the minds of all the stakeholders.

2. Agility and adaptability

Leaders face many challenges, including a highly competitive corporate environment, implementing an OKR program , geopolitics, and the COVID-19 pandemic’s effects. All of these calls on leaders to be adaptable and agile. You must adjust to internal and external shifts to be a successful leader. For example, during the implementation of an OKR program within the organization leaders must assume the role of OKR Captain to make sure the roll out is succesful.

3. Effective decision-making

A leader is always required to make decisions; your ability must be excellent if you want to lead effectively. Crucial decisions impacting your company should be well-informed, logical, and solid. A true leader empowers the teams Enabling Decision-Making Across Organizational Levels.

4. Conflict management

A leader ought to be able to intervene when a conflict occurs and end it or, at the very least, lessen its impact before it has a detrimental effect on the company. You should also be able to quickly identify conflict and have the ability to settle it in good time to be a successful leader. The American Management Association estimates that at least 24% of managers’ time revolves around conflict management.

Leading Teams

Interpersonal skills often account for the majority of success in team leadership. The ultimate goal of team leadership is to align everyone behind a common objective and be effective in. strategy execution. The dynamics of the team may have an impact on how you interact with them and the messages you convey.

However, many people get elevated into leadership positions due to their technical ability without mastering managing and inspiring others. You need fundamental capabilities such as setting goals, resolving conflicts, providing feedback, and building trust to lead a team successfully.

Leading Through Change

Business requires a change to succeed. Without making changes, it’s doubtful that your business would prosper or survive. Changes such as market disruption, organizational restructuring, and technological innovation may occur unexpectedly or as planned.

But one of the significant challenges facing today’s companies is implementing change successfully. Despite the resources invested in creating change management structures, initiatives frequently fail.

Leading people, not just systems, is the key to effective change leadership. Successful change leaders need to support team members by removing barriers to their achievement on the personal and professional levels rather than concentrating solely on results.

Even though formal procedures for change are easy to understand, leaders need to consider the crucial human aspect of change. To succeed, you must make a significant effort to involve everyone affected by the change. You must also be aware that people take time to adjust regardless of how quickly the change initiative progresses.

Ethics and Leadership

Ethical leadership upholds acceptable behavior through one’s conduct and interpersonal interactions. For many reasons, ethical leadership is crucial for clients, staff members, and the business.

You ought to lead ethically for many reasons, but doing so requires a deliberate decision. Collectively, leaders may inspire people around them to act ethically. Setting a precedent and providing guidance for moral conduct will encourage others to follow suit. Thus, ethical leadership can positively influence others for the common good.

Ethical leadership is also crucial for reputation and credibility at an individual level. Being a leader is a long-term endeavor, and being unethical can severely damage your reputation or organization.

There are many aspects of ethical leadership, but these six essential elements are at its core:

  • Honesty
  • Fairness
  • Respect
  • Responsibility
  • Integrity
  • Transparency

Leadership and ethics go in tandem. While some think one must choose between success and acting ethically, this is not true; success depends on ethical people and leaders.


  1. What is leadership?

    Leadership is influencing a group of individuals to work toward a common objective.

  2. What are the different leadership styles?
    • Democratic leadership
    • Autocratic leadership
    • Bureaucratic leadership
    • Laissez-Faire leadership
    • Charismatic leadership
    • Transformational leadership
    • Transactional leadership
    • Servant leadership
  3. What skills and traits are valuable to being a successful leader?
    • Relationship building
    • Agility and adaptability
    • Effective decision making
    • Conflict management


Anybody can be in a leadership position, but only those with outstanding leadership skills will succeed. When hiring new employees or promoting internal leaders, recruiters should place strong leadership qualities at the top of their priorities.

It takes time and experience to develop into a leader. By providing hands-on learning, formal training opportunities, and mentoring, organizations can build leadership skills and promote higher levels of participation at work.

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