What makes a good leader?

The majority of corporate leaders have clear views about what constitutes good leadership, and rightfully so because their approach has worked for them. However, despite many differences, some common traits are present in most successful leaders. This does not necessarily mean that they are “must have” characteristics to empower and inspire individuals but possession of them is associated with the longevity of the organisation.

It is worth outlining the most common mistake that happens during the leader search. There is a tendency to believe that the higher an individual scores on extroversion, dominance and intelligence the better their performance will be as a leader. In reality, the same characteristics that helped them reach the top may subsequently hurt their work relationships and output which leads to a downward spiral. For example, high levels of dominance and personal power may be beneficial to reach leadership positions, but once there, such leaders may struggle to maintain positive relationships with their team or superiors, which may result in their removal. It is rarely considered that having too much of a “good thing” can be a negative. Research suggests that maximum performers peak at an IQ of 120, any further increase in this trait tends to negatively relate to effectiveness.

Effective leadership inspires, develops and challenges the intellects of their followers so that they become willing to go beyond their self-interest in service of a higher collective vision or goal. This vision needs to be ambitious yet realistic and communicated clearly to be effective. By creating such a vision, a leader aims to interpret reality for their followers and provide meaning to daily events. The leaders must be consistent with their deeds as well as words and be role models of desired behaviour. In other words, leaders should relate to each individual who works under them.

Another core characteristic is charisma. Intuitively, we might think that charisma is something a leader is (or is not) born with. However, substantial research shows that leaders can be trained to appear more charismatic. Behaviours such as “sensitivity to other’s needs”, “taking personal risk in pursuit of the vision” and “being sensitive to opportunities and limitations presented by the environment” are associated with charisma. Thus, by providing training that builds said behaviours, newly emerged leaders can become more effective in managing and inspiring their followers.

Finally, the importance of transactional leadership in the workplace must not be forgotten. After all, within some workplaces salary and financial benefits are the key incentives for workers and few are only motivated by them. The leader should be able to identify when to provide materialistic or emotional rewards. According to surveys, 29% of workers are willing to exchange pay cuts for more recognition from their bosses. This suggests that if there were more grateful and considered leaders organisations could benefit from cost cuts. However, it is worth noting that such an effect is only present when individuals live comfortably, and their primary needs are satisfied.

To sum up, effective leadership encompasses a combination of traits and behaviours that inspire, develop, and challenge individuals within an organisation. While corporate leaders may have differing views on what constitutes good leadership, there are common traits that emerge among successful leaders. However, the misconception that high levels of extroversion, dominance, and intelligence guarantee leadership success often leads to overlooking the importance of emotional intelligence, humility, and the ability to build positive relationships. Research suggests that an excessive focus on certain traits, such as intelligence, can hinder effectiveness beyond a certain point. Moreover, charisma, often seen as an innate quality, can be developed through training that cultivates behaviours such as empathy, risk-taking, and adaptability. Additionally, transactional leadership remains significant in workplaces where material incentives play a crucial role, emphasising the importance of recognising and rewarding employees appropriately.

In conclusion, effective leadership is a dynamic balance of diverse traits and behaviours, tailored to meet the needs and aspirations of both the organisation and its individuals. By understanding and cultivating these qualities, leaders can foster a culture of growth, innovation, and fulfilment within their teams and organisations.