Effective Leadership: 5 Essential Skills

Last Updated July 12, 2023

What makes an effective leader? While the answer to this question can vary widely based on the industry, the results from a number of studies by Michigan State University show that effective leaders share five essential skills: innovation, vision, inner values, inspiration, and communication.

Innovation

In any industry, innovation typically means always seeking ways to improve the organization. An innovative leader emphasizes quality over quantity in their own work and takes initiative in looking for ways to improve in all areas of their organization, from human resource management to supply chain efficiency to customer service, according to Dr. Ronald F. Cichy, the former director of The School of Hospitality Business at MSU.

In addition to seeking innovative solutions, effective leaders proactively create a culture of innovation by being open to others’ ideas. They recognize that an innovative idea can come from anyone within the organization, from the C-Suite to the support staff. Front-line associates (i.e. cashiers, customer service representatives, repair technicians) are closely connected to customers, as they create and deliver products and services directly to consumers each day. Their input and ideas for quality improvement are particularly valuable for innovation.

Innovation also requires perpetual learning. According to Dr. Cichy, “readers are leaders,” and innovative leaders are constantly pushing themselves to learn, either by reading, observing others, asking questions, or continuing their education. If you’re working on improving your leadership skills, ask yourself which method of learning you respond to best. Perhaps it’s by being with a mentor or reading books about your industry. Or, perhaps you learn best by jumping right in and doing something new. Whichever ways work best for you, focus on learning something each day to improve your skills.

Finally, innovative leadership requires the willingness to be flexible. It asks that you be willing to look at situations differently, expand possibilities and change your mind when necessary. But first, you must be mindful and aware of your environment and the changes that are occurring. Then, you need to be flexible enough to adapt to those changes.

Vision

If you want to go somewhere you’ve never been, you need a map. When an organization wants to achieve its goals, it needs a vision. Dr. Cichy said it is up to an organization’s leaders to set and clearly communicate that vision and to invite others to share and implement it.

Visionary leaders provide the spark that inspires others to work toward the same goals. They also provide the tools to help them get there. They paint a picture of how their vision will affect the organization as a whole, as well as each individual. In this way, leaders make it possible for everyone involved to see the vision as clearly as they do. It is also imperative for effective leaders to trust their teams with the vision, as trust can be a sign of strength.

Inner Values

Many of the MSU studies showed that top organizational leaders emphasize strong family values. They recognize the values they were given by their families, and that work-life balance is essential to success. The ability to focus on the organization when at work, and, in turn, spend quality time with family when at home, is essential to effective leadership.

Another important value is a good sense of humor. Leaders with a good sense of humor avoid taking themselves too seriously, can laugh about their own mistakes and, more importantly, can lighten the tone in a tense situation. In other words, they are human, with the strengths and weaknesses every human has, and they are not afraid to show it.

Knowing your strengths, as well as your weaknesses, is an essential aspect of honoring your inner values. Once you’ve identified your strengths, it’s possible to nurture and use them to your fullest potential. This is essential to developing your leadership style and building a strong organization.

Inspiration

Effective leaders inspire their associates in many ways. They make an effort to know them and ask them for their input and ideas. They share their vision and goals, and then give them the tools to succeed in reaching those goals. And perhaps most inspiring of all, they allow them to make mistakes and learn. Inspiring leaders expound the notion that there are no failures, only opportunities for learning and growth.

When associates are inspired by their leaders, they are more confident, they know what’s expected, and they feel empowered to make decisions and work toward their goals. They don’t feel a need to ask what to do and can be more successful at achieving outcomes.

Communication

MSU’s studies found that effective leaders are strong communicators, adept at articulating goals, speaking in public and at listening, which is just as important as speaking. That’s because the most effective leaders are inquisitive and curious. They ask questions of their peers and of their associates at every level in the organization – particularly those front-line associates who deliver services and interact daily with customers. Asking questions is an efficient way to learn what is working and what needs improvement.

Becoming a good listener is essential to becoming a good communicator. Listening is an active exercise. It involves using not only your ears, but your eyes and heart as well. Be empathetic and consider the message from the perspective of the person who is delivering it.

Practice To Improve Your Leadership Skills

It takes time and commitment to improve leadership skills and develop your own leadership style, but it can certainly be done. Practicing these five essentials for becoming an effective leader can help you work better with associates, no matter what your position. If you try something new and it doesn’t work, try it in a different way. Keep reading, learning and listening, and you can be on your way to experiencing a rewarding and successful leadership journey.

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