Do Today’s Leaders Have the Competencies They Need to Succeed?

Organizations are asking more of their leaders today, in part because our world has never been more dynamic, complex, or uncertain. But are those same companies helping their leaders build the competencies it takes to meet the challenge? The answer may come as a surprise. 

As a company that helps organizations assess their leaders and other key team members—during the hiring process and for ongoing development—Odgers Berndtson has amassed a wealth of data about where today’s leaders are excelling and where they have the greatest opportunities to improve. The results point to three key areas where organizations would do well to focus their attention and resources. 

Where the Data Come From  

To gain insights into leaders’ strengths and areas for improvement, we evaluated the results of assessments on more than 350 leaders, representing the full spectrum of organization types, sizes, and industries. The assessments were conducted by trained business psychologists and leadership consultants following industry standards and best practices.  

All the assessments evaluated leaders in three critical categories: 

• Their ability to lead the organization, as defined by characteristics like strategic clarity, organizational alignment, and execution that drives change and results  
• Their ability to lead others, as defined by their talent development, team building, and stakeholder influencing capabilities 

• Their leadership agility, which includes thinking dexterity, interpersonal savvy, personal spirit, and growth proficiency  

In reviewing the assessment results, several interesting patterns emerged.  

Strategic Capabilities Lag 

When it comes to the competencies needed to lead an organization successfully, executives scored lowest on their strategic thinking capability. Strategic leaders can envision the future, develop a clear strategy to guide the organization, and create an environment where new innovations drive sustained improvements. That is exactly what most organizations expect of their leaders, especially at a time when PESTLE (political, economic, social, technological, legal, and environmental) factors are continually emerging and evolving.  

Based on our research, however, leaders scored highest on their ability to execute plans and change initiatives. While it is true that the best strategies will fail if the organization can’t follow through with effective execution, this capability is quite tactical in nature. Since many professionals are rewarded and promoted for their effectiveness in “getting things done,” it’s not surprising that tactical execution is a strong suit of most leaders—and only natural that some will struggle in the more abstract and ambiguous waters of strategic thinking. The best executives lead at a higher level by working with their teams to design the strategy and associated priorities and objectives, and then developing, empowering, and delegating so that members can then execute against these plans. 

Influence is Vital, But Difficult 

Another insight gleaned from the data is that leaders don’t always have the acumen to effectively influence the organization’s many stakeholders by cultivating strong relationships that create value.  

Within the assessment category of “leading others,” stakeholder influencing was the lowest scoring characteristic. But with most companies finding their stakeholder ecosystem to be broader and more complex than ever—and a fast-changing world making it difficult to gain clarity on what each group needs and expects—organizations can’t afford for their leaders to struggle with this key competency.  

The ability to influence stakeholders demands a high degree of interpersonal savviness, another characteristic that garnered lower assessment scores. For example, the ability to collaborate with people who bring diverse perspectives and personalities is critical to stakeholder influencing. We have also found that most leaders tend to influence others through logic and facts, which is more of a short-term, tactical lens, indicating the need to develop and nurture longer-term, more strategic levers such as building rapport and trust.  

A Growth Mindset May Be Lacking  

The capacity to learn and grow—which we refer to as growth proficiency—is essential in a world where change is constant. Interestingly, the data reveal a negative correlation between a leader’s tenure and their willingness to learn and develop. Yet, even if a leader remains in the same role for years, the requirements of that role will inevitably change as the team, company, industry, and world around them evolve.  

Without a growth mindset, leaders may not have the self-awareness or willingness to identify and pursue opportunities to fill gaps, shore up weaknesses, and enhance key skills and capabilities. With the data revealing that leaders often have trouble moving from tactical to strategic, or from transactional to influential, the fact that a growth proficiency wanes over time has significant implications.  

Key Takeaways for Successful Organizations 

As our Leadership Advisory Team contemplated the assessment results, we walked away with two recommendations that can help any business build and maintain a leadership team poised to create stronger value.  

• Rethink hiring and promotion criteria. Rather than focus solely on past accomplishments, assess whether the candidate possesses the agility that good leadership demands. Can they transition smoothly across the wide chasm from a tactical role to a strategic role? Can they operate confidently and effectively in complex, ambiguous situations? Can they look beyond today and develop a vision and strategy for an uncertain tomorrow? Asking candidates to complete a role-relevant business case is one effective way to gain insights on these key questions. 

• Foster a continuous learning culture. The most successful leaders constantly challenge themselves to stretch and learn, and that demands strong self-awareness. The longer your leaders are in role, the more critical it is to provide opportunities to improve that awareness and fill gaps in skills, capabilities, and experiences. One-on-one and team coaching can prove beneficial in helping leaders avoid the risk of stagnating. Moreover, through leadership development programs, up-and-coming leaders can learn early on in their careers that intentional growth habits, when consistently executed, are a prerequisite for high performance in top roles. 

Equipping leaders with the competencies to succeed in a volatile and uncertain world takes a commitment of time and resources. But for organizations that are serious about creating greater value for all their stakeholders, the gains are well worth it. 

The Leadership Advisory Practice at Odgers Berndtson helps organizations discover and develop leaders, strengthen value-creating teams, and prepare for what’s next. Learn how our highly experienced assessors and coaches can help you and your team make a positive impact on your organization and those around you.