What is leadership, and what are the most important aspects of being a good leader?

How to lead a project? What qualities must a professional possess to be a good leader? We analyze the key elements to steer a company and captain a team that is heading straight for success. 

Much has been written over recent decades about what leadership is and how to become an effective leader. In a globalized and international world like the one we live in, those who stand out are the ones who can lead effectively and bring out the best in their peers, colleagues, and teams. That is why this is an essential topic when referring to business management and how to boost your professional career. 

Although it may seem like a vague and ambiguous term, it is possible to define what leadership is and what it consists of. In fact, in the current context, it is easier to explain what makes someone a good leader. In this sense, soft skills are very important. These intangible aspects allow some profiles to stand out from others and help professionals understand how to be a good leader. Empathy, resilience, problem-solving skills, and the ability to act decisively when required are all key. 

What is leadership?

“A leader is one who knows the way, goes the way, and shows the way.” This quote by John C. Maxwell outlines the key ideas when defining what leadership is and what it involves. 

Leadership is defined as the set of skills a person has to develop a strategy, being visionary and anticipating what lies ahead, and to shape and guide a team to achieve specific goals. Several aspects come into play here, from analyzing the situation and markets to innovation and creativity in proposing solutions and approaches that go beyond the previously established path. 

Types of leadership

There are several types of leadership, and these are closely linked to the context in which a person operates. Factors include the sector they work in, the company they are part of, the geographical location, and the socioeconomic and cultural characteristics of the country in which they operate. 

That said, we highlight five types of leadership identified by the expert author Daniel Goleman, who has an extensive bibliography on the subject ‘Leadership’; ‘How to Be a Good Leader’. In one of these works, titled ‘Leadership that Gets Results’ (‘Emotional Intelligence in Business’), he explains in detail these leadership profiles found in today’s world: 

1. Coercive or authoritarian leadership. Its essence lies in discipline, often using short, precise, and direct commands. Failure to comply may result in punishment. This creates stressful environments, tension, and pressure, ultimately leading to a general decline in team morale.
2. Democratic leadership. This approach considers all opinions and perspectives when making decisions. It fosters a sense of belonging among team members and, when well managed, significantly improves team well-being. 
3. Affiliative leadership. The sense of belonging mentioned above is even stronger here. The focus is on building strong relationships among employees and collaborators, creating bonds that go beyond purely professional interactions. 
4. Visionary or coaching leadership. One of the most important skills of a good leader comes into play here: a visionary and motivating spirit. It starts with an idea or goal and involves motivating employees to achieve it. This is one of the most widely used leadership models today, as it relies on a more horizontal organizational structure.
5. Pacesetting leadership. In this case, the leader sets the direction and guides the team step by step, encouraging strong engagement and proactivity in proposing improvements and alternatives to enhance results. 

The participative model and the horizontal structure of the ‘visionary’ model reflect current trends when discussing which leadership trends are most productive for companies and professionals. But how can you become a leader and effectively guide a brand? It is essential to understand the skills required of a 21st-century leader.

Leadership examples

When talking about effective leaders, certain names may come to mind. One example is Steve Jobs, a model of the creative ‘boss’ who promoted collaboration among team members, listening to opinions and giving voice to proposals from those who worked with the spirit of Apple. 

A more recent example is Jeff Bezos, at the helm of Amazon. This quote perfectly summarizes the leadership skills that helped him grow the platform to its current position: “Listen to criticism, think about what could be done, and decide to lead the industry.” A clear goal and a spirit of self-criticism to face challenges. 

Other visionary leaders with great charisma are part of world history, such as Martin Luther King and Nelson Mandela. Professionals can learn valuable lessons from their actions to understand how to be a good leader.

How to be a good leader? Leadership skills

‘Soft’ leadership skills are probably the most important when it comes to understanding how to become a good leader. The profiles mentioned earlier demonstrate some of these qualities. In addition, reports and studies highlight which soft skills are most relevant. Notably, those identified by the consulting firm Boston Consulting Group in a study involving up to 4,000 professionals: 

1. Empathy
2. Listening skills
3. Attention to the professional and personal development of team members
4. Ability to question one’s own actions
5. Adaptability
6. Managing uncertainty
7. Flexibility

These leadership skills are considered highly valuable for someone to perform as a good leader within an organization. Achieving them requires training, which is why, alongside soft skills, technical knowledge in strategy and business management is also essential. 

On the path to leading teams, it is necessary to combine professional training and experience. This highlights the importance of choosing the right educational pathways to advance your career. At EAE Barcelona, there are several relevant master’s programs, such as the Master in Business Management, the Master in Management STEM, and the Master in International Business STEM. These programs demonstrate that business management and strategy are key to leading a company and acting as a successful leader.