Top 10 Traits of an Effective Leader
In 1954 the renowned psychologist Raymond Cattell developed the Leadership Potential Equation, which is still used today to screen job candidates and determine best placement within an organization or business. Cattell’s Leadership Potential Equation includes 10 traits that characterize an effective leader. How many of these 10 traits do you have?
1. Charisma. Leaders with a high level of personal charisma are capable of inspiring strong emotions in people, which they can use to motivate towards a common goal.
2. Compulsiveness. Good leaders are usually socially precise and perfectionistic, which means they’re very aware of their integrity and reputation and therefore very careful when acting upon something and making decisions.
3. Conscientiousness. Leaders are generally thorough and vigilant in their desire to do well, which usually means they’re efficient and organized, with the self-discipline to get things done with thoughtfulness and care. They have high standards and try their best to live up to them.
4. Dominance. Effective leaders are usually dominant, assertive, and competitive. They enjoy overcoming obstacles and are good at making and enforcing decisions.
5. Emotional Stability. Most successful leaders are emotionally stable. They are well-grounded with a decent level of self-esteem and they create an environment where people feel safe to bring their own ideas to the table. In other words, they don’t behave erratically or fly off the handle (most of the time, at least).
6. Empathy. Leaders must have the ability to put themselves in another’s shoes and understand where that person is coming from. Empathy is the key to building trust.
7. Enthusiasm. Good leaders tend to be expressive, energetic, and enthusiastic. Their enthusiasm is usually backed by optimism and openness to new ideas.
8. Intuitiveness. Everyone has blind spots—even the most well-informed leaders. That’s why it’s important for leaders to use their intuition and trust their gut when making decisions.
9. Self-Assurance. Most leaders believe strongly in what they’re doing and have little need for external approval. They are self-confident and bounce back quickly from mistakes or failures.
10. Social Boldness. Leaders are usually socially confident, extraverted, even fearless, and they enjoy challenges and risks. They’re right at home as the center of attention. Leaders who are socially bold tend to develop more relationships, which can become important resources.
And that’s it. Those are the top 10 traits of an effective leader. That’s not to say that there aren’t great leaders who fall short on one or more of these traits—there are always exceptions. But the more of these traits you exhibit, the more likely you are to be a strong leader. And if you’re lacking in any of them, there’s always work to be done to improve in those areas.
READ MORE FROM AMERICAN COMMERCIAL CAPITAL
How to Start a B2B Business With Little or No Money — and Still Own All of It
Honest Answers from American Commercial Capital
Most advice about starting a B2B business with no money skips the hard part. It tells you to “bootstrap,” “hustle,” and “find investors.” Two of those are useful. The third one costs you the thing you started the business to get in the first place.
Here’s the honest answer: you can start a business with very little money and keep 100%…
What Makes the Best Factoring Company in Houston? An Honest Answer From Someone Who Runs One
Short answer: There is no single best factoring company in Houston. There is a best factoring company for your business, and which one it is depends on your invoice size, your industry, your customers’ credit, how much hand-holding you need, and how much you’re willing to pay for speed. This article gives you the criteria to figure that out — including the questions that will get you an honest…
Survival Skills for Entrepreneurs: Growing a Business Without Running Out of Cash
I’ve been in the factoring business since 1993, and I started American Commercial Capital in 2003. That means I’ve spent more than thirty years looking at the inside of small companies — their invoices, their aging reports, their customer lists, their payroll cycles.
It’s an unusual vantage point. A banker sees a polished loan package. An accountant sees last year. I see what’s happening this week, in real…
