Mastering Executive Leadership Skills & Management Competencies

Within organizations, the executive leadership skills required of leaders shift between managerial and executive levels. An executive is not simply the best manager. Successful executive leadership skills share some traits with managerial skills, but each has its own unique profile. Many leadership books overlook this difference. However, some top companies, like GE, clearly define what is needed at each level in their organization. Noel Tichy in his book on The Cycle of Leadership provides a clear explanation of differentiating skill sets needed at each level of leadership. The infamous Peter Principle results from advancing leaders into levels of leadership that do not match their competence. XBInsight has separate job categories for management through the director level and one for senior executives. This paper describes the differences we see in profiles between managerial and executive-level leaders.

Strategic leadership is important for executive leaders. It involves thinking broadly and guiding the actions and decisions of the entire organization. Strategic leadership competencies involve flexibility, the acquisition, and application of new information, monitoring the environment, as well as leading and persuading all organizational members with a clear sense of responsibility for what is best for the enterprise. Strategic leaders must be willing to learn, recognize and assimilate new information and apply it to organizational strategy. Effective strategic leaders focus on internal issues within their organization. They also look at the outside world for factors that could impact how well the organization performs.

Equally important for organizational success are the competencies required for management. Management competencies that appear at the director level are executive leadership skills focused on execution more than the creation of strategy. These include competencies such as the ability to gather, monitor and distribute information. At a management level, individuals must supervise, lead and coach groups of employees and ensure the coordination and completion of day-to-day tasks within the organization. Additionally, management functions keep the organization running and operating by manufacturing and developing products/services, meeting customer-driven needs, and guiding organizational members. While management and strategic leadership competencies serve different functions within the organization, they are both required to ensure survival and growth.

Competency Differences by Job Profile

Job Profiles based on the competencies of XBInsight display a pattern of results consistent with the leadership literature. One advantage of the XBInsight system is that it makes competency profiles. These profiles are based on job categories and specific job titles. This allows the system to compare candidates to what is relevant for the work rather than to an overly generic standard. Below are examples of two Job Profiles for an executive leadership position (i.e. VP of Sales) and a management position (i.e. Sales Manager). Hiring managers completed job analysis surveys resulting in the following Job Profiles.

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In the XBInsight system, the VP of Sales job profile is a great example of a role that shows strong strategic leadership skills. This profile shows how important it is to learn and use new information. This skill is key for developing and using organizational strategies. It also helps in taking advantage of new opportunities. Another strategic competency of this position is the ability to change and demonstrate flexibility and resilience. Executives in this position must bring a strategic business perspective. Finally, it is clear from the profile that executive leadership skills necessary to lead are listening actively, leading courageously, establishing credibility, and exuding an executive presence.

On the other hand, the profile of Sales Director relies more on management competencies. This position requires managing the basic day-to-day operations that are critical to the organization’s ability to function. Managers need to show they can handle daily tasks. This includes building customer loyalty, aiming for good results, and making sure others are responsible. Directors must have exceptional interpersonal skills to build rapport, establish credibility, develop and maintain relationships, persuade and influence, as well as coach and develop others. This job profile suggests that effective Directors will exhibit business skills to manage work and also display some of the executive competencies.

The XBInsight differentiates between levels of leadership because when there is a singular approach these vital differences are lost. This can cause missteps in determining who to promote or in developing managerial talent for higher-level roles. It is not just what worked in the past. A shift is required.

Executive Leadership Skills Competency Profiles

Similarly, based on reports derived from participants completing the XBInsight System, a consistent pattern of competencies was found when comparing executive and management job groups.

Competencies Higher for Executives in the Study:

• Strategic competencies ability to initiate and lead change; encourage and promote flexibility; anticipate change; drive organizational learning; see the bigger picture; scan and monitor organizational environment; envision continuous organizational future; system perspective
• Absorptive capacity or the ability to acquire, recognize, and apply new information
• Develop and apply strategy; maintain strategic business performance
• Adaptive capacity or the ability to change and be flexible
• Recognize growth opportunities; demonstrate flexibility and resilience; drive innovation; lead courageously
• Managerial wisdom (perceive variation in the environment)
• Recognize growth opportunities; seize opportunities
• Demonstrate executive leadership skills strategic to lead and influence the organization with integrity and respect
• Inspire others; supervise effectively; exude executive presence; establish trust and respect; display fairness and objectivity; navigate politics; display empathy; listen actively; hold people accountable

Competencies Higher for Managers in the Study:

• Manage day-to-day operations, interacting with people
• Maintain order and accuracy

Competencies High for Both Executives and Managers:

• Exhibit a positive and optimistic perspective [Maintains optimism]
• Committed to communicating and promoting organizational values across the organization [Communicates core values]
• Exhibit exceptional presentation skills [Delivers compelling presentations]
• Interested in employee development and learning [Coaches and develops others]
• Manage Risks
• Strive for results and enjoy winning [Enjoy winning & Strive for results]

Strategic leadership (i.e. executive leadership) requires an individual to continually acquire and apply new information, to manage knowledge, to be flexible and promote organizational change, to consider and scan the environment outside of the organization, and to serve as a trustful and respectful organizational leader. Consistent with expectations, successful executives completing the XBInsight System clearly demonstrate strategic leadership abilities and behaviors. Specifically, they exhibit an absorptive capacity, as they are able to acquire, recognize and apply new information as it becomes available to the organization. Additionally, the executives demonstrate an adaptive capacity (i.e., the ability to be flexible and change) while maintaining an awareness and understanding of the impact of the environment outside of the organization. The executives are able to lead and influence individuals within the organization with dignity and respect. On the other hand, managers completing the XBInsight System exhibit more management competencies in that they are able to keep operating smoothly as they consistently maintain order and accuracy.

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Interestingly, across executive (i.e. strategic leader) and management job types, there are several similarities across the competencies, suggesting the presence of several foundational leadership competencies:

• a positive and optimistic perspective
• effective communication
• promoting organizational values, striving for results
• demonstrating an interest in others

These competencies are important factors of effective leadership at all levels. By tuning into both the similarities and distinctions, organizations can identify growth opportunities for individuals seeking to move from management to executive positions. In the context of XBInsight, understanding the differences between these two sets of competencies enables a greater understanding of how managers might be developed.

Take for example Sam and Pat who both are considered to be effective leaders within their organization. Sam has effective, strategic executive leadership skills, maintaining and communicating broad organizational goals. Sam effectively communicates the vision of the organization, plans for long-term development and success, and navigates financial and marketplace challenges. Sam is also praised for his ability to gain the trust and support of organizational members in times of stress and change. Pat, as a director-level manager, makes sure the organization keeps up with product development and production. They also align functions and tactics to meet customer needs. Pat also effectively leads first-line managers by helping them to achieve functional goals and build effective teams. While both Sam and Pat are considered to be superb leaders, the competencies responsible for their high performance are different. This has important ramifications for selecting and developing leaders. The best Director may not be the best choice for the executive position. Sam will need to develop the competencies for development if he is interested in pursuing an executive leadership role.

Conclusion

The data from the profile system is corroborated by the performance of the participants. It is clear that there is a qualitative difference in the competency make-up of management-level positions such as Director and executive leadership skills required for positions such as Senior VPs. Organizations need to understand and adapt to these differences. This helps avoid costly staffing mistakes at the top, where they are most visible. For more information on differentiating competencies by job type, contact us.