Leadership, which is a generalized idea about a human trait, is an example of a

What makes an effective leader

What are Leadership Traits?

Leadership traits refer to personal qualities that define effective leaders. Leadership refers to the ability of an individual or an organization to guide individuals, teams, or organizations toward the fulfillment of goals and objectives. It plays an important function in management, as it helps maximize efficiency and achieve strategic and organizational goals. Leaders help motivate others, provide guidance, build morale, improve the work environment, and initiate action.

List of Effective Leadership Traits

A common misconception is that individuals are just naturally gifted with leadership skills. The truth is that leadership traits, like other skills, can be acquired with time and practice. Below are seven traits of an effective leader:

1.   Effective Communicators

Leaders are excellent communicators, able to clearly and concisely explain problems and solutions. Leaders know when to talk and when to listen. In addition, leaders are able to communicate on different levels: one-on-one, via phone, email, etc.

2.  Accountable and Responsible

Leaders hold themselves accountable and take responsibility for any mistakes. Leaders support and encourage individuality while abiding by organizational structure, rules, and policies that need to be followed.

3.  Long-term Thinkers

Leaders are visionaries. This is evidenced by the leadership trait of being able to plan for the future through concrete and quantifiable goals. They understand the need for continuous change and are open to trying new approaches to solve problems or improve processes.

4.  Self-motivated

Leaders are self-motivated and are able to keep going and attain goals despite setbacks. In addition, good leaders try their best to exceed, not just meet, expectations.

5.  Confident

Virtually all good leaders share the leadership trait of confidence. They are able to make tough decisions and lead with authority. By being confident, leaders are able to reassure and inspire others, establish open communications, and encourage teamwork.

6.  People-oriented

Leaders are typically people-oriented and team players. They’re able to foster a team culture, involve others in decision-making, and show concern for each team member. By being people-oriented, leaders are able to energize and motivate others. By making each individual feel important and vital to the team’s success, they secure the best efforts from each member of the team.

7.  Emotionally Stable

Leaders exercise good control and regulation over their own behavior and are able to tolerate frustration and stress. Leaders are able to cope with changes in an environment without having an intense emotional reaction.

Traits of a Bad Leader

Listed below are the traits that bad leaders commonly exhibit:

• Too bossy
• Fearful of change
• Unwilling or unable to communicate effectively
• Dismissive of ideas other than their own
• Lacking empathy
• Inconsistent
• Prone to blame others rather than accept responsibility themselves
• Indecisive

Leadership Traits Personality Tests

Several tests are available to help determine your personality, strengths, and traits. These tests include the following:

• Myers Briggs Type Indicator (MBTI)
• DISC profile
• Strength Finder
• Wealth Dynamics Profile

The Myers Briggs Type Indicator is one of the most well-respected and widely-used personality type assessment tools. The  Myers Briggs Type Indicator can be used as a guide to help identify strengths, weaknesses, and the way you perceive and process information. In fact, over 80% of the Fortune 100 companies rely on tests such as the Myers Briggs to help build an effective and healthy organization.

Other Resources

Thank you for reading CFI’s guide on Leadership Traits. To keep learning and advancing your career, the following resources will be helpful:

• Interpersonal Skills
• Personal Brand
• The Analyst Trifecta Guide
• Finance Career Map
• See all management & strategy resources