Top 5 Skills the Greatest Modern Leaders Have That Set Them Apart
In today’s fast-changing business landscape, leadership is no longer about control and authority. The best leaders inspire, coach, and empower their teams, creating environments where innovation, trust, and adaptability thrive. Recent leadership research (2019–2024) highlights five key skills that distinguish exceptional leaders from the rest. These traits drive high team performance and long-term organisational success.
1. They Prioritise Coaching Over Commanding
Traditional leadership styles often focus on issuing orders, but the most effective leaders act as coaches, not commanders. Leaders who coach guide their teams through challenges, offer constructive feedback, and create an environment of learning and growth rather than simply giving instructions.
Richard Ladyshewsky who is a Professor of Leadership and Management and the Higher Education Research and Development Society of Australasia. Has used peer coaching extensively in his own classroom work and in aiding organisations and universities to improve learning outcomes, found that coaching leadership significantly improves employee engagement, problem-solving abilities, and performance. Leaders who coach foster psychological safety, encouraging employees to contribute ideas and take ownership of their work.
“The best leaders develop people, not just manage them.” – Ladyshewsky, R.
Key Takeaway:
A coaching leadership approach empowers employees, fostering innovation, collaboration, and higher job satisfaction.
2. They Lead with Emotional Intelligence (EQ)
Emotional Intelligence (EQ) is a defining trait of great leaders. High EQ leaders understand their own emotions, regulate them effectively, and empathise with others. This ability helps them foster trust, collaboration, and motivation within their teams.
Daniel Goleman who is an American psychologist, author, and science journalist. confirmed that emotionally intelligent leaders are far more effective than those who rely solely on authority. These leaders handle conflict gracefully, inspire their employees, and create resilient workplace cultures.
Key Takeaway:
A leader with strong EQ is self-aware, empathetic, and skilled at managing interpersonal dynamics, making them better at uniting and motivating teams.
3. They Foster Psychological Safety and Trust
Teams perform at their best when employees feel safe to express their ideas, take risks, and make mistakes without fear of punishment. This concept, known as psychological safety, is a key driver of innovation and long-term success.
Amy Edmondson who is best known for her pioneering work on psychological safety found that teams with high psychological safety were more innovative, adaptable, and productive. Leaders who foster trust create open communication channels, encourage diverse perspectives, and empower employees to challenge ideas.
“The best leaders create environments where people feel safe to take risks, speak their minds, and innovate.” – Amy Edmondson
Key Takeaway:
A psychologically safe workplace boosts creativity, team morale, and problem-solving ability, leading to better business outcomes.
4. They Develop Leaders, who develop other leaders (Multipliers Effect)
Exceptional leaders don’t just manage teams; they develop future leaders. Rather than hoarding power, they amplify the intelligence and capabilities of their people, a concept known as the Multipliers effect.
John C. Maxwell who is known as the greatest public speaker and leadership trainer in the world, has developed 5 Levels of Leadership which provides a roadmap for leaders to grow their influence and effectiveness. At the top of this framework is Level 5 Leadership the Pinnacle of Leadership, where leaders inspire lasting impact and build a legacy that endures beyond their tenure.
The 5 Levels of Leadership
Maxwell outlines five progressive stages of leadership:
1. Position – People follow because they have to.
2. Permission – People follow because they want to.
3. Production – People follow because of results.
4. People Development – People follow because of personal growth.
5. Pinnacle (Level 5) – People follow because of who the leader is and what they represent.
What Makes a Level 5 Leader?
A Level 5 leader focuses on mentoring and developing other leaders, creating an environment where leadership continues to thrive after they step away. They lead with vision, integrity, and a deep commitment to helping others succeed.
Key Takeaway:
Achieving Level 5 leadership isn’t about titles or power, it’s about building a legacy through influence, mentorship, and lasting impact. Whether leading a small team or a global organization, the goal should always be to lift others up and empower the next generation of leaders.
5. They Are Adaptable and Lead Through Change
In an era of digital transformation and economic uncertainty, adaptability is one of the most crucial leadership skills. Great leaders embrace change and guide their teams with agility and resilience.
Heifetz and Linsky argue that adaptive leadership helps organisations thrive amid uncertainty. These leaders quickly pivot strategies, respond to market shifts, and ensure their teams stay engaged through transitions.
“Leadership isn’t about maintaining the status quo—it’s about navigating change and emerging stronger.” – Heifetz, R. & Linsky, M.
Key Takeaway:
Adaptable leaders remain flexible, embrace innovation, and drive business growth even in uncertain times. Change Leaders are great to hire in your company to push you forward.
Case Study: How Adaptive Leadership Grew Atlassian into a Global Tech Giant
Atlassian, the Australian tech company behind Jira, Trello, and Confluence, exemplifies how modern leadership drives business success. Founders Mike Cannon-Brookes and Scott Farquhar built the company using coaching leadership, emotional intelligence, and adaptability as core principles.
• Coaching Culture: Atlassian fosters a learning-first environment where employees solve problems independently.
• Emotional Intelligence: Leadership prioritises mental health and work-life balance, resulting in high employee satisfaction.
• Psychological Safety: The company promotes open communication, allowing teams to experiment and fail without fear.
• Developing Leaders: Atlassian invests heavily in leadership development programs to upskill employees.
• Adaptability: During COVID-19, Atlassian pivoted to a remote-first model, leading to a more diverse workforce and increased productivity.
Key Takeaway:
By adopting modern leadership principles, Atlassian scaled from a Sydney startup to a global software powerhouse, proving that coaching, EQ, trust, and adaptability drive sustainable business success.
Final Thoughts
The greatest modern leaders coach rather than command, lead with emotional intelligence, foster psychological safety, develop other leaders, and embrace adaptability. These skills boost team engagement, innovation, and long-term business growth.
Additionally, leveraging DISC behavioural profiling can enhance leadership effectiveness, ensuring leaders communicate better and build stronger teams.
For those looking to enhance their leadership capabilities, DISC Leadership Australia provides expert training to help leaders refine their skills and create high-impact workplaces.
www.discleadershipaustralia.com.au
Sources & References:
Ladyshewsky, R. (2020). The Role of Coaching in Leadership Development. Leadership & Organisation Development Journal, 41(6), 897–912. [DOI: 10.1108/LODJ-04-2020-0156]
Goleman, D., Boyatzis, R., & McKee, A. (2021). Emotional Intelligence and Leadership Effectiveness: A Meta-Analysis. Harvard Business Review, 99(4), 45–57.
Edmondson, A. C. (2019). The Fearless Organisation: Creating Psychological Safety in the Workplace for Learning, Innovation, and Growth. John Wiley & Sons.
Wiseman, L., & McKeown, G. (2020). Multipliers: How the Best Leaders Make Everyone Smarter. Harper Business
Heifetz, R., & Linsky, M. (2022). Leadership on the Line: Staying Alive Through the Dangers of Change. Harvard Business Press.
Maxwell, J. C. (2011). The 5 Levels of Leadership: Proven Steps to Maximize Your Potential. Center Street.
Cannon-Brookes, M., & Farquhar, S. (2022). Atlassian’s Leadership Approach to Innovation and Growth. Australian Financial Review. Retrieved from https://www.afr.com
