Setting the scene
Leadership potential is often seen as notoriously difficult to quantify. Us humans have so many preconceived notions of what a leader is, or the characteristics that a leader must put on display. Right back to our school days, we were often led to believe leadership meant being the loudest person in the room. People then take those misconceptions about leadership – such as being an extrovert or having charisma – with them into the workplace, sometimes with disastrous results.
With people carrying around so many skewed and unscientific ideas about what leadership is, and who exhibits it, it’s not surprising that organisations find it challenging to understand and harness leadership potential. Many struggle to distinguish between core concepts like potential, capability, and values, often resulting in confusion for both employees and leaders responsible for talent management. Of course, getting leadership decisions wrong can be a painful and damaging experience, meaning the need for a more straightforward, evidence-based approach has never been greater.
What does the science say?
Fortunately, there are lots of studies that provide valuable insights into the markers that reliably indicate potential. Take emotional intelligence, for example. Studies consistently show individuals with higher emotional intelligence are more effective at influencing and motivating others. They are better able to understand and respond to others’ emotions, skills that are crucial for building trust and focusing team efforts.
Conceptual acumen is another trait worth understanding, and looking for in leaders. This is the ability to quickly grasp problems, particularly in complex situations, and solve them while ignoring distractions. Having a high conceptual acumen suggests a person can strategically navigate challenges and prioritise effectively. In other words, you’ll see the things that matter and ignore the things that you don’t.
Self-belief and self-efficacy are also important traits routinely found in leaders. Leaders with a strong sense of self-belief tend to step forward and approach tasks with confidence, which in turn encourages others to rely on their judgment. Self-efficacy -having confidence in one’s ability to accomplish goals – helps leaders take on complex challenges to a high standard, and provides a source of confidence and inspiration for their teams.
How to identify the right leaders for an organisation
Succession planning is always one of the biggest headaches for organisations, because it often sees individuals promoted based on past success in a different context. But it’s important not to confuse capability with potential, because the two are distinct. Potential relates to the underlying qualities that make someone likely to succeed in complex, evolving roles, whereas capability is about the skills and experiences an individual has already developed. For instance, a high-performing employee in an operational role may not adapt well to a strategic leadership role requiring entirely different skills and mindsets. Therefore, companies need to get better at using science-based markers that can help them to identify the candidates potential for a particular leadership role, rather than their capability, and then assess candidates based on those criteria.
We live and learn
A key factor in the development of leadership potential is neuroplasticity – the brain’s ability to reorganise itself throughout life. This concept highlights that psychological makeup is not fixed and can evolve due to environmental factors, individual experiences, and personal traits. By identifying core traits or agilities, known as leadership accelerators, it’s possible to determine a leader’s potential to learn, transition, and adapt to new environments, contexts, or challenges. However, while the brain can adapt, altering deeply ingrained behaviours and perspectives is a slow process. Someone lacking natural emotional intuition can improve with coaching and practice, but they may never find it as easy as someone who is intuitive by nature.
Deep-seated attributes – such as emotional insight or assertiveness – can be more challenging to develop and require sustained personal growth. Having a good understanding of a person’s positive leadership attributes is important, but having knowledge of their shortcomings can be very helpful in avoiding making leadership mistakes that lead to unhappiness for all parties. Organisations may have to make difficult decisions on whether they have enough time to take people on this journey.
A science-driven approach to leadership potential
At Peridot Shore, our approach is rooted in the latest research in psychology, cognitive neuroscience, and occupational psychology. These fields provide valuable insights into the mechanisms that support leadership growth, offering tools to identify and nurture potential. By integrating findings from these disciplines, we help organisations move beyond surface qualities like charisma or assertiveness, and instead focus on measurable traits that predict leadership effectiveness in diverse environments. This science-based framework can help organisations define what true leadership potential looks like, and also to make data-driven decisions that reduce bias and promote inclusivity.
Finding leaders doesn’t have to feel like a gamble. By applying a science-based approach, organisations can build more resilient leadership pipelines, promote individuals who align with the company’s strategic needs, and develop leaders well- equipped to navigate increasing levels of complexity.