9 Leadership Qualities That Inspire High-Performing Teams

Think about the best leader you’ve ever had. What made them stand out? Chances are, it wasn’t their technical expertise or title. It was their behavior and the environment they created through their actions. 

I remember a time when my colleagues and I were under considerable stress, with tasks piling up and deadlines looming. Despite giving my best effort, I made an error on an important piece of work. I was devastated when I realized what had happened.

My manager didn’t place blame—instead, she reassured me that we would fix it together. After we resolved the crisis, she worked with me to identify the underlying cause and how we could prevent it in the future. My leader’s actions made me feel supported and empowered, which fueled my motivation and kept my colleagues and me working as a high-performing team.

But she wasn’t born knowing how to respond this way. Good leadership isn’t innate. It’s a deliberate combination of skills and behaviors that leaders develop over time through learning, practice, and feedback.

Ahead, we’ll explore the nine leadership qualities that elevate leaders from good to great, why they matter, and how to develop and measure them.

9 Essential Leadership Qualities

Great leaders share principles that build trust, drive performance, and shape culture. While many leadership traits overlap, each plays a distinct role in helping leaders show up effectively. Here are nine of the most impactful characteristics to focus on (in no particular order).

1. Self-Awareness

Self-awareness is the foundation of leadership growth. It requires leaders to:

• Reflect deeply.
• Understand their values, strengths, and derailers.
• Use feedback to construct an accurate picture of how people perceive them.

Self-aware leaders continuously explore where they excel and where they need support. They look for opportunities to lean on others who complement their talents—and they use these collaborations to build stronger, more balanced teams.

There’s also a more vulnerable dimension of self-awareness: exploring your triggers. Leaders who recognize what provokes strong emotional reactions are more likely to pause, choose their response, and ultimately act in alignment with their intentions. 

2. Empathy

Empathy is a leader’s ability to listen openly, understand others’ perspectives, and respond in a way that meets their personal needs.

Many people assume that leadership is about authority. But the most effective leaders practice empathy and work with their teams to achieve goals. They take time to listen, understand, and respond to what their team members are experiencing. Empathetic leaders ask questions, stay curious, and create space for honest dialog.

Empathy also fuels better performance by creating psychological safety. When people trust that their perspectives matter, they’re more willing to share ideas, take measured risks, and innovate.

3. Emotional Intelligence

Emotional intelligence is the ability to recognize and manage emotions—both your own and others’. It brings together self-awareness and self-management with empathy and relationship management. This skill allows leaders to regulate their reactions, respond thoughtfully, and ensure that their actions reflect their intentions.

Tacy Byham, DDI CEO and co-author of Your First Leadership Job, defines effective leaders as catalysts for their teams. Through emotional intelligence, Catalyst Leaders build the trust and relationships that spark growth and energy. Rather than relying on control, emotionally intelligent leaders engage others with purpose, inclusion, and trust, bringing out the best in their teams.

Emotional intelligence shows up most clearly in how leaders respond to others’ emotions, especially in moments of tension or change. Returning to the situation I shared earlier, when we were working to fix a critical issue, my leader stayed calm and focused. She supported me when I felt overwhelmed and helped me process what had happened—and then how to move forward. By managing their own reactions, showing empathy, and offering appropriate support, emotionally intelligent leaders build trust while helping the individual navigate the situation.

Balancing personal needs with practical needs isn’t always easy, but leaders who exercise emotional intelligence create stronger relationships, engage their teams, and make everyday interactions more productive.

4. Communication Skills

Great ideas only matter if you can share them clearly. Effective leadership communication adapts the message to the audience. Just as you wouldn’t talk to a friend the same way you’d speak with your child’s teacher, leaders must tailor how they communicate with executives, peers, and direct reports to have the greatest impact.

Communication is the foundation for trust, alignment, and team performance. It’s what sets high-performing teams apart and what allows leaders to practice many of the leadership qualities in this article. 

Active listening, giving feedback, and acting on it are critical supporting skills. When leaders fail to follow through or communicate clearly, they lose credibility and erode trust. And when communication breaks down, strategies stall and engagement drops.

Good leaders communicate purpose, rally people around it, give clear direction, and move teams forward toward shared goals.

5. Adaptability

Adaptable leaders embrace a growth mindset to learn from change. Instead of viewing change as a disruption, adaptable leaders look for the opportunity. They approach new situations with a positive mindset, modeling optimism and sharing the benefits to help their teams stay focused and resilient.

When old methods stop working, adaptable leaders also quickly try new approaches and use their resources to navigate transitions smoothly.

Adaptable leaders maintain effectiveness through uncertainty—not by knowing the future, but by being willing to learn, shift, and grow with it.

6. Vision and Inspiration

Vision and inspiration help leaders move beyond day-to-day execution and guide others toward a better future. It’s the ability to see the big picture, define where the team is headed, and provide a clear sense of purpose along the way. 

Leaders who combine clear direction with inspiration translate the future into something tangible. They connect daily actions to long-term goals, helping teams understand why their work matters and building confidence. By doing so, leaders create momentum, reinforce high standards, and lead through vision and values. 

7. Vulnerability and Trust

A common misconception is that leaders must project certainty and have all the answers, even when they’re not sure. But vulnerable leadership—the courage to admit challenges, acknowledge gaps, and ask for help—is what truly builds trust. When leaders show appropriate vulnerability, they remain authentic and invite others into the process of finding solutions.

Leaders who embody this quality balance professionalism with openness. They’re honest about obstacles and willing to learn alongside their teams. By modeling this behavior, they strengthen relationships and results.

I’ve seen this firsthand. Throughout my career, the leaders who had the greatest positive impact on me were honest, open, and authentically themselves. When they shared parts of their personal lives, it helped me feel more connected—and more willing to open up in return. They were also willing to admit mistakes and learn from them, showing their teams that growth often comes from failing forward.

8. Inclusivity

Inclusive leaders value diverse perspectives and intentionally build psychologically safe, balanced teams. They see how each person’s unique talents, experiences, and ideas improve the team and the organization—and they create the conditions for those strengths to shine.

Inclusivity also requires advocacy. Great leaders pay attention to who’s included in conversations. They encourage people to lean in, share ideas, and participate in decisions. And they actively advocate for their teams through coaching, support, and opportunities that help everyone contribute to their full potential.

9. Courage

Courage in leadership means speaking up, taking risks, trying new approaches, and having difficult conversations—even when it feels uncomfortable. 

Being courageous often involves two key aspects: making tough decisions and having candid discussions. Leaders show courage when they respectfully disagree, challenge the status quo, and offer honest feedback. These behaviors build trust because they show that courageous leaders ground their decisions in clarity, not avoidance.

When leaders act with courage, they inspire others to do the same.

Why Leadership Characteristics Matter

Leaders set the tone for morale and culture through their behavior—whether positive or negative. They shape how work gets done and how people feel while doing it. They also have a direct impact on business outcomes.

Managers who practice the right leadership principles—supported by development—improve the outcomes that matter most to organizations: retention, productivity, customer satisfaction, safety and quality standards, and even revenue growth.

These results start with how leaders show up and act every day. DDI’s HR Insights Report 2025 backs this up: When managers practice impactful behavior like recognizing effort, offering support, and providing feedback, leaders are 5.4X more likely to be engaged.

Leadership characteristics in action define team dynamics and drive the performance, innovation, and resilience organizations rely on. 

How to Develop the Qualities of a Good Leader

Don’t lose hope if you read this list and see gaps in your organization. That’s normal. No one is born excelling in every leadership capability—leaders grow by practicing them over time.

L&D plays a critical role in accelerating this growth. Organizations that intentionally build leadership capability have 33% more high-quality leaders and are 2X more likely to be top financial performers—a clear business case for investing in leadership qualities. 

This is where fundamentals matter. Formal training provides tools and ideas, but real development happens in the day-to-day work. That’s why growth requires a range of learning approaches: 

• Firsthand experience and practical application
• Social learning and collaboration
• Structured learning opportunities

Include deliberate practice: applying new skills in stretch assignments, seeking feedback, and taking time to reflect.

Reinforce concepts with microlearning or short practice simulations. And pair leaders with coaches or mentors who help them reflect, adjust behaviors, and sustain change. Encourage leaders to seek feedback from team members.

How to Measure Leadership Qualities

Assessments are one of the most effective ways to build self-awareness and identify development areas. Tools like simulations, 360-degree or multi-rater feedback, and personality inventories give leaders clear insight into how their actions are perceived, where their strengths are, and where they can grow.  

For organizations, assessments provide a broader view of leadership trends and pipeline readiness. They reveal strengths and gaps across levels, helping L&D target development, strengthen succession plans, and make more confident talent decisions.

Assessments give leaders the insight and tools to improve the leadership qualities that matter most for long-term success.

Good Leaders Are Developed, Not Born

Remember, leadership qualities aren’t innate—they’re built through awareness, feedback, and intentional practice.

The best leaders don’t rely on talent alone. They continuously refine the qualities that earn trust, inspire action, and deliver results. With the right support, every leader can grow the qualities that power high-performing teams.

About the Author
Sara Moorhouse is the Consulting Manager for DDI Europe, leading a team of dedicated consulting professionals that provide expertise across DDI solutions. Over the years, she has learned about great leadership from her managers and colleagues at DDI as well as the leaders she's worked with while facilitating sessions and providing feedback and coaching. She spends quite a bit of time pondering leadership qualities while walking in the beautiful British countryside with her Australian Shepherd, Fitzroy.