Leadership means you can guide, influence, and inspire others. True leadership involves building trust, making tough decisions, and bringing out the best in your team, even when you might not officially be "the boss."
So, what is leadership in practice? And how can you develop these essential skills and traits?
Why Leadership Matters More Than Ever in 2025
You’ve probably heard people talk about “
soft skills” as if they’re nice-to-haves. Some describe them instead as ‘power skills.’
Will your technical expertise alone carry you to the top? Not on its own.
Research from the American Management Association, by way of Stanford Research Institute International, and the Carnegie Mellon Foundation found that
75% of long-term job success might actually depend on people skills, not technical knowledge.No matter how good you are at Excel or legal drafting,
your ability to influence people is what gets you promoted.
Today’s organisations desperately need professionals who can do more than crunch numbers or analyse contracts. They need people who can rally teams during market downturns, be reliant on complex client relationships, and drive innovation in traditional industries.
Other research shows that companies with strong leadership development programs are
2.4 times more likely to hit their financial targets, while organisations with weak leadership may see 40% higher employee turnover rates.
In other words, real career advantages await those who develop soft skills.
Three Traits of Great Leaders (That Anyone Can Build)
Leadership can seem vague, but can be seen in three concrete traits.
1. Vision and Strategic Thinking
Great leaders see the bigger picture. They understand how their department fits into company goals and communicate this vision to their teams.
Satya Nadella’s leadership at Microsoft is a widely cited example of vision and strategic thinking in action, as well as a demonstration of empathy and cultural transformation at the highest corporate level.
When Nadella became CEO in 2014, Microsoft was facing stagnation, cultural rigidity, and fierce competition. He shifted the company’s strategic focus toward cloud computing, artificial intelligence, and open-source development, which led to the explosive growth of Azure and the integration of AI into core products like GitHub Copilot and Office 365.
Nadella’s approach was not just about technology; he also transformed Microsoft’s internal culture. He broke down silos, encouraged cross-functional collaboration, and promoted a growth mindset.
Employee satisfaction rose significantly, and innovation accelerated, resulting in products that became essential for remote work and collaboration, especially during the COVID-19 pandemic.
Financially, Microsoft’s market capitalisation soared from $300 billion in 2014 to over $2.3 trillion by 2022, and its cloud business became the second-largest in the world. Nadella’s empathy-driven leadership also extended to customers, making Microsoft’s products more accessible and user-friendly, which expanded the company’s reach across platforms and devices.
Actionable Strategy: Three-Layer Analysis
First, understand the immediate problem or opportunity (Layer 1). Second, identify how this connects to broader departmental goals and challenges (Layer 2). Finally, consider the industry-wide implications and long-term strategic impact (Layer 3).
For example, if you're tasked with reducing monthly reporting time, don't just focus on efficiency gains. Consider how faster reporting could enable more strategic analysis (Layer 2), and how this positions your organisation to respond more quickly to market changes than competitors (Layer 3). Document these connections in a simple one-page framework, and reference all three layers when presenting your approach.
2. Decision-Making Under Pressure
Finance and legal professionals face high-stakes decisions daily. Market volatility, regulatory changes, and client crises don't wait for convenient timing. Unlike academic scenarios where you have weeks to research and analyse, real-world leadership demands split-second judgment calls that can impact millions of dollars, regulatory compliance, or client relationships.
The reality that you'll never have complete information is often the real challenge. Markets move faster than research can keep up. Regulations change overnight. Clients have emergencies that can't wait for committee meetings. In these moments, paralysis isn't an option, and neither is reckless decision-making.
Effective leaders make sound decisions quickly, even with incomplete information. They develop a systematic approach to rapidly assess situations, gathering the most critical data first rather than trying to know everything. They identify which stakeholders must be consulted immediately versus those who can be informed later. Most importantly, they understand the difference between reversible and irreversible decisions—moving quickly on choices that can be adjusted while taking extra care with those that cannot be undone.
In the aftermath of the 2013 Boston Marathon bombings,
emergency coordinators had to decide how to distribute severely injured patients. Instead of sending all victims to the nearest hospitals, they chose to disperse them to eight different hospitals, some farther away, so that vascular surgeons could operate immediately at each location. This quick decision is credited with saving lives, as it prevented overwhelming any single hospital and ensured faster access to life-saving surgery.
Actionable Strategy: Decision Framework Matrix
Create a simple decision-making tool that you can apply consistently under pressure: a two-column matrix: "What We Know" and "What We Need to Know." Under each decision option, list the concrete facts you have versus the assumptions you're making, then assign a confidence level (1-5) to each assumption.
For time-sensitive decisions, give yourself a maximum 15 minutes to complete this matrix. If you can't fill in critical information within that timeframe, identify the single most important unknown and make one focused inquiry. This prevents analysis paralysis while ensuring you've considered key factors. Most importantly, document your reasoning in the matrix so you can learn from both successful and unsuccessful decisions over time.
3. Communication and Emotional Intelligence
Technical expertise only gets you so far. Your ability to communicate ideas clearly and understand the emotional dynamics of your team often determines your leadership effectiveness.
You could have the best analysis in the world, but if you can't communicate it effectively or read the room when presenting, your impact will be limited. Leaders with high emotional intelligence understand their own emotions and those of others, staying calm under pressure, showing empathy toward colleagues, and managing conflicts constructively.
Research consistently shows that emotional intelligence (EQ) is a critical predictor of workplace success. Studies demonstrate that high EQ is linked to better performance, higher employee engagement, and improved retention rates. 71% of employers value emotional intelligence more than technical skills when evaluating candidates. Other research findings show that employees' EI plays a significant positive role in predicting their job performance—the higher the level of EI employees have, the better they perform.
Actionable Strategy: Audience Empathy Map
Before an important communication, create a simple empathy map for your key audience members, using a basic outline of a person divided into four quadrants: "What they Think" (their priorities and concerns), "What they Feel" (their emotional state and motivations), "What they See" (the information and pressures they're exposed to), and "What they Do/Say" (their typical behaviors and communication patterns).
Spend around ten minutes completing this based on your observations and interactions with each person. Then craft your message to address at least one element from each quadrant. For example, if someone "thinks" about budget constraints but "feels" frustrated about past failed initiatives, acknowledge both the financial reality and their emotional experience. During the conversation, watch for verbal and non-verbal cues that confirm or challenge your assumptions, and adjust your approach accordingly. This systematic empathy-building transforms your communication from one-size-fits-all to genuinely persuasive.
Leadership Example: Navigating a Crisis
There are many examples to illustrate how these leadership principles work together, but the following real (name changed) situation shows how it may benefit a career.
When the 2020 pandemic hit, Jennifer, a partner at a mid-sized law firm, faced an unprecedented challenge. Client revenue dropped 30%, several associates requested extended leave, and everyone was working remotely for the first time.
Jennifer did the following:
Vision: She immediately recognised this wasn't a temporary setback but a fundamental shift requiring new business strategies.
Communication: She held weekly all-hands meetings, sharing honest updates about the firm's financial situation while highlighting opportunities in emerging practice areas. She implemented virtual coffee chats and flexible scheduling, recognising that her team needed both professional guidance and personal support.
Decision-making: She quickly pivoted the firm's focus toward corporate restructuring and employment law, areas seeing increased demand.
The result? While many competing firms struggled, Jennifer's firm grew revenue by 15% that year and strengthened client relationships. Her leadership during the crisis led to her appointment as managing partner.
Common Leadership Mistakes to Avoid
Even well-intentioned professionals can derail their leadership potential. The most common pitfalls include:
Micromanaging Your Team: You might be a perfectionist, but constantly checking on every detail destroys trust and stifles innovation. Great leaders set clear expectations and give their teams space to deliver.
Avoiding Difficult Conversations: Whether it's addressing poor performance or pushing back on unrealistic deadlines, leadership requires having tough conversations. Avoiding conflict rarely makes problems disappear.
Focusing Only on Technical Skills: Yes, your job expertise is important. But if that's all you bring to the table, you'll hit a career ceiling quickly.
Trying to Please Everyone: Leadership often means making unpopular decisions. Trying to keep everyone happy usually results in weak compromises that help no one.
“But I’m Not a Natural Leader…”: How to Develop Your Leadership Skills
Most people aren’t natural leaders. That's ok.
Leadership isn’t always a born trait; it’s something you learn and build. And the most effective leaders are the ones who work on their skills.
The
Centre for Creative Leadership reports that 70% of leadership growth happens through experience, 20% through relationships, and 10% through formal learning.
If you want to use this 70-20-10 framework and you’re reading this, thinking “I want to lead, but I don’t know where to start,” you’re not alone, and you don’t have to figure it out on your own.
Start Small but Start Now
Leadership development doesn't require a complete career overhaul. Begin by volunteering for cross-functional projects, mentoring junior colleagues, or leading client presentations.
Seek Feedback Actively
Ask trusted colleagues and supervisors for honest feedback about your leadership style. What are your strengths? Where do you need improvement? Most people avoid this conversation, giving you a competitive advantage.
Learn from Other Leaders
Study the leaders you admire – both in your organisation and in your industry. What specific behaviours do they demonstrate? How do they handle challenging situations?
Practice in Low-Stakes Situations
Join professional associations, volunteer for nonprofit boards, or participate in industry committees. These environments let you practice leadership skills without the pressure of your day job.
The ROI of Leadership Investment
Leadership is not a destination, but a continuous journey. The best time to develop these skills was five years ago. The second-best time is right now.
Every interaction you have with colleagues, clients, or senior figures is an opportunity to practice leadership principles. The question isn't whether you have time to develop leadership skills. The question is whether you can afford not to.
Technical expertise might get you hired, but leadership skills get you promoted. In a world where artificial intelligence is increasingly handling routine analysis and research tasks, your ability to inspire, influence, and guide others becomes your most valuable asset.
The leaders of tomorrow's finance and legal organisations are being shaped today. You can decide whether you will be among them.
Our comprehensive
Leadership Skills course gives you the frameworks, tools, and confidence to lead without sacrificing your technical excellence. Join hundreds of professionals who've accelerated their careers by mastering the skills that matter most.
FAQ
What is leadership in business?
Business leadership is the ability to guide, inspire, and influence a team or organisation toward achieving goals. It involves setting a clear vision, making strategic decisions, motivating employees, and fostering a positive, productive culture. Effective business leaders communicate well, adapt to change, and empower others to success.