In today's rapidly evolving business landscape, the leadership paradigm has undergone a significant transformation, shifting from traditional hierarchical structures to more collaborative and horizontal models. This shift emphasizes team leadership and innovation as key drivers of success.
To be a good team leader, besides management skills, one must focus on developing key leadership skills, such as building trust, ensuring clear communication, showing empathy, maintaining integrity, and even demonstrating resilience.
Furthermore, emotional intelligence is essential in creating a positive work environment, ensuring team members remain engaged, motivated, and aligned with organizational goals. This is especially important for new leaders.
In this article, we will delve into these traits and provide practical tips for developing the skills necessary to become a successful team leader.
Leadership paradigm shift
The “from boss to a team leader” paradigm shift, “team of teams” approach and a “flat” (horizontal rather than vertical) leadership model explain the success of many businesses today.
For example, Microsoft earned $77.17 billion, and Google (Alphabet Inc.) $75.15 billion in 2023, emphasizing team leadership and innovations. Respectively, IBM ($8.29 billion net income), Netflix ($4.98 billion), and Salesforce ($4.09 billion) continued to be successful in their industries by fostering team leadership.
Who are the people behind these companies? What do they all have in common?
Satya Nadella, CEO of Microsoft, is well known for his effective leadership skills by introducing a "growth mindset" among team members. Sundar Pichai, CEO of Google, is devoted to empowering teams. Arvind Krishna, CEO of IBM, embraced the "team of teams" agile concept. Reed Hastings, co-founder and executive chairman of Netflix, insists on decisions being made by teams. Finally, Marc Benioff, CEO of Salesforce, is known for his emphasis on teamwork and collaboration.
All of them are masters of team leadership.
This raises a question: what are the traits of a good team leader? What skills or habits define a great leader?
Many authors (George Orwell, for example, in his ‘1984’ classic, or Robert Greene in his ‘48 Laws of Power’ (see the “12 Best Books On Power” summary in our Headway app) try to find the answers to these and similar questions focusing on the problem of power.
However, in this blog article, we differentiate “power” from “team leadership” to discover the key traits and skills of a good team leader and resources for professional development in leadership.
Manager vs. team leader
A great leader is the one who has followers. If nobody follows, can a person truly be a leader? It’s about more than leadership style.
So, let us firstly distinguish a “manager” from a leader.
In this book ‘The Practice of Management’ (1954), Peter Drucker pointed out that “Management is doing things right; leadership is doing the right things.”
Referred to as the "father of modern management," in ‘The Effective Executive: The Definitive Guide to Getting the Right Things DONE,’ he gives advice on improving personal managerial style.
In practice, a manager (or a boss) often presents a pre-made decision to the “subordinates” to execute it. The manager controls the process and plays a formal leadership role.
However, a good manager may have sincere respect from the team members (employees) regardless of the executive role. And yes, a manager can be a great leader.
Normally, teamwork planning, control, and decision-making are up to the manager. Others simply implement what the boss says.
To define a great leader, a good question to ask is: 'Will team members continue to respect their managers or team leads even after they are no longer in a position of authority?”
In contrast to “managing people” (telling them what to do), a team lead manages processes, creates a healthy environment for productive teamwork, and ensures coordination to deliver value.
Scott Tannenbaum and Eduardo Salas explain the seven drivers of effective teams in their book ‘Teams That Work,’ emphasizing that “shared leadership” is the future of successful teams.
The difference betwen a manager and a leader is crucial to grasp for those who have just taken on a new role of project manager, team lead, or a similar position.
In her book ‘How to Get On with Anyone,’ Catherine Stothart quotes Maya Angelou, who said:
“I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.”
Scott Jeffrey, author of ‘Management Mess to Leadership Success,’ ensures that being a great leader is not an innate talent, it’s a product of hard work and unwavering dedication. The following quote by Brandon Sanderson inspired him:
“A man can only lead when others accept him as their leader, and he has only as much authority as his subjects give to him. All of the brilliant ideas in the world cannot save your kingdom if no one will listen to them.”
Team lead as a coach
The team leader’s role has a lot to do with team building. We can compare it to the role of a football team coach who fosters communication, understanding (of tasks, goals, and ideas), engagement, initiative, motivation, and passion to achieve a goal.
One of the reasons the Ukrainian football team did not advance to the European championship in 2024 was the new coach. Serhii Rebrov, a highly respected world-class professional, failed to unify team members, each an individual football star.
It is worth noting that Mr. Rebrov was honest enough to admit his failure and pass the torch. His ability to receive constructive feedback and readiness for open communication only proved he was truly a great leader. Though he failed as a manager, how he handled the crisis helped him build trust and open doors for new opportunities.
In contrast, in 1986, Valeriy Lobanovskiy led Dynamo Kyiv to victory in the UEFA Cup Winners' Cup by pursuing strong team cohesion and discipline, emphasizing collective play over individual brilliance.
Those of us who strive for leadership development can learn from both of these examples.
Now, let us look at a few characteristics of a good team leader.
Essential traits of a good team leader
Trust
A good team leader is not only trustworthy, but also trusting. They treat their team members as mature adults capable of finding a solution on their own. A mature leader builds mature teams, and mature self-managing teams deliver significant results.
This is the opposite of bossy-style management, with one person giving orders to others, as if they are helpless. Authoritarian style leadership deprives teams of autonomy, creativity, or initiative. This may lead to a loss, considering competitive high pace teams pursuing an agile approach.
Frequent interference with the team’s operational work (micro-management) demotivates employees and limits growth. Such practices signal a lack of trust. In such cases, a person can possess a formal leadership position and be a bad team leader.
Trustworthiness is the first characteristic of a good team leader because all the following skills and qualities, such as communication, empathy, integrity, and resilience, will flourish where trust is.
2. Clear communication
Poor communication skills create problems. Imagine a startup urgently needing financial resources to scale up a product or a service. How will investors know about the opportunity if everyone is silent about it?
Respectively, if a team does not understand the mission and vision of the whole organization, team goals, or their leader’s expectations, how can it be productive?
To achieve effective communication, the team leader must be able to articulate the big picture, explain their ideas to team members, and be open to feedback.
The best leaders appreciate follow-up and “retrospectives” — the opportunity to discuss the entire team’s achievements, failures, valuable insights, or new skills gained in the process, summarize milestones, re-evaluate metrics, and discover team needs and how to increase team performance.
The Indeed experts add that besides problem-solving, active listening and the art of facilitating an open dialogue are equally important. Leaders who excel in communication build trust, encourage a collaborative work environment, and achieve more.
In many cases, a team lead serves as a bridge between the team and stakeholders (executives, managers, board members, and product owners).
3. Empathy
Empathy involves recognizing and addressing the emotional needs of team members. A leader who shows empathy builds stronger relationships, improves morale, and creates a supportive work environment.
Self-awareness is one of the key competencies a good team leader must develop.
In her article, ‘What it Means to be a Great Team Leader and How to Become One,’ Bethany Klynn, PhD emphasizes emotional intelligence as a key skill of every great leader:
“Great team leaders must have emotional intelligence to build healthy working relationships.”
In her book ‘How to Get On with Anyone,’ Catherine Stothart insists that we should learn to notice and handle our feelings to boost our emotional intelligence: “The body tells the mind what mood we are in, and vice versa.”
4. Integrity
In team leadership, integrity means leading by example and maintaining ethical standards. Furthermore, it is crucial for building credibility and earning respect.
PortfolioManager explains that a leader must model ethical behavior and uphold high standards of honesty and fairness. By setting a positive example, leaders influence their team’s behavior and establish a culture of trust and accountability.
Integrity is about being honest with yourself and not pretending to be someone you are not. Nathaniel Branden, in his book ‘The Six Pillars of Self-Esteem,’ said, “There are realities we cannot avoid. One of them is the importance of self-esteem.” Regardless of what you do, you cannot ignore the power of this key ingredient in the recipe for success and happiness.
5. Resilience
Deakin University insists that resilience — the ability to adapt to challenges and support the team through changes — is a must for a good team leader.
Effective leaders face challenges head-on, provide support during difficult times, and guide their teams through transitions. A resilient leader helps maintain morale and drives progress despite obstacles.
Practical tips for developing leadership skills
Set clear goals
Setting clear, achievable goals will ensure everyone is working toward the same objectives. Additionally, progress toward these aims must be regularly assessed.
The Asana creators pay huge attention to “goal management.” They warn about the risk of goals being disconnected from daily work — when team members lose motivation simply because they do not understand what goal their work supports.
Everyone must understand a common goal to achieve it. How can sprinters win an Olympic gold medal if they do not know where the finish line is?
Thus, the role of a good team leader is to provide context so team members understand why their work matters and how it fits into the larger company vision.
2. Delegate effectively
Teamwork experts call us to “empower team members.” This equates to delegation.
Delegation is an essential leadership skill that involves transferring or entrusting responsibilities to team members.
The opposite of delegation is a “savior” complex. “Who if not me?”, “I know how to do it better!” “It would be faster if I do it!” — Do these questions describe your “hero” leadership approach? Feeling overloaded? Delegate tasks to others!
On the other hand, assigning a task without employee engagement (typical for a vertical team management approach, where a manager tells a subordinate what to do and how) may not be the best practice in the context of team leadership. Instead, the best work that team members do is often a result of a simple discussion with them.
A much better approach involves leadership qualities such as openness to hearing others and readiness to receive their feedback. A team member who takes ownership of the task delivers much better results.
3. Provide feedback
Constructive feedback is essential for productive teamwork and personal professional development. The feedback must be specific, actionable, and supportive.
Such books as ‘Radical Candor’ by Kim Scott (emphasizing the importance of providing honest feedback while maintaining empathy and respect), ‘The New One Minute Manager’ by Ken Blanchard and Spencer Johnson (a practical guide on team leadership), and ‘The Mom Test’ by Rob Fitzpatrick (asking the right questions and avoid biased feedback from customers) will shed more light on this topic.
Headway prepared summaries of these and similar books, which you can check out in our ‘120 Best Business Management Books’ review.
4. Foster team collaboration
‘The Mamba Mentality’ Kobe Bryant and Andrew D. Bernstein emphasize the crucial role of collaboration, which goes beyond basketball. Simon Sinek, in his ‘Leaders Eat Last,’ prioritizes the well-being and success of team members by creating an environment of trust and shared purpose, with collaboration being a vital part of it. Patrick Lencioni warns us about ‘The Five Dysfunctions of a Team’ that ruin collaboration.
Team collaboration is opposite to “one persona,” vertical hierarchy, or authoritarian leadership models and has a significant advantage in the modern, fast-paced world.
5. Encourage open communication
Creating a collaborative environment encourages team members to share ideas, solve problems together, and support each other. Team leaders can foster collaboration by deliberately creating opportunities for teamwork and communication.
To discover more, we collected the summaries of the ‘142 Best Leadership Books’, which offer brilliant advice on team collaboration, open communication, and other skills and traits that are crucial for effective team leadership.
Case studies and real-life examples
Let us explore how the leadership of Jeff Bezos, Jensen Huang, Shantanu Narayen, and Safra Catz sum up the impact of effective leadership.
Notable leaders applying effective leadership principles
Outstanding leaders of our day, such as Jeff Bezos, Jensen Huang, Shantanu Narayen, and Safra Catz, have demonstrated how effective leadership can lead to substantial business growth. Their approaches, focusing on teamwork and innovation, have propelled Amazon, NVIDIA, Adobe, and Oracle to new heights in revenue and market cap.
For example, Amazon's revenue grew from $107 billion in 2015 to $469.8 billion in 2021, and the company's market cap exceeded $1.9 trillion by 2023. Its founder Jeff Bezos emphasized small, autonomous teams, known as "two-pizza teams," to ensure agility and rapid decision-making.
Jensen Huang (NVIDIA) emphasized a team-based approach and innovation, empowering employees to advance AI and graphics technology. NVIDIA's revenue grew from $6.9 billion in 2017 to $26.9 billion in 2022, and its market cap exceeded $600 billion, driven by its dominance in GPU technology and AI applications.
Shantanu Narayen (Adobe) adopted a subscription-based model and promoted cross-functional teamwork. The company’s revenue grew from $4.8 billion in 2011 to $15.8 billion in 2021 and $20.8 billion in 2023.
Safra Catz (CEO at Oracle Corporation) emphasizes a collaborative and inclusive leadership style. She fosters a culture of teamwork and innovation. In 2022, Oracle reported revenues of $42.4 billion and $50.3 billion in 2023.
These leaders exemplify the principles discussed and provide real-life examples of effective leadership.
Modern leadership challenges
Modern leaders face such challenges as managing remote teams, adapting to rapid technological changes, and addressing cultural differences.
Strategies, skills, and technology are required to ensure that teams remain engaged, productive, and aligned with organizational goals.
Robert Iger, CEO of the Walt Disney Company, emphasizes turning challenges into triumphs to lead a global entertainment empire (‘The Ride of a Lifetime’). On the other hand, Bo Burlingham, in his ‘Small Giants,’ underlines the power of small businesses in dealing with challenges to create extraordinary success.
At the same time, Clayton M. Christensen (‘The Innovator's Dilemma’) warns us about the trap of focusing on “sustaining innovations,” leading to a failure to adapt to disruptive technologies emerging in the market.
Our ‘26 Best Leadership Books for Women’ will provide you with more summaries on this matter.
Learn more from influential leadership books
One quiet characteristic of a great leader is the habit of reading good books. For those of you who are looking to delve deeper into leadership, we highly recommend exploring the summaries of influential books available on the Headway app.
You will find valuable insights and strategies to help you become a better leader in these recommended books:
‘Make Your Bed’ by William H. McRaven: This book emphasizes the importance of small tasks and discipline in achieving larger goals. McRaven's leadership during his Navy SEAL career showcases the power of resilience and integrity.
‘The 48 Laws of Power’ by Robert Greene: Learn timeless principles on gaining and maintaining power, which can be applied to leadership.
‘Doesn't Hurt to Ask’ by Trey Gowdy: Understand the art of communication and persuasion to become an effective leader.
Explore these and other leadership books on the Headway app to enhance your leadership skills.
Summary
In this blog, you learnt about effective team leadership, the essential traits of a team leader, the skills required for growth, and recommended books for professional growth in leadership.
You also discovered the success stories of such great leaders as Jeff Bezos (Amazon), Jensen Huang (NVIDIA), Shantanu Narayen (Adobe), Safra Catz (Oracle Corporation), Satya Nadella (Microsoft), Sundar Pichai (Google), Arvind Krishna (IBM), Reed Hastings (Netflix), and Marc Benioff (Salesforce) — all of them emphasized team leadership, collaboration, and personal model approach.
Next steps
Effective team leadership is a continuous journey of growth and learning. By applying these practical tips and exploring the valuable resources available on the Headway app, you can enhance your leadership skills and lead your team to success.
Discover more about leadership by visiting our Leadership Library, Power Library, Business Management Library, Management Library, and Leadership for Women Library. Enhance your leadership journey with the Headway app and unlock the potential to lead effectively.
