Posted on May 19th, 2025 in Blog, Business

What Is Organizational Leadership?

Success in business doesn’t happen by accident. It requires a deliberate approach employed by leaders who are skilled not only in strategic planning and development but also in inspiring, motivating, and guiding teams toward shared goals. In other words, it takes effective organizational leadership.

So exactly what is organizational leadership, and how do individuals develop the skills necessary to be exceptional business leaders? A good place to start is by earning an advanced degree in organizational leadership. Professionals interested in advancing in their careers as leaders should understand the importance of effective organizational leadership and the skills and qualities needed to excel at it.

Defining Organizational Leadership

Organizational leadership is the act of guiding a business, workforce, or work team toward achieving specific goals. Effective organizational leaders possess a growth mindset, emotional intelligence, and strong leadership skills, which are put to use in the service of enabling a business to transform its strategies into actionable plans that deliver results.

For those interested in learning what organizational leadership is, it’s important to recognize that it encompasses broad elements that go beyond traditional management or administration responsibilities such as exhibiting expertise in specific business functions, overseeing the execution of set strategies, or maximizing employee productivity.

Effective organizational leaders strive to answer the “why” behind objectives, to provide employees with a deeper understanding of how their work contributes to achieving the company’s goals. This understanding can give employees a greater sense of purpose as they do their work, as it allows them to see how their actions align with the company’s overall vision.

Those with strong organizational leadership skills are well qualified to pursue a number of leadership roles across industries, from healthcare to finance to education.

Organizational Leadership Skills for Business Managers

Effective organizational leaders have a unique blend of leadership, management, and soft skills that enable them to not only manage a company or team but lead it. Collectively, these skills can be utilized to help an organization, workforce, or specific team achieve its goals and objectives with greater efficiency.

Some of the primary skills needed to be an impactful organizational leader are:

Communication skills: Being able to effectively speak, write, and listen can help leaders relay key messages in a way that minimizes the potential for ambiguity or misunderstandings. It also can help employees understand precisely what they need to do to achieve their goals and how their work contributes to the company achieving its larger goals.

Interpersonal skills: Competencies in areas such as empathy, dependability, and patience allow leaders to develop rapport with key individuals, such as employees, customers, and vendors.

Organizational skills: Strong organizational skills can help leaders promote efficiency and effective time management in completing projects. This is particularly crucial when multiple departments collaborate on the same project.

Strategic thinking skills: The ability to develop a comprehensive strategy and vision enables leaders to create a framework for achieving goals and driving results. This ability often taps into other competencies, such as being able to prioritize and delegate.

Importance of Organizational Leadership

The benefits organizations derive from having effective organizational leaders extend far beyond achieving their goals. It ultimately helps them create a happier, more purpose-driven workforce that can positively impact the company’s bottom line.

For example, according to Gallup, employees are:

Three-and-a-half times as likely to be engaged when they trust their leaders
Nearly seven times as likely to feel connected to their organization’s culture when leaders provide insight into how changes will affect the future of the business
Nearly 60% less likely to feel burned out when their leaders communicate clearly and effectively

With some 70% of employees saying their sense of meaning and purpose comes largely from their work, according to McKinsey & Company, leaders who can use their skills to inspire and motivate their team members bring immense value to a business. This value can be seen clearly in employee retention statistics. According to a Gallup analysis of data from numerous employee engagement studies, leaders who provide their workers with an improved connection between their jobs and the organization’s overall mission or purpose can see up to a 32% reduction in turnover.

Impactful organizational leaders also can improve a company’s profitability. A happy, more cohesive workforce tends to be more productive. And, given the retention benefits noted above, effective organizational leaders also help minimize the costs associated with employee replacement. These costs generally range from 50% to 200% of an employee’s salary, according to SHRM.

How to Develop Organizational Leadership Competencies

Earning an advanced degree, such as a Master of Arts in Organizational Leadership, can help professionals learn exactly what organizational leadership is and develop the skills they need to become better leaders. The curriculum of these programs typically combines a traditional management foundation with a focus on more social and behavioral concepts, resulting in graduates who can negotiate and communicate in ways that inspire and motivate others.

Working professionals also can develop their skills through real-world experience. Seeking out collaborations with other organizational leaders or senior-level managers can enable an individual to gain the support they need to grow their skills.

A third way for individuals to develop organizational leadership skills is through an honest self-assessment. Leaders should periodically examine their leadership style to identify which elements are effective and which are not. Self-assessment also enables individuals to recalibrate their skills to match the current climate of the workforce. For example, a strategy that was effective with established employees in the past may not be as effective with newly hired employees.

Prepare to Lead With Organizational Leadership Skills

Professionals with the skills to establish a strategic vision and then inspire and motivate their team to achieve that vision can have a profound impact on their organization. As such, they are well positioned to thrive in a variety of roles across many industries.

The Master of Arts in Organizational Leadership program at Warner Pacific University can help working professionals develop the skills they need to achieve success. The program takes a holistic approach to leadership, utilizing the social sciences to explore key leadership theories in a way that draws on behavioral, spiritual, interpersonal, cognitive, and strategic concepts. The Christ-centered institution’s program is offered in either a 100% online or a hybrid flexible (HyFlex) format, with a schedule that includes both in-person and online classes.

Learn more about how WPU Online can help you develop into a respected leader who people can trust.

Sources:
Business.com, “A Good Investment: How Keeping Employees Happy Benefits Business”
Business Leadership Today, “How Leadership Affects Organizational Success”
Gallup, “The Great Detachment: Why Employees Feel Stuck”
Gallup, Leadership Development
Indeed, “11 Organizational Leadership Skills (With Tips to Improve)”
Indeed UK, “Key Benefits of Effective Leadership for Organisations”
McKinsey & Company, “The Art of 21st-Century Leadership: From Succession Planning to Building a Leadership Factory”
SHRM, “The Myth of Replaceability: Preparing for the Loss of Key Employees”
Together, “What Is Organizational Leadership, and Why Is It Important?”