Traditionally, organizations promote individuals based on personality traits, seniority, or experience. Yet, according to a recent study published by the National Bureau of Economic Research and co-authored by David Deming, a professor at Harvard Kennedy School, these criteria may not be the best indicators of effective leadership.
Instead, Deming and his team discovered that three specific qualities predict management success far more reliably than any personality trait or tenure:
interpersonal skills (inc. ability to build psychological safety in a team),
analytic skills (inc. problem-solving abilities and pattern recognition),
strategic skills (inc. decision-making & resource-allocation skills).
Together, these skills enable leaders to foster psychological safety, allocate resources wisely, and create a trusting team environment where people can thrive.
These findings suggest a data-driven approach to leadership selection, where psychological safety and decision-making skills take precedence over charisma or ambition.
Interpersonal Skills
Interpersonal skills are the abilities to build relationships, communicate effectively, and empathize with team members. These skills are critical for managing team dynamics, navigating conflicts, and ensuring everyone feels valued and included.
Research evidence: While interpersonal skills were not directly assessed in the study’s metrics (focused on cognitive and decision-making skills), the importance of psychological safety—a concept championed by Harvard’s Amy Edmondson— was emphasized by researchers and stated that it reinforces the need for strong interpersonal abilities in managers.
Leaders who can connect on a personal level with their team are better positioned to foster an inclusive, psychologically safe environment.
Interpersonal skills are foundational for creating psychological safety. When managers practice empathy, actively listen, and show respect for diverse perspectives, they build a trusting, open team culture where individuals feel comfortable sharing ideas and taking risks. This safe space is essential for fostering collaboration, innovation, and resilience.
Analytic Skills
These skills involve problem-solving, critical thinking, and data interpretation. Analytic skills allow leaders to assess situations objectively, analyze complex information, and make informed decisions.
Research evidence: According to the Harvard study, IQ—measured by tools like the Raven’s Progressive Matrices, which evaluate general and fluid intelligence—is a key predictor of effective management. This includes abilities in spatial reasoning, problem-solving, and pattern recognition, all of which fall under analytic skills.
Leaders with strong analytic skills can identify potential obstacles early, provide a clear rationale for decisions, and anticipate team needs.
This builds trust within teams, as employees feel supported by a manager who is prepared, thoughtful, and equipped to guide the team toward effective solutions.
Strategic Skills
Strategic skills involve the ability to set goals, prioritize tasks, and allocate resources effectively to achieve long-term objectives. Leaders with strategic skills understand the bigger picture and align their team’s efforts accordingly.
Research evidence:: The study highlights the importance of "economic-decision-making skills" in effective management, emphasizing a leader’s ability to allocate resources efficiently under time constraints—a crucial aspect of strategic thinking.
By making clear, strategic choices and communicating them transparently, managers create an environment where team members understand their roles, goals, and the reasoning behind decisions.
This clarity reduces uncertainty, minimizes anxiety, and enhances psychological safety by providing a structured framework for team operations.
So What?
Based on these findings from Harvard, effective leaders excel in analytic, strategic, and interpersonal skills—not ambition or tenure.
Here’s how companies can adjust their leadership selection and development processes to prioritize these qualities:
Evaluate analytical skills with problem-solving scenarios
During the selection process, present candidates with complex scenarios that require them to analyze data, identify key issues, and propose solutions. This will reveal their capability for clear, structured thinking and their aptitude for making evidence-based decisions.
Assess strategic skills with realistic case studies
Since strategic skills involve prioritizing and allocating resources effectively, provide candidates with case studies that simulate common managerial challenges, such as managing budgets, balancing resources under time constraints, or optimizing team efforts. Observe their approach to decision-making and whether they can align resources to meet broader organizational goals.
Test interpersonal skills through behavioral interviews and role-playing
Interpersonal skills are best assessed through interaction. Simulate scenarios where candidates must deliver feedback, handle disagreements, or motivate team members. Pay attention to their tone, listening skills, and ability to communicate constructively, as these are critical to fostering psychological safety.
Measuring the effectiveness of team management
Identifying the right leaders is only the first step. To ensure long-term success, organizations must continually assess and measure the effectiveness of team management, focusing on whether leaders are truly fostering an environment of psychological safety, effective resource allocation, and clear communication.
Regular assessments allow organizations to understand the impact of their leaders on team performance and morale and to make adjustments when needed.
One valuable tool for measuring psychological safety—and, by extension, team management effectiveness—is the Fearless Organization Scan. This tool, based on Amy Edmondson’s work on psychological safety, provides actionable insights into the current level of safety within teams.
The scan includes anonymous feedback from team members on their experiences, helping leaders understand where they excel and where they need to improve in creating a trusting, inclusive environment.
As a practitioner, I offer the Fearless Organization Scan as a service to help organizations gain a clear, data-driven understanding of team dynamics.
Following these research-backed practices and measuring progress can help organizations develop a new generation of leaders equipped to build high-performing, resilient teams.
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