When experts talk about self-awareness and leadership, they don’t always discuss the advantages leaders can experience. Often, the benefits of self-awareness are described in abstract, ill-defined terms. For example, you have probably read that high levels of self-awareness are linked to healthy relationships or an enhanced ability to develop and nurture personal development. Or you may have heard that self-awareness can help leaders avoid “tunnel vision” or ego-based toxicity. These are all worthwhile endeavors without a doubt, but these promised improvements are a little vague for the average leader.

If you are like most people in leadership positions, you want more data, more proof and more concrete examples of how self-awareness improves leadership and benefits organizations.

What does self-awareness actually do? In what specific ways does it give leaders advantages? Why is it so critical and why should you invest your limited time and energy into developing it?

Self-awareness can help you develop healthier relationships and improve your level of personal effectiveness, but how does it give you the edge you need to stay fresh, innovative and most importantly one step ahead of the competition?

The Bottom-Line Case for Self-Awareness

Self-awareness is more than just a nice idea designed to make people feel warm and fuzzy. It is crucial for improving the success of your organization and its bottom line.

The business world is characterized by constant movement and change. What was true yesterday may not hold true right now, and the techniques you use to motivate your people must always evolve along with changing circumstances. Self-aware leaders are more likely to be focused on the moment and circumstances at hand, rather than the past or the future. However, the brutal reality is that most leaders are not self-aware.

In a world where most leaders lack self-awareness, developing this important quality is key to organizational success. In a study that examined 72 senior executives, high scores on tests of self-awareness were the most prominent predictor of overall success. These leaders, unlike their non-self-aware counterparts, use awareness of their strengths and weaknesses to hire people who complement their skill sets. They also solicit feedback more frequently and more willingly than other leaders. Furthermore, leaders with the greatest levels of self-awareness are generally more flexible, agile and better able to adapt to changes in real time.

Ultimately, a leader’s self-awareness has a direct impact on their organization’s bottom line. Those who lack self-awareness will have challenges leading others effectively and driving the desired results for their business. On the other hand, those who maintain a healthy sense of self-awareness translate their leadership into healthy outcomes for their team and entire organization — this is a major competitive advantage.

Leading Through Peaks and Valleys

It is not uncommon for leaders to feel isolated, especially when left to contend with the highs and lows that can sometimes throw us off course. Often when individuals rise to the role of leader, there is rarely anyone around to provide constructive feedback or guidance. What I have often observed it that without self-awareness, emotional intelligence, proper coaching and support, the ego may step in and take over. What makes it more complicated is when an individual starts to experience wins as a result of their self-driven focus, and they start to make that their default style of leadership. Let’s play this out to bring the insight to life.

When a leader who leads with ego hits a peak and things are going particularly well, they can easily lose sight of themselves and make decisions that are not conducive to the success of their organization. They may also start to believe that they can do no wrong, or that they do not need to question their methods. Inevitably, they let their egos take over, further diminishing their self-awareness. As a result, their people will disengage, and organizations tend to experience diminishing returns.

At the other end of the spectrum are leaders who have experienced organizational downturns or losses. These individuals lose confidence quickly, and they start to second guess themselves and their decisions. Their insecurities rise to the surface, compounding and exacerbating the downturns their organizations may have taken.

These two scenarios are quite common for leaders. Every organization experiences highs and lows, but those that are led by self-aware leaders stand the best chance of surviving and even thriving despite the hardships presented.

Leaders who are self-aware understand that they will be challenged when dealing with the extremes of business. They keep an even keel whether times are good or bad because they understand all organizations go through peaks and valleys.  

How do those leaders do it?

Placing Humility Over Superiority

Self-aware leaders take themselves seriously; they just don’t do so at the expense of their teams or organizations. They are better able to gauge the impact of their own contributions to success while recognizing the value that others bring to the table. They understand that luck and other factors outside of their control also play important roles in the outcomes they experience.

Operating with humility instead of superiority is one of the hallmarks of self-aware leadership, and it brings some serious benefits:

• A more engaged and enthusiastic workforce
• More meaningful connections with individual team members
• Increased clarity around decision making and judgment
• A stronger sense of empathy

Don’t confuse humility for weakness. Being humble simply keeps you grounded, present and realistic about the impact your leadership has on your organization. It does not mean that you should act timid or indecisive. Rather, humility gives you the ability to see the landscape exactly as it is; not how you or anyone else thinks it should be. When you see the world this way, you give yourself a unique edge over your competitors.

Practicing Pattern Recognition

Have you ever noticed that some of the most successful and visionary leaders also happen to have a keen sense of human psychology? They have an uncanny ability to recognize patterns of behavior in others, which gives them a significant advantage. However, it’s their ability to recognize their own personal behavior patterns that gives them a leg up on the competition.

Most leaders seem to be blind to their own insecurities, doubts and neuroses. But the truly transcendent leaders view their behavior and thought patterns with eyes wide open. They understand their own tendencies and they recognize the relationship between cause and effect when it comes to the choices they make.

When you are self-aware, you become much more tuned in to your personal patterns of thought and behavior. You don’t keep making the same mistakes repeatedly. Furthermore, you take note of the patterns that tend to result in positive outcomes.

Dropping Defenses

Self-aware leaders are masters of handling criticism and feedback, whether it’s positive, negative or neutral. They know not to take any of it personally, and they resist the impulse to react defensively. Their self-awareness gives them the ability to remain open minded, allowing them to integrate feedback that makes them better as leaders.

Most leaders simply do not notice their own defensive reactions to feedback and criticism. Instead, they may go on the attack with a full-body suit of emotional armor that no one can penetrate. Or they react in the opposite manner by disappearing and becoming reclusive. They fail to integrate feedback in a useful manner, which makes others reluctant to approach them. And because they respond so poorly to feedback, they never make the changes that would otherwise enhance their leadership skills and their overall success.

Leaders who approach criticism and feedback with self-awareness give themselves a massive competitive advantage because they are willing to adapt, change and operate with flexibility. They don’t fear feedback; they actively seek it out, which improves every aspect of their leadership.

How Are You Developing Your Self Awareness?

If you are intrigued by the competitive advantages that increased self-awareness can bring, I would love to talk with you. Here at Leaders Edge, we believe that self-awareness is the foundation for effective, grounded leadership. We also know how to help leaders with tips and techniques designed to enhance self-awareness, emotional intelligence and overall effective leadership capabilities.

Do you believe you are already self-aware? Here is an eye opening fact: While 95% of leaders believe they are self-aware, only 10-15% demonstrate self-awareness in performance and behavior. The truth is that almost every leader can benefit from training or coaching to improve self-awareness. If you are ready to give yourself and your organization the competitive edge that comes with greater awareness, I invite you to contact me today via email at joanne.trotta@leadersedgeinc.ca or by phone at 1-855-871-3374.