Module 2

Leadership Traits
There are many articles published on the traits of leaders—both bad and good—and many theories about
leadership styles and when to apply them. Whenever we discuss traits, someone usually asks this question:
“Are leaders born or made?” Another question to ask might be “If you call, will they come?” For example, when
you need your peers, family, or friends to help you achieve something, will they help you or follow you?

In this module, we examine some key traits for successful leaders and explore destructive leadership: what it
is and how to address it.

Learning Objectives
• Describe key traits for successful leaders and apply them to your own understanding of leadership.
• Describe destructive leadership and analyze methods for addressing toxic leadership.
• Compare the leadership traits needed in the P&C insurance industry with broader leadership traits.

Required Readings
• Peter G. Northouse, Chapter 2 (pp. 23–38) and Chapter 12 (pp. 323–342).
• Sandra J. Diller, Andrea Czibor, Zxolt Péter Szabó, Péter Restás, Eva Jonas, and Dieter Frey, “The Positive
Connection Between Dark Triad Traits and Leadership Levels in Self- and Other-Ratings,” Leadership,
Education, Personality: An Interdisciplinary Journal (November 2021): 117–131,
https://doi.org/10.1365/s42681-021-00025-6.
• J. D’Aprile, “Traits of Modern Insurance Leaders,” Slayton Search Partners, May 2021,
https://www.slaytonsearch.com/2021/05/traits-of-modern-insurance-leaders/.
• David L. Smothers, “What Is the Role of a Leader in an Insurance Company?” LinkedIn, July 27, 2023,
https://www.linkedin.com/pulse/what-role-leader-insurance-company-dr-david-l-smothers-thd.

Optional Readings
• John Coleman, “The Best Strategic Leaders Balance Agility and Consistency,” Harvard Business Review,
January 4, 2017, pp. 2–5, https://hbr.org/2017/01/the-best-strategic-leaders-balance-agility-and-
consistency.
• Alina Elbers, Stephan Kolominski, and Pablo Salvador Blesa Aledo, “Coping with Dark Leadership:
Examination of the Impact of Psychological Capital on the Relationship Between Dark Leaders and
Employee’s Basic Need Satisfaction in the Workplace,” Administrative Sciences 13, no. 4 (2023): 96,
https://www.mdpi.com/2076-3387/13/4/96.
• Holly Green and Kristi Hedges, “Leadership: Then and Now,” Forbes, August 30, 2011,
https://www.forbes.com/sites/work-in-progress/2011/08/30/leadership-then-and-
now/?sh=3afda0286911.
• Annabelle G. Y. Lim, “Big Five Personality Traits: The 5-Factor Model of Personality,” Simply Psychology,
December 20, 2023, https://www.simplypsychology.org/big-five-personality.html.

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Trait Theory
Trait theory is a psychological approach that identifies and measures specific characteristics, or traits, that
make up an individual’s personality. Traits are consistent patterns of thoughts, feelings, and behaviours that
are inherited and developed. Trait theorists believe that personality traits are stable over time and consistent
in different situations. The Five Factor Model (FFM) is a popular trait theory that identifies five key dimensions
of personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism (OCEAN). 1 Each
individual falls somewhere on a spectrum for each of these traits, which together form a unique personality
profile.

Hundreds of research studies have been conducted over the past century to determine the traits unique to
leaders, and the list of identified traits is extensive. Northouse identifies six key traits for leadership:

• Intelligence
• Confidence
• Charisma
• Determination
• Sociability
• Integrity

Soft Skills
Soft skills are part of a behavioral approach to leadership. Soft skills are personal attributes and interpersonal
abilities that enable individuals to effectively interact with others, communicate, and manage their own
emotions. In the context of leadership, soft skills are crucial because they influence how a leader motivates,
inspires, and guides their team. The list of soft skills is very long, and some researchers identify only the top
ones (such as communication, teamwork, problem-solving, and adaptability) as key skills. There are so many
soft skills that researchers are continually adding to our knowledge about this topic. The top soft skills in one
sector, therefore, could be different than in another sector. Lepeley et al. say that “soft skills are the common
language of empathy, collaboration, team building, resilience and agility transforming organizations.” 2 We can
probably agree that each of these soft skills represents a lifelong challenge for all leaders; however, two soft
skills are considered the most important for current and future workplaces: resilience and agility.

Resilience and Agility

Resilience, according to Lepeley et al., is “the ability to become strong, healthy, and successful after something
bad has happened. It is the capacity to recover quickly from difficulties, problems, constraints and unavoidable
disruptions with willpower, determination, empowerment, and stamina to improve continuously.” 3 Agility is
“the ability to move and change direction quickly with coordination, balance and speed while optimizing
responses to changing situation. Agility is a function of imagination, creativity, and courage for undertaking
educated risks to advance from the present condition to a better situation.” 4 Resilience helps create a reserve
of patience and stamina to recuperate from difficult situations, while agility helps us stimulate others toward
action and drive positive change, innovation, and progress. 5

1 Annabelle G. Y. Lim, “Big Five Personality Traits: The 5-Factor Model of Personality,” Simply Psychology,
December 20, 2023, https://www.simplypsychology.org/big-five-personality.html (accessed November 5, 2024).
2 Maria-Teresa Lepeley, Nicholas Beutell, Nureya Abarca, and Nicolas Majluf, Soft Skills for Human Centered

Management and Global Sustainability. New York: Routledge, 2021.

3 Lepeley et al., Soft Skills for Human Centered Management and Global Sustainability, p. 12.
4 Lepeley et al., Soft Skills for Human Centered Management and Global Sustainability, p. 12.
5 Lepeley et al., Soft Skills for Human Centered Management and Global Sustainability, p. 25.

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3 Module 2 Leadership Traits

It is important to recognize the biggest drain on resilience and agility in the workplace. Complicated
relationships, an excessive workload, criticism of personal work, work requirements that are outside the
experience or comfort zone of individuals, personal problems, work or family conflicts, and work challenges
all reduce employees’ resilience. A bureaucratic environment, lack of support for risk and innovation, lack of
incentives for creativity and innovation, lack of decision-making powers, resources, and time, and lack of
growth mindset can all reduce a leader’s (or employees’) agility.

A Forbes expert panel identified 20 soft skills that will be increasingly valuable for leaders, 6 and they differ from
the skills identified by Lepeley et al. This difference shows the divergence in opinion that exists in identifying
the most relevant soft skills for leaders. Less than half of the soft skills overlapped between the two sources,
and the overlap was mostly in the resilience category. Agility, which is evolving as a significant 21st-century
requirement to handle the current business environment, appears to be less recognized by industry.
Understanding the importance of these skills as leaders means looking at how we can improve ourselves but
also how we can promote the development of these skills in the workplace.

Dark Traits and Destructive Leadership

How are our own personality traits formed? Were we born with them, or have they evolved over time? If so,
why? And if it is possible to change some of our traits, how can we go about doing so?

We need to recognize that leaders can have dark traits; some interesting research around this concept sheds
light on how our environment can shape our traits and whether there is a demand for these traits in business
leadership. According to Diller et al., dark traits can frequently be found in higher-level executives; sometimes
those traits are brought about by requirements to be strategic and meet company goals and other times it
happens because organizations may primarily hire individuals with darker traits. It is not known for sure
whether people who exhibit dark traits have presented that way from childhood or been shaped by their
careers. Diller et al. explain that the term “dark triad” refers to three personality traits: narcissism,
Machiavellianism, and psychopathy. This is not to say that all leaders exhibit this dark triad. However, many
of us have worked for a “bad boss,” and as such we can probably recognize some aspects of these dark traits.
There is a body of research around how we manage up, which means finding ways to lead our teams with upper
management or leaders’ good and bad traits. A study by Elbers indicated that quitting is not the only answer;
investing in the psychological capital of employees enables people to rebound from negative experiences and
have more positive expectations. This means supporting the development of people with the knowledge and
skills to prevent harmful effects before they occur. 7 This study also supports the concept of building resilience
in people.

Understanding the traits that are key for leadership, as well as our own traits—including the potential presence
of dark traits—is crucial for professional growth, and it will ultimately make us more effective leaders.

Self-Assessment
• Application 2.3: Leadership Traits Questionnaire on pp. 47–50 of Northouse
• Application 2.5: Reflection Questions 1 and 3 on p. 53 of Northouse

6 Expert Panel, “20 Essential Soft Skills Leaders Should Build in the Workplace,” Forbes Business Council,
February 2, 2024, https://www.forbes.com/sites/forbesbusinesscouncil/2024/02/02/20-essential-soft-skills-
leaders-should-build-in-the-workplace/?sh=3c128da8452c (accessed November 5, 2024).
7 Alina Elbers, Stephan Kolominski, and Pablo Salvador Blesa Aledo, “Coping with Dark Leadership: Examination of

the Impact of Psychological Capital on the Relationship Between Dark Leaders and Employee’s Basic Need
Satisfaction in the Workplace,” Administrative Sciences 13, no. 4 (2023): 96, https://www.mdpi.com/2076-
3387/13/4/96 (accessed November 5, 2024).

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