Why self-awareness is the foundation of great leadership

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Before you can lead a team with confidence, you have to be able to lead yourself.

Self-awareness in leadership is more than a buzzword. It’s the ability to understand your values, emotions, strengths, weaknesses, and blind spots — and it’s one of the most important leadership skills you can develop.

Leaders who develop self-awareness make better decisions, adapt more effectively, and create the trust needed for high-performing teams.

Harvard Business Review research shows that only about 15% of people are sufficiently self-aware, and there is less than a 30% correlation between people’s actual and self-perceived competence. That means most people’s self-view doesn’t match reality — a costly gap for leaders, because it directly impacts collaboration, morale, and conflict resolution.

Bill George, a Harvard Business School professor and former CEO of Medtronic, calls self‑awareness the starting point of leadership. He warns that without it, leaders risk “losing their compass” when under pressure.

By contrast, self-awareness fuels authenticity, emotional intelligence, resilience, and stronger decision-making. It’s the difference between a leader who simply manages tasks and one who inspires people to achieve more than they thought possible.

Why self-awareness matters for teams and organisations

The benefits of self-awareness go beyond personal insight. It underpins many essential leadership skills — from decision-making and communication to conflict resolution and adaptability. That’s why it’s central to any leadership development programme.

Builds trust and empathy

Trust is the currency of leadership. Emotional self-awareness is a cornerstone of empathy, which in turn builds trust. Leaders who recognise and manage their emotions respond to challenges with fairness and composure, which encourages employee engagement and discretionary effort — the willingness to go the extra mile — starts to show up across the team.

Enables human-centred leadership

Human-centred leadership is about more than “being nice.” It’s the ability to lead in a way that puts people, purpose, and relationships at the heart of decision-making.

Harvard’s ladder of inference model shows how quickly we can make assumptions based on limited data, jumping to conclusions without checking the facts. Leaders who are self-aware can slow down, test their assumptions, and make better, more inclusive decisions.

Powers agile leadership

In today’s fast-changing workplace, agility is essential. Leaders need to adapt, not just processes and priorities, but also their own approach. Self-awareness gives leaders the internal feedback loop they need to adjust their style, manage stress, and stay effective whether they’re in a crisis meeting, a virtual strategy session, or a casual one-on-one.

Forbes reports that embedding self-awareness early in leadership development provides individuals with a strong foundation to build their own leadership style — one that can flex with new challenges and changing business landscapes.

Supports authenticity

Authenticity isn’t about “telling it like it is” without regard for others. It’s about aligning actions with values, and leading in a way that feels real and consistent.

Authentic leaders inspire higher trust, commitment, and performance. They create psychologically safe environments where people can share ideas, admit mistakes, and challenge the status quo without fear of ridicule or retaliation.

The hidden costs of low self-awareness

When leaders lack self-awareness, it shows — and it costs.

  • Poor decision-making: Leaders may double down on flawed strategies because they’re unaware of their biases.
  • Conflict escalation: Without insight into how they contribute to tensions, leaders can unintentionally inflame disagreements.
  • Talent loss: Teams led by unaware leaders report lower engagement and higher turnover.
  • Missed opportunities: Leaders may overlook strengths in their teams or fail to see gaps in their own capabilities.

How RedSeed’s Leading Self programme supports leadership development

RedSeed’s Leading Self programme is designed for current managers, aspiring leaders, emerging talent — and anyone who wants to lead more effectively. It’s part of the RedSeed leadership training suite and focuses on developing leaders from the inside out — helping them gain a deeper understanding of themselves, their impact on others, and their personal leadership style.

Participants will:

  • Clarity values: Identify the beliefs and principles that guide decisions and behaviour.
  • Identify strengths and blind spots: Understand what they do best and where they need support.
  • Understand their communication style: Learn how their natural style helps or hinders relationships.
  • Apply self-awareness through video-based eLearning modules.
  • Embed change with Coaching loops for long term impact.

This approach mirrors best practices in leader development research, which highlight self-awareness, adaptability, self-confidence, and an accurate self-image as critical intrapersonal competencies.

Statistics that prove the value of self-awareness in leadership

  • Only 15% of people are sufficiently self-aware, and self-perceived competence often differs from reality by over 70% (Harvard Business Review).
  • Self-aware leaders rise more quickly and are more likely to be given high-impact roles (potentialproject.com).
  • Emotional intelligence, with self-awareness at its core, drives better performance, team effectiveness, and stress management (Daniel Goleman, Emotional Intelligence).
  • Coaching can boost team performance by up to 55% (redseed.com).

Business benefits of investing in self-awareness development

For decision-makers, developing self-awareness in leaders delivers measurable business outcomes:

  • Enhanced leadership presence and confidence: Leaders who know their strengths and limitations project authenticity and earn respect.
  • Stronger team cohesion: Empathic, self-aware leaders foster trust and collaboration which results in higher employee engagement.
  • Better adaptability: Leaders can pivot strategies without losing sight of their values or people.
  • Higher ROI on leadership training: Blending eLearning with coaching ensures behaviour change sticks.

If your leadership pipeline lacks self-awareness, you’re leaving untapped potential on the table. Leading Self is a scalable, structured solution.

Leadership in action: Emma’s story

Emma, a high-potential team lead, is technically skilled, full of ideas, and committed to results. But under stress, she becomes abrupt, and her tone can come across as dismissive — something she doesn’t notice, but her team feels.

Through RedSeed’s Leading Self programme, Emma maps out her personal values, identifies her key strengths, and receives feedback on her communication style. She learns that her reactivity stems from a desire to “fix” problems quickly.

With coaching, Emma experiments with pausing before responding, asking clarifying questions, and reflecting on how her words might land. Over time, her team notices the change. Conversations become more open, problems are addressed without blame, and her credibility as a leader grows.

Emma’s story shows that when leaders lead themselves first, they create the conditions for others to thrive.

Five ways to start building self-awareness now

Even before formal leadership training, leaders can begin strengthening their self-awareness and related leadership skills by:

  1. Seek feedback: Regularly ask peers, team members, and mentors for honest input.
  2. Reflect daily: Spend a few minutes at the end of each day noting what went well, what didn’t, and why.
  3. Identify emotional triggers: Pay attention to moments when you feel defensive, impatient, or frustrated.
  4. Clarify your values: Write down your top five values and consider how they influence your decisions.
  5. Use assessments wisely: Tools like DISC, MBTI, or strengths profiles can offer useful insights when paired with reflection and discussion.

Concluding thoughts: start with you, then lead others

Effective, resilient leadership begins from the inside out. Self-awareness isn’t something you either have or don’t — it’s a skill you can develop over time.

When leaders understand their motivations, values, and triggers, they can lead with empathy, authenticity, and clarity. This benefits not just individuals, but entire teams and organisations.

RedSeed’s Leading Self programme is designed to support that journey. Whether you’re grooming emerging leaders, refreshing experienced ones, or building a strong leadership pipeline, it provides the foundation for leading others more powerfully.

The evidence from Harvard, Forbes, and decades of leadership research points to the same conclusion: knowing yourself is the most essential first move in leadership.

Frequently asked questions

1. What is self-awareness in leadership?

Self-awareness in leadership is the ability to recognise your own emotions, values, strengths, weaknesses, and behaviours — and understand how they affect others. Leaders with strong self-awareness can adapt their approach, build trust, and make better decisions.

2. Why is self-awareness considered a critical leadership skill?

Self-awareness is the foundation for many other leadership skills, such as emotional intelligence, communication, conflict resolution, and decision-making. Leaders who understand themselves can lead authentically, inspire trust, and create more engaged, high-performing teams.

3. How does self-awareness improve team performance?

When leaders are self-aware, they can manage their reactions, adapt their leadership style, and connect more effectively with their team. This creates a culture of trust and psychological safety, which leads to better collaboration, higher morale, and stronger results.

4. Can self-awareness be developed, or is it something you’re born with?

Self-awareness is a skill that can be learned and improved over time. It develops through reflection, feedback, and training — such as participating in a leadership development programme like RedSeed’s Leading Self.

5. What makes RedSeed’s Leading Self programme different?

The Leading Self programme combines video-based eLearning with coaching loops, so leaders don’t just learn concepts — they put them into practice. It’s designed for new, emerging, and experienced leaders to strengthen their self-awareness and other core leadership skills.

6. Who should enrol in the Leading Self programme?

This programme is ideal for:

  • Aspiring leaders preparing for their first leadership role
  • New leaders who want to build confidence and capability
  • Experienced leaders who haven’t had formal leadership training or want a refresher

7. How long does it take to see results from self-awareness training?

While some changes in awareness can happen quickly, lasting behavioural shifts typically develop over several weeks or months. RedSeed’s blended learning approach helps leaders embed these changes into their daily leadership practice.

8. How does self-awareness link to emotional intelligence?

Self-awareness is one of the core components of emotional intelligence. It allows leaders to understand and regulate their emotions, which improves communication, empathy, and the ability to build strong working relationships.

9. Why should organisations invest in self-awareness training for leaders?

Research shows that leaders with higher self-awareness are more effective, adaptable, and trusted. Organisations benefit from stronger leadership pipelines, improved team performance, and reduced turnover.

Published by:

Karen Gowans

LEARNING & DEVELOPMENT MANAGER

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