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Leadership is the process of exerting intentional influence toward the ideas, beliefs, capabilities, and behaviors of others, willingly on their part, toward an organizational goal or vision. It pertains to individuals, not organizations, and is a process, not just a formal role. Leadership is needed to sustain a competitive advantage and requires qualities and behaviors that are different from management, which is about efficiency and dealing with the status quo. Leaders do the right thing, change the status quo, and continually question procedures and goals, while managers do things right and accept the status quo.

Leaders are both born and made, with some genetically predetermined qualities, but also with the ability to learn and develop leadership qualities through training and development. The importance of leadership for organizations lies in its ability to attract and retain better performers, create committed employees, and drive organizational performance and innovation. Context affects leadership, with different approaches and styles necessary depending on the situation, and the ability of context to stifle or facilitate leadership behavior.

Leadership is both a science and an art, with some principles, such as considering leaders, followers, and context, leading by example, and giving recognition, being essential for effective leadership. Leaders communicate through an ontological perceptual constraint, already-always listening, and have certain traits, such as grit, courage, and resolve, as well as emotional intelligence, self-awareness, and social awareness. The "Great Man Approach" attempts to identify individual traits that distinguish leaders from non-leaders, but research shows that women score higher than men in most leadership skills.