Leadership Capital

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Leadership Capital is the term given in the Ideal leadership model for the six competencies that constitute the leader's ability to direct an organization forward in a positive direction. The model identifies these six critical capabilities under three dyads as measured by a leadership assessment using leadershipmetrics. The philosophical dyad is composed of the leader's vision and values – the framework which the leader uses in all his or her operations. The personal dyad consists of wisdom and courage – the processes used in problem solving, decision-making, and implementation of strategy. The interpersonal dyad is made up of the leader's trust and voice – those aspects of interrelating with followers and causing them to desire the path that the leader is directing.

According to the Ideal Leadership theory, failures in leadership are the result of anti-leadership, or the opposite or extreme of the leadership capital elements. The ideal leader is one who has the right balance in all six competencies and continues to increase this capital. The various leadership conditions give leaders an opportunity to lead their organizations forward.


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Stout, Larry (2001). Leadership: From Mystery to Mastery. Stockholm School of Economics in Riga Press. 

Stout, Larry (2006). Ideal Leadership: Time for a Change. Destiny Image Publishing. 

Stout, Larry (July 2002). "Leadership Teaching and Research: The Baltic Republics". Wharton Leadership Digest 6 (10).