Competencies include problem-solving skills, social judgment skills and knowledge and are at the heart of the skills model.

Problem-solving skills (A leader's creative ability to solve new and unusual, ill-defined organizational problems. Skills in defining significant problems, gathering problem information, formulating new understandings about the problem, generating prototype plans for problem solutions)

Social judgment skills (The capacity to understand people and social systems. Skills: Perspective taking - understanding of the attitudes that others have toward a particular problem or solution. Social perceptiveness - insight and awareness into how other within the organization function. Behavioral flexibility - the capacity to change and adapt one's behavior in a light of an understanding of other's perspectives in the organization. Social performance - the capacity to effectively communicate their vision to others based on their understanding of the others' perspectives).

Knowledge. The accumulation of information and the mental structures (schema) used to organize that information. Knowledge and expertise make it possible for people to think about complex systems issues and identify possible strategies for appropriate change (Northouse, 2007, p.44-50).

Effective problem solving and performance are the outcome of leadership.

Good problem solving involves creating solutions that are logical, effective, and unique and that go beyond given information. Performance indicates the degree to which a leader has successfully performed the duties to which he or she has been assigned.

In addition career experiences have an impact on the characteristics and competencies of leaders. The model suggests that the experiences acquired in the course of leaders' careers influence their knowledge and skills to solve complex problems. Mumford et al believe that leaders can be helped by challenging job assignments, mentoring, appropriate training, and hands-on experience in solving new and unusual problems (Northouse, 2007, p.52).

Factors in a leader's situation that lie outside the leader's competencies, characteristics, and experiences are environmental influences (for example, available technology, subordinates competencies', task complexity or communication quality). Environmental influences are a part of the skills model but not usually under the control of the leader (Northouse, 2007, p.52-53).