Practical Intelligence: An Underrated Leadership Skill

The gap between knowing and doing…

We observe most senior leaders we work with as highly commercially intelligent. They know their industry, understand the data, and can articulate sophisticated strategies. And yet, many of the leadership challenges that they face don’t come from a lack of knowledge or intellect – they come from the gap between knowing and doing.

That gap is where the application of practical intelligence lives. 

Often described as “street-smarts” or common sense, practical intelligence is the ability to apply knowledge effectively in real-time situations. It’s not about having the best answer in theory; it’s about choosing the right answer for this context, with these resources, at this moment in time. 

Practical intelligence shows up in three core ways: adaptation, shaping, and selection. 

Adaptation is the ability to adjust to the environment we find ourselves in. Leaders with strong practical intelligence read the landscape. They notice what’s working and what isn’t, and they flex their style, language, and approach accordingly. They don’t insist on leading the way that they prefer; they lead in the way the situation requires. 

Shaping is about changing the environment itself. Rather than simply coping with constraints, practically intelligent leaders influence the conditions around them – resetting expectations, reframing problems, or shifting dynamics so that progress becomes possible. This is where leadership moves from reaction to intentional impact. 

Selection is the often-overlooked skill of choosing the right context in the first place. Sometimes the smartest move isn’t to push harder or adapt more, but to recognise when a role, strategy, or environment is fundamentally misaligned – and to make a deliberate change. 

It is rare that success in organisations is attributed to the leader with the highest IQ or the most investor-friendly strategy. Instead, it goes to those who can translate insight into action, judgement into momentum, and intention into results

A question often asked in performance coaching sessions, particularly when encouraging leaders to reflect on their own approach, is: “Am I trying to be clever – or effective?” Practical intelligence is what bridges the two. 

If you’d like some support with bridging 2026 strategic objectives, and embracing practical intelligence, get in touch! You’re In Cool Company… 

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