Leadership capital is a concept from the book Extreme Ownership.
“Think of the amount of influence you have on the people around you as a bank account. Leadership capital represents the funds available in that account.”
— Echelon Front
As an individual contributor, your leadership capital is limited because no one is directly obligated to follow your direction. You must rely on influence and persuasion to encourage others to work with you.
When you become a manager, you’re essentially given a larger account of leadership capital to manage. You gain the ability to “spend” more by directing others, but you must also work to replenish that account to remain effective over time.