Abstract: This article explores the prevalent discrepancy between perceived and actual strategic competencies among organizational leaders. Drawing on recent research in leadership development, cognitive biases, and organizational performance, the analysis reveals that many executives overestimate their strategic capabilities, creating significant performance gaps within organizations. The research examines five core strategic competencies: understanding present contexts, envisioning futures, influencing systems, delivering results, and adapting to change. The findings demonstrate that addressing these competency gaps through systematic assessment and targeted development can significantly improve organizational performance, strategic execution, and leadership effectiveness. The article presents evidence-based approaches to close these gaps, providing practical frameworks for organizations seeking to enhance their strategic capabilities in increasingly complex business environments.