While a challenge often involves a form of competition, the most relevant definition describes a task or situation that tests someone’s abilities.
Two primary thoughts should be considered in relationship to leaders.
1) Leaders must challenge themselves. We must find ways to test our abilities to strengthen the character of our leadership.
2) Leaders must challenge others. The idea is to present tasks or situations where the abilities of followers are tested to produce personal growth.
People arise to what is expected. If little or nothing is expected, then little or nothing is given. However, experience has proven that when leaders provide encouragement and expectation, followers come through.