This study investigates the Leadership 5.0 characteristics of school administrators and assesses the importance of these leadership qualities on cross-functional collaboration and team innovation of faculty members within a higher education setting. Covering a spectrum of leadership competencies such as digital savviness, agility, innovation, and sustainability, the analysis reveals how these attributes correlate significantly with the dynamics of team collaboration and innovation. The findings highlight the imperative for administrators to continuously develop their capabilities to navigate the complexities of modern educational environments effectively. Key areas identified for development include enhancing digital and agile leadership skills, fostering a culture of innovation, and strengthening ethical frameworks and linkages within and beyond the institution. Recommendations emphasize the need for targeted professional development programs that address these key competencies, promoting a more collaborative and innovative organizational culture. Through structured training sessions, the adoption of collaborative tools, and the reinforcement of team-oriented practices, this study provides a strategic blueprint for enhancing the efficacy of educational leaders. The results affirm that successful leadership in education is not merely dependent on inherent traits but on continual growth, strategic foresight, and the effective management of interpersonal and technological resources, ensuring resilience and success in meeting contemporary educational challenges.