How can I lead in such a way that I empower others to be excellent at what they do as individuals, yet at the same time encourage team collaboration?”Itay TALGAM

In Summary
Collaborative leadership is the leadership of a process, rather than of people. It means maintaining a process that allows for the inclusion of all stakeholders involved in an issue or organization or community effort; that depends on collaborative problem-solving and decision-making; and that is open and open-ended, with no foreordained conclusions. It is particularly valuable in situations where "no one is in charge," where the size and complexity of problems make it impossible for any individual or organization alone to effect change.
Collaborative leadership encourages ownership of the collaborative enterprise, builds trust and minimizes turf issues, allows for more and better information, leads to better and more effective solutions, encourages new leadership from within the collaboration, empowers the group or community, and can change the way a whole community operates. It can also take inordinate amounts of time, and requires that leaders deal with conflict and resistance to the collaborative process, bite their tongues as the group moves in directions they don't agree with, and subordinate their egos to the process of the group.
In general, the advantages far outweigh the disadvantages, but not in every situation. The best times for collaborative leadership are when the timing is right; when complex and serious problems arise; when stakeholders are characterized by diversity and/or a variety of interests; when other solutions haven't worked; when an issue affects a whole organization or community; or when empowerment is a goal of the process from the beginning.
While collaborative leaders may come from anywhere, they usually have in common community credibility; the ability to relate comfortably to everyone in the community; good facilitation skills; the ability to be catalysts; a commitment to the collaborative process; and a commitment to the common good, rather than to narrow interests.
To be a good collaborative leader, you have to lead, maintain, and safeguard the collaborative process; understand and use the leadership context (the community and the nature of the problem you're facing); be a motivator with a firm footing in reality; be flexible in your dealings with people and inflexible in your defense of the inclusiveness, openness, and collaborative nature of the process; and leave your ego needs at home. If you can do all that, the chances are good that your collaborative effort will succeed.