Five Steps to Strategic Leadership

cu360
September 5, 2006

Most organizations devote serious time and resources to developing a business strategy that will help them build and sustain a competitive advantage. Those same organizations, however, often fail to devote sufficient attention to the leadership component of their plans—the organizational and human capabilities they need for implementation.

To excel, organizations need a leadership strategy. An effective strategy encompasses an organization's values and culture. It also addresses the role of systems in facilitating leadership and development. This means strategies for improving the effectiveness of individuals and teams—from training, coaching, and mentoring to developmental assignments and team building.

Consultants with the Center for Creative Leadership (CCL) have found that only a few executives master the process of encouraging behaviors that drive enduring success. In fact, most senior executives simply haven't thought about the relationship between business strategy and leadership strategy, say authors Richard Hughes and Katherine Beatty writing in T+D, the magazine of the American Society for Training and Development.

The good news is that each individual can help the organization succeed. And while effectiveness depends on the active support of the leadership team, each person has the opportunity to be a champion for strategic change.

Five Steps to Leadership Strategy

Below are five important steps that you can take to help your organization build leadership strategy. The authors recommend using the following questions to begin raising awareness among your senior leaders.

• Clarify aspirations and business strategy . Ask yourself:

Does your organization have a compelling vision and clear mission?

Does it espouse values that people accept and embrace?

Is there a clear understanding of your organization's strategic drivers and business strategy?

Can you identify improvements to the strategy development process that will promote ongoing and widespread understanding and commitment?

• Identify capabilities to implement business strategy .

What are the new organizational capabilities needed as a result of changes in your competitive environment?

Will you need to practice leadership differently as a result of those new competitive challenges?

How will you support ongoing organizational change and the individual, team, and organizational learning it requires?

• Assess those capabilities.

Are there changes needed in your organization's culture because of new competitive challenges?

Are you able to identify and minimize aspects of your structure that undercut the ability of individuals and teams to effectively implement strategy?

Do you have mechanisms in place for maintaining a strategic perspective amid tactical, day-to-day demands?

Does your organization have adequate systems for attracting, developing, and retaining the talent needed for success?

• Make leadership development a key component.

Which competencies are most critical to the success of your organization and its business strategy?

Does your leadership development strategy incorporate multiple types of experiences: training, coaching, mentoring, action learning, and developmental job assignments?

Have you created a feedback-rich environment that includes regular opportunities for 360-degree leader effectiveness feedback from bosses, peers, direct reports, and other key stakeholders, as well as periodic self-assessments?

Do you provide opportunities for developing not only individual leaders, but also strategic teams?

• Get top leadership support .

Do those at the top see leadership as a strategic competitive advantage?

Are members of your senior team willing to be public champions of leadership development?

Do you have a communication plan for making the link between your leadership strategy and business strategy understood throughout the organization?

Initiating major organizational change is typically the responsibility of a CEO or senior leadership team. But that doesn't mean others can't promote new ways or influence more senior leaders.

Regardless of position, individuals can affect the organization in a number of ways. CCL recommends the following examples:

• Raise issues with your own boss. Ask questions about potentially counterproductive aspects of your organization's culture, while also being savvy enough to acknowledge the reasons they might have emerged.
• Raise awareness among senior executives by acknowledging the link between business strategy and leadership strategy and the changes needed to produce desired results over time.
• Try implementing new behavioral practices within your own area of responsibility and sharing the results with others throughout the organization.

Above all, the authors suggest, individuals can promote a positive dialogue. Instead of pointing out what's wrong with the current situation, explore whether different conditions could be the foundation for attaining higher levels of sustainable, competitive advantage. The outcome of your efforts could well be some of your greatest contributions as a strategic leader.

Richard Hughes directs research and development efforts for groups, teams, and organizations at the Center for Creative Leadership. Katherine Beatty manages CCL's open-enrollment programs that focus on leading teams and organizations. They co-authored the book, Becoming a Strategic Leader: Your Role in Your Organization's Enduring Success, on which this article was based.This article first appeared on the CU360 website at www.cu360.cuna.org and is reprinted with permission.