A business’s success often boils down to devising the right strategy and executing it to perfection. Yet, the gap between the two can be quite staggering. According to Harvard Business Review (HBR), no matter how well-thought-out business strategies are, 67% of them fail due to poor execution. What do you think can be the reason for that?
The answer is a lack of strategic leadership to implement any blueprint for long-term success. The best company leaders often tend to adopt strategic leadership into their working style. But what exactly is strategic leadership? Top business strategists consider it to be the ability to drive strategic change across a business through:
- Anticipation
- Envisioning
- Flexibility
- Empowerment
Thus, strategic leaders act as the anchors that tether everything, including employees and processes, to a singular purpose, and execute their vision at a very high level of efficiency and speed. Given the accomplishment of strategic leadership in steering dynamic business environments towards growth, successful business leaders value it immensely.
Let us understand their perspective on the same.
Strategic Leadership in an Organization
It is easy to assume strategic leadership in an organisation as merely a technical, cerebral skill that oversees the creation of imaginative, complex strategies. However, that is not true.
Being a successful business strategist largely involves assuming an all-encompassing leadership role and setting the right culture, process, and attitude. Key to strategic leadership in an organisation is being able to persuade others to consider the broad picture and strive for long-term goals. This is what will create a self-sustaining pipeline of strategic innovation and deliver a competitive edge to a business.
So, what does strategic leadership in an organisation look like?
- Well-developed, dynamic core competencies
- A well-implemented model of human resource empowerment, upskilling, and development
- Digitally equipped, data-driven processes for maximum efficiency and accuracy
- Free-thinking, innovative, risk-taking work culture
Importance of Strategic Leadership
Long-term business leaders often find themselves face-to-face with short-term industry upheavals and business disruptions, which can lead to a lot of confusion and misjudgment. This is where the importance of strategic leadership comes through.
What strategic leadership brings to the table in a business is much-needed certainty. How? By devising a set path based on possible roadblocks ahead and aligning everyone to overcome them. A research piece by Gartner provides proof by suggesting that organisations that can unlock the capacity to execute novel growth strategies increase their profitability by a whopping 77%.
In a nutshell, strategic leadership is important because:
- It enables top business strategists to plan ahead of time by anticipating trends and challenges in the industry and devising appropriate solutions to them
- It enables successful business leaders to speedily implement their plans to keep pace with disruption. This is often achieved by streamlining processes and enhancing productive output
- It fosters innovation as creative solutions are part and parcel of long-term success strategy building
- It promotes stronger communication, teamwork and synergy on the floor by delegating appropriate roles and tasks to everyone
- It strategically uses a system of rewards and incentives to motivate employees and aid them in achieving their strategic objectives
- It also helps facilitate the integration of purpose, imagination, and innovation required for protracted success
Role of a Strategic Leader
So far, the importance of strategic leadership is crystal clear. But what about the success of strategic leadership? That largely depends upon how well a strategic leader understands his or her role in the organisation. Research by Accenture suggests that only 40% of employees believe that their manager understands an organisation’s strategy or key objectives. In such a case, how can we expect the strategic leadership model to deliver?
Hence, it is easy to conclude that the most powerful business leaders must be those who are well-versed in the following roles of a strategic leader:
1. Setting relevant goals: A successful business strategist leader examines existing trends to identify possibilities for growth and then develops goals for the team to accomplish. For example, Sanjiv Bajaj, Chairman & Managing Director of Bajaj Finserv and President of CII (2022-23), has been able to differentiate and spread the footprint of Bajaj Finserv successfully by prioritising their expansion into underserved markets via tech innovations. By following through with this goal, the financial services provider has been able to make huge strides.
2. Preserving key competencies and establishing strategic direction: Resources and capabilities contribute to competitive advantage. These are an organisation’s fundamental capabilities. Senior strategic leaders must ensure that these abilities are part of the company’s competitive strategy. They should also guarantee that it is continually maintained, invested in, and enhanced. Additionally, top business strategy leaders must create a strategic vision of where they see their organisation in five to ten years. This vision serves as a motivator for their team members.
3. Taking critical, informed decisions: The best company leaders excel at taking measured risks when making judgments. They can perceive complexities and devise solutions. They can adapt to market changes and capitalise on new possibilities. A case in point is the industrial pioneer Mukesh Ambani – the Chairman and Managing Director of Reliance Industries. One of the richest people on the planet, Mukesh Ambani is renowned for his strategic risk-taking and bold decision-making that has been able to serve Reliance’s vision. Thanks to his calculated risks, Reliance stepped beyond its petrochemicals niche and tapped into risky yet lucrative opportunities such as retail and telecom, thus truly cementing its place as one of the leading global conglomerates.
4. Deploying excellent man-management skills and developing human potential: Strategic leaders are excellent at managing others. They can talk effectively, which provides clarity and stimulates people. Such strategic leaders have strong personality traits. They may encourage others, maintain them on target, and keep the final objective in mind. Such leaders should also recognise that employees are the drivers of growth and they must uplift them. As a result, strategic leaders’ cooperation is required to ensure that the employees undergo upskilling.
6. Maintaining an impactful corporate culture: An important factor when it comes to competitive advantage is organisational culture. It aids in the development and execution of organisational strategy. Employees’ actions and attitudes are governed by corporate culture – something which all strategic leaders must stress upon. A good example is Azim Premji – the fabled Chairman of Wipro Limited. Affectionately called the Czar of the Indian IT sector, Azim Premji has been able to build Wipro into a behemoth through its ‘Spirit of Wipro’ cultural policy, thus providing employees with a blueprint to work in unison and harmony to create a sustainable business.
Final Thoughts
Like any other habit or talent, strategic leadership can be developed with attention, dedication, and practice – both at an individual and an organisational level.
The finest strategists are not merely generating ideas; they are the ones that conceive thought processes, the right vision and the ideal culture to synthesise innovative ideas. This is precisely why famous Indian businessmen are held in such high regard and practised by the likes of Sanjiv Bajaj, Mukesh Ambani and Azim Premji. Their success stories should tell us all we need to know about how important devising strategy and implementing it through a robust leadership model is for long-term success.
Read More Related Blogs: https://www.techcrums.com/category/business/
