Balancing leadership and management in strategic organizational effectiveness

Strategic Management: The Essentials of Strategic Leadership

What is the equilibrium that a strategic leader has to balance?

Strategic leadership refers to the potential of an organization's leaders to influence its entire team to achieve the objectives, goals, and mission of the organization. According to Adair (2012), a strategic leader is only termed effective once they deliver what the entire team expects of them in terms of change. Effective strategic leaders have to find the right balance between good leadership and good management as these two aspects are essential for the success of the organization. Hughes and Beatty (2005) state that strategic leaders need to balance the organizational structure, strategic vision, and allocation of resources with the need for action and decisiveness. Once this equilibrium is attained, good relationships will be fostered and the execution of organizational change will mean easier dynamic business environments.

What is the main objective of a strategic leader?

Achieving strategic productivity for the organization is the main objective of a strategic leader. Strategic productivity is determined by a variety of factors that can be evaluated both quantitatively and qualitatively. In general terms, it involves formulation of both short- and long-term goals of the company, making their attainment a companywide campaign, motivating and empowering the employees, and efficient resource allocation in line with the organization's strategic vision. Strategic leadership also aims to create an environment whereby the employees put the needs of the organization first, with the use of incentives or rewards to improve their performance.

What does a strategic leader do when strategy becomes continuous and ongoing?

Hughes and Beatty (2005) state that effective strategic leaders are able motivate the employees to view strategy as a learning process. Therefore, when strategy becomes continuous and ongoing, the strategic leader will channel the efforts of their team towards more effective and efficient performance. More specifically, it will encourage continuous improvement, which will see both the employees and management eliminate wastage in the organization and increase the level of productivity. Strategic leaders need to understand the current business environments in order to see the bigger picture.

What kind of team does a strategic leader construct?

Strategic leaders should surround themselves with people who understand the goals of the organization and understand the strategic goals that need to be attained. The team needs to put the needs of the organization first and they should be empowered to utilize their talents and attributes in order to attain their own goals as well as those of the organization. According to Hughes and Beatty (2005), the following are the traits of an effective strategic team:

They cooperate well with one another.

They share information and communicate effectively.

They interact well with other people in the organization, in a constructive manner and they also form good relationships.

They support the growth and development of the executive team.

They are able to find the equilibrium when handling long-term and short-term goals.

They are optimistic and act with integrity.

They embrace risk taking, respect and bring out the best in each other.

Strategy development is an unremitting process? What did companies do 30 years ago?

Organizations have always emphasized on the need and importance of strategic goals. However, in the last 30 years, they have become an integral and indispensible part of management. Before, management would simply set the goals the organization wanted to achieve, develop the necessary plans to achieve them and budget for its needs. Furthermore, earlier strategy development procedures and financial planning methods were left to top management and the employees could not give their input. In fact, in majority of the companies, the success of the company was interpreted as the efficiency of the top leaders. There was little consideration of political, environmental, and economic factors in strategic planning.

How can you be a fully rounded strategic leader?

There are a variety of traits that a strategic leader should possess in order to perform effectively. They should use their power to empower others and be loyal to their words and actions. The leaders should always look at the big picture and they should show compassion to members of their team by factoring in their needs in decision making. They should also be articulate, delegate duties effectively, and lead by example. According to Schoemaker, Krupp, and Howland (2013), the following are the essential skills in strategic leadership:

The ability to anticipate opportunities and threats.

To challenge their team and utilize their diverse points-of-view.

Synthesizing information and interpreting it accordingly.

Making decisions in times of uncertainty.

Aligning the needs of various stakeholders with those of the organizations.

Making strategic development a learning process and developing a culture of inquiry and intellectual curiosity.

How would you distinguish between long-range planning and a strategic plan?

Long-range planning is basically the process in which strategic leaders develop plans that are aimed at accomplishing goals in several years time. Long-range plans take the knowledge that is present into consideration and what follows is the determination of how it can be applied in future conditions. More specifically, they assume the current knowledge about conditions that may occur in the future is enough to produce effective results in the duration of years in which they are implemented. On the other hand, strategic management is more concerned with the dynamic nature of the business environment. In making these plans, the strategic leaders ensure the organization will be responsive to the dynamic environment and they factor in the changes that may occur in future.