Importance of Leadership in Strategy Implementation: Strategy and Leadership

Strategy and Leadership: The Importance of Leadership in Strategy Implementation

Strong leadership as Lussier and Achua (2009) point out is regarded one of the most critical strategy implementation tools. In that regard, therefore, the relevance of proper and sound leadership in organizational strategy implementation cannot be overstated. This is particularly the case given that the implementation of strategy remains one of the most critical components of the process of strategic management.

From the onset, it is important to note that the implementation of corporate strategy requires the involvement and participation of the entire organizational leadership team. Essentially, "one of the most critical elements in successful implementation is leadership" (Rabin and Miller, 2005, p. 502). In addition to identifying the departments or units to be affected and putting in place effective change management processes, leaders are responsible for the development of an accountability system that clearly assigns responsibilities and indicates timelines for getting new programs in place. Given that strategy implementation is a largely dynamic process, managers need to monitor the same and make adjustments where necessary.

According to Fuller and Green (2005), leaders are involved in all five major phases of strategy making. These phases, in the words of the authors, include: "developing a vision and mission, setting goals and objectives, crafting a strategy, executing the strategy, and evaluating performance" (Fuller and Green 2005). When it comes to strategy execution or implementation, the authors point out that the implementation of the selected strategy is a primary or key responsibility of leaders. This is more so the case when it comes to the building of an organization that is welcoming of the strategy. In this case, "the leader builds an organizational culture and an organizational capability for executing strategy" (Fuller and Green 2005). Indeed, as Kathleen Eisenhardt - a Stanford University strategy and organization strategy professor - points out, it is the responsibility of leaders to ensure that strategy is embedded in the organization. Eisenhardt argues that in addition to selecting an excellent team, leaders must in this case "pick the right roles, and let the rest of the team make the strategic moves" (Fuller and Green 2005).

Even the best-laid strategies need to be well managed. Leaders in this case need to manage resistance, motivate teams, adjust organizational structure (if need be), etc. Essentially, as Hosmer (as cited in Rabin and Miller, 2000, p. 502) notes, leadership is critical when it comes to the creation of "an overall sense of organizational purpose and direction to guide the formulation and implementation of strategy."