The intersection of Strategy and Leadership
In business, strategy and leadership are often treated as separate from each other. While it’s true that each can be pursued as a standalone discipline or domain, the two elements are deeply interconnected. Leadership shapes the creation, and execution of strategy, while the strategy should provide a framework within which leadership can thrive and successfully pivot and evolve things as needed. Taken on their own, each is fairly involved. It only makes sense then, that the relationship between the two is full of nuance and complexity. While it’s no small task, it’s critical for leaders to understand this interplay in order to effectively navigate the demands of business today.
Strategy: The Compass
As we mentioned, strategy provides a framework, one that contributes to effective, measured decision-making. Ideally, it should consider and go on to answer these critical questions: Where do we want to go? How should we get there? As one of our Bright Wire Leaders puts it “leadership is a commitment to developing people and leaving their world—workplace, community, network— substantially better than you found it.” It involves defining a vision, setting priorities, and allocating resources effectively towards a clear, shared goal. Yet, even the most meticulously designed strategies are merely theoretical unless someone is available and able to spur effort towards their execution.
Strategy requires foresight and clarity. To harness the former, leaders must analyze market trends, anticipate disruptions, and measure risks. The kind of clarity we mean can only be achieved by maintaining focus on the organization’s core strengths while considering all of the moving pieces around it. Importantly, strategy is not static; it demands ongoing refinement and sometimes wholesale reevaluation to remain relevant. This flexibility hinges on the adaptability of leaders. Leaders who can translate strategic intent into actionable steps while responding dynamically to change are the people most equipped to steer ships safely towards their destination, or impromptu safe harbours when conditions turn especially stormy. This is one of the many reasons we’re calling strategy the compass rather than the map.
Leadership: The Engine
While leaders are likely to inform and shape the strategy, where leadership becomes especially crucial is in bridging the gap between strategy and outcomes. Strong leaders are able to oversee and enact the necessary transformation from abstract plan to tangible result by rallying people behind purpose. Successful leaders inspire trust, foster collaboration, and create a culture of accountability—all of which are essential for executing strategy effectively.
A leader’s willingness and ability to communicate the “why” behind strategic choices cannot be overstated. When employees understand how their roles contribute to larger goals, they’re more likely to embrace change and pursue excellence in the direction of these clearly outlined goals. From there, if and as the goalposts move or the conditions change, leaders must more than demonstrate agility, challenge assumptions, and recalibrate accordingly. They must also communicate these changes as they occur to keep everyone aligned and engaged. Doing all of this requires a commitment to long-term objectives, flexibility to pivot in the short-term, and a continued focus on communicative transparency with all necessary parties.
By Their Powers Combined
Since strategy gives us direction and leadership gives the momentum, one without the other is fairly powerless. In fact failing to consider the two as dependent on and contributing to one another, can even become a liability. Strategy could easily become disconnected from reality. Similarly, leadership without strategy may result in unfocused efforts. Together, they create a virtuous cycle.
Consider organizational transformations. Leaders who embody strategic clarity and decisiveness can guide teams through any manner of turbulence or uncertainty by enabling innovation and resilience. On the other hand, strategic planning informed by leadership insights ensures objectives are achievable—attainably ambitious rather than unrealistically lofty which compromises morale and can lead to burnout and a lack of employee buy-in.
A Balancing Act
Arriving at some kind of equilibrium between strategy and leadership can be as tricky as it is necessary. Misalignment can easily occur as a result of leaders failing to integrate strategic priorities into daily decision-making or when a strategy is determined without due consideration being given to the human element. Avoiding these pitfalls is only possible through an iterative, reciprocating process wherein leadership informs strategy, and strategy strengthens leadership.
Organizations are called to recognize that leadership is not confined to the executive suite. Empowering leaders at all levels helps ensure a more agile and responsive organization as a whole. This democratization of leadership enhances the organization’s ability to execute strategy effectively under both the best of circumstances and those more adverse.
Today, it’s more important than ever to acknowledge and fully consider the implications of the relationship between strategy and leadership. Leaders are increasingly called to contribute to and craft strategy while also stewarding its execution. By deepening their understanding of and ability to leverage the dynamic relationship between these disciplines, organizations can begin to build the resilience and adaptability necessary for long-term competitiveness. It’s not unusual for an organization to have a stronger grasp on one than the other. But, rather than become increasingly dependent on their strengths, we would encourage teams, people, and whole businesses to invest in their less dominant domain. If your strategy is solid, working to develop those leaders who will drive teams in keeping with it will not only yield the best ROI, it will bolster your interconnected areas of expertise.
