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Strategic Leadership

Elaborate methods of planning are often used to help develop business strategy. Planning alone does not create strategy because strategy can also stem from inspired thinking. Corporate values also influence strategy because well-managed organizations tend to develop strategy to fit what the people in power think is important. While strategy often stems from planning, many business leaders choose a strategy prior to strategic planning. Once the firm has the strategy, a plan is developed to implement it. The development of business strategy focuses on the importance of strategic thinking, the human and emotional aspect, gathering multiple inputs, implementation, and SWOT analysis. Strategic planning, as well as setting the vision without the planning, shares an important purpose. It is to get managerial workers throughout the organization thinking strategically and wondering about how the firm adapts to its environment and how it will cope with its future. One of the central challenges of modern organizations is for leaders at all levels of the firm to think strategically—including seeing the overall picture as they go about their work. A strategically minded worker at any level would think, “How does what I am doing right now support corporate strategy?” Effective strategy begins with strategic thinking, As implied by the creative component to strategy, strategic leaders rely heavily on intuition as to what direction the organization should take. To make strategy more personal, leaders should answer the questions: “Does your company matter? What is your company adding to what already exists in the market?” Most great companies start with great purposes formulated by the founder. Typically, the purpose comes from intuition rather than extensive analysis. Many strategic leaders arrive at their ideas for the organization’s future by consulting with a wide range of interested parties. Customers are a natural source of inputs for formulating strategy, often by simply asking them what new products, services, or features they would want. Inputs to strategy are helpful, particularly in encouraging debate and coming up with original ideas.