The environment in which businesses must survive has been under rapid transformation since the start of the post-bureaucratic age commenced in the 1980's.
The transformation of the globalising economy has created a knowledge rich society, new technologies and Hypercompetition between firms across international boundaries.
This new era of globalisation has demanded a new cadre of leadership to deliver sustainable success in businesses operating in increasingly competitive markets. In most cases this means enhancing the wealth of the shareholders.
The volatile and ever changing business environment demands leaders who are able to pre-empt the future. In other words shift their focus from today’s performance to tomorrows potential. However achieving this without losing a grip on today’s performance is an ever present challenge.
Abel, D (2006) argues that strategy and leadership have converged into the same, and proposes 6 strategic leadership tasks as the priorities for new Leaders.
• The Duality of strategy focusing on today’s performance and tomorrows potential
• Vision, Mission, and Distinctive Profile become more important than Strategy
• Strategy balanced between resources, future opportunity, leadership purpose and leadership responsibility
• Strategy balancing the external changing world with the internal functional activities and business systems
• Leveraging systems as competitive advantage, such as supply chain
• Decentralising strategy-making from corporate centres to divisions and individuals.
The challenge of this approach to leadership is how it fits in a business environment that is facing a fight for survival. However, it is through this focus on future challenges and opportunities that will define the great business leaders of our era.
Defining Strategy and Leadership as one and the same perhaps does not recognise the multi faceted aspect of leadership in diverse settings in organisations. Whilst the important role of strategic planning, beyond extending the annual budget in to 3 or 5 year budgets, is difficult to deny, and that it must demand the close attention of business leaders, are strategy and leadership one in the same?
