Every leader is aware of the value of a well-defined business strategy. Few, however, give thought to the leadership strategy that is needed to make it happen.
Too often, organizations hold on to an old list of leadership competencies (or just keep adding to it). Or they create talent programs that are too generalized — not factoring in the specific business strategies of the organization.
This disconnected approach to developing organizational and individual leadership won’t equip senior management, up-and-coming talent or everyday leaders to adapt to change and meet new goals.
When setting bold strategies that call for changes in the direction or capabilities of the organization, the leadership gap must be considered. One of the first questions to ask is:
Do we have the leadership we need for the strategy we’ve set?
A leadership strategy is a map that aligns investments in leadership development with the strategy, goals and aspirations of the business.
A leadership strategy makes explicit how many leaders are needed, what kind, where they are needed, with what skills, and behaving in what fashion individually and collectively to achieve the total success that is sought. It also identifies other issues the organization must consider, such as whether current talent systems (e.g., onboarding, performance management) support the culture and leadership it wants to create.
CCL’s leadership strategy process helps senior leaders identify key drivers of the strategy and their implications for leadership. For example, “becoming more innovative” may be a key driver for larger strategic goals around market share or industry leadership. Implications for leadership strategy — and development of talent and culture — might include:
- Greater interdependence among leadership to create more effective collaboration across functions in bringing new products to market.
- Need to increase leadership involvement across functions in gathering consumer insights and translating these into profitable ideas for new products.
- Anticipating capital, space and talent implications of rapidly expanding product portfolio.
- Need for cultural change to create a spirit of innovation versus a culture of risk aversion.
A comprehensive leadership strategy translates these implications into specific action and should take the following factors into account, according to CCL’s Bill Pasmore in the white paper, Developing a Leadership Strategy: A Critical Ingredient for Organizational Success:
- Skills and Behaviors — What skills, competencies, knowledge and behaviors are needed to implement the business strategy and create the desired culture?
- Collective Capabilities — What capabilities do we need so we can act together in groups and across boundaries to implement strategies, solve problems, respond to threats, adapt to change or support innovation?
- Quantity — How many leaders do we need? Consider current and projected formal leadership positions depicted on an organization chart — but also informal leadership positions.
- Quality — What characteristics should individual leaders possess? Who needs to be represented?
- Leadership Culture — What are the key attributes of the desired leadership culture? What leadership practices are essential, such as collaboration across boundaries, engagement of employees, accepting responsibility for outcomes, creating opportunities for others to lead?
Developing the leadership needed to implement business strategies takes careful planning and dedicated effort, and often substantial investment. But by going through the leadership strategy process, you open the door for more targeted, effective leadership development — and an organizational culture capable of achieving strategic success.
Read more about what goes in to a leadership strategy: Developing a Leadership Strategy: A Critical Ingredient for Organizational Success