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Leadership - The heart of Strategic Management
Table Of Contents
strategic management leadership

Leadership - The heart of Strategic Management

The strategic management process is heavily influenced by leadership. To begin with, it aids in determining the organization's vision and mission. It also makes it easier for the organization to carry out efficient activities in order to realize that vision.

As mentioned, the task of a leader is to develop a vision for the company that will engage both the imagination and the energies of its employees. It must be linked to the firm's principles, and be such that the rest of the organization can comprehend, grasp, and support it. An enterprise is moved by vision, but it is stabilized by values.

The firm's plan for achieving the vision is just as vital as having the insight and dedication to attain the vision. Leadership's work of creating strategic goals and objectives for the organization begins right before the need for strategy arises. To narrow the organization's emphasis, this action necessitates disciplined thinking.

Once the goals are set as per the organization interests, the next phase sets in. That is defining processes and systems in order to achieve those goals. Accepting that there will be trade-offs with other ideas is part of the strategic approach. It also entails deciding what to do and what not to do; no company can compete successfully in every industry category with multiple products or service variations. According to Michael Porter, "the heart of the strategy is deciding what not to do."

This makes finding the right set of answers even more important and tricky. Strategic Management is no game, large fluctuations in revenue can be caused by minimal tweaks in the strategic decisions made.

The Top management should ensure that engage a few company employees in strategy development: those from the youngest generation, newly appointed employees, and those who work on business's geographic limits; these are the ones who will certainly have the most groundbreaking ideas for the firm. They're the ones who are most inclined to question the beliefs that top executives have been trained to share. They are the ones who are most likely to reshape the business by questioning long-held assumptions. Such problems necessitate a humble and open attitude on the part of the leader who develops the firm's strategy.

Capable leadership develops an organizational culture as well as the capacity to execute plans. It involves picking a great team, assigning the appropriate duties, and delegating strategic decisions to the rest of the team. The argument is that if you start with the right people, you'll be able to adjust to a rapidly changing environment more readily since those individuals are already flexible and self-motivated. Indeed, another thing that a leader has a direct influence over is selecting the proper personnel.

In rapidly changing sectors, the organizational structure should be kept flexible so that modular business units may be assigned to specific market possibilities as they occur.

It is safe to say that the leadership bench sits at the heart of Strategic Management and everything else that goes around in your organization.

I hope that this article briefed you well on the link between Strategic Management and Leadership. If you are someone who is looking forward to learning more about Leadership or is willing to do an executive course in Strategy and Management, check out the Executive Development Programme in Strategic Management by IIM Kashipur.

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