In a rapidly changing business environment, strategic leadership disciplines are crucial for setting direction and creating a competitive advantage. Strategic fitness is the capacity of strategic leaders to learn from and adapt to their environment, much like a pride of lions adjusting to a lost opportunity during a hunt. This ability to adapt and strategise ensures survival and success in the business world.
Professional athletes spend significant time practising, which is often the opposite for business professionals. They typically focus more on working in their businesses rather than on honing their skills. However, leaders who neglect skill development may find themselves as unfit for the challenges of their environment. Just like zoo animals are compared to their wild counterparts. This brings us to the critical question: how can a leader develop and maintain their strategic fitness?
A study involving 77 C-suite executives across various industries over four years sheds light on this. The study, which included monthly interviews and quarterly observations, identified four core disciplines that distinguish strategically fit leaders. These disciplines are essential for any leader aiming to enhance their strategic fitness.
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Strategic Fitness: Setting and Calibrating Direction
Strategically fit leaders excel in setting clear strategic directions and adjusting them as necessary. According to a McKinsey & Co. study, setting strategic direction is the most critical factor in improving organisational health. However, a Gallup survey found that only 22% of employees strongly agree that their leaders have set a clear direction.
One characteristic of strategically fit leaders is their ability to adapt their strategies in response to changing environments. They regularly engage with their teams to gather insights and refine their direction. For instance, Todd, an executive in the study, re-evaluated his company’s customer base strategy to focus on more profitable clients, demonstrating a keen sense of strategic fitness.
To evaluate your strategic fitness, consider these questions:
– Do you adapt your strategic plan when new insights arise?
– Have you demonstrated the ability to adjust your plan when the business context changes?
– How frequently do you update your strategies based on new insights?
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Leadership Fitness: Adapting Leadership Style
Leadership fitness involves refining one’s leadership style to meet the needs of the moment. Leaders like Lori, a chief revenue officer, recognise when their usual approach is not effective and make necessary adjustments. Strategically fit leaders are continually observing their behaviours and interactions to improve and align with their strategic goals.
Lori developed a set of leadership principles that guided her and her team, such as focusing on leadership over micromanagement and building trust through consistency. These principles help create a framework for decision-making and team dynamics, crucial for maintaining leadership fitness.
To gauge your leadership fitness, reflect on these points:
– What are your leadership principles?
– How do you want to be remembered as a leader?
– Do you seek feedback on your leadership performance from colleagues and direct reports?
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Organisational Fitness: Planning for the Future
Organisational fitness is about investing time in thinking about the future state of the business. According to a PwC survey, CEOs wish they could spend more time strategising for the future. This forward-thinking approach requires discipline, similar to maintaining physical fitness through regular exercise.
Leaders like Cheryl, who transitioned into the CEO role at a health technology company, recognise the importance of evolving their business model. By understanding the current state and envisioning future deviations, Cheryl successfully led her company toward new, innovative offerings.
Assess your organisational fitness by asking:
– Have you clearly depicted your business model?
– Do you understand the internal challenges in evolving this model?
– Where can you deviate from industry norms to create, deliver, and capture greater value?
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Communication Fitness: Collaborating Effectively
Communication fitness involves effectively collaborating with both internal and external stakeholders. A study found that 58% of cross-functional groups within organisations do not align their strategies effectively. This misalignment can hinder overall organisational performance.
Strategically fit leaders, like Steve, a newly promoted chief marketing officer, understand the importance of breaking down silos between departments. By fostering regular communication and collaboration, Steve improved alignment between sales and marketing, thereby enhancing overall strategic execution.
To assess your communication fitness, consider:
– Are you consistently meeting with key internal stakeholders to develop relationships and align strategies?
– Do you understand your colleagues’ goals and strategies?
– What channels are you using to share insights across functional areas?
Final Thoughts: Embracing the Four Core Disciplines
By proactively enhancing these four core disciplines—strategy, leadership, organisation, and communication—strategic leaders can improve your strategic leadership disciplines, leading to greater competence and confidence in steering your business. Research suggests that the average CEO invests time daily in physical fitness. How much time are you investing in your strategic fitness? The answer could be the difference between thriving or merely surviving in the competitive business landscape.
Source: Harvard Business Review (2024)
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