Author, Speaker, Executive Coach, and Business Strategy Consultant at CIARA & Co.
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Business leaders are conducting annual planning in full swing as Q4 gets underway. Many coaches and strategists are amping up their content in support of sound approaches to strategic planning, and I recently had an interaction that reminded me why many strategies struggle to succeed. Some would say it’s because of leadership; others might say it’s because of strategy. Perhaps the real issue is that we consider the two to be binary in our strategic planning process.
The current planning season is not new for most business leaders. In fact, it has become so routine for many that they templatize their budgets and strategies and send them through the pipeline for approval like it’s a pneumatic tube at the local bank drive-through. Goals to increase market share, ideas to expand the portfolio with new products and key activities teams will need to undertake to achieve halo and business unit goals—this is what we believe strategy to be about. This is perhaps why we often see it as binary to leadership and playing a siloed role in the success of the company. Alas, when companies fail to meet their targets, the first thing they look to analyze and course-correct is strategy. I’d propose, however, that the issue is not strategy. Nor is it leadership. Instead, it’s the relationship between the two that is often the issue, which can have a positive or grave effect on execution.
Traditional Leadership Role in Strategy
On its surface, leaders play a vital role in all aspects of strategic planning that require hard and technical skills. They are responsible for setting the direction, making decisions, allocating resources, communicating the strategy and implementing that strategy effectively. Without effective leadership, it is difficult to develop and implement a successful strategy. Typically, we see this in the following forms:
Facilitating A Strategic Planning Process
Leaders can facilitate a strategic planning process by bringing together key stakeholders, identifying and discussing key issues, and developing a consensus on the organization's goals and objectives.
Providing Resources And Support
Leaders can provide the resources and support that are needed to develop and implement the strategic plan. This may include providing time and funding for planning activities, as well as providing access to expertise and other resources.
Communicating The Strategy To Stakeholders
Leaders must communicate the strategic plan to the organization and all stakeholders. It is important to communicate the strategy in a clear, concise and consistent manner and to explain why it is important and how it will be implemented. This builds consensus around goals, objectives and expectations.
Holding Teams Accountable For Results
Leaders can hold teams accountable for implementing the strategy and achieving the organization's goals. This may involve setting clear targets, providing regular feedback and rewarding teams for their successes.
Leadership Mindset in Strategy
What’s often not factored into developing strategy, however, is the vital role in all aspects of strategic planning of what we historically refer to as soft skills, which I prefer to regard as mindsets.
Employing Collaboration-Based Communication
It’s not enough to just clearly communicate what is in the strategy or to create consensus. More critical is to facilitate oxytocin-rich discussions that enable bonding and trust and help with understanding other perspectives. If leaders merely tell others what they need to accomplish, the brain’s natural response can be to feel threatened, which may lead to “turning off” and miscommunication around expectations and activation. Instead, focus communication on strategy around improvement, not failures of the past, and be mindful of the anxiety your team members may feel.
Inviting And Supporting Cross-Sectoral Innovation
During both the strategy development phase and the execution phase, encourage creativity and innovation across levels and departments. This isn’t just about encouraging teams to think outside the box but rather about creating trusted environments and psychological safety. An important aspect of this is not treating innovation like one point in time or designating it to a specific team. Instead, creating a culture of innovation is directly related to the active listening skills of the leadership team on an ongoing basis.
Installing Mechanisms To Maintain Situational Awareness
This is a step most leaders don’t pay enough attention to. It is the case that many leaders are far removed from day-to-day pain points of execution, but being aware of what is happening around them is an underrated leadership strength. As business decision-makers, the role of the leader is to take the company and team forward, and doing so requires an outward focus on dynamics and an inward focus on personal strengths or weaknesses. While leaders can’t be everywhere at all times, installing mechanisms within the strategy to elevate attitudes, create time for reflection and institute regular connections can help leaders paint a picture of what’s happening around them and plan ahead for pivots.
Strategic planning is a critical time for business leaders to reset and communicate vision. It is important to success that leaders look beyond the frameworks and road maps and consider the role they play in successful strategy development and execution. Leadership mindsets and proactive integration can accelerate success.
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