The Role of Leaders
You can’t outsource strategy. A key role of company leadership is to sell strategy and shape how analysts, employees and shareholders look at the company.
In many companies, leadership has degenerated into orchestrating operational improvements and making deals. But the leader’s role is broader and far more important. General management is more than stewardship of individual functions. Its core is strategy: defining and communicating a company’s unique position, making trade-offs, and forging fit among activities.
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The Role of Leaders in Strategy
- Distinguish operational improvement from strategy
- Lead the process of strategic choice
- Communicate the strategy relentlessly to all constituencies
- Maintain discipline around the strategy, in the face of many distractions
- Decide which industry changes, technologies, and customer needs are relevant, and how to tailor responses to the company's strategy
- Measure progress against the strategy using metrics that measure success of a company’s unique value proposition
- Sell the strategy and how to evaluate progress against the strategy to the financial markets
Communicating Strategy
- Strategy involves everyone in an organization, not just senior management
- The basic strategy and value proposition must also be communicated to customers, channels, suppliers, competitors and financial markets
- The benefits of strategy are greatest when it is communicated widely in the organization
- Communicating strategy requires a simple and vivid way of describing the essence of the company’s unique position (e.g., use of symbols and repetition)
- Leaders should not assume that subordinates understand the strategy, or that they agree with it. Leaders must help each organizational unit translate the strategy into implications for its own mandate
- Individuals who do not ultimately accept the strategy cannot have an ongoing role in the company