The importance of strategic leadership: what it is & why it matters

In today's rapidly changing business environment, strategic leadership has become more important than ever before. Strategic leadership is the process of setting a vision, direction, and goals for an organization, then mobilizing and motivating people to achieve those goals. It is a critical skill for any leader who wants to succeed in today's complex and uncertain world.

What is strategic thinking in leadership?

Strategic thinking is the ability to see the big picture, anticipate trends and identify opportunities and threats in the environment. It involves taking a long-term perspective, considering multiple options and making informed decisions that align with the organization's goals and values. 

Strategic thinking is essential for effective strategic leadership because it enables leaders to make sound decisions that create value for the organization.

Strategic vs. tactical leadership

Strategic leadership is often contrasted with tactical leadership. 

Tactical leadership is focused on the short-term execution of specific tasks and objectives. It involves managing resources, delegating tasks, and monitoring performance to ensure that goals are met. Tactical leaders are essential for ensuring that day-to-day operations run smoothly, but they may not have the skills or perspective needed to develop and execute a long-term strategy.

Strategic leaders, on the other hand, are focused on the big picture. They are responsible for setting the direction and goals of the organization, developing a long-term strategy, and creating a culture that supports innovation and growth. 

Strategic leaders need to have a deep understanding of the organization's capabilities and resources and the external environment in which it operates. They must be able to anticipate trends and disruptions, identify opportunities and threats, and make informed decisions that will enable the organization to succeed in the long term.

Strategic leadership development

Developing strategic leaders is essential for the long-term success of any organization. However, identifying, measuring and growing strategic leaders can be challenging. To help organizations address this challenge, Heidrick and Struggles developed their own Leadership Framework. 

For the past seven decades, Heidrick & Struggles has assessed, selected, and developed effective leaders for the world’s largest, most influential organizations. In addition, Heidrick & Struggles has assessed leaders in 90% of the Fortune 100 in over 150 countries. 

Out of that experience and analysis, our psychologists and data scientists have helped us create the Heidrick Leadership Framework™. 

The Heidrick Leadership Framework™ shows that the best leaders:

• Have had distinctive business impact exceeding objectives and delivering results 
• Possess critical leadership capabilities and competencies
• Have the leadership potential to grow and adapt 
• Use their values to make a positive cultural impact in their organizations 

How to identify, measure, and grow strategic leaders

Identifying potential strategic leaders can be challenging. However, there are several indicators that organizations can look for, including:

• Curiosity and a willingness to learn: Strategic leaders are curious and constantly seeking to learn new things. They are open to feedback and willing to challenge assumptions. 
• Analytical thinking: Strategic leaders can synthesize complex information and identify patterns and trends. 
• Strategic planning: Strategic leaders can develop long-term plans that align with the organization's goals and values. 
• Communication skills: Strategic leaders are effective communicators who can articulate their vision and strategy to stakeholders both inside and outside the organization.

Once potential strategic leaders have been identified, organizations can measure their progress and growth using a variety of tools, including performance evaluations, self-assessments, 360-degree feedback, and leadership assessments. These tools can help identify areas where the individual needs to improve and provide targeted development opportunities.

When strategic leaders and their unique leadership style is understood, organizations can provide a range of development opportunities, including training, mentoring, coaching, and stretch assignments. These opportunities can help individuals build the mindset, skills, knowledge, and behaviors needed to become effective strategic leaders.

Leadership Assessments 

It's important to ensure that businesses are developing their leaders towards greater business goals. That's where performance evaluations, self-assessments, 360-degree feedback, and leadership assessments come into play. 

Leadership assessments are another useful tool that can help identify potential leaders' strengths and weaknesses, as well as their potential for growth. These assessments typically involve inventories and exercises designed to evaluate an individual's leadership style, potential, decision-making ability, culture fit, communication skills, and other key leadership competencies. 

By using these tools, organizations can gain a better understanding of the potential leaders' readiness for a given role, possible development plans, and can help to monitor progress over time.

Conclusion

In conclusion, strategic leadership is essential for the long-term success of any organization. Strategic leaders are responsible for setting the direction and goals of the organization, developing a long-term strategy and creating a culture that supports innovation and growth. 

To identify, measure, and grow strategic leaders, organizations can use the Heidrick & Struggles Leadership Framework, which business impact, leadership capabilities, leadership potential, and culture impact. 

By investing in strategic leadership development, organizations can ensure they have the talent and ability to succeed in today's complex and evolving market.