What is strategic leadership and how to implement it?

Strategic leadership is an approach to leadership that, aiming for long-term business success, involves people management responsibilities and goes beyond analytical capabilities. Throughout this text, you will learn what constitutes “being a strategic leader”, in addition to being inspired by notable examples.

Leader or boss: what's the difference? 

When we talk about leadership, we need to open an important parenthesis: there is an important distinction between a leader and a boss. Although both are on the front line of companies and/or teams, the performance of these two personas in organizational dynamics influences the company's performance in different spheres (culture, business, employee integration, etc.).

Generally, a boss or boss often focuses only on giving orders and controlling the team's activities. Thus, they guide their activities by authority, imposing decisions without considering the team's opinions and/or perspectives. In this way, the relationship with subordinates becomes predominantly unidirectional.

Although this way of managing companies and teams is traditional and shows genuine concern for immediate business results, it ends up losing sight of the development of skills and the well-being of team members. As a result, there is a distancing from a vision of the organization’s future.

A leader, in turn, inspires and motivates his team to achieve common goals together. Thus, it encourages collaboration and active participation from all members. Therefore, the leader must dedicate himself to learning and developing his psychosocial capabilities, demonstrating empathy and listening skills, in addition to building a channel open to constructive feedback.

Because they generally have a long-term vision and the ability to define a strategic direction for the organization, they are also concerned with developing talent, enabling team members to grow and contribute significantly.

How do leaders act strategically?

As stated, the term leader presupposes a strategic view of the person in this position. So, when we talk about strategic leadership, we must recognize that, in theory, all leaders should act this way.

Thus, leaders act strategically when they establish a clear vision of the organization's future, defining tangible goals and objectives to guide progress. This is done through a detailed analysis of the external and internal business environment to identify opportunities and threats.

They are also being strategic when they develop strategies to achieve organizational objectives, considering the capacity for growth and diversification based on the needs of the company and the market.

Another moment in which a leader's strategic competence is exposed is during sensitive decision-making, through their ability to consider available information, evaluating possible impacts before deciding.

But the strategy is also demonstrated by the way the leader communicates and engages his subordinates. After all, this ensures that everyone understands their role in the organization, which makes them more likely to align their efforts toward strategic objectives.

In short, what makes a professional assume a strategic leadership position are the activities he takes to achieve long-term success. For example:

• Define a clear vision; 
• Develop relevant strategies for the general good of the company; 
• Make informed decisions; 
• Communicate effectively with your team members;
• Know how to adapt to changes in the business environment. 

Examples of strategic leadership

In addition to everything that has been exposed so far, leaders have another thing in common: they are all inspired by other leaders to build their own story. Check out some characters below who are true examples of strategic leadership.

Steve Jobs | Apple

For decades, Steve Jobs has been cited as an example of strategic leadership. His ability to set a clear vision and inspire his team to achieve it created a technology empire and, even after his passing, is still an inspiration for budding and experienced leaders. 

In addition to leading Apple on its path to becoming one of the most innovative companies in the world, Jobs had an inhuman ability to anticipate consumers' needs and desires. Alongside his team, he adopted a user-centric approach that has become standard for the technology industry. 

Indra Nooyi | PepsiCo

Former PepsiCo CEO Indra Nooyi is also recognized for her exemplary strategic leadership. She gained this fame especially for her achievement in transforming the company, making it healthier and more consumer-centric.

While leading the brand, alongside her team, she expanded PepsiCo's product portfolio, including healthier options. In addition, she defends the company's sustainability and diversity initiatives. It was under Nooyi's direction that the brand began to recognize the importance of corporate values ​​aligned with the expectations of modern consumers.

Note that these two names have some characteristics in common: both shaped the future of their organizations, based on the definition of a convincing and consistent vision. They had the ability to identify market opportunities and guide their teams to achieve objectives. But one aspect stands out: they achieved corporate success by considering people's opinions, wants and needs. 

In general, strategic leadership involves the leader's ability to weigh two aspirations. The first is his business outlook and commitment to excellence and innovation. The second is the appreciation of the people involved in the processes throughout the company's production chain. 

Learn more about management and business strategy in other articles available on Beatz's blog!