What Does a Strategic Leader Do?

We have read the descriptions of “great leaders” from many of the best minds in business—the “level 5 leader” in Jim Collins’ book, the concept of the “leadership duo” in Blueprint to a Billion, and the classic Leadership Gold by John C. Maxwell. And, as Maxwell says, “The toughest leader to lead is ourselves.”

The key difference between a leader and a strategic leader is that the strategic leader has a well-defined vision for the future. Do you have a clear picture of what the company will be like in five years? Some call it a vision, others call it a strategic positioning statement, but whatever you call it, a strategic leader knows where they are going. They balance the present with the future in making resource and operational decisions, especially when planning investments in capital, including technology and management (or “getting the right seats on the bus,” as Collins says) at every level.

The vision gives strategic leadership a strong sense of purpose every day. Believe it or not, it makes the job much easier, allowing quick assessment of proposals or ideas that can move them closer to the future and those that don’t. I had a client who shared with me that they saved one month in the budgeting process because they understood the priorities.

A strategic leader needs to be able to communicate their vision in order for others to sign up for the journey and understand their role in it. That also means that the vision needs to be motivational (as does the leaders’ communication), with clear responsibilities and expectations set for all involved and quick wins along the way so people feel progress. This creates alignment, and having measures makes it clear when they experience successes along the way.

Another key point to remember is that strategic leadership works best when the leader is able to use influence, not dominance, to rally the troops. If no one wants to follow, perhaps the vision needs some re-examination. Jack Welsh wrote that “engaging people’s hearts and minds is the key to everything.”

The responsibility of a strategic leader is to be able to manage through tough times as well as good times. In fact, Herb Kelleher, one of Southwest’s founders has been quoted as saying, “Manage in good times, so the company can do well in bad times.” So far at least, they are the only airline that hasn’t had to resort to charging for checked baggage.

One last factor to mention is the ability to anticipate and manage through chaos, which is becoming the norm. Many say, “Why plan, when everything changes?” The key to a good plan is that you know where you are going long-term, but you can take a detour around an obstacle in the short term, if necessary. (Not unlike a detour during the oh-so-common summer road construction!)

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Margaret Reynolds, Master Growth Catalyst of Breakthrough Masters Unlimited, has assisted companies with growth planning for over 20 years. Margaret has an extensive background in helping companies of all sizes, from Fortune 500 to aspiring mid-market clients, find ways to innovatively and profitably grow their businesses. Her unique blend of experiences which includes line management as well as strategic planning ensures that the work she does with companies is creative but practical as she integrates the planning process with business realities, resulting in plans that are actionable and profitable.