The 6 Skills You Need to Become a Strategic Leader

Great! You have scaled the corporate ladder and are now a manager. But what next?

Based on my personal experience and observation the #1 quality that is holding managers back from making a real difference is the lack of Strategic Leadership skills. And on top of that, this is probably one of the most misunderstood and overlooked topics in the leadership circles in any company.

Large companies typically have management trainings as part of their onboarding program, but these typically focus on the tactics and miss the strategic nature of the role. In one of my posts I compared a good boss with an efficient juggler who can balance between the tactical and strategic nature of their role. But most managers get trapped into one and forget about the other.

There have been countless arguments in the past decade about whether middle management is good or bad for corporate success. With today’s dynamic (and unpredictable) world, I think managers need to be wearing their strategic hat more than ever.

But what does strategic leadership even mean? Let’s break it down.

A Plan is not a Strategy

Roger Martin from the University of Toronto does a really good job distinguishing between a plan and a strategy. A strategy has some distinct characteristics that you don’t see in a plan:

• A strategy is based on a theory or hypothesis that you think will make you win
• A strategy is directly aligned with your vision or goal, and addresses your customer’s needs
• A strategy is not guaranteed to succeed, and needs to be tweaked along the way as you learn. That makes strategy challenging, yet exciting to formulate and execute upon

Strategic Leadership

How do you become a strategic leader? In my mind, the fundamental question you need to ask yourself is:

As a leader, how can you make your organization win?

As you answer this question, piece by piece, you will find opportunities that you would not have seen before. I have seen countless managers who are busy getting things done, yet missing out on so many opportunities. They focus on the present and miss the long-term vision. They fail to recognize the changes in the market, the new customer behavior and expectations, the rapid technological advances, etc.

Strategic leadership is when managers use their creative problem-solving skills and strategic vision to help team members and an organization achieve long-term goals.

A Wharton School research revealed that there are 6 skills that, when mastered and used in concert, allow leaders to think strategically and navigate the unknown effectively.

#1 Anticipate

By far the most critical of all skills, you need to be able to anticipate — the market, the competition, the politics, the weather. Well not necessarily the weather unless you’re in that business. Strategic leaders are aware of their environment, and their customers. They understand their customers really well, and are able to anticipate how their needs will evolve in the future. They are aware of their own strengths and weaknesses, and the opportunities and threats that lie ahead of them. They keep abreast with technology and advances that may impact their business, or present opportunities for them to evolve.

#2 Challenge

Strategic leaders have an open mind, and are looking to challenge the status quo. They challenge their own and others assumptions, and encourage diverse points of view. They believe in healthy debates that bring the best solution forward, and think rationally when making decisions.

They are not afraid to ask questions that can help the organization reassess its goals and targets. At the same time they are open to questions and feedback about their own ideas.

“The manager accepts the status quo; the leader challenges it.” — Warren Bennis

#3 Interpret

Strategic leaders are great analyzers, and they love data. They are able to apply their analytical and critical thinking skills and make sense of information being presented. They can interpret complex information and make decisions derived from that analysis to help their organizations succeed.

#4 Decide

As a strategic leader you need to make decisions, at times with incomplete information. Decision making is a critical skill of a great leader because it helps the organization move forward. Strategic leaders break down a decision, seek opinions and options, and align their decisions to the long-term goals of the organization. They avoid stalling decisions that are critical to move forward, even if they don’t have enough information.

“Nothing is more difficult, and therefore more precious, than to be able to decide.” — Napoleon Bonaparte

#5 Align

I cannot overstate the importance of alignment — both in the internal and external context. As a strategic leader you should be looking to align your team goals with the goals of other leaders in the organization, so you can all work together on the larger organizational goals. You need to form partnerships with key stakeholders, ensure differing opinions are heard and addressed, so there are no conflicts as your team executes on the strategy. In large organizations this can be harder, so it’s important to reward employees who work collaboratively and in the larger interest of the company.

#6 Learn

Strategic leaders love to retrospect — what worked, and what didn’t. They promote a culture of blameless postmortem, and encourage their teams to improve continuously. They are willing to take ownership of failures and take steps not to repeat the same mistake again. They adopt a fail fast strategy, and encourage their teams to try new and innovative approaches.

“Leadership and learning are indispensable to each other.” — John F. Kennedy

Conclusion

Great bosses are strategic thinkers, and they focus on opportunities that can help their organization win. They are able to anticipate changing needs in their business environment, and constantly challenge the status quo to push for better outcomes. They have great analytical skills and make decisions that are objective and forward looking. They work in close alignment with their stakeholders, partners and customers, and promote a culture of learning and improving. Above all, strategic leaders focus on solving real problems.

How critical do you think is strategic thinking? What skills have you found to be the most critical as a strategic leader? Share your thoughts in the comments below!

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