Leaders influence, inspire and motivate organisations and teams to a place or situation that may have previously appeared impossible to those team members involved. Leaders are futuristic in their perspective and that is why they stand out from managers. Whilst management was invented to control and optimise production lines and other process oriented ways of working during the industrial revolution, leadership has been around for a good deal longer. Management is about process and metrics, using targets and means of measurement as its tools. Leadership is much more intrinsic in its properties; more about vision and emotion it is much more the art of inspiration rather than the science of measurement. Leadership needs flexibility to match the human instincts it inspires, it needs vision to create and make real the desired end state, it needs trust to create the cohesion and judgement to mange and mitigate the risks and prioritise the available resources.

Strategy is about all this, it consists of four key tenets Vision, Risk Mitigation, Talent Management and the prioritisation of resources. The tenets are interdependent and require an overall strategy to hold them together and keep them synchronised. Strategy is not about two years it’s about 5- 10 years. Strategy is about inspiration and vision in a changing environment, it affords an opportunity to select a course and change a course, dependent upon the situational requirement to map out a route that matches the circumstances and yet still delivers the required end state. Strategy is synonymous with great leadership and it informs and inspires those managers and those teams that work for great leaders. Leaders need to understand and use strategy.

The Harvard Business Review (HBR) published an interesting article in 2009 entitled ‘Leadership in a (Permanent) Crisis’ which, in my opinion, remains a worthwhile read and is particularly interesting on two counts.

Firstly, it was published over a year after the time generally acknowledged as the start of our prevailing economic situation. I use the word prevailing rather than current because as we draw to the end of 2011 the current forecasts for 2012 offer little optimism or hope of change for the better. The HBR article refers to ‘the current crisis’ in 2009 and forecasts economic crisis as the future norm existing beyond the recovery from recession. For me, as we enter the fifth consecutive year of ‘current crisis’, this poses the question ‘double dip’ or new economic environment?

Secondly, specialising in leadership, strategy and cohesion; the prevailing economic environment provides opportunities which simply do not exist in a benign situation. As much as regularity, dependability and certainty instil confidence they are the arena of the manager; whereas, irregularity, challenge and uncertainty provide opportunities not otherwise available to a leader. No amount of tweaking of financial mechanisms, directives or policy changes are likely to impact sufficiently on global competition, political instability, energy concerns and climate issues to remove risk and uncertainty.

So what should we do? ‘Batten down the hatches’ and rely on the same old measures and techniques that got us where we are today whilst hoping someone will ‘fix’ something somewhere to make all things good again? Or realise leadership and organisational adaptability are required to overcome the relentless challenges of our ‘new economic environment’? The problem is this, as difficult as the former may be it is undoubtedly a much easier option than the behavioural and organisational change required by the latter. Either way, the outcome is not guaranteed success though one course of action is more likely to succeed than the other.

The message in the HBR article referred to does not appear to have been popular at the time and I doubt it will be today. Perhaps because there is no ‘spoonful of sugar’ offered with the medicinal advice therein. This said, it remains worth reading all the same on http://hbr.org/2009/07/leadership-in-a-permanent-crisis/ar/1

The question is posed in the context of the current economic situation and your business’ approach to ‘dealing’ with this. If your answer is “survive” I would suggest you are likely to be undermining your chances of success by adopting a limiting perspective and attitude. It is possible your thinking will be constraining your business options by the inflexibility of your view of the current situation. My view is success is all about achieving what you set out to do and avoiding failure is something very different. An approach Thomas Edison, inventor of the light bulb, articulated well in his quote, “If I find 10,000 ways something won’t work, I haven’t failed. I am not discouraged, because every wrong attempt discarded is often a step forward…”

Beware of the power of ‘spin’ and guard against it! It was widely reported last week the UK achieved a third quarter growth of 0.5%; furthermore, the global economy grew by about 4.5% during the same period. Yet our economic news was still dominated by a ‘doom and gloom’ perspective. The reality is growth is neither recession nor regression and ‘good news’ does not make good news copy. As an aside, I know of one CEO of a regional chamber of commerce who was unable to get his good news publically aired last week. Given these growth figures and that we enjoy unprecedented access (and support) to the global market place, areas of opportunity must exist to explore and exploit.

‘Niche’ is not always nice and can be a barrier to flexibility. The business ‘We Only Press Green Shirts’ is going to suffer if there are insufficient people who want their green shirts pressing. The skills, assets and resources required to press green shirts are the same as those required to press shirts of all colours, not to mention a vast array of other garments. Overly simple perhaps but my point is clear; if your client base or market share is reducing what is it you do which can be applied in another way to make a profit?

Perception really matters when assessing the future of a business. If the diminishing client base of “We Only Press Green Shirts” is seen as being due to the real term reduction in disposable income available for a discretionary spend service, I suspect conventional thinking would most likely lead to assuming the business is destined to fail. However, if we consider the client base from a different perspective it may be possible to see an opportunity. For example, those who are working in the UK are tending to continue to work long hours and most working families are reported to be struggling to allocate the time needed for domestic work.

So, are you struggling to survive or trying to thrive? Do you possess the flexibility of perspective to recognise opportunity where others see only threat? Do you have the strength of mind and determination to succeed? What is your strategy for succeeding in the current economic situation and will it be sufficiently flexible to meet the needs of a dynamic market place?

“There are too many leaders of the U.S. civilian space program, and not enough leadership. These several leaders at this point are not in agreement regarding how best to transition away from 30 years of the space shuttle being the visible centerpiece of the U.S. human space flight effort. Attempts at leadership without agreement among leaders is a recipe for short-term confusion and longer-term drift”. a recent comment from the Washington Post which reflects the lack of strategic leadership as time, technology, politics and economics overtake the vision as the Shuttle Programme comes to an end.

“In more than 40 years of close observation of the U.S. space program, I don’t think there has ever been more uncertainty and fear of impending program collapse. One result of the current confusion is the too-widespread impression that  the final flight of the shuttle means that the U.S. program of human spaceflight has come to an end” writes John Logsdon.

So what is strategic leadership and how would it have prevented the infighting within the US’s Space Programme and allowed it to carry on in a relatively seamless manner?

For me strategic  leadership is about vision it’s about long term projection and the ability to communicate  a dream and make that dream tangible within an organisation. The problem with long term is the ambiguity induced by time. Things change over a period of time and things are changing faster than ever as the pace of life quickens. This makes strategic vision really difficult but really essential in leading an organisation.  More difficult as it is more intangible and  it is more essential to hold an organisation on its course in a swiftly changing environment. Moral courage, drive and determination are all required in a strategic leader in shaping the future and taking an organisation forward.

Strategic leadership also involves risk and its mitigation. Risk is another thing that very few modern organisations have a handle on as evidenced in the recent US banking Crisis and even the more recent struggles with national debt within the European community. Risk involves three things the ability to identify future threats to an organisation, to put in place means of identifying the proximity of those threats and finally preparing  strategies and plans to mitigate those threats. Now again the speed of life makes the management of risk much more difficult as the unforeseen happens in an instant. Take the recent riots in UK  sparked by the police and  the independent police complaints commission  not dealing sensibly with the unfortunate death of a suspected criminal. Now a true strategic risk practitioner may not have seen that coming but surely they would have controlled the rioting in London sooner certainly before it spread to other cities or prevented it taking place in other cities by having contingencies in place. Threats need to be pre-empted if they are to be mitigated hence strategic managers of risk need to be aware of  and sensitive to their changing environment through exploring worst case scenarios. This can be easily accomplished by modelling, gaming or red teaming. Thinking the unthinkable allows for effective contingency planning and aids risk mitigation.  Identified risk also needs to be communicated and devolved to as close to the action as possible, for it is here that the truly empowered and enlightened employee can prevent the threat.

Strategic Leadership is also about talent management; making sure that the right people are in the right place at the right time. Whether they have been nurtured or hired is irrelevant, it is ensuring that they are where they are needed.   I like the following quote as it epitomises talent management to me:

“The best leader is the one who has the sense to surround himself with outstanding people and the self restraint not to meddle with how they do their jobs” Author unknown

Don’t talent manage people out of the organisation by telling them what to do and how to do it . Mentor and develop them to exploit their own individual potential and maximise their utility to the organisation by empowering them by telling them what you want done and affording them the authority and resources to do it ! They will develop and learn even when wrong; now that’s talent management!

Strategic leaders are brave, they are prepared to tolerate mistakes providing they are learned from. Strategic leaders are visionary and excellent communicators. Strategic leaders are risk takers but every risk they take is calculated and every threat mitigated as far is possible.  They believe in the power of the organisation rather than their own power. That’s why true strategic leaders are rare creatures!