Benazir Marjan is intended to use her business knowledge in the practical field through this article.
Relationship between Strategic Management and Leadership
In the domain of management, strategic management involves the formulation and implementation of the major goals and initiatives taken by an organization’s top managers on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization operates.
Whereas leadership in a business is the ability of an organization’s management to set and achieve challenging goals, take fast and decisive action when needed, outperform the competition and inspire others to perform at the highest level they can.
The relationship between strategic management and leadership can be described like this:
1. Strategic management provides the resources and directions and leaders give an idea where the final destination would be.
2. Strategic management takes steps on behalf of the owners of the company and the leaders lead the employees.
3. Strategic management ensures the management roles and leaders play these roles.
4. Strategic management evaluates and set up strategies and leaders follow and execute those strategies.
5. Strategic management analyzes the competitive environment and leaders try their best to win the competition.
6. Strategic management works for long term goal and leaders try hard to achieve those goals with the whole team.
7. Strategic management monitors the strategy and leaders work on the team’s interest and needs along with the strategies.
8. Strategic management establishes resources allocation and leaders utilize those resources wisely.
9. Strategic management develops company’s vision and mission and leaders work according to achieve those vision and mission.
10. Strategic management establishes strategic objectives and leaders work to get success on that.
Leadership is responsible for development of strategies to achieve the vision. Once the leader understands the importance of values, the process of strategy formulation and implementation becomes easy. The most important role of leadership is to integrate the people with the strategic management process.
The whole strategic management process is directly related to leadership. One cannot operate without other. There is strong dependency between these two terms of business. Leaders are the integral parts of a company where they perform their functions in according to the strategies those are defined by the management. This is the truth of connection between strategic management and leadership.
There are certain qualities of a good leader (honesty and integrity, confidence, inspiring attitude, commitment and passion, perfect interpersonal skill, decision making abilities, accountability, delegation and empowerment, creativity and innovation, empathy, resilience, emotional intelligence, humility, transparency, vision and purpose). No matter how many superior qualities a leader may have, if there is no perfect strategy and strategic management, the leader will not get the environment to show his potential and ability of leadership.
Again, it could bring an opposite situation as well. Like, as we know a good strategic management defines a business strategy with clear objectives, mentioning clear plans as to how those objectives would be achieved, aligning business functions to support the objectives, and allocating the resources required to achieve those objectives. No matter how perfect strategies are and how efficient the management is, if the leader has no adequate leadership qualities those strategies will not work for the company.
This really shows the intimate relationship between Strategic Management and Leadership. A company will be always benefited due to strong relationship between these two variables. If a company gets benefited, its customers, employees, clients all get the part of that sake. The purpose of the strategic management and leadership is just same; to make an organization profitable. Strong correlation between two make it easy in the real.
This is the age of business. It has been flourished immensely throughout the whole world. But, it didn’t happen over the night. Enterprises had to do huge research, hard work, and promotional campaign and so on. Accounting, finance, marketing, human resource and international business; all of the departments in a company needs to have robust dedication to achieve the desired success. Each and every department is related to another one. Strategic management and leadership is part of human resource department. Success of this segment is related to the whole institution as well. The concept (Relationship between Strategic Management and Leadership) is important in both aspect; the success for the particular unit and also for the success of the company as a whole.
This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.
© 2020 Benazir Marjan