Whether in the world of business or politics, strategy formation is seen as the most important element for long-term success. The last three decades experienced a boom in business schools preparing students to understand and master strategy formation to meet the ever-increasing demand from industry. At the same time professional political strategists peddled their advice to politicians hoping to win elections and acquire power.
Strategy formation evolved into a science where market data is analysed and interpreted by economists who then come up with plans on how to deliver success to an organisation. Short-term economic success is almost invariably the holy grail of strategist in business as well as in politics.
This approach to strategy has improved the way organisations plan their activities. Corporate planning departments emerged and introduced formal systems and standards for strategy formation. Business and political consultancies added their own frameworks, unleashing the power of economic and political analysis on problems of strategy and competition.
This analytical refinement come with a high cost. Strategy has been narrowed to what in reality is just a competitive game plan, divorcing it from an organisation’s broader sense of purpose.
Strategy formation in most cases has stopped being an art built on good leadership. Most of us would have discussed the difference between management and leadership in our student days.
Put simply, most managers are concerned with solving functional problems and feel paralysed and unsure when the challenges they face become complex. They are unable to see far beyond the next reporting date. In the world of politics the farthest most politicians can see is the next electoral test.
The world of business and politics need to put leadership back into strategy. The core of good strategy formation is the notion of added value to the community an organisation serves.
Arguing about short-term results, like increase in market share and improvement in turnover or net profit, comes easy for the top management of a business. In the political world we are inundated by press releases and counter press releases by political parties arguing on the latest economic figures.
But how often do we hear about business and political long-term plans to make our society better?
As we face ever more complex challenges in our society, the need for strong strategic leadership has never been so acute
I am, of course, excluding marketing hype that is often a masquerade that is no substitute for what should be a real vision of an organisation. Large businesses, as well as political parties that aspire to govern, should be asking themselves how their vision for the future will add value to the community that they serve. Balancing short-term goals with a long-term strategy is never easy.
Every business wants to report good results at year end to satisfy shareholders. Similarly every political party wants to become more popular with the electorate to win the next electoral contest.
It is only when business and political leaders understand that strategic thinking is grounded in a strong understanding of the complex relationship between their organisation and its environment that they can succeed in defining a sustainable vision.
Good strategists need to take a broad view of what their organisation stands for, involve the right people, access important and relevant information and perspectives, ask difficult questions and facilitate meaningful dialogue.
Strategic leaders act in a way that manages the tension between success in daily operational tasks and success in the long term.
They articulate their plans for the future in a way that all stakeholders can buy into their vision and show ability to implement plans in the promised timeframe.
The best example of good strategic leadership that I can quote is that of the introduction of the National Health Service in the UK on July 5, 1948. In 1945 when Clement Attlee’s Labour Party won the election, he appointed Aneurin Bevan as Health Minister.
The strategy was based on three core principles: that it meets the needs of everyone, that it be free at the point of delivery, and that it be based on clinical need, not ability to pay. This sound strategy has added value to British society in the last 70 years, even if today’s political leaders are struggling to support this institution that is so treasured by most UK citizens.
As we face ever more complex challenges in our society, the need for strong strategic leadership has never been so acute.
Increasing disparity between the haves and have-nots and the constant deterioration of our natural environment are just two good reasons to put leadership back into strategy.
johncassarwhite@yahoo.com