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• Business strategy |
• 7 strategic planning models, plus 8 fra ...

7 strategic planning models, plus 8 frameworks to help you get started

Strategic planning is vital in defining where your business is going in the next three to five years. With the right strategic planning models and frameworks, you can uncover opportunities, identify risks, and create a strategic plan to fuel your organization’s success. We list the most popular models and frameworks and explain how you can combine them to create a strategic plan that fits your business.

A strategic plan is a great tool to help you hit your business goals . But sometimes, this tool needs to be updated to reflect new business priorities or changing market conditions. If you decide to use a model that already exists, you can benefit from a roadmap that’s already created. The model you choose can improve your knowledge of what works best in your organization, uncover unknown strengths and weaknesses, or help you find out how you can outpace your competitors.

In this article, we cover the most common strategic planning models and frameworks and explain when to use which one. Plus, get tips on how to apply them and which models and frameworks work well together. 

Strategic planning models vs. frameworks

First off: This is not a one-or-nothing scenario. You can use as many or as few strategic planning models and frameworks as you like. 

When your organization undergoes a strategic planning phase, you should first pick a model or two that you want to apply. This will provide you with a basic outline of the steps to take during the strategic planning process.

During that process, think of strategic planning frameworks as the tools in your toolbox. Many models suggest starting with a SWOT analysis or defining your vision and mission statements first. Depending on your goals, though, you may want to apply several different frameworks throughout the strategic planning process.

For example, if you’re applying a scenario-based strategic plan, you could start with a SWOT and PEST(LE) analysis to get a better overview of your current standing. If one of the weaknesses you identify has to do with your manufacturing process, you could apply the theory of constraints to improve bottlenecks and mitigate risks. 

Now that you know the difference between the two, learn more about the seven strategic planning models, as well as the eight most commonly used frameworks that go along with them.

1. Basic model

The basic strategic planning model is ideal for establishing your company’s vision, mission, business objectives, and values. This model helps you outline the specific steps you need to take to reach your goals, monitor progress to keep everyone on target, and address issues as they arise.

If it’s your first strategic planning session, the basic model is the way to go. Later on, you can embellish it with other models to adjust or rewrite your business strategy as needed. Let’s take a look at what kinds of businesses can benefit from this strategic planning model and how to apply it.

Small businesses or organizations

Companies with little to no strategic planning experience

Organizations with few resources 

Write your mission statement. Gather your planning team and have a brainstorming session. The more ideas you can collect early in this step, the more fun and rewarding the analysis phase will feel.

Identify your organization’s goals . Setting clear business goals will increase your team’s performance and positively impact their motivation.

Outline strategies that will help you reach your goals. Ask yourself what steps you have to take in order to reach these goals and break them down into long-term, mid-term, and short-term goals .

Create action plans to implement each of the strategies above. Action plans will keep teams motivated and your organization on target.

Monitor and revise the plan as you go . As with any strategic plan, it’s important to closely monitor if your company is implementing it successfully and how you can adjust it for a better outcome.

2. Issue-based model

Also called goal-based planning model, this is essentially an extension of the basic strategic planning model. It’s a bit more dynamic and very popular for companies that want to create a more comprehensive plan.

Organizations with basic strategic planning experience

Businesses that are looking for a more comprehensive plan

Conduct a SWOT analysis . Assess your organization’s strengths, weaknesses, opportunities, and threats with a SWOT analysis to get a better overview of what your strategic plan should focus on. We’ll give into how to conduct a SWOT analysis when we get into the strategic planning frameworks below.

Identify and prioritize major issues and/or goals. Based on your SWOT analysis, identify and prioritize what your strategic plan should focus on this time around.

Develop your main strategies that address these issues and/or goals. Aim to develop one overarching strategy that addresses your highest-priority goal and/or issue to keep this process as simple as possible.

Update or create a mission and vision statement . Make sure that your business’s statements align with your new or updated strategy. If you haven’t already, this is also a chance for you to define your organization’s values.

Create action plans. These will help you address your organization’s goals, resource needs, roles, and responsibilities. 

Develop a yearly operational plan document. This model works best if your business repeats the strategic plan implementation process on an annual basis, so use a yearly operational plan to capture your goals, progress, and opportunities for next time.

Allocate resources for your year-one operational plan. Whether you need funding or dedicated team members to implement your first strategic plan, now is the time to allocate all the resources you’ll need.

Monitor and revise the strategic plan. Record your lessons learned in the operational plan so you can revisit and improve it for the next strategic planning phase.

The issue-based plan can repeat on an annual basis (or less often once you resolve the issues). It’s important to update the plan every time it’s in action to ensure it’s still doing the best it can for your organization.

You don’t have to repeat the full process every year—rather, focus on what’s a priority during this run.

3. Alignment model

This model is also called strategic alignment model (SAM) and is one of the most popular strategic planning models. It helps you align your business and IT strategies with your organization’s strategic goals. 

You’ll have to consider four equally important, yet different perspectives when applying the alignment strategic planning model:

Strategy execution: The business strategy driving the model

Technology potential: The IT strategy supporting the business strategy

Competitive potential: Emerging IT capabilities that can create new products and services

Service level: Team members dedicated to creating the best IT system in the organization

Ideally, your strategy will check off all the criteria above—however, it’s more likely you’ll have to find a compromise. 

Here’s how to create a strategic plan using the alignment model and what kinds of companies can benefit from it.

Organizations that need to fine-tune their strategies

Businesses that want to uncover issues that prevent them from aligning with their mission

Companies that want to reassess objectives or correct problem areas that prevent them from growing

Outline your organization’s mission, programs, resources, and where support is needed. Before you can improve your statements and approaches, you need to define what exactly they are.

Identify what internal processes are working and which ones aren’t. Pinpoint which processes are causing problems, creating bottlenecks , or could otherwise use improving. Then prioritize which internal processes will have the biggest positive impact on your business.

Identify solutions. Work with the respective teams when you’re creating a new strategy to benefit from their experience and perspective on the current situation.

Update your strategic plan with the solutions. Update your strategic plan and monitor if implementing it is setting your business up for improvement or growth. If not, you may have to return to the drawing board and update your strategic plan with new solutions.

4. Scenario model

The scenario model works great if you combine it with other models like the basic or issue-based model. This model is particularly helpful if you need to consider external factors as well. These can be government regulations, technical, or demographic changes that may impact your business.

Organizations trying to identify strategic issues and goals caused by external factors

Identify external factors that influence your organization. For example, you should consider demographic, regulation, or environmental factors.

Review the worst case scenario the above factors could have on your organization. If you know what the worst case scenario for your business looks like, it’ll be much easier to prepare for it. Besides, it’ll take some of the pressure and surprise out of the mix, should a scenario similar to the one you create actually occur.

Identify and discuss two additional hypothetical organizational scenarios. On top of your worst case scenario, you’ll also want to define the best case and average case scenarios. Keep in mind that the worst case scenario from the previous step can often provoke strong motivation to change your organization for the better. However, discussing the other two will allow you to focus on the positive—the opportunities your business may have ahead.

Identify and suggest potential strategies or solutions. Everyone on the team should now brainstorm different ways your business could potentially respond to each of the three scenarios. Discuss the proposed strategies as a team afterward.

Uncover common considerations or strategies for your organization. There’s a good chance that your teammates come up with similar solutions. Decide which ones you like best as a team or create a new one together.

Identify the most likely scenario and the most reasonable strategy. Finally, examine which of the three scenarios is most likely to occur in the next three to five years and how your business should respond to potential changes.

5. Self-organizing model

Also called the organic planning model, the self-organizing model is a bit different from the linear approaches of the other models. You’ll have to be very patient with this method. 

This strategic planning model is all about focusing on the learning and growing process rather than achieving a specific goal. Since the organic model concentrates on continuous improvement , the process is never really over.

Large organizations that can afford to take their time

Businesses that prefer a more naturalistic, organic planning approach that revolves around common values, communication, and shared reflection

Companies that have a clear understanding of their vision

Define and communicate your organization’s cultural values . Your team can only think clearly and with solutions in mind when they have a clear understanding of your organization's values.

Communicate the planning group’s vision for the organization. Define and communicate the vision with everyone involved in the strategic planning process. This will align everyone’s ideas with your company’s vision.

Discuss what processes will help realize the organization’s vision on a regular basis. Meet every quarter to discuss strategies or tactics that will move your organization closer to realizing your vision.

6. Real-time model

This fluid model can help organizations that deal with rapid changes to their work environment. There are three levels of success in the real-time model: 

Organizational: At the organizational level, you’re forming strategies in response to opportunities or trends.

Programmatic: At the programmatic level, you have to decide how to respond to specific outcomes or environmental changes.

Operational: On the operational level, you will study internal systems, policies, and people to develop a strategy for your company.

Figuring out your competitive advantage can be difficult, but this is absolutely crucial to ensure success. Whether it’s a unique asset or strength your organization has or an outstanding execution of services or programs—it’s important that you can set yourself apart from others in the industry to succeed.

Companies that need to react quickly to changing environments

Businesses that are seeking new tools to help them align with their organizational strategy

Define your mission and vision statement. If you ever feel stuck formulating your company’s mission or vision statement, take a look at those of others. Maybe Asana’s vision statement sparks some inspiration.

Research, understand, and learn from competitor strategy and market trends. Pick a handful of competitors in your industry and find out how they’ve created success for themselves. How did they handle setbacks or challenges? What kinds of challenges did they even encounter? Are these common scenarios in the market? Learn from your competitors by finding out as much as you can about them.

Study external environments. At this point, you can combine the real-time model with the scenario model to find solutions to threats and opportunities outside of your control.

Conduct a SWOT analysis of your internal processes, systems, and resources. Besides the external factors your team has to consider, it’s also important to look at your company’s internal environment and how well you’re prepared for different scenarios.

Develop a strategy. Discuss the results of your SWOT analysis to develop a business strategy that builds toward organizational, programmatic, and operational success.

Rinse and repeat. Monitor how well the new strategy is working for your organization and repeat the planning process as needed to ensure you’re on top or, perhaps, ahead of the game. 

7. Inspirational model

This last strategic planning model is perfect to inspire and energize your team as they work toward your organization’s goals. It’s also a great way to introduce or reconnect your employees to your business strategy after a merger or acquisition.

Businesses with a dynamic and inspired start-up culture

Organizations looking for inspiration to reinvigorate the creative process

Companies looking for quick solutions and strategy shifts

Gather your team to discuss an inspirational vision for your organization. The more people you can gather for this process, the more input you will receive.

Brainstorm big, hairy audacious goals and ideas. Encouraging your team not to hold back with ideas that may seem ridiculous will do two things: for one, it will mitigate the fear of contributing bad ideas. But more importantly, it may lead to a genius idea or suggestion that your team wouldn’t have thought of if they felt like they had to think inside of the box.

Assess your organization’s resources. Find out if your company has the resources to implement your new ideas. If they don’t, you’ll have to either adjust your strategy or allocate more resources.

Develop a strategy balancing your resources and brainstorming ideas. Far-fetched ideas can grow into amazing opportunities but they can also bear great risk. Make sure to balance ideas with your strategic direction. 

Now, let’s dive into the most commonly used strategic frameworks.

8. SWOT analysis framework

One of the most popular strategic planning frameworks is the SWOT analysis . A SWOT analysis is a great first step in identifying areas of opportunity and risk—which can help you create a strategic plan that accounts for growth and prepares for threats.

SWOT stands for strengths, weaknesses, opportunities, and threats. Here’s an example:

9. OKRs framework

A big part of strategic planning is setting goals for your company. That’s where OKRs come into play. 

OKRs stand for objective and key results—this goal-setting framework helps your organization set and achieve goals. It provides a somewhat holistic approach that you can use to connect your team’s work to your organization’s big-picture goals.  When team members understand how their individual work contributes to the organization’s success, they tend to be more motivated and produce better results

10. Balanced scorecard (BSC) framework

The balanced scorecard is a popular strategic framework for businesses that want to take a more holistic approach rather than just focus on their financial performance. It was designed by David Norton and Robert Kaplan in the 1990s, it’s used by companies around the globe to: 

Communicate goals

Align their team’s daily work with their company’s strategy

Prioritize products, services, and projects

Monitor their progress toward their strategic goals

Your balanced scorecard will outline four main business perspectives:

Customers or clients , meaning their value, satisfaction, and/or retention

Financial , meaning your effectiveness in using resources and your financial performance

Internal process , meaning your business’s quality and efficiency

Organizational capacity , meaning your organizational culture, infrastructure and technology, and human resources

With the help of a strategy map, you can visualize and communicate how your company is creating value. A strategy map is a simple graphic that shows cause-and-effect connections between strategic objectives. 

The balanced scorecard framework is an amazing tool to use from outlining your mission, vision, and values all the way to implementing your strategic plan .

You can use an integration like Lucidchart to create strategy maps for your business in Asana.

11. Porter’s Five Forces framework

If you’re using the real-time strategic planning model, Porter’s Five Forces are a great framework to apply. You can use it to find out what your product’s or service’s competitive advantage is before entering the market.

Developed by Michael E. Porter , the framework outlines five forces you have to be aware of and monitor:

Threat of new industry entrants: Any new entry into the market results in increased pressure on prices and costs. 

Competition in the industry: The more competitors that exist, the more difficult it will be for you to create value in the market with your product or service.

Bargaining power of suppliers: Suppliers can wield more power if there are less alternatives for buyers or it’s expensive, time consuming, or difficult to switch to a different supplier.

Bargaining power of buyers: Buyers can wield more power if the same product or service is available elsewhere with little to no difference in quality.

Threat of substitutes: If another company already covers the market’s needs, you’ll have to create a better product or service or make it available for a lower price at the same quality in order to compete.

Remember, industry structures aren’t static. The more dynamic your strategic plan is, the better you’ll be able to compete in a market.

12. VRIO framework

The VRIO framework is another strategic planning tool designed to help you evaluate your competitive advantage. VRIO stands for value, rarity, imitability, and organization.

It’s a resource-based theory developed by Jay Barney. With this framework, you can study your firmed resources and find out whether or not your company can transform them into sustained competitive advantages. 

Firmed resources can be tangible (e.g., cash, tools, inventory, etc.) or intangible (e.g., copyrights, trademarks, organizational culture, etc.). Whether these resources will actually help your business once you enter the market depends on four qualities:

Valuable : Will this resource either increase your revenue or decrease your costs and thereby create value for your business?

Rare : Are the resources you’re using rare or can others use your resources as well and therefore easily provide the same product or service?

Inimitable : Are your resources either inimitable or non-substitutable? In other words, how unique and complex are your resources?

Organizational: Are you organized enough to use your resources in a way that captures their value, rarity, and inimitability?

It’s important that your resources check all the boxes above so you can ensure that you have sustained competitive advantage over others in the industry.

13. Theory of Constraints (TOC) framework

If the reason you’re currently in a strategic planning process is because you’re trying to mitigate risks or uncover issues that could hurt your business—this framework should be in your toolkit.

The theory of constraints (TOC) is a problem-solving framework that can help you identify limiting factors or bottlenecks preventing your organization from hitting OKRs or KPIs . 

Whether it’s a policy, market, or recourse constraint—you can apply the theory of constraints to solve potential problems, respond to issues, and empower your team to improve their work with the resources they have.

14. PEST/PESTLE analysis framework

The idea of the PEST analysis is similar to that of the SWOT analysis except that you’re focusing on external factors and solutions. It’s a great framework to combine with the scenario-based strategic planning model as it helps you define external factors connected to your business’s success.

PEST stands for political, economic, sociological, and technological factors. Depending on your business model, you may want to expand this framework to include legal and environmental factors as well (PESTLE). These are the most common factors you can include in a PESTLE analysis:

Political: Taxes, trade tariffs, conflicts

Economic: Interest and inflation rate, economic growth patterns, unemployment rate

Social: Demographics, education, media, health

Technological: Communication, information technology, research and development, patents

Legal: Regulatory bodies, environmental regulations, consumer protection

Environmental: Climate, geographical location, environmental offsets

15. Hoshin Kanri framework

Hoshin Kanri is a great tool to communicate and implement strategic goals. It’s a planning system that involves the entire organization in the strategic planning process. The term is Japanese and stands for “compass management” and is also known as policy management. 

This strategic planning framework is a top-down approach that starts with your leadership team defining long-term goals which are then aligned and communicated with every team member in the company. 

You should hold regular meetings to monitor progress and update the timeline to ensure that every teammate’s contributions are aligned with the overarching company goals.

Stick to your strategic goals

Whether you’re a small business just starting out or a nonprofit organization with decades of experience, strategic planning is a crucial step in your journey to success. 

If you’re looking for a tool that can help you and your team define, organize, and implement your strategic goals, Asana is here to help. Our goal-setting software allows you to connect all of your team members in one place, visualize progress, and stay on target.

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How to Use Strategic Planning Frameworks and Models

By Joe Weller | April 12, 2019 (updated July 26, 2021)

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Strategic planning models and frameworks can help guide you through the strategic planning process. In this article, seasoned industry experts explain the models and frameworks to help you identify which is best for you.

Included on this page, you'll find different types of models and frameworks , tools to help you decide which models and frameworks to use , and details on how to use strategic planning models .

Strategic Planning Basics

Strategic planning is a team process that sets up how your company will accomplish its goals. When you deploy it correctly, strategic planning highlights problems, helps find solutions, and monitors progress. To learn more about the basics of strategic planning, read this article.

A strategic plan includes many sections. When done well, a strategic plan can help you prioritize your company’s functions and stay in line with your mission and vision.

There are different ways to present a strategic plan — for example, it can be a written document, a spreadsheet, or an animated presentation. To learn how to write a strategic plan, read this article.

Strategic Planning Frameworks and Models

Just as there are many approaches to presenting a strategic plan, you have several ways to frame or model your plan.

The terms strategic planning framework and strategic framing models are often used interchangeably, but some say they are different.

“Think of models as a way of ideating strategy. [A model is] a template: You use it at the beginning of the planning process. The idea behind a model is to tease out the ideas,” says Tom Wright, CEO and Co-Founder of Cascade Strategy , a software company based in Sydney, Australia, with offices all over the world. “Frameworks are like a lens to help you see different perspectives, whereas the model is a process you would use from the beginning. You add a framework on top of the [strategic plan] to slice and dice the model.”

There are many strategic planning models and frameworks — some are tried and true, others are newer and more adaptive, and planners and managers may be more familiar with some methods than others. There is no one right or wrong way to create a strategic plan, and you can modify models and frameworks based on your company culture, your current situation, and the purpose behind your planning.

“The major driver [for picking a model or framework] is what type of business you are and what you want to accomplish,” Wright explains.

Strategic planners often utilize different frameworks or customize particular models as they move through the planning process. But be careful; customizing models or frameworks too much might confuse people who are familiar with a particular planning process.

Below is a list of some of the most common frameworks and models:

Alignment Model: This model helps align your mission statement with available resources. It is particularly effective for businesses facing internal struggles.

Balanced Scorecard (BSC): The balanced scorecard system strives to connect big-picture elements with operational elements. BSC is well-known and works for companies of varying sizes.

The Basic Model: Sometimes called a simple strategic planning model , the basic model  involves creating a mission statement, goals, and strategies.

Blue Ocean Strategy: This framework emphasizes new markets and uncontested space.

Gap Planning: A strategy gap is the distance between how a company is currently performing and its desired goal. Gap planning is the analysis and evaluation of that difference.

Inspirational Model: This is a somewhat quick method of strategic planning that begins by coming up with a highly inspirational vision for the organization and the goals to match.

Issue-Based or Goal-Based Model: A step up from the basic model, this model is better for more established businesses. It incorporates SWOT or other types of assessments to determine goals, mission statements, action plans, and other steps.

Organic Model: As the name implies, this model does not necessarily follow a set plan, instead evolving and changing as conditions warrant.

PEST Model: The PEST (political, economic, social, and technological) approach looks at elements of the external environment, including the forces in its name.

Porter’s Five Forces: This model looks at five competitive forces that are present in every industry and helps to determine strengths and weaknesses: competition in the industry, the potential of new entrants into the industry, the power of suppliers, the power of customers, and the threat of substitute products.

Real-Time Model: This a fluid process that works best for companies that operate in a rapidly changing environment.

Scenario Model: When used in conjunction with other models, the scenario model can help you identify goals, as well as issues around them, by using scenarios that might arise. Some experts say this is more of a technique than a model.

Strategy Mapping: This approach helps organizations design and communicate their strategies. Strategy mapping often falls under the umbrella of a BSC, but strategy maps can also stand alone.

SWOT Analysis or SWOT Matrix: SWOT (strengths, weaknesses, opportunities, and threats) offers a way to examine both internal and external forces impacting your company.

VRIO Framework: This approach looks at the questions of value, rarity, imitability, and organization concerning the competitive potential of a company.

Using Strategic Planning Models

In this section, you’ll learn the specifics of the different strategic planning models and frameworks. Sometimes, models can serve as a visual guide. In contrast, frameworks function as an overlay to a model that helps clarify particular items, such as goals.

The Basic Model

The basic model of strategic planning is the most common and simplistic approach. The basic model works well for companies that are small, do not have much time to plan, don’t need to address many serious issues, or operate in stable external environments. It also works for companies that are new to strategic planning.

The basic model is not meant for organizations with significant resources to pursue ambitious visions and goals.

The basic model centers on the mission and vision statements. The vision statement identifies your company’s purpose on a higher level, and the mission statement outlines what happens within the organization to achieve that vision. It makes sense to build the rest of your plan from these statements.

The next step is to come up with goals you must achieve to live up to your mission and make it a reality, then outline what must happen to achieve those goals. Next, list the specific activities you must implement and who will participate in those activities. Lastly, create a simple monitoring plan to make sure your organization stays on track.

The Issue-Based or Goal-Based Model

The issue- or goal-based model evolves from the basic model and results in a more comprehensive plan. The steps vary.

This approach is dynamic and fluid, and it works well for businesses that want to go deeper into strategic planning but have the following concerns:

Limited resources for planning

Several issues to address

Limited past success reaching ambitious goals

No buy-in for the strategic planning process

The issue-based model requires organizations to identify their most important current issues, suggest action plans to address those issues, and include that information in the strategic plan.

The goal-based model often includes the following:

A way to monitor and amend the plan

Action plans, including objectives, resources, and implementation roles

Core values

Major issues and goals, along with ways to address them

Mission statement

SWOT analysis

Vision statement

Yearly operating plan, including a budget

The Alignment Model

The alignment model focuses on making sure an organization’s actions align with its vision. In the plan, you outline the mission, resources, programs, and support your organization needs to ensure it fulfills its vision.

The alignment model works well for organizations that are trying to figure out what is and isn’t working well, along with what needs adjusting. The process can help identify issues, such as internal inefficiencies and productivity problems. However, some critics of this model say it functions more like an internal development plan than a strategic plan.

The Scenario Model

The scenario model looks at what is happening outside of an organization, including regulatory, demographic, or political forces, to determine how they can impact what is happening inside of a company.

The scenario model works best when used in combination with other models and is more of a technique than a model.

For each change in an external force, discuss how it could impact the future of your organization in the following three ways:

A best-case scenario

A worst-case scenario

A reasonable-case scenario

After looking at the three potential impacts, figure out how to best respond to each. Then pick the most likely scenario and discuss strategies to address it.

The scenario model works well for businesses that need help planning for several potential situations.

The Organic Model

If your company wants to stay away from strict and formal strategic planning, the organic model might be a good fit. As the name implies, the organic model of strategic planning is more of a free-spirited conversation, rather than a set process. It emphasizes the journey over the destination.

The organic model relies on everyone having a shared vision and being willing to openly discuss how to get there using common values. This less systematic model requires patience since it involves constant dialogue and is never really finished.

The organic model works well for organizations where traditional methods feel static and obsolete. If you are looking for a set plan outlining steps to follow, the organic model is not for you.

Storyboarding techniques and open dialogue are often a part of the organic model, and everyone is encouraged to participate openly. The focus is more on learning and less about the method of strategic planning.

Real-Time Strategic Planning

The real-time method of strategic planning is even more fluid than the organic model. It helps articulate an organization’s mission and, sometimes, its vision and values. Real-time strategic planning often involves presenting lists to board members or management for further discussion.

Like the organic model, real-time strategic planning is a continuous process and works best for rapidly changing organizations that might not have the need for set, detailed, or traditional strategic planning.

Inspirational Model

Like the name implies, the inspirational model can be energizing to participants, but also have less of a strategic impact on an organization than other, more formal models.

The process works by gathering people to talk about a highly inspirational vision for the company. Leaders encourage participants to brainstorm exciting and far-reaching goals, then capture the details using powerful and poignant wording.

The inspirational model works well for organizations looking to lift the spirits of a staff or to quickly produce a plan.

Strategic Planning Frameworks

Like models, strategic planning frameworks help an organization through the strategic planning process. Most frameworks cover the basics of strategic planning (mission, vision, goals), but include additional sections and have more specific focus areas.

Balanced Scorecard Framework

One of the more popular strategic planning frameworks is the balanced scorecard. It functions as both a strategic planning and management system, and it helps connect a company’s plan to the operational elements that make it happen. The balanced scorecard takes more than financial profits into account when measuring success.

Companies use the balanced scorecard to do the following:

Align the daily work to the longer-term strategy.

Communicate where they are doing and why.

Set priorities.

Monitor progress and measure success.

When Drs. Robert Kaplan and David Norton created the balanced scorecard in the 1990s, it changed the way many companies do their strategic planning because it focused on more than one performance metric.

Companies that use the balanced scorecard try to look at themselves using four unique perspectives to get a better understanding of their planning:

Financial performance

Stakeholders and customers the company is serving

An internal review of how the company is operating

Learning and growth (including capacity, infrastructure, technology, and culture)

The key to the balanced scorecard is that a business should be a balance of the four quadrants.

Cascade’s Wright says the balanced scorecard works well for medium and large companies that don’t change very quickly or don’t need to make radical changes.

To learn more about the balanced scorecard and find free templates and examples, read this article .

Strategy Mapping

Strategy mapping can help an organization reach its goals by providing a visual tool to communicate a strategic plan. Strategy mapping is often part of (but is not exclusive to) the balanced scorecard framework.

Because the graphic is visual and simple, it is an easy way to show how one objective impacts others.

Strategy mapping helps you identify key goals and unify those goals into strategies. People can refer back to it in order to stick to the overall plan when working on tasks or making decisions.

The map shows how different items interact with each other in various ways, including a cause-and-effect relationship.

Strategy maps are often set up in the following manner:

List the four perspectives (financial, customer, process and learning, and growth) horizontally.

Place objectives within those perspectives.

Write sets of linked objectives across different perspectives (these are called strategic themes ).

Show cause-and-effect impacts between objectives and across perspectives.

Image credit: Clearpoint Strategy

Use this template to help you organize your thoughts visually. By thinking of how different perspectives relate to each other, you can come up with your objectives.

‌ Download Strategy Map Template

Excel | Smartsheet

Porter’s Five Forces

Porter’s Five Forces approach helps companies assess the competitiveness of the market. Introduced in 1979, it is one of the oldest strategic planning frameworks.

This approach focuses on the five forces that can impact the profitability of an organization:

The Threat of Entry: Can new companies enter the market?

The Threat of Other Substitute Products or Services: Is there a competitor on the market that your customers could use instead of your product or service?

Customers’ Bargaining Power: Can customers pressure you to react to their demands?

Suppliers’ Bargaining Power: Can suppliers apply pressure to your company?

Competitive Rivalry Among Companies: If a rival company changes its strategy, will it impact yours?

The key is to look at the amount of pressure each force applies to a company in order to determine that company’s future.

Download Five Forces Model Template

Excel | PDF

SWOT Analysis

Most strategic planning processes include a SWOT analysis. Many companies perform a SWOT analysis at the beginning of the strategic planning process, as it offers them a look at what they are doing well and where they can improve.

A SWOT analysis examines the following:

Strengths: What the business does well to achieve its objectives

Weaknesses: What activities could keep a business from achieving its objectives

Opportunities: The external factors that could help achieve its objectives

Threats: Possible external factors that could keep the company from achieving its objectives

Strengths and weaknesses are internal characteristics, while opportunities and threats are external.

You've seen how the four quadrants of a SWOT analysis work. Use this template to write down each factor, so you can view your strengths, weaknesses, opportunities, and threats.

‌ Download SWOT Analysis Strategy

Excel | Word | PDF | Smartsheet

PEST/PESTEL Planning

PEST stands for political, economic, sociocultural, and technological factors. There are several variations based on the idea, including PESTEL or PESTLE (when you also consider environmental and legal factors) or STEEPLED, where you consider sociocultural, technological, economic, environmental, political, legal, education, and demographic information.

These frameworks look at an industry or business environment and see what factors could impact an organization’s overall health and well-being. These do not stand alone and often go along with a SWOT analysis and other frameworks.

Below are some possible examples of these factors:

Political: Changes in tax laws, trading relationships, grant changes

Economic: Interest rate changes, inflation, consumer demand

Social: Changing lifestyle trends, demographic shifts

Technological: Competing technologies, productivity changes

Legal: Changes in regulations, employment laws

Environmental: Changes in customer expectations or regulations

Download PEST Analysis Template

Gap Planning

Gap planning allows you to compare an organization’s current position to its goal, then identify ways to bridge that gap. Gap planning can also help you identify internal deficiencies. Gap planning is sometimes known as gap analysis, needs assessment, or a strategic planning gap.

For a more detailed look at gap planning, read this article .

Blue Ocean Strategy

Created by professors W. Chan Kim and Renee Mauborgne in 2005, the blue ocean strategy is a relatively new planning framework. The idea of a blue ocean is to create an uncontested market space for your company. By contrast, a red ocean is a market space that is already developed and saturated.

A blue ocean is the unknown. A company creates demand for a product or service instead of fighting over it, so there is plenty of opportunity for everyone. The idea is to pursue differentiation, thereby creating market share instead of trying to beat competitors.

A red ocean is the known market space. Industries in that space define and accept the boundaries that exist, and they play by the rules. The only way to get ahead is to outperform rivals to claim a bigger share of the market. The competition can be bloody, which leads to the term red ocean .

An example of an organization that found a blue ocean is Cirque du Soleil. Instead of operating as a typical circus, it found and expanded on a niche. The key to the blue ocean strategy is to make the competition irrelevant because you are doing something the others are not.

VRIO Framework

VRIO (value, rarity, imitability, and organization) is a framework that deals primarily with the vision statement, rather than the entire strategy for a company. By answering four main questions, an organization should be able to create a vision statement to take it through the rest of the planning process. This results in a competitive advantage in your marketplace.

Below are the four main questions:

Value: Using a particular resource, can you exploit an opportunity or get rid of a threat?

Rarity: Is there a lot of competition in your market, or do a few entities control most of the market?

Imitability: Can anyone else do what you do?

Organization: Are you organized enough as a company to adequately exploit your product or service?

Companies can use the VRIO framework to evaluate its resources and capabilities as part of the overall strategic planning process. VRIO comes into play after a company creates a vision statement, but before the rest of the planning process. The advantages you identify help determine what you need to do in order to achieve them.

McKinsey’s Strategic Horizons

McKinsey’s Strategic Horizons framework focuses on growth and innovation by categorizing goals into three categories: the core business, emerging opportunities, and new business.

Image credit: CASCADE

“McKinsey’s is one of my favorites because it applies to businesses small to large and generates excitement,” says Wright. He adds that it is an easy model because it does not involve much jargon and focuses on the future.

The first horizon deals mostly with core activities in which a company is already engaged. Existing revenue is placed here, so goals mostly deal with improving margins and processes, as well as maintaining incoming cash flow. The second horizon involves taking what is already happening and expanding it into new areas. The third horizon involves new directions, possibly including research and new programs. Wright recommends a 70/20/10 split between the three horizons.

Fast-growing and startup organizations might find McKinsey’s framework helpful.

The Ansoff Matrix

Sometimes called the product-market matrix , the Ansoff matrix looks at market penetration and potential future growth. It helps companies that want to try to grow sales volumes or have it as a major focus area.

In this matrix, market development concerns selling more of an existing product or service to a new group of people. Market penetration focuses on selling even more of a current product or service to the same people. Product development focuses on developing new products for current customers. Diversification is all about new products and services and new markets; this carries the most risk, but potentially offers large gains.

Wright says this framework helps companies think deeply about how they will achieve growth instead of merely saying they want to grow.

The Bryson Model or Strategy Change Cycle

John M. Bryson, McKnight Presidential Professor of Planning and Public Affairs at the Hubert H. Humphrey School of Public Affairs, University of Minnesota and author of Strategic Planning for Public and Nonprofit Organizations: A Guide to Strengthening and Sustaining Organizational Achievement , created the Bryson model. Some people, himself included, call it the Strategy Change Cycle.

“It’s a framework, not a recipe. It’s a reference point, the logic does not go step by step from one to 10,” Bryson says. “You start with purposes in mind and then figure out how to get there.”

There are 10 standard steps in the cycle, but Bryson stresses they are not sequential and often happen simultaneously.

Initiate and agree on a strategic planning process

Identify organizational mandates

Clarify organizational mission and values

Assess the external and internal environment to identify strengths, weaknesses, opportunities, and threats (SWOT)

Identify the issues facing the organization

Formulate strategies to manage the issues

Review and adopt the strategies or strategic plan

Establish an effective organizational vision

Develop an effective implementation process

Reassess the strategies and the strategic planning process

Using this cycle, changes to the norm often happen. “You might think you know what your mission and goals are, and after you go through the process, you might need to change your mission and goals,” Bryson explains. “We try to let the mission and goals emerge from the conversations rather than starting there.”

Other Planning Models and Frameworks

In addition to the models and frameworks listed above, there are several other types, including the following:

The Stakeholder Theory: This approach focuses on adding value to specific groups of people, including employees, customers, the community, shareholders, and society. Organizations can add groups as necessary since the model is very flexible.

Kaufman Model: Also called mega planning, the Kaufman Model relies on a needs assessment. This model focuses on the impact an organization can have on society and clients.

Global Model: As the name implies, global strategic planning includes what is necessary to compete in an international marketplace. It involves looking at both the internal and external environments of multinational organizations.

Maturity Model: The maturity model assesses how strategic management is working within an organization and how it stands up to other organizations.

Diamond-E Framework: The Diamond-E framework helps identify possible gaps in an organization to decide whether or not to pursue an opportunity.

Value Migration: This model helps companies plan ahead of the competition. Its creator, Adrian Slywotzky, defines value migration as the shifting of forces that create value, and that shift goes from an outdated business model to a better-designed model that satisfies customers.

Value Disciplines: This flexible framework focuses on what an organization is already good at and builds on it. Three areas of focus are operational excellence, customer intimacy, and product leadership.

Agile Strategic Planning Model: The flexibility of Agile planning allows for growth and change in strategic planning. The cornerstone of Agile is being able to respond quickly to change, which seems like the antithesis of strategic planning. The Agile approach to strategic planning involves reviewing and adapting your strategic plan at regular intervals and whenever conditions warrant it.

General Electric Model: Also known as the McKinsey Matrix, this model looks at the industry externally versus the internal forces. Since it helps to identify the attractiveness of an industry and a firm’s strengths, the grid can help evaluate market share and identify areas for development.

How to Decide Which Strategic Planning Model or Framework to Use

Though strategic planning has changed over the years, the need remains for organizations to have some kind of vision and mission, as well as an outline about how to achieve them.

There is no right or wrong way to decide which model or framework to use for your strategic planning process. The key is to figure out which one best applies to your company and its needs — for example, VRIO can help you create a vision statement, and BSC can help keep plans on track. Additionally, some methods work well together.

“The perfect plan is the one that actually gets done,” says Wright. “A poor plan well executed is worth more than a great plan that never gets off the ground. Most people know what they need to do; it’s getting the traction and about democratizing the process. Constantly, people undervalue the role of buy-in with strategic planning. People need to be involved.”

“The framework you choose would have to deal with the sophistication of your business,” says Ted Jackson, founder and managing partner of ClearPoint Strategy . He recommends adapting a model or framework to meet your needs, rather than attempting to stick to hard and fast rules that might come from a book or a similar source. “I think if you read a book and try to implement it exactly [as the book outlines it] to your organization, you will fail,” he says.

Jackson advises simplifying some frameworks and adapting them, but he has some cautionary advice about trying to combine parts of different frameworks. “One mistake is not picking one framework. You can’t be so flexible that you’re implementing multiple frameworks together. People within an organization get really confused,” Jackson says, adding that people who have some knowledge of specific models or frameworks will not understand different terms and ideas, and they’ll probably be afraid to ask.

Some organizations might not get to choose the framework they use. For example, governmental organizations or companies that receive grant funding might need to produce a strategic plan that fits into a formula the government dictates.

Even though you should not use a strategic plan solely because a similar company does, it might help to look at their preferred framework to pick the one that is right for you.

Below are other criteria to help you decide:

Check the size of your organization and the resources you can devote to planning.

If your organization is in trouble, you might want to focus on a framework or model that addresses immediate issues rather than tackles the longer term.

Look at the health of your organization and its developmental stage.

See who is excited about the planning process.

“If you have a cultural challenge in your organization about getting excited about planning, the model you pick is important. Some models are sexier than others,” Wright explains.

Wright does not recommend changing models during the planning process. “[The model] is a template you use to get your ideas on paper. The model is just a vehicle. If you’re struggling with the model, it might be you.”

It isn’t the same for frameworks, according to Wright. “There is a ton of value in changing frameworks and using multiple frameworks at the same time [to view things differently],” he says. Though Wright encourages using different frameworks, he echoes Jackson’s warning to not use different models at the same time.

In certain cases, strategic planning is not an immediate need — for instance, when a company is failing financially or is autocratic, or when a major upheaval is occurring.

Strategic Planning for Specific Areas

Strategic planning for specific departments is a bit different than planning for a company as a whole. In this section, we’ll explain the basics of how some departments typically approach strategic planning.

IT Strategic Planning

A strategic plan for the IT department details how technology will help a company succeed in reaching its goals and objectives. You can think of it as a technology roadmap that outlines where IT can do its part to implement a company’s strategies.

The IT plan must align with the company’s overall mission and vision statements, but it has a secondary mission statement that states how the IT strategy relates to the overall plans for the organization.

The IT plan should also include a SWOT analysis, goals, and objectives. The plan will help make sure you purchase the right assets and work with existing technology effectively. Use the template below to draft a strong, comprehensive IT strategic plan.

Download IT Strategic Planning Template - Excel

Strategic Human Capital Planning

Strategic human capital planning refers to when a company looks at how people — and how to manage them — go along with the organization’s strategic goals. The end result is a plan to help attract and maintain the talent necessary to achieve the company’s mission and vision.

You can use the following HR strategic plan to list, assess, and plan for future program strategies.

Download HR Strategic Planning Template - Excel

Succession Planning

At its core, succession planning relies on developing and identifying new leaders. Because employees move on or retire, a company needs to have a plan in place to assume new and important roles.

Often, succession planning happens as a part of the overarching strategic planning process — for example, when you look at the resources available to a company and their productivity.

Note that available human resources can be both strengths and weaknesses. The planning process can help companies identify specific hiring needs.

For more about human resources management, this article can help. Additionally, you can find templates for succession planning here .

Healthcare Strategic Planning

The world of healthcare is changing, and healthcare organizations have to adapt. Still, the following general ideas persist:

There will be a continued need to provide quality patient care.

Operating costs and government regulations will impact the bottom line.

The volume and demographics of patients will change.

There will be a change in the labor supply, especially in the number of primary care physicians available.

Wellness and prevention will gain importance.

New technologies will continue to emerge.

Even with the ever-changing healthcare industry, strategic plans will continue to help organizations stay focused on their goals and objectives. By having a structured planning process, rather than following models that are more organic and reactionary, healthcare entities can survive and succeed.

But be careful with metrics that only consider financial success — there is much more to healthcare than profit.

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Everything you need to know about strategic leadership

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Definition of the strategic leadership style

Key skills a strategic leader must have, relevant figures with strategic leadership characteristics.

Pros and cons of strategic leadership

Examples of strategic leadership situations

How to become a strategic leader.

Strategic leadership vs. other leadership styles

Organizations around the globe are looking to improve their leadership style, but it can be challenging to find the right one.

Choosing the right leadership style for your team is the best way to challenge old practices, mitigate risks, scale your organization, and communicate effectively.

 That’s where strategic leadership comes in. 

In this article, I’ll explain how strategic leadership works, how it compares to other leadership styles, and why it’s my favorite style so far.

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Strategic leadership is a leader’s ability to visualize, plan, lead, and make the best out of the resources they have to execute strategies efficiently and successfully. 

Strategic leaders marry their strategic plan to their strategic management . Their organization respects their leadership role and overall vision while working to bring that vision to life. 

Productivity and management mindset play major roles — how leaders think equals how they lead. A strategic mindset reflects something I call strategic agility: the ability to see how the big picture relates to the here and now.

1. Strategic thinking

A strategic leader must first be a visionary and a strategic thinker. They think with the end in mind, and they only focus on necessary tasks. 

2. Communication skills

Being able to communicate the vision of where the organization should be heading is vital. Strategic leaders must have the social skills necessary to communicate their vision with the team accurately.

3. Strategic planning 

Since organizations rely on systems to save time, money, and resources, understanding how to create systems for planned initiatives is crucial.

4. Measuring objectives and key results (OKRs) 

Strategic leaders must be able to create a goal-setting framework that defines and tracks their objectives and outcomes. 

5. Strategic agility

Being able to turn the organization’s long-term vision into daily objectives is an integral part of strategic leadership. Strategic leaders must have a wide perspective to be able to apply an overall vision to the here and now.

6. Awareness

Strategic leaders understand how their actions and moods impact their teams. They think before acting, have emotional intelligence, and can control distracting or negative moods. 

7. Trust and reliability 

You can count on strategic leaders. They go after their goals with passion and determination, and they stop at nothing until their vision turns into reality. 

8. Execution

Strategic leaders are masters at strategy implementation. They understand how to turn goals into action and action into results. They make the most out of their systems and resources. 

9. Integrity

Being grounded in integrity and compassion is an essential part of strategic leadership. Strategic leaders must be able to consider their team’s ideas, feelings, and perspectives before making decisions. 

10. Management 

Strategic leaders understand how to lead a team. They know how to allocate resources, delegate responsibilities , and empower their subordinates to make decisions on their behalf.

Prominent leaders have shown us what success looks like when vision becomes an executed reality. 

Here are three popular figures who have wowed us with their strategic leadership styles.

Katrín Jakobsdóttir

In November 2017, 41-year-old Katrín Jakobsdóttir was the second woman in the history of Iceland to be elected prime minister. 

Jakobsdóttir is known for several strategic initiatives, but one of her most successful was taking preventative measures against COVID-19. As a result, Iceland faced the pandemic with very few casualties and are on their way to eliminating the virus completely. 

Jakobsdóttir is also the chairperson of the Left-Green Movement in Iceland and holds a strategic position as Chair of the Council of Women World Leaders.

Her strategic vision for the future is fulfilling the Paris Agreement targets for 2030, which will put them on track to be carbon neutral by 2040. 

Jacinda Ardern

Jacinda Ardern secured a historic election victory for prime minister in New Zealand when her party won the highest percentage of votes in more than five decades. 

Just like Jakobsdóttir, Ardern acted swiftly to tackle the COVID-19 crisis. As a result, she was able to keep casualties to a minimum. Ardern is the first head of government to give birth in office since Pakistan’s former prime minister. She is also the first world leader to go on maternity leave in office. 

She’s known for remaining consistent and direct about her leadership strategy. Within 36 hours of a terrorist attack that killed 50 people in Christchurch in 2019, Ardern reached out to politicians to tighten up gun laws. 

A few days later, she announced immediate changes to ban assault rifles and military-style semi-automatics. She also offered emotional and financial support to families who lost loved ones, and did so in their native languages. 

Jeff Bezos, the founder and CEO of Amazon, has brought his company’s stock up 225,233% and the company’s market cap up to $1.7 trillion. 

What’s Bezos’s business strategy? Thinking long-term. 

Nearly two decades ago, in his 1997 letter to shareholders, Bezos said, “we believe that a fundamental measure of our success will be the shareholder value we create over the long term.” 

Bezos’s strategy is focusing on things that don’t change and refusing to focus on short-term gains. 

Bezos also emphasizes the importance of intuition, research, and deep knowledge of the market — especially the trends that drive it.

Strategic leadership pros

• Vision: When organizations have a vision they’re aiming toward, they’re able to set short-term goals that help them reach long-term goals. 
• Planning: Organizations are better equipped to achieve goals and handle strategic decisions when they have a well-thought-out plan. 
• Strategic systems: Organizations can save time, money, and resources when they create frameworks and systems to support strategic change.
• Encourages unity: Effective leadership encourages unity and interdepartmental collaboration. Strategic leaders value team members’ opinions and input. 
• Clarity: When strategic leaders clearly communicate how tasks relate to overall goals, it’s easier for team members to understand why their work is meaningful.

Strategic leadership cons

• Lack of flexibility: When strategic plans are implemented company-wide, it can be difficult for strategic leaders to change their framework if something needs to be altered. 
• Difficulty predicting the future: Predicting the future plays a major role in how strategic leaders operate, but it’s not always possible to predict the future accurately. 
• Can be expensive: Successful strategic plans can increase profits and overall business success. But if a plan doesn’t work, it could result in losing departments, layoffs, or canceled projects. 
• Stalled growth: If strategic leaders are too conservative or too liberal about taking risks, it can stunt the organization’s growth or prevent the organization from seeing problems that were on the rise.
• Lack of presence: If strategic leaders struggle with finding the balance between looking toward the future and addressing the here and now, it can keep them from addressing current problems in the organization.

Note: it’s important to keep in mind that not every pro and con will apply to every organization. Every strategic leader is different, and some are more effective than others.

Here are two real-life situations that demonstrate strategic leadership:

Knowing that the US car industry was more advanced and efficient than their Japanese one, Toyota’s strategy involved studying its competitors to copy their best practices. 

After years of studying American car makers’ production lines (like Ford), Toyota blended American processes with their own to create something even better.

Toyota’s strategy includes knowing its weaknesses, focusing on efficiency, and cultivating high-quality design and innovation. 

Instead of just becoming another bank, PayPal used unconventional strategies to grow its empire. 

PayPal adopted strategies like holding undisbursed funds in commercial interest-bearing checking accounts instead of engaging in fractional-reserve banking, and spending less money on technology (even though its technology platform is better than banks’).

Paypal also refuses to partner directly with banks. Instead, it focuses on building partnerships with merchants, being quicker to market than other payment innovation companies, and building trust with consumers.

1. Balance the present with the future

To become a strategic leader, it’s vital to balance the day-to-day with future plans. 

Host weekly meetings with team members and departments, and/or ask employees to record daily or weekly issues in a shared system so you can stay up-to-date with any issues related to the strategic plan. 

2. Challenge the status-quo

Instead of conducting business as usual, challenge old practices, create better processes and solutions, and motivate your team to do the same.

3. Have a risk management plan

With strategic plans come possible risks. That’s why it’s vital to always create a risk management plan. It’s also important to establish boundaries (like initiating a fixed budget) to help you prevent negative outcomes before they start. 

4. Communicate effectively

Strategic plans work best when everyone’s on board. It’s crucial to be clear and get everyone on the same page. Effective communication creates powerful teams that not only support strategic initiatives but also propel initiatives forward faster. 

5. Establish a planning committee

Nobody understands the inner workings of an organization like frontline staff, mid-level managers, and senior leaders. Creating a planning team can help strategic leaders better understand company culture, stakeholders, and challenges.

Let’s examine how strategic leadership compares to other leadership styles: 

Democratic leadership style

Democratic leaders make decisions based on each team member’s input. Although the leader makes the final call, decisions are often made collectively. 

For example, the democratic leader may open a discussion about a few decision-related options. After discussing the options, the leader may open the decision to a vote or consider their team’s feedback before formulating the final decision. 

How does strategic leadership compare?

Like democratic leaders, strategic leaders recognize that everyone has to buy in to ensure the strategic plan’s success. Under strategic leadership, the leader communicates the organization’s strategic vision and influences others to adopt the vision. 

Autocratic leadership style

Autocratic leaders are the exact opposite of democratic leaders. The leader makes all of the decisions without input from anyone who reports to them. 

The leader doesn’t consider team members’ opinions before giving direction. Team members are expected to obey decisions at a time and pace specified by the leader. This leadership style is rarely effective or sustainable long-term but it can be good for dealing with crisis situations. 

Strategic leaders typically adhere to a strict vision for the company, but team member input is still valued — as long as team members are open to new ideas and challenging the status quo.

Servant leadership style

Servant leaders , also called laissez-faire leaders, give nearly all authority to their team members. 

This could mean having no major company policies around deadlines and processes , or it could mean putting their full trust into team members as they focus on big-picture items (like running the company). 

Strategic leaders trust their team and value objective thinking, but not if it risks company growth or the strategic vision.

Why strategic leadership might be better

The best leadership style ultimately depends on the organization, but strategic leadership might be better because strategic leaders:

• Are open to new ideas as long they support the overall vision
• Make calculated decisions 
• Know how to prevent and mitigate risks
• Are constantly looking for ways to improve
• Encourage objective thinking that supports the overall vision
• Support unity
• Build commitment 
• Ensure clarity around tasks and objectives 

In other words, strategic leaders have the best balance and combination of the other three leadership styles, plus a few other tricks up their sleeve.

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I hope this guide on strategic leadership will give your organization clarity on how to use this and other styles of leadership to improve.

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Maggie Wooll, MBA

Maggie Wooll is a researcher, author, and speaker focused on the evolving future of work. Formerly the lead researcher at the Deloitte Center for the Edge, she holds a Bachelor of Science in Education from Princeton University and an MBA from the University of Virginia Darden School of Business. Maggie is passionate about creating better work and greater opportunities for all.

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9 effective strategic planning models for your business

Strategic planning models can make a big difference to your organization. That remains true whether you’re a startup developing an overall strategy or an established business fine-tuning internal processes.

But there are many strategic planning models, and it’s vital to pick one that suits your purpose and needs. The right framework will help you streamline processes, drive alignment, and propel your business.

To help your research process, we’ve compiled a list of the most effective strategic planning models and their top use cases. Let’s take a look.

🧐 Looking for a flexible framework to help you reach your business objectives? Leapsome’s goal management tools fit any strategic planning process. 👉 Learn more

What is a strategic planning model?

A strategic planning model is a framework that allows organizations to map out their short- and long-term business plans. They can help:

• Identify and overcome obstacles 
• Improve and streamline operations
• Reach overarching business goals
• Create alignment between different departments
• Track progress over time

And you don’t have to limit your organization to one strategic planning model. Businesses can benefit from using multiple approaches, even simultaneously. But different strategic planning models are best suited for different situations, so make your choice based on your business type, growth stage, priorities, and goals. 

9 models for strategic planning

These are some of the most popular strategic planning models. Our list covers a definition of each model, an example of it in action, and which use cases it works best for.

1. Objectives & key results (OKRs)

OKRs are a popular goal-setting framework that organizations, teams, and individuals use to define long-term objectives and track progress. To better understand the meaning of OKRs , let’s unpack the acronym:

• Objectives — ambitious but achievable long-term goals
• Key results — milestones used to measure progress toward each objective

When establishing your OKRs, create quarterly objectives for all company levels — Leapsome has a free OKR template to help you get started. Then, revisit your OKRs regularly to monitor your progress and make adjustments if necessary. You can also introduce regular OKR meetings to your organization’s internal processes.

OKR example

Here’s an example of an OKR for a B2B SaaS company:

Objective | Significantly scale our customer base and deliver our great product to more people

• Key results: 
• Increase sales conversion rate from 25% to 30%
• Reduce user churn from 5% to 3%
• Publish a successful case study on our website every quarter
• Achieve a minimum of 4.7 out of 5 rating across all major review sites

OKRs work best for organizations that want to create more alignment behind their goals. By breaking down company-wide objectives into smaller, more manageable tasks, OKRs ensure everyone works toward a common purpose.

‍ OKRs also show employees how their work contributes to the big picture, giving them a sense of purpose and boosting employee engagement . Research by Gallup links engaged employees to lower turnover rates, better work performance, and a thriving work culture. Consequently, OKRs help companies build successful workplaces.

💡 Wondering how to introduce OKRs to your organization? Use Leapsome’s flexible framework to set company-wide objectives and track them in one intuitive place. 👉 Learn more

2. SWOT analysis

SWOT stands for strengths , weaknesses , opportunities , and threats . Use the SWOT model to define internal and external factors affecting your business. Then, compare the different factors to assess the risk of a potential strategy. 

For example, if your organization’s strengths match opportunities in the market — say, you have a lot of capital, and your competitors don’t — you know you have a competitive advantage. In that scenario, you can take an offensive business strategy with relatively low risk.

SWOT example

Here’s a SWOT example for a sales-based organization:

• Strengths — We have an excellent rapport with our customers and a loyal customer base.
• Weaknesses — Our current supply chain is inadequate.
• Opportunities — There’s high customer demand for one of our products.
• Threat — Our main competitor is developing a similar product.

Based on this SWOT analysis, our example organization isn’t in a strong strategic position. There’s a risk they won’t produce or distribute enough of their product to meet demand, and their competitor has the potential to outperform them. They should prioritize optimizing their product offering and solving supply chain issues over generating leads or working on an aggressive marketing campaign.

Any business can benefit from SWOT analysis. However, it’s best to use it at the beginning stages of a new strategy and with a specific goal in mind. You could try a SWOT approach when deciding priorities, like implementing new technology or restructuring your organization.

3. PEST or PESTLE analysis

PEST analysis focuses on external factors that can affect your organization. The letters stand for:

• Socio-cultural
• Technological

And depending on your industry, you might add legal and environmental factors to make PESTLE. 

PEST or PESTLE example

Here’s an example of a PESTLE analysis for a multinational confectionery company:

• Political factors — The government of a country where we sell many products is planning to raise import tariffs.
• Economic factors — Our target demographic (13 to 21-year-olds) has more disposable income now that Covid-19 restrictions have been lifted.
• Socio-cultural factors — Surveys report that customers consider our products healthy.
• Technological factors — Engineers devised a more efficient way to farm the main ingredient in half our products.
• Legal factors — The FDA approved our latest chocolate bar.
• Environmental factors — NGOs are pressuring us to use more environmentally friendly processes.

PEST analysis lets you assess the business environment for a product or service, so it’s best used during the beginning stages of a project.

4. The Balanced Scorecard framework

The Balanced Scorecard framework lets you take a holistic approach to business planning that doesn’t just focus on economic performance. Instead, you look at four perspectives: 

• Financial perspective — how well your organization is performing economically
• Customer perspective — your customer satisfaction and retention levels
• Internal business perspective — the quality and efficiency of your internal operations
• Innovation and learning perspective — your ability to improve, pivot, and grow your business

Then, create objectives and define measures to track your progress for each perspective. Those measures will support you in planning and executing initiatives to achieve your goals. And as you carry out this strategy, you can update your scorecard to show your progress.

Balanced Scorecard example

The management at ECI (Electronic Circuits Inc.) wanted to improve their delivery times. But when they talked to customers about the issue, the organization received unreliable feedback — different people had different definitions of being ‘on time.’

Using the Balanced Scorecard framework, managers shifted focus to their operations and checked the efficiency of their manufacturing process. They discovered ways to optimize the business’s cycle time, yield, and costs. 

Despite not having a reliable customer perspective, the Balanced Scorecard’s comprehensive overview of the ECI organization provided a versatile solution for reducing delivery times and streamlining the business’s overall operations.

The Balanced Scorecard framework is best for understanding your business health and creating alignment across your company.

5. Porter’s Five Forces

Porter’s Five Forces is an approach that lets you assess your product or service’s competitive advantage in the market. Identifying potential threats can guide your organization in developing a more dynamic strategic plan.

The ‘Five Forces’ that may affect your product are:

• The threat of new competitors — Are many new businesses popping up in your industry? How easy is it for new companies to develop a product or service similar to yours?
• The number of existing competitors — How many direct competitors are you contending with? What about adjacent competitors? Are any of them growing quickly?
• The bargaining power of suppliers — Could suppliers put pressure on you to lower costs or change your business model?
• The bargaining power of customers — Are your products or services available elsewhere? Is there a demand for them? Do people have issues with your pricing or quality?
• The threat of a substitute — How likely is a similar product or service to enter the market?

Porter’s Five Forces example

Let’s take the example of a cosmetics company planning to release a shampoo with SPF 50:

• The threat of new competitors — The shampoo requires expertise to develop, which is an obstacle for competitors entering the market.
• The number of existing competitors — Two companies with similar products are poised to grow. They could create an almost identical product and pressure them to lower costs.
• The bargaining power of suppliers — There’s a large number of suppliers, so they have little bargaining power.
• The bargaining power of customers — Depending on where customers live, they’ll consider the shampoo a seasonal product. As it’s almost winter in the countries with the largest customer base, demand is lower.
• The threat of a substitute — Research suggests that no products currently in development could fill the same need (protecting the scalp from sunburn).

Porter’s Five Forces are best for evaluating your product or service after development but before entering the market. It’s also helpful for assessing an organization’s overall competitive position. 

6. The VRIO framework

The VRIO framework helps organizations determine whether they can turn a resource into a competitive advantage. These can be physical resources like inventory, tools, and technology, or nonphysical ones like patents, skills, and work culture.

Let’s break down the VRIO acronym to understand how to evaluate each resource:

• Valuable — The resource increases revenue or decreases operational costs.
• Rare — The resource is limited or you control the supply.
• Inimitable — The resource is unique or complex, meaning it’s difficult for competitors to copy.
• Organizational — Your organization can exploit the full potential of the resource.

VRIO example

Here’s an example of a delivery company determining whether they can exploit their resource — distribution centers — to gain a competitive advantage:

• Valuable — All the distribution centers are in strategic positions, which makes them a valuable resource as the company can use their location to create more efficient delivery routes.
• Rare — The distribution network is a scarce resource because there are only a few ports for international delivery.
• Inimitable — Competitors could build distribution centers in nearby locations.
• Organizational — Delivery drivers aren’t using the most efficient routes between distribution centers.

The delivery company could have a temporary competitive advantage, but they’re not exploiting this resource. Management needs to address whatever stops delivery drivers from using the fastest route before rival delivery companies copy and control the same resource. ‍

The VRIO framework works best for businesses deciding how to launch a new product or service or determining how to improve their existing business model. 

Specifically, the organizational metric shows how efficiently your organization uses its resources. If you have a high score for the first three metrics but consistently fail to capture the value of your resources, it’s a sign you need to improve your internal processes.

Combine the VRIO framework with Porter’s Five Forces for a clear strategic direction when launching a new product.

7. The Hoshin Planning framework

The Hoshin Planning framework is mainly a top-down approach. This method outlines seven strategic planning stages, which are:

• Define your vision to clarify your organization’s primary purpose.
• Develop your main objectives to give your organization a competitive advantage.
• Break down objectives into smaller annual goals.
• Set goals across your entire organization — at C-level, managerial, departmental, and individual levels.
• Implement your plans.
• Perform monthly reviews to reflect and monitor progress.
• Do an annual review to determine if you’ve achieved your goals and what to work on next.

It’s worth noting that the Hoshin Planning framework doesn’t have to be strictly top-down. Another core idea behind this method is that managers should ‘play catch ball’ — that is, bounce ideas between management, department heads, and team members during the first four stages.

Hoshin Planning example

Here’s how a car manufacturer might implement the Hoshin Planning framework:

• Management shares their vision of developing the most innovative technology on the market.
• They decide their main goal is to develop the first self-driving car by the end of 2025. But when leadership talks to the head of engineering, they say this breakthrough won’t be possible by 2025. They collectively adjust the deadline to 2027.
• Management breaks this goal down into smaller targets. One of them is mapping out what the self-driving car should be able to do in every scenario. The engineering department agrees with this plan.
• ​​Those targets inform detailed initiatives, like observing real-life driving incidents and collecting data on traffic and accidents.
• All parties carry out the agreed-upon initiatives. After a month, management conducts a meeting to check everyone’s progress.
• A year later, the engineering department has data on most scenarios the self-driving car would encounter on the road.

Companies with complex processes — like manufacturing and tech businesses — are more likely to use the Hoshin Planning framework. Their operations benefit from the ‘catch ball’ idea because it’s easier to spot problems when you filter them through diverse teams.

The Hoshin Planning Framework is also ideal for creating alignment within your company. Consider it for a larger organization that’s experienced project issues and bottlenecks.

8. The Theory of Change model

The Theory of Change model involves establishing long-term goals and working backward. Start with your desired outcome and go through all preconditions necessary for it to become a reality. During this process, you determine what needs to change to reach your objectives.

Theory of Change example

Nonprofit organizations with specific missions often use the Theory of Change model. Take adult literacy, for example. The project team would start with an ideal situation — like their country having a 100% literacy rate — and work backward to find out what’s preventing them from achieving that aim. The issues might range from a lack of funding to a need to increase awareness about resources that are already available. Then, the nonprofit team could start addressing the issues they identified.

Any organization can benefit from the Theory of Change framework. Still, it works best for specific projects, like expanding your company abroad or opening a new department, as it involves scenario planning. 

9. The Blue Ocean strategy

The Blue Ocean strategy is a strategic planning model that’s become popular recently. Developed in 2004, this method assesses whether your organization operates in a saturated market. If so, the underlying assumption of the Blue Ocean strategy is that it’s better to create new demand.

In the strategy, the ‘ocean’ is a metaphor for the market. The ‘red ocean’ is full of predators (large companies) competing for food (customers) and turning the water red, whereas the ‘blue ocean’ is deep, unexplored water that’s full of potential (uncontested market space). Here’s a list of indicators that you’re in a ‘blue ocean’:

• You’ve found uncontested market space
• You’ve made the competition irrelevant
• You’re creating and capturing new demand
• You’re breaking the value-cost trade-off

Blue Ocean example

Apple is a famous example of a business that operates in a ‘blue ocean.’ Although it’s one of the leading technology companies in the world, the Apple team still prefers to innovate new products rather than beat the competition.

The Blue Ocean strategy is ideal for small businesses and start-ups trying to establish themselves among larger organizations. Established companies in dynamic industries like tech can also use it to stay ahead of their competition.

How to implement a strategic planning model

Once you’ve set up your strategic plan, you’ll want to utilize it to its full potential. Here are some tips to make sure your strategy goes into action.

Align your approach to strategic planning with your values

There are many strategic planning models to choose from, and your organization can only implement so many. Although all of them have pros and cons, none are necessarily better than the others. So, choose the strategic planning models that reflect your organization’s values. That way, it’ll be easier to introduce your strategy and get all team members on board.

If you’re a people-first organization, OKRs are an ideal choice. OKRs involve your employees in company initiatives, make internal decisions more transparent, and give everyone a sense of purpose. 

Allocate resources to the strategic planning process

Strategic planning is like any other task: It requires resources like funding, time, and research. You should have a budget and schedule for every part of the process.

The employees helping you with strategic planning and implementation are also vital assets — offer them training and consistent support. Free up their schedule for strategic planning and create a timeline for the entire process to set your team up for success. ‍

Review your progress

Aside from planning and implementing your strategy, you’ll need to check on your progress regularly. That means monthly and annual reviews at all levels.

Many strategic planning models already have reviews built into their stages. But even if they don’t, you should reevaluate at regular intervals. You can define some key performance indicators (KPIs) to measure the success of your initiatives and your overall business health. Popular KPIs include revenue growth, client retention rate, and employee satisfaction.

Be ready to adjust your strategic plan

As the saying goes, even the best-laid plans often go awry. You may find that conditions change as you implement your strategic plan or that you didn’t predict certain issues. The key isn’t necessarily to strategize better, but to have a dynamic strategy. This will allow you to adjust your plan and deal with problems as they arise.

For instance, you might opt for the PEST analysis, but be open to considering important legal and environmental factors when they come up. You can try to predict what new legislation or world events may affect your industry. Then, if any conditions arise that affect your business, you’ll be able to pivot your strategy without too much additional effort.

Boost your organization’s performance with strategic planning models

Strategic planning models help you assess the current state of your organization, decide which direction to take in the future, and communicate your plans to your employees. They can be the difference between your business merely sustaining itself and thriving.

If you’re wondering how to implement a new strategic planning model, Leapsome can offer professional support. Our Goals and OKR Management Software provides an adaptable framework for your chosen strategic model.

🚀 Kickstart your strategic plan with Leapsome Our goals and OKR management tools make it easy to implement your strategy of choice. 👉 Book a demo

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Leadership as the starting point of strategy

When it comes time to implement a strategy, many companies find themselves stymied at the point of execution. Having identified the opportunities within their reach, they watch as the results fall short of their aspirations. Too few companies recognize the reason.

Mismatched capabilities, poor asset configurations, and inadequate executioncan all play their part in undermining a company's strategic objectives. Although well-regarded corporations tend to keep these pitfalls squarely in their sights, in our experience far fewer companies recognize the leadership capacity that new strategies will require, let alone treat leadership as the starting point of strategy. This oversight condemns many such endeavors to disappointment.

What do we mean by "leadership"? Whereas good managers deliver predictable results as promised, as well as occasional incremental improvements, leaders generate breakthroughs in performance. They create something that wasn't there before by launching a new product, by entering a new market,or by more quickly attaining better operational performance at lower cost, for example. A company's leadership reaches well beyond a few good men and women at the top. It typically includes the 3 to 5 percent of employees throughout the organization who can deliver breakthroughs in performance.

Since bold strategies often require breakthroughs along a number of fronts,a company needs stronger and more dominant leadership at all levels if these strategies are to succeed. A defining M&A transaction, for example, requires leadership throughout an organization's business units and functions in order to piece together best practices and wring out synergies while striving to carry on business as usual. In addition, leaders throughout both companies must transcend the technical tasks of the merger to rally the spirits of employees and to communicate a higher purpose.

As the number of strategic dimensions and corresponding initiatives increases, so does the pressure on leadership. Not surprisingly, our work in many industries with companies of all sizes has shown that high-performers, especially those with lofty aspirations, have the most difficulty meeting their leadership needs. Of course, companies that perform poorly are also lacking in leadership capacity. The higher a company's aspirations or the more radical its shift in strategic direction, the larger the leadership gap. This rule holds true for high performers and laggards alike.

The consequences of inattention

Most CEOs will agree that leadership is important, yet few assess their leadership gap precisely. Fewer still build an engine to develop the right quantity of leaders with the right mix of capabilities, at the right time, to match opportunities.

If the number of leaders needed to achieve a strategic goal—for example, expanding current operations or developing new businesses—were set against the number of existing leaders, a company could uncover the numeric leadership gap it must address. Even if an organization has enough leaders, it may discover a shortfall in their capabilities. A company expanding internationally, for example, could find that its current leaders lacked the cultural sensitivity to operate in unfamiliar geographies. Or a corporation entering new markets could find it had too many engineers and not enough business builders.

The failure to assess leadership capacity systematically before launching strategic initiatives can leave top executives scrambling to fill gaps at the last minute—with significant consequences.

In the short term, companies that undertake new strategies without the right leaders in place are forced to burden their existing ones with additional responsibilities. As such leaders take on the new challenges, the demands from day-to-day operations invariably increase, leaving less time for other tasks. Often these leaders drop the activities with less tangible outcomes, such as staff development, for which the effects are not immediately evident. If a company stretches its existing leaders too far, their overall effectiveness takes a nosedive. From the start, this trade-off compromises strategic objectives. Companies executing strategies under these circumstances assume either that they can get by with suboptimal leadership or that achieving just part of their initial objectives will capture a corresponding percentage of the strategy's net present value. We know from experience that these assumptions can be fatally wrong: one critical misstep can jeopardize the entire investment.

In the longer term, a persistent leadership gap will be responsible for an inexorable decline in the number and quality of leaders. Companies create a vicious cycle in which good leaders become overextended or are moved haphazardly and thus have less time to develop younger talent. The day will come when they hand over the reins to a less experienced, ill-prepared group of successors. Left unchecked, this cycle can ultimately put the company's core operations and strategic growth at risk.

Leadership first

Given the severe consequences of a leadership gap—the best-planned strategy is no more than wishful thinking if it can't be translated from concept to reality—why do so many companies discover their leadership shortfall only when executing their strategies? This question raises another, more fundamental one regarding strategy and leadership: which is the chicken and which is the egg? Companies have taken a number of useful approaches to this puzzle.

One successful US conglomerate with global operations routinely holds discussions that integrate both strategy and leadership. Any consideration of a strategic initiative invariably includes the question, "Who exactly will get this done?" If the company does not have a sufficient number of the right leaders, the plan does not proceed.

Another approach is to weigh a corporation's strategic options against its ability to launch new businesses, new approaches, and other forms of breakthrough performance—in other words, its leadership. Consider, for example, the global-expansion strategy for a successful resource company. The effort included identifying the leadership required to drive breakthrough performance over five years in areas such as running and expanding existing businesses, developing new ones, renovating corporate processes such as risk management, and providing overall change leadership. The company then gauged its leadership gap by comparing these requirements with the qualities of its current leadership bench. It made a number of strategic decisions to determine, among other things, which path was best for realizing the strategy, whether to revise its aspirations, and whether to develop leaders internally or hire them from outside.

A third approach is to plan the path toward a predetermined strategic goal by taking into account the quantity, timing, and mix of leaders that the various alternatives require. Companies using this framework may rule out some possibilities if developing the requisite depth of leadership is unrealistic in the time frame dictated by the marketplace. A leading food company in Asia, for example, aspired to become the dominant regional player. With five strong national brands, it had at least three clear options for how to achieve that goal: take a cautious approach by launching one brand as a pilot in each overseas market before introducing other brands; focus on China by building a beachhead with one brand in a single city, then sequentially rolling that brand out region by region within China; or, finally, acquire a player in one regional Chinese market, thus gaining outlets and local expertise, and use this opening to roll out all five brands to more markets in China over time.

While many factors, including the company's appetite for risk, weigh on these decisions, in this case each option had distinct leadership requirements. The first, for example, would initially require at least five to ten well-rounded leaders—entrepreneurs capable of establishing local networks, operating under unfamiliar conditions, and managing all five brands. The second option called for a business builder who was deeply familiar with the beachhead city to direct a team of four to six emerging leaders who could spearhead the subsequent expansion. A business-development leader would also be helpful in seeking an alliance partner to speed up the company's pace and bolster its confidence during the regional expansion. The third possibility, by contrast, would immediately require an expert to structure, valuate, and negotiate deals and, in the medium term, a few executives capable of operating in each of the regional Chinese markets. After the company critically reviewed its current and potential leaders, it made the decision to adopt the third of those options.

These three cases illustrate how thinking about leadership up front can affect a strategy's direction, path, and outcome. But can a company bring leadership considerations into its strategic discussions even earlier, before it chooses a general direction? To do so, the company must think rigorously about its current leadership pool—the types of leaders and their mix of capabilities—and lay out the strategy accordingly. If a manufacturer's strong suit is leaders with superb marketing capabilities, for example, a market-driven strategy would be implied and might include selling another manufacturer's products. Taken to this level, leadership becomes the true starting point for strategy.

Filling the gap

A clear picture of the leadership gap can help guide strategic thinking, but to retain as many options as possible, companies must also consider ways to fill that gap. To reduce the risk of strategic failure, they need to direct their approach to leadership with three time horizons in mind.

Long term: Position

Companies need to position themselves today to meet their strategic objectives during the next three to five years. In an 18-month period, for example, a South Korean consumer goods company successfully expanded its core business into Japan, where it diversified into noncore sectors such as low-cost lodging. It achieved such deep penetration of this notoriously closed and mature market so quickly by building its leadership bench in advance. At least five years before the initiative's launch, the company began hiring managers and sending them to Japan—through exchanges with friendly Japanese partners—thereby creating a cadre of South Korean leaders trained to operate in Japan.

In many of Asia's key growth markets, local leaders with a global perspective are highly sought after and often unavailable at almost any price. Returning nationals, typically trained in Europe or the United States, may be another option, but many companies have found these prospects to be expensive and lacking in the tacit knowledge needed to operate successfully in the cultures of many corporations—and the industries they compete in. A company must hire and groom potential leaders as much as a decade or more ahead of market need and then help them build the internal networks necessary for long-term success.

To cite another example, for decades a US financial-services giant systematically hired the best global talent, regardless of the market, and rotated these leaders through every critical aspect of its operations. This investment in human assets paid off handsomely. In most of the new economies the company enters, it enjoys an almost unparalleled ability to field full-service teams with strong leaders in the vanguard. Competitors, by contrast, are forced to expand more selectively or to offer expensive packages to lure top talent.

Medium term: Cultivate

Companies must also begin cultivating leaders for specific roles one to two years down the road. This effort requires recognizing the skills, behavior, and mind-set that leaders must possess to be prepared for future roles. Many executives spend years building their technical skills and industry knowledge but rarely develop expertise in areas such as managing stakeholders and building networks. In a prominent resources company, for example, top executives identified potential successors for key leadership positions. It highlighted the measures needed to bring each one up to speed, including counseling, training, and new assignments, by considering individual profiles (strengths and weaknesses, past experience, and skills) as well as the key success factors for upcoming leadership positions (industry or functional expertise, personal or change-management skills, and local knowledge).

Another company informed appointees of their next assignment six months ahead of time and then enrolled them in self-directed preparatory programs. All of the leaders wrote a personal-development contract related to the challenges of the new role and created a list of learning opportunities and developmental activities that would prepare them for their new responsibilities. These tasks could include, for instance, seeking advice from veterans or drawing up a plan for the first 100 days in the new role. The company also provided four categories of learning modules: "lead self," for self-awareness, skill mastery, and developmental planning; "lead others," for getting the best performance from colleagues in specific settings; "lead context," for understanding and identifying trends in the competitive environment; and "lead change," for aligning key stakeholders, steering the organization to breakthroughs, and challenging conventional approaches and thinking.

Short term: Match

Job experiences and stretch assignments are the primary development vehicles for leaders. Opportunities to achieve performance breakthroughs are critical not just for reaching a company's performance goals but also for developing its best people. Unfortunately, corporations that are particularly risk-averse often match their people to opportunities by looking at track records and job experiences, which they see as indicators of future performance. But such an approach is unlikely to succeed, since the experience and skills needed for earlier successes are not necessarily precursors for those required to achieve performance breakthroughs in subsequent opportunities.

A better approach is to use corporate-performance objectives and personal-development goals to match current and potential leaders with opportunities. This multifaceted approach uncovers a better fit between the individual and the opportunity. For this process to be successful, top managers need to acquire a holistic understanding of each individual, including professional abilities, such as leadership qualities, track record, and potential, as well as key personal traits, such as style and preferences, character and motivation, and current attitudes and mind-set. Companies can assess these qualities through information—objective and subjective—from superiors, peers, mentors, and other sources.

To help leaders develop throughout any of these three time horizons, a company must first accurately identify who its leaders are and then convince them of an opportunity's potential. Companies often underestimate this challenge. Top managers typically assume they know which of their best people are willing and able to take on new challenges, but the reality is often very different. At one multinational corporation with an ambitious growth agenda, the CEO asked the 20 members of his management committee for written nominations to fill leadership positions for 30 initiatives. Most committee members couldn't confidently name more than five to ten candidates, and large overlaps existed among the members' lists. Each had nominated the "usual suspects"—managers who were well known in the executive suites. If the company pursued all 30 initiatives simultaneously, it would overload these candidates while denying other potential leaders the chance to develop and shine. Corporations must instead look out along the three time horizons we have described to build a more systematic leadership engine.

Strategy will not succeed in a void, and leadership often makes the difference between merely reaching for great opportunities and actually realizing their potential. Top managers must assess their company's leadership gap and find ways to close it over the short, medium, and long term. Better still, they should integrate leadership with strategy development and thoughtfully match their portfolio of leaders with opportunities.

Tsun-yan Hsieh is a director and Sara Yik is a consultant in McKinsey's Singapore office.

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5 effective strategic planning models for your business

Strategic planning models are a catalyst for successful teams. Companies use these models to achieve their goals, steer through transitions, or make impactful changes. Imagine a roadmap guiding every decision, action, and initiative — a strategic blueprint illuminating your path to success. 

That’s what a strategic planning model is for your team.

This article delves into the five most common strategic planning models. By using one of these models in your own strategic planning, you’ll align objectives, foster collaboration, and drive tangible results.

1. Basic strategic planning model

The basic strategic planning model is a foundational model for strategic planning. It starts with establishing or refining fundamental elements — mission, vision, values, and objectives — that set the direction for the entire organization. 

Who uses this model?

This method is cost-effective and straightforward, making it most helpful for: 

• Teams with no strategic planning experience: Because of its simplicity, the basic model is best if you’ve never created a strategy from scratch before. 
• Companies with limited resources: It offers an efficient way to develop a strategic plan without requiring extensive investments or lengthy training sessions.

How to use the basic strategic planning model

Teams don’t need fancy tools or software to follow this model. Its simplicity helps you prioritize and focus on the most critical aspects of your strategy without being overwhelmed by complex frameworks. 

• Write (or refine) your vision, mission, and values: Hold a collaborative meeting with stakeholders to establish or refine these business components so they align with your current direction and aspirations.
• Set clear goals: Use the SMART goal framework , which involves setting specific, measurable, attainable, relevant, and time-bound goals.
• Identify a strategy to reach your goal(s): Along with your leadership team, develop an actionable and attainable strategy. For instance, if your goal is to increase customer satisfaction by 15% in the next year, an actionable strategy might be to implement a customer feedback system and launch a customer loyalty program.
• Create an action plan to implement the strategy: Break down your strategy into tasks and milestones. Create a clear roadmap for implementation by assigning responsibilities and deadlines to team members. 

Related: The 5 steps of the strategic planning process

2. Goal-based strategic planning model

The goal-based strategic planning model emphasizes setting clear and measurable objectives. Teams use this model because the data-driven approach leads to more informed strategic choices. 

While this model is similar to the basic strategic planning model, it’s slightly more comprehensive and requires more time and resources. It’s useful for: 

• Teams that need more nuance than the basic model: If you want to take a more detailed approach to your strategy, the goal-based model provides a slightly more structured framework than the basic model. 
• Teams with limited strategic planning experience: This model doesn’t require specialized tools or extensive resources, making it accessible for teams that are still new to strategic planning.

How to use the goal-based strategic planning model

This goal-based model uses a SWOT analysis (strengths, weaknesses, opportunities, and threats) as the foundation for creating an effective strategy. 

• Carry out a SWOT analysis: A SWOT analysis helps you identify key areas for improvement and growth. Pro-tip: Use the Mural template to save time and easily collaborate with other stakeholders. 
• Set goals based on SWOT: Define specific, measurable goals that address your challenges (weaknesses and threats) and leverage your strengths and opportunities.
• Establish the strategies to help you meet these goals: Brainstorm and prioritize actionable strategies aligned with your goals. For instance, if your goal is to expand market reach, your strategies could include launching targeted marketing campaigns or exploring new distribution channels.
• Create an action plan: Develop a detailed action plan outlining specific steps, responsibilities, and timelines for achieving the established goals over the next year. 
• Allocate resources: Allocate the necessary resources, including budget and personnel, to support the action plan’s implementation.  

3. Strategic alignment model

This model helps you closely align your strategies with overall business goals and values to create an integrated approach. It allows everyone in the company to work together better by making sure they all share the same goals and values. 

If your existing strategies aren’t helping you meet your goals, the strategic alignment model will help you reassess and adjust them. It’s most helpful for: 

• Teams undergoing a transition: If your company is going through a merger or acquisition, this model can foster a smoother transition and alignment with the new strategic direction. 
• Teams that need to refine existing strategies: This model offers a structured approach for reassessing and improving current strategies, which is especially important if you’re trying to adapt to evolving market conditions, shifting customer demands, or internal changes. 

How to use the strategic alignment model

This model emphasizes the alignment of your strategy with your company’s mission, vision, culture, structure, processes, and resources.

• Identify which existing elements are misaligned: Conduct a comprehensive review of your company, including its existing mission, vision, culture, processes, and resources. This process will help you identify exactly where the misalignment is so you can align these elements with your strategy. 
• Identify solutions for each misalignment: Collaborate with relevant stakeholders and teams to propose actionable solutions for each identified misalignment. For example, if there’s a discrepancy between the company’s stated culture and actual practices, your solution could involve revising policies or conducting more thorough employee training.
• Create a strategic plan that implements solutions: Develop a strategic plan that incorporates your proposed solutions. Clearly outline steps, responsibilities, and timelines for integrating these solutions into your existing strategy and company framework.

Related: Mural’s Strategy Map template helps you visualize your goals across each area of your business

4. Balanced scorecard model

The balanced scorecard model gives a holistic view of your company’s performance by considering four main components: financial, customer, internal processes, and learning and growth. This method makes sure that organizations consider a wide range of factors and goals rather than focusing on just one. 

The balanced scorecard model is particularly beneficial for companies that want to establish or refine strategies in more than one area. It works best for:

• Large companies that need to align objectives across several areas: Large companies with diverse operations and multiple strategic priorities benefit from the holistic view of the balanced scorecard. For instance, conglomerates or multinational corporations that operate across various industries can use this model to align objectives from different sectors.
• Cross-functional teams: This model helps diverse teams work together in sync, ensuring everyone is on the same page to achieve big-picture goals.

How to use the balanced scorecard model

To use the balanced scorecard model, you’ll outline the objectives, KPIs, and strategic initiatives for each component (financial, customer, internal processes, and learning and growth): 

• Write the objectives: Define specific goals for each component. For example, for the financial component, your objective could be to increase revenue by diversifying revenue streams, expanding market share in specific segments, and optimizing pricing strategies.
• Determine the KPIs and targets: Identify the KPIs corresponding to each objective. For instance, using the same financial example as above, your KPIs may include revenue growth rate and market share.
• Outline strategic initiatives to meet your objectives: Establish the strategic initiatives or actions you’ll use to achieve the defined goals and KPIs. 

Related: OKRs vs. KPIs: What’s the difference?

5. Theory of change model

The theory of change model focuses on defining the cause-and-effect relationships between an organization’s activities and its intended outcomes. It helps companies articulate how their actions will lead to their desired changes and improvements.

This model helps companies establish clear pathways for improvements, making it beneficial for specific teams, including: 

• Teams undergoing large transformations: This model is particularly beneficial for teams navigating significant changes, such as restructuring or organizational overhauls.
• Teams that need to implement large-scale changes: This model is ideal for teams aiming to make substantial changes across departments or within the organizational structure, giving teams a clear roadmap for achieving these broad changes.

How to use the theory of change model

Using the theory of change model starts with prioritizing your desired outcome or result. 

• Write your desired outcome: Clearly define the specific change or improvement you want to achieve. For instance, if the desired result is to enhance employee satisfaction, outline the specific areas or factors contributing to this improvement. Conduct a change impact assessment to help your team map out how and when the change will happen.
• Establish steps to reach the desired outcome: Break down the overarching outcome into manageable steps or milestones. Identify the necessary conditions or actions required at each stage.
• Identify your KPIs: Your KPIs should effectively measure your progress and success toward achieving your desired outcome.

Choose a model for your next strategic planning session

Whether it’s the simplicity of the basic strategic planning model or the transformative power of the theory of change model, each one offers a unique pathway to enhance the impact of your team’s strategic planning.

Choose a model that resonates with your team’s needs and goals. By adopting a deliberate model tailored to your organization’s mission and values, you’ll pave the way for a more direct pursuit of your objectives.

And if you need help running an effective strategic planning meeting , look no further. Our guide has all the answers and insights you need.

About the authors

Bryan Kitch

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Strategic Leadership

Senior level managers must tackle complex problems using creative problem-solving and a portfolio of skills and styles. Here’s a look at how being a strategic leader can move an organization—and your career—forward.

Pamela Reynolds

On any given day in a large organization, managers make dozens if not hundreds of decisions, both large and small. How many units are getting out the door? How well are employees performing? Are there supply chain issues or problems recruiting new hires? Is distribution functioning smoothly?

While some leaders spend their days immersed in these day-to-day, short-term operational issues, strategic leaders focus on the big picture — where the organization is going and how to best utilize talent to get there.

In this blog, we’ll look at exactly what it means to be a strategic leader. We’ll examine the top skills and qualities associated with senior-level leadership, as well as how you can become a strategic leader in your own right. 

Defining Strategic Leadership

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. 

More specifically, according to Margaret Andrews, instructor of Strategic Leadership , a Professional & Executive Development program in the Harvard Division of Continuing Education, strategic leadership is not so much a clear-cut leadership style as a mindset — “that you want to be strategic about your leadership.”

“ Strategic leadership is about understanding yourself and your goals,” she says. “It’s about understanding the situation, considering options, and deciding. It’s also about getting the best out of people, the best out of the situation, so that the organization does well. Leaders who lead strategically have done the inner work necessary to lead with integrity, vision, and purpose.” 

The concept of strategic leadership is not always straightforward . Leading strategically actually requires a manager to choose from among a variety of leadership styles depending on the situation and the people involved. Such leadership styles might include:

• Authoritarian leadership : when a leader imposes expectations and defines outcomes
• Participative leadership : when a leader involves team members in the decision-making process
• Delegative leadership : when a leader delegates tasks to other team members
• Transactional leadership : when a leader rewards or punishes team members in an effort to complete a task.
• Transformational leadership : when a leader uses a vision to inspire and motivate others
• Servant leadership : when a leader serves others by putting the needs of employees first, helping them develop to perform at higher levels

“It’s about using the leadership style that fits the situation at hand,” notes Andrews. 

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What Are the Top Skills and Qualities of Strategic Leaders?

Adept strategic leaders have cultivated a special skill set beyond the obvious ones—being trustworthy, developing a strategic plan, and delegating—often cited in business textbooks and blogs. 

Skills centered around emotional intelligence, the soft “people skills,” are the traits that allow strategic leaders to successfully adapt to an ever-changing economic and technological climate, remaining forward-looking and able to see industry trends and directions long before others in an organization do. 

Passion, purpose, and conviction are what make strategic leaders “visionary.”

Some of the most important characteristics of someone who leads strategically include: 

They Know Who They Are

“They really understand themselves, who they are and what matters,” says Andrews. “They know their values.”

They Are Interested in Others

Strategic leaders want to hear from team members, and they listen attentively as part of their leadership strategy. As a result, team members naturally feel more invested. Andrews references a famous quote of Theodore Roosevelt: “No one cares how much you know until they know how much you care.” 

“There’s an element of truth in that,” she says. “People want direction. They want to be part of something bigger than themselves. They want to have their own ideas for how to achieve great things considered as well.”

They Are Good Communicators

It goes without saying that leaders who think strategically speak clearly in ways that others can easily understand. But there is an added dimension — good listening skills, the second trait in our list. Good communicators listen closely enough to hear the reservations of those wavering on the fence and are able to create buy-in by addressing those concerns. 

In addition, they are aware how their words, actions, and moods affect their teammates, and can calibrate their words and actions accordingly.

Because they’re good listeners, with a good dose of empathy and compassion included in the mix, they can be very effective at motivating team members. Engaged employees are more likely to do good work, persist through problems, innovate, and contribute to the overall strategy.

They Are Open-Minded 

Strategic leaders encourage and seek out diverse points of view.

“The easy problems are solved, and we’re left with the harder problems which need new ways of thinking, which often come from a diverse team,” says Andrews. “We need different points of view, which come from different vantage points, educational paths, and personal and professional experiences.”

Who Are Some Examples of Strategic Leaders?

Leaders who exemplify some of the qualities found in great strategic leadership abound. Below are four different types of leaders who demonstrate at least one of the traits of a strategic leader.

Oprah Winfrey @Oprah :The Great Communicator

Winfrey started off as the first black local news anchor at a Nashville television station, only to become one of the wealthiest businesswomen in the world as CEO of Harpo Inc. a multimedia production company. Although she has been hailed as the most powerful business woman in the world by Forbes thanks to her business acumen, she is best known in her more humble role as a day-time talk show host. In 25 seasons on the set of “Oprah,” she displayed a down-to-earth, relatable communication style that embodied attentive listening, empathy, compassion, and the ability to connect with people from radically different backgrounds. 

Howard Schultz @HowardSchultz : Knowing His Purpose

Howard Schultz, CEO of Starbucks, made the radical decision to offer benefits for workers at the end of his first year as CEO of the coffee chain. At the time, it was virtually unheard of in the fast-food industry. Schultz, however, had grown up with a truck driving father who had no health insurance after breaking an ankle. Schultz was able to use his passion and sense of mission to persuade the Starbucks board to offer health insurance to baristas, even those working part-time. 

Jacinda Ardern @jacindaardern : Interested in Others

Jacinda Ardern, Prime Minister of New Zealand, has been applauded around the world for her substantial leadership skills and steady hand during a crisis. She is often praised for her handling of the Covid-19 pandemic, in which she was able to keep levels of infection in the country relatively low. According to industry professionals, she “focuses on ‘we’ not ‘I,’” listens to expert advice and acts on what she hears, and acknowledges both her strengths and weaknesses, engendering trust.

Jeff Bezos @jeffbezos : Open to Big Ideas

Chairman and former CEO of Amazon, Jeff Bezos was able to transform his online bookstore into the world’s largest internet company by revenue, and the largest provider of virtual assistants and cloud infrastructure services. His vision was indeed of Amazonian proportions and has consequently changed the world. His innovation mindset and willingness to embrace bold new ideas means that his empire continues to grow, from moving Amazon into providing streaming movies to taking on sub-orbital spaceflight with his company Blue Origin. 

How to Become a Strategic Leader

By now, it should be obvious that there is no one-size-fits-all approach to strategic leadership . 

People who lead strategically come in all shapes and sizes and can be found in every arena, from politics, to entertainment, to business, and beyond. 

But despite their variety of backgrounds, interests, and styles, there is one basic thing strategic leaders seem to know: “Leadership is the human side of business,” says Andrews. “That’s how we get things done, through other people, and that’s what leadership is about, since no two situations are alike.” 

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About the Author

Pamela Reynolds is a Boston-area feature writer and editor whose work appears in numerous publications. She is the author of “Revamp: A Memoir of Travel and Obsessive Renovation.”

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• The role of leadership in strategic planning

by Waymaker | Jun 6, 2023

Understanding the Importance of Leadership in Strategic Planning

Defining strategic planning, the connection between leadership and strategy, key leadership qualities for effective strategic planning, vision and direction, decision-making skills, communication and collaboration, adaptability and flexibility, the strategic planning process and the role of leadership, setting organizational goals and objectives, developing a strategic plan, implementing the strategy, monitoring progress and adjusting the plan, overcoming challenges in strategic planning through leadership, addressing resistance to change, ensuring alignment and commitment, managing limited resources, navigating uncertainty and complexity.

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Strategic planning is one of the most important processes for any organization looking to achieve its goals and objectives. It enables organizations to identify areas of improvement, develop actionable plans, and make informed decisions that will yield positive results in the future. However, successful strategic planning is not solely based on the development of a comprehensive plan, it requires strong and effective leadership . This article will explore the role of leadership in strategic planning and the key qualities necessary for effective leadership in this area.

Leadership plays a critical role in strategic planning , with effective leaders guiding the organization through each step of the process. They ensure that stakeholders are aligned and committed to the plan, provide clarity and direction, and drive accountability and results. Leaders must have a clear understanding of the importance of strategic planning and communicate to others the value of investing time and resources in the process.

Effective leaders understand that strategic planning is not just a one-time event, but a continuous process that requires ongoing attention and effort. They recognize that the business environment is constantly changing, and that strategies must be adapted and updated accordingly. By staying on top of these changes, leaders can ensure that their organization remains competitive and successful in the long term.

Strategic planning involves the development of a long-term plan that outlines an organization’s direction and goals. This process incorporates an analysis of an organization’s internal and external environment to identify strengths, weaknesses, opportunities, and threats. Based on this analysis, strategies and tactics are developed to achieve specific objectives and goals. Strategic planning is an ongoing process, with plans being reviewed and updated regularly to ensure that they remain relevant and effective.

Effective leaders understand the importance of involving all stakeholders in the strategic planning process. They recognize that different perspectives and opinions can lead to better decision-making and more effective strategies. By involving stakeholders in the process, leaders can ensure that everyone is committed to the plan and working towards the same goals.

Leadership and strategy are intrinsically linked, with the success of a strategic plan dependent on the ability of leaders to articulate a clear vision, priorities, and objectives. Leaders must communicate the purpose of the plan and inspire others to take ownership of the outcomes. They must lead by example and demonstrate their commitment to the plan through their actions and behaviors.

Effective leaders understand that strategic planning is not just about setting goals and objectives, but also about creating a culture of accountability and results. They recognize that it is their responsibility to ensure that the plan is executed effectively and that progress is tracked and measured. By holding themselves and others accountable, leaders can ensure that the organization is making progress towards its goals and objectives.

Furthermore, effective leaders understand that strategic planning is not just about achieving short-term goals, but also about creating a sustainable future for the organization. They recognize that the decisions made today will impact the organization for years to come, and that it is their responsibility to ensure that the organization is well-positioned for the future.

In conclusion, leadership plays a critical role in strategic planning. Effective leaders guide the organization through the process, ensure that stakeholders are aligned and committed to the plan, provide clarity and direction, and drive accountability and results. By understanding the importance of strategic planning and communicating its value to others, leaders can create a culture of accountability and results that will ensure the long-term success of the organization.

Effective leadership in strategic planning requires a specific set of qualities that will enable leaders to navigate the complex and uncertain nature of the process. These qualities include:

Leaders must have a clear vision of where they want the organization to go and articulate a direction that inspires others to follow. They must establish clear goals and objectives and communicate a narrative that helps others understand the value and potential impact of the plan.

Having a clear vision and direction is crucial in strategic planning because it sets the tone and direction for the entire organization. Leaders who have a well-defined vision and direction can inspire their team to work towards a common goal, which can lead to increased motivation and productivity.

For example, if a leader wants to expand their organization’s reach to a new market, they must have a clear vision of what that market looks like and how the organization can succeed in it. They must also communicate this vision to their team and provide clear direction on how to achieve it.

Leaders must have strong decision-making skills to ensure that the right decisions are made at the right time. They must evaluate options and consider alternative scenarios before making decisions and prioritize the needs of the organization when faced with difficult dilemmas.

Effective decision-making is critical in strategic planning because it can impact the success or failure of the plan. Leaders who can make informed decisions based on data and analysis are more likely to create a successful plan.

For example, if a leader is deciding whether to invest in a new product line, they must evaluate the potential risks and rewards of the investment and make a decision that aligns with the organization’s overall goals and objectives.

Effective leaders must have exceptional communication and collaboration skills to build relationships and engage a diverse range of stakeholders. They must communicate with clarity and transparency and build trust through open and honest dialogue. Collaboration is critical in strategic planning, and leaders must encourage teamwork and foster an environment that supports diverse perspectives and ideas.

Communication and collaboration are essential in strategic planning because it involves multiple stakeholders, including employees, customers, and partners. Leaders who can communicate effectively and collaborate with others are more likely to create a plan that is well-received and supported by all parties.

For example, if a leader is working on a new marketing strategy, they must collaborate with the marketing team to understand their needs and perspectives. They must also communicate the plan to other stakeholders, such as sales teams and customers, to ensure that everyone is on the same page.

Leaders must be adaptable and flexible in their approach to strategic planning. They must be open to change and willing to modify plans as circumstances change, without compromising on the ultimate goal. Successful leaders understand that strategic planning is an ongoing process and continuously review and update plans to stay relevant and effective.

Adaptability and flexibility are crucial in strategic planning because the business environment is constantly changing. Leaders who can adapt to these changes and modify their plans accordingly are more likely to create a successful plan.

For example, if a leader is working on a new product launch, they must be willing to modify the launch strategy if the market conditions change. They must also continuously review and update the plan to ensure that it remains relevant and effective.

Leaders play a critical role in the strategic planning process, with their involvement and commitment necessary at every stage of the journey. The process typically involves the following steps:

Leaders must be involved in setting clear goals and objectives that align with the organization’s vision and mission. This step involves conducting a comprehensive analysis of the internal and external environment to identify areas of opportunity.

During this stage, leaders must consider the organization’s strengths, weaknesses, opportunities, and threats (SWOT analysis). They must also evaluate the competitive landscape, market trends, and customer needs and preferences. By conducting a thorough analysis, leaders can identify potential challenges and opportunities and develop goals and objectives that are realistic and achievable.

Leaders must also ensure that the goals and objectives are measurable and time-bound. This helps to track progress and evaluate the success of the strategic plan.

Leaders must guide the development of a strategic plan that supports the organization’s goals and objectives. This involves developing a roadmap that outlines specific actions and tactics required to achieve the desired outcomes.

During this stage, leaders must involve key stakeholders, including employees, customers, and partners. This helps to ensure that the strategic plan is comprehensive and addresses the needs and expectations of all stakeholders. Leaders must also allocate resources and prioritize initiatives based on their potential impact on the organization’s goals and objectives.

Leaders must also consider potential risks and develop contingency plans to mitigate them. This helps to ensure that the organization can adapt to unexpected challenges and remain on track to achieve its goals.

Leaders must ensure that the strategic plan is implemented effectively. They must allocate resources, communicate the plan to stakeholders, and provide the necessary support and guidance to enable successful execution. This step involves monitoring progress, addressing issues, and making adjustments as necessary.

During this stage, leaders must communicate the strategic plan to all stakeholders and ensure that they understand their roles and responsibilities. They must also provide the necessary training and resources to enable employees to execute the plan effectively. Leaders must also establish clear metrics and KPIs to track progress and evaluate the success of the plan.

Leaders must also be prepared to make adjustments as necessary. This may involve reallocating resources, revising tactics, or adapting to changes in the market or competitive landscape.

Leaders must continuously monitor progress and adjust the plan as necessary to ensure that the organization remains on track to achieve its goals. This step involves evaluating performance, analyzing data, and making informed decisions based on the insights gained.

During this stage, leaders must review the metrics and KPIs established during the implementation stage and evaluate progress against the goals and objectives. They must also analyze data and feedback from stakeholders to gain insights into the effectiveness of the plan and identify areas for improvement.

Leaders must also be prepared to make difficult decisions, such as reallocating resources or revising goals and objectives, if progress is not being made. By continuously monitoring progress and adjusting the plan as necessary, leaders can ensure that the organization remains agile and responsive to changing circumstances.

Strategic planning can be a challenging and complex process, with many obstacles and roadblocks that can hinder success. Effective leadership can overcome many of these challenges, some of which include:

Leaders must address resistance to change and effectively communicate the need for change. They must encourage feedback, listen to concerns, and work collaboratively to address any issues that arise.

Leaders must ensure that stakeholders are aligned and committed to the plan. This involves demonstrating a clear vision, effective communication, and building trust through open and honest dialogue.

Leaders must manage limitations in resources effectively when developing and executing a strategic plan. This step involves prioritizing investments, considering alternative solutions, and being creative in finding solutions when resources are scarce.

Effective leaders must navigate the complexity and uncertainty of the planning process. They must consider alternative scenarios and options, evaluate risks, and make informed decisions that are in the best interest of the organization.

Effective leadership is critical for successful strategic planning. Leaders must possess certain qualities, such as decision-making skills, collaboration, and flexibility, that enable them to navigate the complexities of the process. Leaders must engage stakeholders, develop a clear vision, and ensure that the strategic plan is communicated effectively to all relevant parties. They must also overcome challenges when executing the plan, such as resistance to change, limited resources, and uncertainty. The importance of effective leadership in strategic planning cannot be overstated, and organizations that invest in building strong leaders will reap the benefits of successful planning and execution in the long term.

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5 Steps to Creating a Successful Leadership Development Plan

• 27 Nov 2019

Leadership development is a key initiative for many businesses. Organizations not only try to recruit candidates with leadership potential but cultivate their current employees’ leadership skills.

In a survey by global research and advisory firm Gartner , 60 percent of human resources executives said they’ll focus on cultivating leader and manager effectiveness for their company in 2023. In doing so, they intend to nurture the professional development of potential leaders by developing specific leadership qualities, such as authenticity, empathy, and adaptiveness—representing a new kind of “human” leadership.

Additionally, a report by the World Economic Forum projects leadership and social influence to be among the fastest-growing workplace skills through 2022, which ties into a burgeoning trend for all workers to become lifelong learners to address emerging skills gaps.

For motivated professionals who want to advance their careers and assume leadership positions, creating a leadership development plan is vital to staying ahead of the curve and rising to the demands of the job market. According to Harvard Business School Professor Ethan Bernstein, the path to effective leadership is more fluid now than in the past.

“Once upon a time, you would enter a leadership development program in a company that might put you on a 20-year track to becoming an executive,” Bernstein says. “Many of us can’t even fathom that today. But that should be freeing in that it gives us license to develop ourselves and create our own individualized leadership development plans.”

As you plot your career trajectory and consider how you can maximize your professional influence and impact, here are five steps to creating a successful leadership development plan.

How to Design Your Leadership Development Plan

1. assess where you are professionally.

Mapping your leadership development starts with understanding yourself and where you stand professionally. Taking stock of your strengths, weaknesses, and workplace tendencies can help identify areas for improvement and anticipate pitfalls that could arise on your journey to becoming a more capable leader.

“In the process of identifying how what you’ve done before may or may not make you successful going forward, you raise your awareness about how what you already know will contribute to, or undermine, your capacity to successfully lead others in the future,” Bernstein says.

Completing an assessment can be a valuable way to reflect on your motivational drivers and limitations and gain a more holistic view of your personal leadership style . Pairing self-reflection with a 360-degree assessment enables you to solicit feedback from colleagues and peers, which can provide greater insight into how others experience you. In turn, you can build and leverage a keener sense of emotional intelligence throughout your leadership development journey.

Related: 4 Tips for Developing Your Personal Leadership Style

2. Set an Attainable Goal

Goal setting is an essential component of any leadership development plan.

“Just like anything else: If you don’t know where you’re going, you’re probably not going to get there,” Bernstein says. “It sounds overly simplistic, but that summarizes why goals are important."

Bernstein teaches the PACE model, an acronym for:

• Pick a leadership goal
• Apprise others in your inner circle of the goal
• Collect specific ideas on how to improve
• Elicit feedback on how you’re doing

PACE is employed by learners to select leadership development goals and chart a course of action for achieving them. The first step in the process, Pick, is centered on identifying and prioritizing a goal you can strive toward to boost your professional effectiveness. When setting this goal, take an agile approach and consider both the short and long term.

“You can’t lose sight of where you’re trying to go over the span of a decade—or even a career—which is why making long-term goals is important,” Bernstein says. “But we can’t, as human beings, make progress if we make the milestones so grand and far away that they seem unachievable. A little bit of progress each day keeps the frustration at bay.”

As you define and establish your key goal, consider how you’ll measure progress along the way to ensure you stay on track.

3. Engage in Leadership Training

Leadership training can benefit you no matter your career stage. Beyond the opportunity to gain and practice the technical skills needed to empower employees and influence others , you’re exposed to faculty and peers you can lean on for support and learn and grow from. It can also equip you for future leadership roles.

According to Bernstein, honing your leadership abilities in a classroom setting is advantageous because it provides a low-risk environment for reevaluating and fine-tuning goals when you encounter setbacks.

“It’s helpful to have a group of people—we call it your ‘inner circle’—who’ve heard and embraced your leadership goals, and whose conversations helped inform how you would go about achieving them,” Bernstein says. “In moments of challenge and relapse, you can go back to them for encouragement and courage. You can revise your goals in a safe environment because you have a level of openness and vulnerability with those people built into the course.”

4. Interact with Your Network

A professional network is one of the most valuable resources in any leader’s arsenal, so make it a point to grow yours . Throughout your leadership development journey, connecting with like-minded peers can have a positive impact by providing opportunities to employ the knowledge you’ve gained and receive feedback on your progress.

These kinds of interactions are core tenets of the online course Leadership Principles , in which learners practice delivering feedback through video exercises that allow them to evaluate their effectiveness in various business scenarios.

“Ensure your leadership development includes some interaction with other learners and also with the people who are benefitting and suffering from your current capabilities as a leader,” Bernstein says. “We try to teach people to be good protégés, as well as good leaders. It’s an ongoing process. That interaction is important in making things that seem very theoretical ultimately become very practical.”

5. Hone Your Soft Skills

Effective leadership requires a unique blend of characteristics and skills .

“There are skills you need as a leader that you don’t necessarily develop in any other context, at least in a focused way,” Bernstein says. “These include communication; career planning; knowing how to create and evaluate authentic change in a person, including yourself; and negotiating career transitions. These are things you typically won’t do many times in your career, but they will be very important to continuing your leadership trajectory.”

As you chart your leadership development plan, consider how you can bolster essential soft skills like actively listening , practicing empathy , and creating value in a negotiation to ensure you’re prepared to tackle any organizational challenges that come your way.

Developing Your Leadership Skills

Striving to become a strong, capable leader is a commitment you can make at any stage of your career —although doing so sooner means you can reap the benefits longer. By assessing where you are professionally and thinking deeply about where you want to go, you can design a leadership development plan that enables you to channel your passions and build the skills needed to be more impactful in your role.

Do you want to enhance your leadership skills? Download our free leadership e-book and explore our online course Leadership Principles to discover how you can become a more effective leader and unleash the potential in yourself and others.

This post was updated on December 21, 2022. It was originally published on November 27, 2019.

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“A leader takes people where they want to go. A great leader takes people where they don’t necessarily want to go, but ought to be.” – Rosalynn Carter

Imagine two tech giants, Apple and Microsoft, competing in the fiercely competitive world of consumer technology. While they share a similar playing field, their trajectories have differed remarkably. What sets them apart? The answer lies in strategic leadership , and the contrast between the  leadership styles  of their co-founders, Steve Jobs and Bill Gates provides a compelling real-world example.

But first, let’s start at the foundation: What exactly is strategic leadership , and why is it so pivotal in today’s dynamic landscape?

Strategic Leadership: Definition

To comprehend the impact of strategic leadership, let’s dissect the distinctive approaches of Steve Jobs and Bill Gates, two of the most iconic figures in the tech industry. Their journeys into strategic leadership will shed light on the power of this leadership style and how it can chart the course for success in the dynamic business world.

Strategic leadership is not your run-of-the-mill leadership; it’s the art of steering an organisation towards its long-term objectives with a well-thought-out strategic plan and emotional intelligence. It’s like having a GPS for your company, ensuring you stay on the right track even when faced with detours and roadblocks.

Think of it this way: Steve Jobs, the visionary co-founder of Apple, embodied strategic leadership. He didn’t just create innovative products; he orchestrated a symphony of design, marketing, and user experience that reshaped entire industries. The introduction of the iPhone in 2007 revolutionised the smartphone market, setting a standard for excellence that competitors still strive to match today.

On the other side of the spectrum, we have Bill Gates, the co-founder of Microsoft. His strategic leadership was evident when he pivoted from an operating system software company to a broader software and services company. Microsoft’s enduring success stems from Gates’ ability to adapt, anticipate market trends, and strategically position the company for long-term growth.

So, strategic leadership is not merely reacting to the present; it’s about envisioning the future and meticulously planning how to get there. It’s about being proactive rather than reactive; these real-world examples demonstrate its profound impact.

Now that we clearly understand the definition of strategic leadership let’s explore the various types of strategic leadership in detail.

Types Of Strategic Leadership

Transformational Leadership 

Have you ever been inspired by a leader encouraging you to think beyond boundaries and envision a significantly better future? Transformational Leadership is deeply intertwined with strategic thinking. Transformational leaders inspire their teams to envision and achieve a future state that is significantly better than the present. They foster innovation, challenge the status quo, and encourage their team members to think beyond conventional boundaries. 

This approach is vital for developing and executing visionary plans to drive an organization forward. Transformational leaders often have the foresight to identify industry trends, potential disruptions, and emerging opportunities, enabling them to position their organizations strategically for long-term success.

Charismatic Leadership

Can a leader’s personality and charm significantly influence an organization’s strategic direction? Charismatic Leadership leverages the power of personality and charm to influence others. In strategic thinking, charismatic leaders can articulate a compelling vision for their organization’s future, captivating stakeholders and motivating them to align with the strategic goals. They can be especially effective in rallying support during periods of change or uncertainty, which are common in the strategic planning process. However, charismatic leaders must ensure their charisma is backed by a solid strategic foundation to avoid leading their organizations astray with empty promises.

Servant Leadership

Ever wondered how prioritizing the well-being and development of team members could impact an organization’s strategic planning? Servant Leadership in strategic contexts prioritizes the needs and development of team members. This style fosters a collaborative environment where team members feel valued and supported. In strategic planning, servant leaders can create a culture of innovation and adaptability by empowering their teams to contribute their insights and ideas. By focusing on the growth and well-being of their employees, servant leaders can build a committed and capable workforce that is better equipped to execute strategic initiatives effectively.

These are just a few of the many flavors of strategic leadership. Each type brings its strengths to the table, and effective strategic leaders often blend elements from multiple styles to suit their specific circumstances.

Having gained insights into the different types of strategic leadership, let’s now delve into a comparative analysis by exploring how effective strategic leadership differs from other prominent leadership styles.

Strategic Leadership Styles Vs. Other Leadership Styles

Autocratic Leadership

Authoritarian leadership is characterized by a top-down approach where a single leader holds significant decision-making power. In this style, the leader makes decisions independently and expects strict compliance from subordinates without much input or feedback.

In autocratic leadership, decision-making is centralized. In contrast, strategic leadership often involves collaborative decision-making and seeking input from various stakeholders. Authoritarian leaders may focus on short-term strategic planning less than strategic leaders, who prioritize setting long-term objectives and direction for the organization.

Democratic Leadership

Democratic leadership promotes participation and collaboration among team members. It involves shared decision-making, where strategic leaders encourage input and ideas from team members, leading to a sense of ownership and empowerment.

While both democratic and strategic leadership can involve interdepartmental collaboration, strategic leaders often have the final say in critical strategic decisions. In contrast, democratic leaders may rely more on consensus. Strategic leadership is more focused on long-term planning and goal setting. In contrast, democratic leadership may place more emphasis on day-to-day decision-making.

Transactional Leadership

Transactional leadership is based on a system of rewards and punishments. Leaders use a transactional approach by setting clear expectations, monitoring performance, and providing rewards or consequences based on outcomes.

Transactional leadership primarily deals with day-to-day tasks and performance management. In contrast, strategic leadership is more future-oriented, focusing on long-term goals and direction. Strategic leadership involves a broader perspective, whereas transactional leadership is often task-specific and reactive.

Now that we’ve examined the differences between strategic leadership and other leadership styles, let’s turn our attention to the advantages and disadvantages inherent to the practice of strategic leadership.

5 Pros Of Strategic Leadership

1. Clear Vision

Strategic leaders are adept at crafting a compelling and forward-looking vision for their organization. This visionary perspective provides a clear roadmap for the future, inspiring and guiding the team or organization toward achieving long-term goals.

2. Effective Planning

Strategic leaders excel in strategic planning. They meticulously develop comprehensive strategies and action plans that detail how the organization will achieve its objectives. This meticulous planning minimizes uncertainties and enhances the organization’s ability to execute its vision.

3. Strategic Systems

Strategic leaders establish effective strategic systems within their organizations. These systems encompass streamlined processes, structures, and frameworks designed to align activities with strategic goals. They ensure that the organization operates efficiently and effectively in pursuit of the organization’s mission.

4. Unity Promotion

Strategic leaders foster unity among team members or within the organization. They promote a collaborative and inclusive culture that encourages individuals to work together cohesively toward a common purpose. This unity enhances productivity and teamwork.

5. Effective Communication

Strategic leaders prioritize effective communication and decision-making. They ensure that all stakeholders clearly articulate and understand goals, expectations, and strategies. This clarity reduces ambiguity, enhances accountability, and facilitates the execution of strategic initiatives.

5 Cons Of Strategic Leadership

1. Time-Consuming

One of the drawbacks of strategic leadership is that it can take time and effort. Developing and implementing a comprehensive strategic vision requires careful planning, analysis, and evaluation. This can divert significant attention and resources from day-to-day operations, potentially slowing decision-making and responsiveness to immediate concerns.

2. Resistance to Change

Strategic leadership often involves significant organizational structure, direction, or process changes. While these changes may be necessary for an organization’s success, they can be met with resistance from employees and stakeholders who are comfortable with the status quo. Managing this resistance and addressing concerns can be challenging and may lead to internal conflicts.

3. Overlooking Short-Term Goals

Short-term gains and immediate priorities may be overlooked or deprioritized in pursuing long-term objectives. This could harm the organization’s performance in the short run, impacting its ability to meet immediate financial or operational needs.

4. Complex Decision-Making

Strategic leadership involves making complex, high-stakes decisions that have far-reaching consequences. These decisions often require a deep understanding of the organization’s industry, market dynamics, and competitive landscape. The complexity of such decisions can lead to indecision or errors in judgement if not handled carefully.

5. Uncertainty

The strategic leadership approach requires leaders to anticipate and plan for an uncertain future. While this can lead to adaptability, it also means that strategic leaders must navigate ambiguity and make decisions with incomplete information. This inherent uncertainty can create challenges and risks that need to be managed effectively.

Having explored the advantages and disadvantages of strategic leadership, let’s now shift our focus to the essential skills that make an effective strategic leader effective.

5 Key Skills Of A Strategic Leader

1. Anticipate

Strategic leaders can anticipate future trends, challenges, and opportunities. They are forward-thinkers who constantly scan the external environment for shifts in markets, technology, or regulations that could impact their organization. They can proactively prepare their teams and organizations to adapt and thrive in an ever-evolving landscape by anticipating changes.

2. Challenge

Effective strategic leaders are fearless in challenging the status quo. They promote innovation and critical thinking within their teams. They ask tough questions, challenge assumptions, and are open to dissenting opinions. This skill allows them to identify weaknesses in current strategies and find new, more effective approaches.

3. Interpret

Strategic leaders are skilled at gathering and interpreting data and information. They can make sense of complex data sets, market research, and financial reports to extract meaningful insights. By understanding the implications of data, they can make informed decisions that drive the organization’s success.

Decision-making is a critical skill for strategic leaders. They must weigh various options, considering the potential risks and rewards. Strategic leaders are decisive and capable of making tough choices when necessary. Their decisions are aligned with the organization’s mission and vision, and they are willing to take calculated risks to achieve goals.

Strategic leaders excel at aligning the efforts of their teams and departments with the overarching strategic objectives of the organization. They communicate a clear vision and ensure everyone understands their role in achieving it. This alignment fosters unity and a sense of purpose within the organization, maximizing the collective effort toward strategic goals.

With a firm grasp of the key skills of a strategic leader, let’s now explore practical pathways to becoming a strategic leader through three actionable strategies.

3 Ways To Become A Strategic Leader

1. Implement Risk Management

Have you ever wondered how strategic leaders navigate the complex landscape of decision-making? It all starts with mastering the art of risk management. Strategic leaders should develop strong risk management skills. This involves assessing risks associated with different decisions and initiatives, balancing potential rewards against potential setbacks, and making informed choices. 

Strategic leaders understand that calculated risks are often necessary for innovation and growth. They create a company culture that encourages responsible risk-taking and ensures that risk mitigation strategies are in place when needed.

Risk Mitigation Framework

The first step in this framework is to find potential problems. This means looking at things inside and outside your organization that could cause trouble. Inside issues could be how your organization is set up, the resources you have, or how your processes work. Outside issues could include changes in the economy, what’s happening in the market, new rules and laws, or even natural disasters. By examining these things, you’re better prepared to deal with problems when they come up.

Step 2: Risk Assessment

Once you’ve found potential problems, the next step is to figure out how bad they could be and how likely they are to happen. You can use tools like a Risk Matrix or a scoring system to put numbers on these risks. These numbers help you decide which problems are most important to deal with immediately. Understanding risks gives you a clear picture of where to focus your attention.

Step 3: Prioritize and Plan

After understanding the risks, it’s time to pick the ones needing immediate attention. These are the big problems that could cause a lot of trouble. Once you know which problems are most important, you can make plans to deal with them. These plans are like a shield against problems, and they help you reduce or even eliminate the risks.

Step 4: Resource Allocation

Risk management isn’t just about planning; it’s also about having the right resources. It means ensuring you have enough money, people, and tools to execute your plans effectively. With enough resources, even the best plans will work. So, this step is crucial to ensure your plans have the support they need.

Step 5: Monitoring and Improvement

The last step is an ongoing one. It’s all about keeping an eye on things and improving your plans. Risks can change over time, and new problems can pop up unexpectedly. So, it’s important to regularly check how your plans are working and be ready to change them if needed. This way, you can always be prepared for whatever comes your way.

2. Challenge Status Quo

Have you ever considered how challenging the status quo can lead to transformative leadership? To become a strategic leader, one must be willing to challenge the status quo. This means questioning established processes, norms, and assumptions that may hold the organization back. Strategic leaders encourage a culture of continuous improvement and innovation. 

They seek opportunities to make positive changes and must be more content with maintaining the existing way of doing things. By challenging the status quo, they can identify areas for improvement and drive organizational progress.

3. Setup Planning Committee

Curious about how strategic decisions are made at the highest levels of your organization? Active involvement in strategic planning committees or initiatives is crucial to becoming a strategic leader. Joining planning committees provides exposure to the strategic decision-making process and offers opportunities to contribute insights and new ideas.  

It also allows aspiring leaders to learn from experienced strategists and better understand how to align organizational goals with long-term vision. By actively participating in planning activities, individuals can develop their strategic thinking skills and build a foundation for future leadership roles.

Having understood what it takes to be a strategic leader, let’s look at some examples of companies that thrived under strategic leaders.

3 Company Examples Led By Strategic Leaders

Apple Inc. – Tim Cook

Tim Cook , the CEO of Apple Inc., is known for his strategic leadership in the technology industry. Under his leadership, Apple has continued to innovate and expand its product offerings. Cook has successfully anticipated consumer trends and market shifts, guiding Apple through product launches like the iPhone 15 and the Apple Watch. He has also focused on supply chain optimization and risk management, ensuring organizational success and growth.

Amazon.com – Jeff Bezos

Jeff Bezos , the founder and former CEO of Amazon.com, exemplified strategic leadership throughout his tenure. Bezos transformed Amazon from an online bookstore into a global e-commerce and technology giant. His strategic vision included diversifying Amazon’s business lines, such as Amazon Web Services (AWS), and investing heavily in logistics and fulfilment centers to improve customer service and delivery speed. Bezos’s ability to challenge the status quo and pursue long-term goals has been a hallmark of his leadership.

Microsoft Corporation – Satya Nadella

Satya Nadella , the CEO of Microsoft, has been recognized for his strategic leadership in the tech industry. Under his guidance, Microsoft has shifted its focus from a primarily Windows-centric approach to a more cloud-oriented, platform-agnostic leadership strategy. Nadella’s strategic decisions, such as acquiring LinkedIn and GitHub, have helped Microsoft remain competitive and relevant in a rapidly changing technology landscape. His emphasis on cultural transformation and fostering innovation has been key to Microsoft’s success.

Common Leadership Skills Of The Big 3

Customer-centric leadership: Leaders at these companies are obsessed with their customers and are constantly looking for ways to improve their customer experience. They can also build strong relationships with their customers and understand their needs.

Data-driven leadership: Leaders at these companies make decisions based on data and evidence rather than intuition or gut feeling. They can also collect and analyze data effectively to identify trends and opportunities.

Collaborative leadership: Leaders at these companies foster a collaborative work environment where employees feel comfortable sharing their own ideas and working together to solve problems. They are also able to build trust and rapport with their teams.

Empowering leadership: Leaders at these companies encourage employees to make decisions and take ownership of their work. They also provide their employees with the resources and support they need to succeed.

These are just a few common leadership skills that all three big companies have. By developing these skills, leaders can create a more positive and productive work environment and help their teams achieve greater success.

In conclusion, strategic leadership is the compass that guides organizations toward long-term success. Through continuous self-improvement, strategic thinking, and hands-on experience, you’ll not only navigate the ever-changing landscape of leadership but also inspire positive change and innovation within your organization, ultimately steering it towards a prosperous future.

By Rishabh Bhandari

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Strategic Planning Process Definition, Steps and Examples

Published: 03 January, 2024

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Digital Strategy

Table of Contents

Organizations use Strategic Planning to gather all their stakeholders to evaluate the collection of current circumstances and decide upon their ongoing goals and benchmarks. They decide upon long-term objectives and establish a vision for the company’s future.

The efforts behind an organization’s Strategic Planning Processes are vital to its success, and yet, while many organizations acknowledge they need to do this kind of planning, they often don’t understand how to make it a reality. In this article, we explain the reasons behind Strategic Planning and how to make your Strategic Planning Process as powerful as possible.

What is a Strategic Plan

Strategic planning is a systematic process wherein the leaders of an organization articulate their vision for the future and delineate the goals and objectives that will guide the trajectory of the organization.

What is the Strategic Planning Process

Strategic planning is a process of defining an organization’s direction and making decisions on allocating its resources to pursue this direction . It involves creating a long-term plan that outlines the organization’s vision, mission, values, and objectives, as well as the strategies and tactics that will be used to achieve them.

Strategy is often misunderstood, which is surprising because fundamentally it’s a pretty basic concept. Strategy is a clearly expressed direction and a verified plan on how to get there. Your Strategic Planning Process formalizes the steps you’ll take to decide on your plan. The Strategic Planning Process facilitates using a Strategic Execution Framework that articulates where you’ll invest in innovation and where you can cut costs.

As far as business development planning is concerned, your Strategic Execution Framework is a vital tool for driving innovation, but first you must define the process you’ll undertake to determine how you and your team see the future of your organization. In this article, we discuss how to create your Strategic Plan and define its relationship to other concepts and documents that direct your business and its activities.

While it’s true that every business is different and must develop their own processes, we believe there are some process  of strategic planning stepsthat benefit all organizations.

Below are our recommendations for the steps to take when undergoing your Strategic Planning Process, along with the questions we suggest you answer during each specific step.

Step One: Analyze your Business Environment

• Who are your competitors?
• What relevant market data do you have, and what do you still need?
• What technology has emerged that impacts your business model?
• How have customer expectations changed since your last Strategic Plan?
• What advantages do you have over competitors?
• Where is your company weaker compared to competitors?
• What predictable complications are on the horizon?
• Which unpredictable complications seem most likely or most potentially impactful?

Step Two: Set your Strategic Direction

• What is your overall Business Purpose ?
• How have your operations reflected your Purpose and Goals recently?
• How should your operations reflect your Purpose and Goals?
• Where do you see your business going in the next year?
• In two years? In three years?
• What are the metrics you’ll use to measure success?
• What are your make-or-break necessities?

Step Three: Set and develop Strategic Goals and Strategic Objectives

• Have you considered short-, mid-, and long-term business goals , and what are they?
• How do your Strategic Goals reflect your Mission Statement?
• How do your Strategic Goals reflect your company values and vision?
• What daily operations must be completed to work toward your Strategic Objectives?
• How will you communicate your Strategic Goals and Strategic Objectives?
• Who is responsible for reporting on success?
• How will strategic data be collected?

Related: Strategic Goals: Examples, Importance, Definitions and How to Set Them

Step Four: Drill down to Department-Level Objectives

• What are specific department concerns?
• How will your budget influence and be influenced by your Strategic Goals and Objectives?
• Which departments have resources that could be shared to better advantage?
• What roles do individual departments play in your overall Strategic Goals?
• What ongoing projects become a priority because of your new Strategic Goals?
• Are Departmental Objectives complementing each other and the overall Business Model?

Step Five: Manage and Analyze Performance

• Who is on the Strategic Planning team?
• Are tasks and job descriptions properly aligned to ensure the right work is getting completed?
• What is the schedule for the meeting for Strategic Planning?
• What are your metrics for measuring performance and success?
• Have you clearly articulated and shared KPIs?
• Who is responsible for gathering data?
• How will data be collected?
• How will data be reported?
• What’s at stake for strategy success or failure?

Step Six: Review and develop your Strategic Plan

• How should your Strategic Plan look on paper?
• What is your Strategy Execution Framework —how will you guarantee the Strategic Plan Team’s decisions are respected and executed?
• What is the review process?
• How often do you evaluate your Strategic Plan?
• How will you communicate your final Strategic Plan?

Strategic Planning Process Examples

1) apple strategic plan process.

• Vision and Mission: Apple’s strategic planning begins with a clear vision and mission. Apple’s vision is to create innovative products that inspire and enrich people’s lives.
• Environmental Analysis: Apple conducts thorough environmental analyses, considering technological trends, market demands, and competitive landscapes. This includes staying at the forefront of cutting-edge technologies.
• SWOT Analysis: Apple evaluates its strengths, weaknesses, opportunities, and threats. For example, one of Apple’s strengths is its strong brand image, while a weakness might be dependence on a limited product line.
• Setting business Goals and Objectives: Apple sets specific, measurable, achievable, relevant, and time-bound (SMART) goals. This could include objectives like maintaining a certain market share, launching new products, or achieving specific financial targets.
• Strategies and Tactics: Apple develops strategies based on its goals. For instance, a strategic move might be expanding its ecosystem by integrating hardware, software, and services. Tactics could include aggressive marketing campaigns and product launches.
• Implementation and Execution: Apple’s strategic plans are meticulously executed. The launch of iconic products like the iPhone, iPad, and Mac series demonstrates effective implementation of their strategies.
• Monitoring and Adjusting: Apple constantly monitors its performance metrics, customer feedback, and market dynamics. If necessary, adjustments are made to the strategic plan to stay responsive to changing conditions.

2) Tesla Strategic Plan Process

• Vision and Mission: Tesla’s strategic planning revolves around its mission to accelerate the world’s transition to sustainable energy. The vision includes producing electric vehicles and renewable energy solutions.
• Market Analysis: Tesla analyzes global markets for electric vehicles, renewable energy, and energy storage. This involves understanding regulatory environments, consumer behaviours, and technological advancements.
• Risk Assessment: Tesla conducts risk assessments related to manufacturing, supply chain, and market volatility. For instance, it considers risks associated with battery production and global economic conditions.
• Setting Bold Objectives: Tesla is known for setting ambitious objectives, such as achieving mass-market electric vehicle adoption and establishing a robust network of charging stations worldwide.
• Innovative Strategies: Tesla’s strategic planning involves innovation in technology and business models . For instance, the “Gigafactories” for mass production of batteries and the “Autopilot” feature in vehicles reflect innovative strategies.
• Agile Adaptation: Due to the rapidly changing automotive and energy sectors, Tesla maintains an agile approach. The company adapts its plans swiftly to capitalize on emerging opportunities, as seen in the expansion of its energy products.
• Continuous Improvement: Tesla places emphasis on continuous improvement. The iterative development of electric vehicle models, software updates, and advancements in battery technology showcase a commitment to refinement.

These examples demonstrate how strategic planning is a dynamic and integral part of the business processes of leading companies. They highlight the importance of a well-defined vision, rigorous analysis, adaptability, and innovation in the strategic planning process.

Tactical vs. Strategic Planning Process

An easy way to distinguish your company’s Tactical Planning from your Strategic Planning is to separate your wants from your HOWs.

In your Strategic Planning, you identify what you WANT for the company. These are big-picture dreams (achievable, but big ) that are your definition of success. In your Tactical Planning, you identify the HOW for reaching those dreams, including the smaller necessary steps.

Each kind of planning is vital for securing the organization’s future, but they require different sorts of attention and philosophy, and teams that are good at planning one way may not necessarily be good at the other kind of planning.

Strategic Planning vs. Your Business Purpose

Your Strategic Planning Process will of course be deeply connected to your Business Purpose .

We like to think of Business Purpose in broad terms, choosing especially to think of a business’s role in massive transformation. Embedded within a Business Purpose is the Business Plan that directs operations and how a company delivers value to its customers.

What is the relationship between your Strategic Planning and your Business Purpose? One feeds into the other. Your Business Purpose must point to a larger impact you’ll have on the people who purchase your goods and services, and your Strategic Planning takes into account how you’ll grow and expand that Purpose as you reach more customers more successfully.

Strategic Planning vs Business Planning

Strategic planning and business planning are two distinct processes that are often used interchangeably, but they have some key differences.

Strategic planning is a top-level process that focuses on determining the direction of an organization over the long term. It involves setting goals, determining the key resources and actions necessary to achieve those goals, and allocating those resources in a way that best serves the organization’s future. The outcome of strategic planning is typically a long-term strategic plan that outlines the organization’s vision, mission, values, and objectives.

Business planning , on the other hand, is a more tactical process that focuses on the implementation of specific initiatives and projects to support the organization’s long-term goals. Business plans typically outline the steps necessary to launch a new product, enter a new market, or achieve a specific objective. They may also include budgets, marketing plans, and other operational details.

In short, strategic planning is about setting the direction for an organization, while business planning is about implementing specific initiatives to support that direction. Both processes are important for the success of an organization and should be used in conjunction to ensure that resources are allocated effectively and that the organization is moving in the right direction.

Why is Strategic Planning Important?

Imagine this scenario: A warehouse full of goods sits, unsold and unmoved. A collection of brilliant people languishes at desks all day. Outside, the world spins and changes. It’s ready for what these people could do, can do, and yet nothing happens. Needs remain unmet. Progress is halted. Everyday life takes several backwards steps. This is what your business will look like without proper Strategic Planning.

Strategic Planning forces you to consider your Strategic Objectives and critically compare them to the resources you have available. As you continuously evaluate the circumstances of your business and your customers, your Strategic Plan evolves to match your goals and business capabilities.

The process involved pushes decision-makers to practice Strategic Thinking . It limits wasteful spending, especially when upper-level managers are willing to forgo pet projects in favor of operations with a broader use and appeal.

Strategic Planning is important because it directs your resources to efficiently meet your overall Business Goals. Without Strategic Planning, you are likely to waste resources, make conflicting decisions, or fail to grow your business to its greatest potential.

When Do You Create a Strategic Plan?

Most businesses find value in reviewing their Strategic Plan every three years. This allows enough time to pass that you can evaluate the success of previous plans, reflect on the achievement of your Strategic Goals, consider developments outside your organization that affect your business, and begin formulating new goals that will become the next version of your plans.

When businesses first begin, they often have too many fires burning at once. They remain focused on existing today rather than planning for tomorrow. Most entrepreneurs remember those stressful early days of starting their businesses and can understand why formalities like Strategic Plans can fall by the wayside. We believe if your business lasts longer than a year it’s important to develop a plan for the future. Think of Strategic Planning as a celebration of a first anniversary—a sign that you’re poised to continue moving forward for years to come.

However, Strategic Planning is not a one-off event that is over once the cookies are all gone and the room clears. Your Strategic Planning team should meet regularly to measure how effective the plans are at helping you reach your Strategic Goals. Ad hoc subcommittees can play a role in gathering evidence to ensure that your plans remain appropriate, especially if conditions change.

For example, we recommended a close review of Strategic Plans and Strategic Goals once the COVID-19 pandemic made it clear that business was going to be affected at least short- to mid-term. We continue to recommend teams regularly revisit their Strategic Plans with global circumstances in mind to recognize opportunities and prepare for challenges.

The Benefits of Strategic Planning

As we’ve mentioned, there are many benefits of Strategic Planning . Some of those benefits include:

• Shared sense of power and importance
• United direction
• Clear path and purpose for decision-making and operations
• Boosted operational effectiveness
• Responsible, efficient use of available resources
• Meaningful work done on a daily basis
• Tracking of progress
• Ability to adjust to changing circumstances

What is a business without Strategic Planning? In most cases, it’s not much, nor is it long for the world. While it’s possible to accidentally find success without much planning, most successful businesses are a result of careful thought mixed with the urge to pounce on the opportunity.

What prepares you to pounce?

Your Strategic Planning and the processes that make it possible.

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By Colin Baker Leaders Staff

Colin Baker

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Colin Baker is a business writer for Leaders Media. He has a background in as a television journalism, working as...

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Jan 12, 2022

What is Strategic Leadership? And What Does It Looks Like?

What is strategic leadership, the qualities of a strategic leader, examples of strategic leadership, what strategic leadership is not, how to become a strategic leader.

Businesses often set ambitious goals but most frequently fail to achieve them. According to a  survey  from Clutch, 77 percent of small business leaders expressed confidence that they would reach all of their goals. 

So, how many small businesses actually reach their goals? 

Only 5 percent. 

That’s a significant gap between a company’s vision and what they achieve in reality. Looking at the numbers, it’s clear  there’s a disconnect between what business leaders think they can do and what they actually do . 

The same survey from Clutch pinpoints where business failure begins. According to respondents,  only 15 percent documented their entire strategy.  An even more stunning 27 percent didn’t record  any  part of their strategy.

Without strategic leadership, companies have a weak foundation. As the business grows, there is no strong structure rooted to the ground to prevent things from caving in. If your company isn’t practicing strategic leadership, you’re putting everyone in harm’s way. 

Strategic leadership is crucial for companies to succeed. With so few implementing it, the time has come to fix the problem.

This article will finally set the record straight on: 

• What strategic leadership is.
• What it is not.
• How you can start demonstrating it. 
• And real-world examples of what a strategic leader looks like.

Strategic leadership happens when a leader shares a vision and goal with their team and inspires them to work together to reach it.  A strategic leader often acts as the motivating force for an organization , letting individuals know their role in achieving the vision. This leadership style helps others have direction at all times.

1. Possesses a Clear Vision

Strategic leadership can’t happen without a vision.  The vision is what inspires and motivates people to action. It sets the tone for any plans and strategies. With this in mind, a leader must gain that vision before they can take the helm and lead others. Without a clear destination in mind, how could they lead anyone anywhere? 

But a strategic leader is more than a person with a vision. They need to cast that vision onto the people around them. The most effective strategic leaders can get others to share their vision and actively work toward making it a reality.

To gain that vision, you first have to visualize it. Spending anywhere from 15 to 30 minutes every day doing visualization practices will help expand your vision and see the destination in your mind. You can then reverse engineer your vision by looking at what steps you need to accomplish to reach it. These smaller goals are what you can measure to judge how much you’re progressing. They also help you make firm plans that you can communicate with others.

The best strategists are visualists. Once you see what you’re working toward, you can outline it, create correct goals, and motivate people to get involved. As Dwight Eisenhower put it, “Leadership is the art of getting someone else to do something you want done because he wants to do it.” Sharing your enthusiasm for the vision will make others feel it too.

2. Cultivates Innovation

Strategic leaders should have the courage and the mindset to  challenge the status quo  through innovation. By doing so, they can also instill a spirit of innovation in their organizations. 

Innovation can happen in several ways. You may choose to make iterations on existing products or services. That’s what J. Patrick Doyle, president and CEO of Domino’s Pizza,  did  in 2013 when the company was struggling. Besides using improved ingredients, he implemented changes such as open kitchens so people could see workers preparing their food. He also launched Pizzavestments, where the company gave Domino’s gift cards worth 500 dollars to startup companies, knowing they would use them when participating in brainstorming sessions. These innovations and others helped Domino’s rebound in the ensuing years.

Innovation can also happen when exploring new ideas and markets as part of a blue ocean strategy. This  innovation strategy  creates an entirely new space where only the innovator resides. Think of companies like Uber, which took the idea of a taxi service and opened it to everyone with a vehicle and a smartphone. Strategic leadership results in this type of success as innovation reigns supreme.

3. Seeks Wisdom

Strategic leaders also spend their lives seeking and gaining wisdom. They have an  unquenchable desire for the truth  and follow strong principles wherever they lead. 

Wisdom is a combination of knowledge, application of knowledge, and truth. It constantly tests what works and what doesn’t. Leaders who have wisdom will also desire to share it with others at every opportunity so others may benefit from it.

4. Takes Decisive Action

Once a leader has wisdom, they can then make significant decisions with confidence. This can happen even if a leader doesn’t have all the information they want. Strategic leaders examine all the options, understand the pros and cons, and approach each possibility with an unbiased mindset.

When push comes to shove, leaders must take action.  They can do so with certainty if they act according to their principles and values. During  decision-making , a leader considers the impact their decisions will have in the short term and long term. They get others involved in the process since they want feedback and opinions from other people, too. 

When they make a decision, strategic leaders never feel like they need to settle for something unsatisfactory. They charge straight ahead, fully committed to what they decide.

5. Focuses on Culture

Another one of the  leadership qualities  that strategic leaders have is an unwavering focus on culture. They have a clear understanding of the value of a strong culture in an organization. That strong culture has a more beneficial effect on workers than micromanaging them. 

Strategic leaders invest in their culture because they know in the long run that the right culture will have a more positive impact on the bottom line than anything else. As LaKisha Greenwade of Lucki Fit  explains , “ Cultures that thrive have leadership support , champions throughout the organization, and people who believe in what is trying to be accomplished. Without the buy-in from those levels, it will flop.”

Southwest Airlines is well known as an example of a business with a strong workplace  culture . From the beginning, founder Herb Kelleher sought to instill core values in each employee. Those values include working safely, wowing customers, possessing a warrior spirit and servant’s heart, and demonstrating a great attitude. Company leadership reinforces these values at every turn, making Southwest Airlines a success. In fact,  85 percent of employees say they take pride in working for the company.

6. Drives Excellence

Strategic leaders never settle for less, including their own knowledge and skillset. Their leadership strategies depend on  constantly developing themselves during their lives.  They can do this in a variety of ways. They often meet with other leaders to draw on their experiences and expertise. 

Leaders also spend much of their time learning through reading to expand their knowledge.  Warren Buffet  says  he read as much as 600 to 1,000 pages every day when he started as an investor. Mark Cuban claims he reads three hours a day to grow his confidence and consume as much information as possible. Every strategic leader should make reading a vital component of a leadership strategy.

Leaders can also practice their leadership skills by becoming a  mentor . This gives them the opportunity to share with others all the knowledge and experience they have accumulated through their constant drive for excellence. 

7. Refine Strategies

When looking at progress,  strategic leaders believe that they and their teams can always do better.  They’re constantly searching for ways to refine the work that gets done. They can do this by analyzing current data, checking in with coworkers, and measuring how far they are from hitting goals.

Strategic leaders know that no method is perfect, and there’s always improvement people can make. Maybe a team member will perform better with more resources and support, or perhaps a different coworker prefers a more hands-off approach. Leaders look at current strategies and try to refine them as much as possible so no time or effort is wasted.

• Ray Dalio:  At a time when financial institutions were all about crunching the numbers, Ray Dalio took a different  approach . Dalio found that studying history can be a good indicator of future economic conditions. This historical qualitative research has allowed the financial analyst to predict economic booms and busts, including the downturn in 2008. Dalio’s unique strategy has allowed him and his firm, Bridgewater, to become incredibly successful for decades.
• Steve Jobs:  To call Steve Jobs a visionary would be putting it lightly. The ways in which his leadership strategy has innovated and changed the world are difficult to measure. From the introduction of the personal computer to the smartphone, Jobs and Apple have been on the cutting edge for generations. There’s perhaps no better example of Jobs’ innovative thinking than iTunes. Before iTunes came along, consumers had only two options: buying overpriced CDs for just a couple of songs they wanted or pirating them. At the time, the pirates were winning. Through iTunes, Jobs created something new and better, satisfying consumers and saving the music industry.
• Napoleon Bonaparte:  For good or ill, Napoleon Bonaparte put his leadership strategies to use as he conquered much of Europe. He was the first major world leader to introduce the concept of “total war” in the post-gunpowder era. Napoleon created his  strategies  from intense study of past military leaders like Alexander the Great, Caesar, and Hannibal. He was also a meticulous planner, having a firm knowledge of even minor details before launching a military campaign. Much of his strategy consisted of distractions leading to devastating flank attacks that divided his opponents. He found tremendous success on the battlefield until opposing nations started to use his own tactics against him.
• Bob Iger:  When Bob Iger became CEO of Disney, he examined what the company lacked and came up with a vision for what they could achieve. Iger boiled down his strategy into three  priorities . The first was to invest Disney’s capital in high-quality branded content. The second was to use technology to create better content and reach people in different ways. The last priority was to grow in different markets around the world. In the past decade, Disney has primarily succeeded on these points. With a streaming service like Disney+, the company has made strides and seen its influence grow even more than it had before.
• Sara Blakley:  Like many entrepreneurs,  Sara Blakley  started with almost nothing but grew her business to the point where she became a self-made billionaire. During her journey, she maintained a clear vision of transforming the women’s undergarments industry despite numerous challenges and missteps along the way. She believed in her innovative product and knew who her audience was. Blakley also holds true to an ambitious mission, which in her own words is to “help women feel great about themselves and their potential.”

Many people can confuse what strategic leadership entails, leading to frustration and dissatisfaction throughout an organization. As such, it’s essential to understand what strategic leadership is not.

First, micromanaging is not something a strategic leader does.  While some managers may keep a list of tasks their workers need to do, it fails to account for vision and ambitious goals. Micromanagers insist that everyone does X, Y, and Z and may reprimand those who fail to meet this standard. On the other hand,  strategic leaders cast their vision to their coworkers . There’s no need (or time) for them to micromanage and ensure everyone stays on task because everyone believes in that vision and works hard to achieve it.

Additionally, strategic leaders are not reactionaries. They don’t spend their time putting out fires.  Strategic leadership anticipates problems and sees the bigger picture. Someone who only reacts can never innovate or lead.  Strategic leaders should avoid the reactionary model and focus more on being a revolutionary.

When asking “ What is leadership ?” every leader should look at creating a plan to become a strategic leader for their respective organizations. You can begin by modeling the leadership qualities listed above, but that might seem overwhelming, especially when you’re starting. To get going on the right path, narrow your focus and try the following tips.

• Take the time to visualize your destination and what you want to accomplish. 
• Practice  strengths-based leadership  to ensure everyone will excel where you place them. 
• Model  servant leadership  for your team and show them you have an innate desire for everyone to succeed. 
• Stay out of the weeds for a while by spending less time working and more time learning and thinking. It might seem counterintuitive at first, but this will help you outline a vision others can follow.

As you spend more time thinking, you eventually hit “the shift.”  This “shift” happens when a leader spends roughly 25 percent of their time  not  working directly on the business.  Instead, they use that time to think, strategize, learn, meet with other leaders, develop their communication skills, and constantly innovate. Many leaders have seen their businesses take off once they hit that 25 percent mark, but things truly hit another level when a leader can get to the point where they spend about half their time in this stage.

Think of strategic leaders like Steve Jobs or Warren Buffet. How much time do you think they spent away from the day-to-day operations of their businesses and just thinking about new destinations? That should be the goal for every strategic leader. It’s within your reach if you begin that journey today.

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5 Principles of Purposeful Leadership

• Hubert Joly

Understanding why you’re in the room is more important than being the smartest one in it.

The traditional model of the leader-hero who saves the day, knows it all, is the smartest person in the room, and is too often driven by power, fame, glory, or money is not appropriate in today’s environment. People today expect a different kind of leader. While each company needs to define its own leadership point of view, the author presents five attributes that characterizes leaders who are able to unleash the kind of human magic you see at work at some of the most high-performing companies. First, be clear about your purpose. Second, be clear about your role. Third, be clear about whom you serve. Fourth, be driven by values. Finally, be authentic.

Growing up, I thought successful leaders were supposed to figure out all the answers on their own. Being smart — and making sure everyone else knew it — seemed to be their most striking attribute. The best schools were supposed to lead to the best jobs, which produced the best leaders. Power, fame, glory, and money were the measure of professional success. Early in my career, prominent business leaders like GE’s Jack Welch were revered for their intellect, strategic sense, and hard-charging style. They were considered infallible geniuses, inspiring a quasi-cult following.

• Hubert Joly is the former chairman and CEO of Best Buy, a senior lecturer at Harvard Business School, and the coauthor of The Heart of Business .

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The Theory of Effective Leadership: What It Is and Why We Need It

Leaders emerge everywhere we look. In nature, a group of lions is generally led by an alpha male. They’re drawn to the individual lion’s confidence, assertiveness, decisiveness, and resilience, and they also understand that living in a group increases safety and chances of survival. In this light, leaders help alleviate fears and also are responsible for making decisions. But how does this traditional view of leadership fit with today’s business environment, where a more agile and flat structure is rapidly replacing the ‘command and control structure? 

Today’s transformative organization is powered by effective leadership. We turn to leaders to help guide and steer the best way forward—and we count on them to help us navigate difficult times. But what exactly does effective leadership look like, and who makes the best leaders?

Keep reading to learn more about leadership theories, how leadership drives ROI, and what today’s best leaders look like.

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Leadership Theories

Over the years, several different leadership theories have emerged. Briefly, let’s examine three of the most popular.

1. The Trait Theory

Trait theories are born from the great man theory  – or the theory that says leaders are born and not made. Here, the underlying theory is that we are all born with innate characteristics. If we happen to possess leadership characteristics, then we’ll end up as leaders.

This theory is based on the “big five” personality factors we all possess to varying degrees:

• Openness to experience:  Leaders tend to be open to new situations and new stimulations. They change jobs often, explore new countries regularly, and are outgoing by default.
• Conscientiousness: Leaders are hardworking, thorough, and precise.
• Extroversion: Great leaders like to communicate. They love meeting new people, and they like to talk to others. Extroversion is highly correlated with success.
• Agreeableness: This trait refers to the degree to which a person wants people around them and whether the group working around the individual works well together. Folks who score high on this trait tend to be very warm and considering.
• Neuroticism:  This refers to the degree to which an individual experiences negative emotions—like anxiety, depression, and mood swings. Great leaders score low here.

The trait theory has had its fair share of critics. Leadership behavior is influenced by more than five central traits, after all. The theory ignores things like intelligence (especially emotional intelligence), experience, and values. Further, it doesn’t take into account the fact that we are adaptable creatures. If a very talented member of the team were thrust into management overnight, eventually they’d figure it out.

The trait theory lost steam after the discovery of the so-called Apollo Syndrome . When NASA wanted to explore space and the moon, they assembled a group of domain experts—all of them ‘a leader’ under this theory. While they worked well together per se, they weren’t effective as a team because they were too homogeneous.  

2. The Transactional Theory

Very basically, this leadership theory suggests that good leaders reward positive actions and punish negative actions. So, if you want to get a room in your house painted, pay the painter by the square foot—and not by the hour. That way, the individual is trying to paint the room as quickly as possible so they can get paid the most for their time. Everything is a tit-for-tat transaction. But life is more nuanced than this as we discover with the transformational theory.

3. The Transformational Theory

A third leadership theory is the transformational theory , which suggests that great leaders can stimulate their employees to be more creative and reach their full potential. Increasingly, this is becoming the most prominent and dominant leadership theory.

According to thinkers in this area, transformational leaders possess five attributes:

• A positive vision
• A need for power
• A focus on achievements
• An ability to focus on positive emotions and avoid negative ones (i.e., the mood contagion phenomenon)
• An ability to take reasonable risks

Increasingly, many people agree that the transformational theory is the most predictive of effective leadership theories (and we agree too)—and it’s given rise to folks like Steve Jobs and Elon Musk.

The ROI of Becoming a Transformational Leader

Is it possible to put a price tag on the ROI of being a transformational leader? Believe it or not, it is.

In short, transformational leaders (perhaps unsurprisingly) drive profitability. In the aftermath of the 2006–2007 financial crisis, leadership was called into question across companies in the S&P 500. Top-performing organizations didn’t suffer as much as low-performing ones did. Then once the crisis was in the rearview mirror, top-performing organizations rebounded much quicker, getting strong leadership gains immediately.

The primary reason for this is because the top-performing organizations had strong leadership development strategies in place—from lower-level management to senior-level management. Using continuous listening, they kept their fingers on the pulse of employee sentiment and made sure their employees remained engaged. On the flipside, low-performing companies weren’t really focused on that at all.

When the dust settled, the top quartile of top-performing companies came out stronger while the lower quartile was weaker. The best companies were able to thrive and even exceed previous performance while the worst ones languished.

What Do High-Performing Cultures Look Like?

Every organization wants to perform at the highest level possible. But few of them actually do.

In our research , we’ve found that high-performing cultures embrace compassion, empathy, and open-mindedness. Employees are more likely to be engaged in a high-performing culture. It’s a virtual feedback loop, and engagement and performance feed off one another. High-performing cultures are built on the backs of heterogeneous teams that have complementary skills and are encouraged to work together toward a common goal. But they’re also driven by successful leaders that encourage and inspire their teams to reach their full potential.

Up next, let’s shift our attention to key attributes successful leaders have.

Three Prerequisites for Being a Successful Leader

Successful leaders steer high-performing cultures. Based on our research , here are three traits that these kinds of leaders enjoy at their organizations.

1. Alignment

Successful leaders have teams that are all aligned—working together. Alignment, however, isn’t easy. It’s often tricky because there’s an assumption that everyone knows what they’re doing and why they’re doing it. To illustrate, we recently conducted a bit of research that revealed that 90% of employees believe they know their organization’s values. Yet only 15% of them could articulate them. Alignment is essential because it’s the prerequisite for success. How can you expect your team to accomplish goals together if they’re not aligned?

2. Inclusivity

Effective leaders are inclusive; they give everyone a seat at the table and value everyone’s opinions. At the same time, effective leaders are confident, self-assured, but humble. Being able to admit that you don’t know the answer to everything requires confidence, after all.

Being an inclusive leader starts with empathy—the ability to see things from your team’s perspective and understand where they’re coming from. At the same time, great leaders show their teams that they are actual human beings—vulnerable just like everyone else—so their employees can relate to them . Keep in mind that it’s one thing to say you’re inclusive. It’s quite another actually to be inclusive.

3. Integrity

When two people have a conversation with each other for three minutes, the likelihood is that both of them will lie at least once. In other words, integrity is something you need to work on; you’re probably going to lie at some point, too. Effective leaders have integrity. When they speak, their teams listen because they trust in what they’re being told.

Great Leadership Starts with Feedback

We hope this blog challenges about leadership theories open your perspectives on the traditional view of leadership versus today’s picture. We believe that to become a great leader; you first need to understand what your employees are thinking and how they feel. The easiest way to do that is by asking them directly through continuous listening and regular feedback.

To learn more about how to become a great leader and why effective leadership is so important, check out our webinar, Delivering High-Performing Teams Through Strategic Leadership .

Read more about eNPS .

Guide for high employee engagement

Find the 4 driving forces of engagement split up into 33 solid methods that you can use to be a better leader and raise your team’s performance.

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Strategy Execution for Public Leadership

Join Harvard Kennedy School faculty and former Pentagon Chief of Staff Eric Rosenbach to learn how to develop strategies for public leadership success.

Associated Schools

Harvard Kennedy School

Belfer Center for Science and International Affairs

What you'll learn.

Enhance your strategic thinking by understanding the core elements of public leadership, management, strategy, and execution

Prepare to lead your organization to long-term success through a shared understanding of strategic direction

Create a culture of consistency, both internally and externally, that considers core objectives, resources, and environmental factors

Know how to approach strategy both effectively and efficiently, incorporating feedback cycles and creating public value

Identify weaknesses and risks, developing the skills and planning to respond in a crisis

Develop strategic communications to effectively roll out new initiatives and anticipate shareholder and media feedback

Course description

How do you execute a strategic initiative that has long-lasting impact? Do you know how to effectively communicate your strategic approach, gathering input and support from key stakeholders? How will you anticipate and respond to scrutiny from shareholders, news media, and the public?

Public sector leaders face unique challenges when it comes to making strategic,  business-oriented decisions. If not thoroughly planned and executed, these decisions have real consequences with high-stakes outcomes. What can we learn from world leaders and experts who have faced these monumental decisions? How can you create a high performing team to successfully execute strategic ideas?

In Strategy Execution for Public Leadership, former United States Pentagon Chief of Staff and Assistant Secretary of Defense for Homeland Defense and Global Security Eric Rosenbach will lead you through real-life public sector challenges, showing you how purpose-driven strategy and execution  lead to long-term adoption and success.

By studying decisions of key public leaders, like Former United States Secretary of Defense Ash Carter, you will better understand how to develop strategies that not only align with your organizational goals, but also gain insight into the challenges and scrutiny that come along with making public decisions. Too often, public strategies fail because leaders don’t think about execution, which is made up of leadership and management tools, as well as a team who anticipates all scenarios prior to putting your plan into place. Through global case studies and protagonist examples, you will explore topics that set you on a path to strengthen your public leadership, including resource and budget planning, talent recruitment and retention, strategic communications and crisis management, and risk planning and mitigation tactics.

By the end of this course, you will not only have the tools to create a sound public strategy, but also know how to test and optimize your strategy, increase competitive advantage, and sustain long-term impact and success.

Strategy is not one-size-fits-all. Implement a public leadership approach for long-term success.

Instructors

Eric Rosenbach

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Leadership: How to Start a New Project

A new project is an opportunity for developing new leadership skills..

Posted May 13, 2024 | Reviewed by Hara Estroff Marano

• Even if you are an experienced leader, a new project will present new leadership challenges.
• Contingency planning is crucial to new projects, where you can’t necessarily fall back on experience.
• Plans are not straitjackets— they just save you the trouble of scrambling at the last minute.
• Planning builds confidence; it helps you see down the road.

Even if you are an experienced leader, you should plan a new project from the ground up. There will always be contingencies that you cannot anticipate. Precise planning helps to build confidence . It enables you to get in touch with the project’s demands, including those it will make on you.

So, as you read this story, ask yourself:

• Am I willing to acknowledge that my background as a leader may not suffice when I seek to lead a new, different sort of project?
• Am I good at contingency planning—that is, am I willing to put aside any conviction that my plans are water-tight and will hold up even during rough sailing?
• Do I leave the details to others, or do I get down into the weeds because I know that details can be important to the success of the broad outline?
• Do I stay on top of things and realize when a plan is not working?
• Do I view detailed plans as a straitjacket (“I can wing it!”) or do I use plans to avoid last-minute, crisis-related scrambling?

Leading and planning are two sides of the same coin. In a new project, this is even more the case. So, test yourself against Samantha who, in this case, plans her way towards a new venture.

Samantha would describe her production company as “niche.” It focused on how girls coped with just growing up. The formula seemed inexhaustible.

So, what was the problem?

By the time she came to see me, Samantha felt it was time to climb out of her niche and do something affecting the broader society. She was 40 and, for a self-styled creative, her work too circumscribed.

What she needed, it turned out, was to lead a creative initiative that she devised, organized, and saw through to success. She needed to face down a challenge. “I need to mount a Broadway show,” she said, catching her breath and watching my face. “I know it’s a leap—in scale, in terms of what I know I can do—but it’s time for me to try.” I never discourage clients, but was Samantha being realistic?

Samantha’s urge to propel herself towards Broadway had been spurred by the conviction that Broadway now ached for upheaval. She would introduce Broadway to the life of a 16 th century martyr, Giordano Bruno, who was burned at the stake as a heretic but belatedly attained the stature of Galileo.

Where had this notion come from? Most immediately, did Samantha have the expertise to mount a credible attempt?

Bruno was an Italian philosopher, poet, and cosmologist. His theories extended to include the then-novel Copernican model (abhorred by the Church). Though he began as a Dominican friar, he later denied core tenets of Catholic doctrine, including eternal damnation, the trinity, the divinity of Christ, the virginity of Mary, and transubstantiation during the Mass. He wandered around Europe until the Inquisition imprisoned, tried, and executed him. Ultimately, he was celebrated as a martyr to science. As Samantha said, “His life is recognized as beyond dramatic.”

My interest was piqued.

But then came the real challenge. Samantha had never mounted a Broadway musical. Bruno represented a huge leap into novelty, a total change in long-standing direction.

Samantha would be heading a multi-pronged enterprise that would include writers, researchers, singers, costumers, dancers, financiers, actors, location managers, and publicists. Could she handle the practical, even emotional aspects of what she’d need to do? Could she anticipate some of it, to minimize stress down the road?

As we spoke, I advised her that the best way to assume a leadership position of a new enterprise is to have a solid plan. Be as organized as possible. Contingencies will always arise, but you should leave as little to chance as possible—even while the project takes shape over an extended period. So, we set out to devise a plan that was forward-looking, which over the next year or so would be augmented by careful, studied organization.

First, we discussed getting something down on paper, sort of a rough draft of a script that she could show to possible financial backers. But that itself would require initial funding. So, I suggested that she talk with some (moneyed) friends and associates and interest them in the idea, ideally, winning them over, as she had done with me.

It worked. She obtained enough funding for a researcher/writer to draft a script, delineating the main characters.

Then she would go back to those potential backers and secure greater funding, enabling her to firm up the script and hold an initial reading with potential actors. If all went well, she would secure more funding, based on a budget that would carry her through tryouts. Then, she’d make sure that her permanent investors were still on board. She would need to consult theatrical lawyers and get contracts for everyone. She would have to get a team of writers to refine the book; a group of professional actors; a librettist; a choreographer; stage managers.

Could she do it all? Samantha recognized that her practical preparations were an element of her psychological preparation. A leader, especially of a new project, should create their own support mechanisms, since everyone else may be too disengaged to provide the specific support that may be needed as challenges arise.

Samantha realized that, with sufficient planning and organization, she could take the right steps in the right order at the right time to achieve positive, reinforcing results. She would also need back-up plans, since plans may give way to other plans; the idea was always to be ready. Planning is a form of precise anticipation, not some immovable, blunt projection .

In a new venture, where you don’t know what you don’t know, leadership entails contingency planning so that surprise is held to a minimum.

So, as Samantha began to take the reins of Bruno, she focused on some important ideas:

• Even if you have leadership experience, planning for a new venture should be careful and precise
• Every plan should entail a contingency plan, so you’re not caught up short by surprises
• Planning is a great way to bolster your confidence, since it literally lays out the steps towards where you intend to go
• Complexity should not be a deterrent but only a rationale to plan ahead

Right now, Samantha is following through.

Ahron Friedberg, M.D., practices as a psychodynamic psychiatrist in Manhattan. He is a Clinical Professor at Mount Sinai Icahn School of Medicine and Editor of the Academy Forum.

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This Project Outcomes Report for the General Public is displayed verbatim as submitted by the Principal Investigator (PI) for this award. Any opinions, findings, and conclusions or recommendations expressed in this Report are those of the PI and do not necessarily reflect the views of the National Science Foundation; NSF has not approved or endorsed its content.

CYBER.ORG partnered with Louisiana Tech University (Tech) and Virginia's Department for the Blind and Vision Impaired (DBVI) and Department for Aging and Rehabilitative Services (DARS) to deliver on the 2020-awarded NSF INCLUDES grant in a project titled Project ACCESS (Accessible Cyber Content Expanded through State Synergies). Initially, the project intended to bring together various thought leaders in the area of accessible curriculum and provide a clearinghouse of resources for others in the community to learn about and benefit from in their own programs. Covid prevented us from gathering in a face to face setting so the project pivoted to endeavor to meet the thought leaders virtually, continue to report on accessible curriculum, and report out to community partners virtually.

All in all, 19 events were hosted during the project year and into the no-cost extension year. CYBER.ORG and DBVI collaborated on 18 of those events with Tech and DARS participating in a number of others. Many of the events were recorded webinars (Appteon's National Apprenticeship Week event, for example), some were meetings and presentations to regional community members (Pre-ETS CoP on Blindness, for example), and others were conference presentations where information on the project was reported out (CEC2022, for example).

By the end of the grant period, dozens of partners had collaborated to share details on various accessibility opportunities across the country with an impact of hundreds of national and international partners. CEC2022 was probably the most impactful face to face opportunity during the project. The two Appteon events were easily the most impactful virtual opportunities that were scheduled during the project.

One of the key outcomes of the project was the development of a list of 18 relevant research documents, seven conferences and events that focus on accessibility and students with disabilities, and other various resources to inform future planning, decisions, and proposals related to our mission. A few examples include:

• Candela, A. R. (2019). Blind Coding Academies: A Proposed Method for Overcoming Accessibility Barriers for Individuals Who are Blind or Severely Visually Impaired.  Journal of Visual Impairment & Blindness 2019, 113 (4), 387-393. American Foundation for the Blind.
• Connally, K. & Kimmel, L. (2020, July). The Role of Inclusive Principal Leadership in Ensuring an Equitable Education for Students With Disabilities.  CEEDAR Center.  Retrieved from https://ceedar.education.ufl.edu/portfolio/the-role-of-inclusiveprincipals/
• Independence Science. (2020, September).  2020 ISLAND Conference (Inclusion in Science, Learning a New Direction, Conference on Disability).  Retrieved from https://pccm.princeton.edu/2020-ISLAND-conference
• Moon, N.W., Todd, R. L., Morton, D. L., & Ivey, E. (2012). Accommodating Students with Disabilities in Science, Technology, Engineering, and Mathematics (STEM): Findings from Research and Practice for Middle Grades through University Education.  Center for Assistive Technology and Environmental Access.  College of Architecture, Georgia Institute of Technology. Atlanta, Georgia. Retrieved from https://hourofcode.com/files/accommodating-students-with-disabilities.pdf
• Terada, Y. (2020, May 4). A Powerful Model for Understanding Good Tech Integration.  Edutopia.  Retrieved from https://www.edutopia.org/article/powerful-model-understanding-good-tech-integration

Last Modified: 08/04/2022 Modified by: Charles P Gardner

Please report errors in award information by writing to: [email protected] .