Your career is at a crossroads. You have the opportunity to lead. To win. To build something from the ground up and be successful. But first, you must make a great shift: from tactical, gets-stuff-done worker to strategic leader.
Have you ever been told you need to be more strategic? Or maybe you need to work on getting to the point, not presenting endless details, numbers, and facts, but distilling your case into a motivating vision. Your counterparts are moving up in the organization, and you canât figure out why youâre not. Have you been passed over for a promotion because you fail to see the big picture? Are you starting your own business, knowing you need to set yourself up for success but unsure of how to go about it? If youâre anything like us when we were on the receiving end of this feedback, you probably thought, what the heck does that even mean?!
Meanwhile, out in the world around you, everything keeps changing and evolving. Technology is replacing jobs traditionally thought of as human-only pursuits, and thatâs a scary thought. Simultaneously, technology creates the need for new skill sets, including many that are difficult to anticipate or prepare for. You may be just five years out of school and already need to update your own skills. Change has been a constant force in life for as long as humans have walked the earth, yet it continually surprises us. Think about this for a minute: twenty years ago, did anyone have the job title social media manager? What about SEO specialist, virtual assistant, UX designer, Uber driver, blogger, drone operator? This is just a small handful of positions created by changes in technology, and they in turn change the ways we live. Have you ever booked your vacation to stay in someone elseâs city apartment or ordered groceries using an app? These are things the vast majority of people werenât even thinking about twenty years ago. Now, we take such services for granted.
Think of reactions to change on a spectrum. At one end, you have those who cling to the old way of doing things. They say things like, âThis is the way weâve always done it,â or âIf it ainât broke, donât fix it.â At the other end of the spectrum are the people who jump onto everything new and shiny. Theyâre the ones who have to have the newest gadgets the day they come out and are never, ever satisfied with business as usual. The majority of people fall somewhere in the middle of this spectrum, trying to grapple with all the changes around them and determine when to stick with the traditional methods and when to embrace the newest fad. These decisions arenât easy in your personal life, let alone when youâre making them at the larger scale of a business.
And when it comes to business, the workforce is changing dramatically, too. Not only are some job functions becoming obsolete while others have a nearly insatiable demand for talent, but even the ways we think about the structure of a company are evolving.
Diana
When I started at McDonaldâs, it was common for an individual to climb the corporate ladder within one organization for the duration of his or her career, the way I did.
Stacey
My career journey of moving from company to company, doing independent consulting work, and eventually establishing my own firm is much more typical today.
Companies now have a mix of employees and contractors, contingent workers, and outsourced functions. They may exist across the globe, with coworkers who rarely or never meet in person. The dynamics of the worker-company relationship have changed so dramatically that itâs ever more critical that you can show how you are impacting business performance.
And these are just sweeping, global changes. We havenât even gotten into industry-level changesâlike disruptor companies, changing consumer needs and desires, economic issues, supply-side shortagesâŚthe list goes on. The way people learn has changed dramatically. In the past, if you wanted to learn something or answer a question, you had to find a library book or take a class. Today, you can google it or watch a video online. A big, important part of being a successful strategic leader is understanding all of these changes andâthe magic ingredientâmaking smart decisions about how to manage them. Think back to that change spectrum. If youâre on the far left, resistant to change, you will quickly become obsolete. If youâre on the far right, youâll be endlessly distracted by every new trend that pops into your inbox.
You can be the hardestworking person in your company, but if nobody can see how what youâre doing contributes to the bigger picture, then youâll continue to be passed over for promotions.
Thereâs more to being strategic than managing changeâa whole bookâs worth! In a nutshell, when someone tells you to âbe more strategic,â what they want is for you to show how youâre driving corporate strategy and adding real value. Notice the word show. You can be the hardest-working person in your company, but if nobody can see how what youâre doing contributes to the bigger picture, then youâll continue to be passed over for promotions. Now, if youâre in sales, this may seem clear-cut. You have a quota, or you can show a dollar amount that you sold, which in turn helped your company to make money. But for every other discipline out there, itâs less obvious. Maybe your job is to develop new productsâhow can you show that the products youâre envisioning will be wins for your company? Or maybe you work in IT, which can feel like a cost center (or a necessary evil!). How can you show that what you do is helping to increase productivity across the organization? If you want to lead at the executive level, you certainly need to work hard. But you also need to get results, and you need to share those results in an enticing way.
In this book, youâll learn how to do two key things: first, how to show up and be perceived as a strategic leader. Second, youâll learn how to take your strategic behaviors and apply them through your organization for stronger results. We wrote this book for leaders and aspirational leaders who want to get to the next level. Youâre in a leadership role or will be soon, but you need to do something to improve and get to the next level. By improving your leadership and showing your results, you will get there.
What Happens When Strategic Leadership Is Missing?
Itâs often useful to define a concept by talking about what itâs not. In an organization without strategic leadership, everyone stays in their own silo. People keep their heads down and get their jobs done without an understanding of why theyâre doing what theyâre doing. They may work extremely hard, but theyâre not intentionally applying their efforts to the things that will drive the companyâs desired outcomes. Waste is rampant as people fail to communicate across disciplines, and the wheel is frequently reinvented in multiple places. Layoffs feel random because the bosses donât know who is really contributing to business results. Meetings are long and unproductive as participants show up late and unprepared, and then bore each other to tears with irrelevant information. Pet projects receive undeserved attention while difficult change is overlooked because itâs unpopular or too hard. Everyone chases the shiny, new, innovative decisions, to the detriment of what the organization does well.
Weâre going to give you two examples of publicized situations where strategic leadership was sorely lacking. When youâre at the strategic level, your decisions are very often made on a public stage. When you make a mistake, there can be huge consequences.
Diana at McDonaldâs
In the early 2000s, McDonaldâs stock tanked. The company had just made several acquisitions of other restaurants that took the organization away from its core business of running a unified, well-loved brand experience. As a result of the acquisitions, McDonaldâs had lost focus on what we had previously done so wellâthat is, we lost focus on the McDonaldâs customer.
I was new to the home office at this time. In fact, I had been there a grand total of two weeks. The CEO, Jim Cantalupo, had retired but was brought back to save the company. His first order of business: meet with everybody in the home office who had recently come from the field. He wanted to know what was really going on out there. I nervously shared what I had so recently seen happening in the restaurants: they were dirty, quality had gone down, and we were not listening closely enough to customers. Crew members werenât even allowed to take orders from customers asking for a different condiment on a signature sandwich.
Cantalupo eventually turned McDonaldâs around by shedding the new acquisitions and focusing on what we could do well: listen to customers and provide an experience that would make the restaurants their favorite place to eat and drink. In this case, a strategic, big-picture view meant understanding that the company had gone too big with its strategic direction and reining in the innovation and growth until the core of the business could be strong again.
Whole Foods
Not long after Whole Foods was acquired by Amazon, customers began noticing empty shelves. A lot of empty shelves, actually. Photos of produce sections with only a stray lettuce leaf or onion peel trended on Twitter from customers in some of the largest markets in the U.S. Customers also complained publicly about rotten and rancid products and assumed Amazon was to blame. The problem, as it turned out, began before the Amazon acquisition.
Business Insider acquired a copy of a Whole Foods manual describing order-to-shelf (OTS), an inventory system designed to âhelp Whole Foods introduce more automation into its inventory management system by streamlining food buying and other store-level decisions.â The system appeared to have the opposite effect, along with a crushing impact on employee morale. In the past, store employees could fill holes on shelves with products they knew were strong sellers in their stores, keeping the shopping experience appealing. Under the new system, the manual instructed employees to leave holes empty, helping âensure that OOS [out-of-stock] items get reordered because the hole is visible.â Furthermore, a point system penalized employees for any products that werenât in the proper shelf position, with the potential for department managers to lose their jobs over too many infractions.
In many of the articles covering this story, employees are unnamed due to fear of being fired. In the past, Whole Foods has won accolades as a top employer due to its strong culture and valuing of even the lowest level employees. The order-to-shelf system is another example of a short-sighted decision from the top that wreaked havoc across the organization. By taking away the autonomy of its store employees, Whole Foods created a public relations disaster for itself. Time and again, weâve seen examples of leaders who fail to value the employees throughout the organization, and as a result they inevitably see their share prices tumble.
Whatâs the secret to strategic leadership? Itâs the ability to see the big picture and think through decisions in a way that connects to the right actions and gets the right results, taking the company where it needs to go. In spite of change all around, strategic leadership never loses its value.
Why You?
We wrote this book for the people we consult with, the people we coach, and even for the people who we ourselves were earlier in our careers: leaders who need to do something different to take themselves and their organizations to the next level. You may be a high-potential employee, used to succeeding and performing well. You want to win, you want to lead, and you want to drive real, measurable results in ways that matter. Youâre seeing other people around you succeed and be promoted while you stay in the same place. Whatâs the difference between them and you?
Whatâs the secret to strategic leadership? Itâs the ability to see the big picture and think through decisions in a way that connects to the right actions and gets the right results, taking the company where it needs to go.
Some people are visionaries. Theyâre fired up by new ideas, excel at having a macro point of view, and want to race ahead to implement a grand vision. Others are detail-oriented and love being in the weeds with specifics and data, working to understand the intimate details of how work gets done. The world needs both types of people. Strategic leaders harness elements of both personality types by becoming aware of their own strengths and then creating a personal development plan for gaps or looking to outside resources (collaborators, hiring new staff, etc.) to compensate.
The fact that you picked up this book means you know you want to evolve in some way. We canât underscore this point enough: if you want to be a strategic leader, you must be ready to change yourself, change your department, and change your organization. Willingness to change and improve underlies our entire model.
Imagine this: you are part of a team evaluating something in your organization thatâs high-profile, expensive, and beloved. Maybe itâs a national advertising campaign, an employee productivity platform, a major training curriculum, or a sales channel partnership. Whatever it is, itâs near and dear to your department and well-known throughout the organization. When the findings from the analysis begin to roll in, you find out that the program isnât working. You thought it was successful, but it turns out those success metrics arenât driving business results. Youâve just learned that you are pouring money into an initiative thatâs not doing what itâs supposed to. What decision do you make? What are your options?
Reading this scenario in a generalized format, itâs relatively easy to say, âOf course Iâd pull the plug.â But put yourself through the mental exercise of coming to such a finding about your flagship initiative. The one for which you personally pushed to get funding, and then promoted to everybody with lots of grand promises about a huge ROI. Itâs personal, and itâs painful. Itâs so painful that those kinds of findings are often shelved. People make excuses: the evaluation model was flawed, or we didnât have access to the right data to prove the impact, or the political climate is such that we need to stay the course, or the CEO loves this program, so it has to stay.
Here is where we stop and tell you that if you arenât ready to cut your pet project after finding out that itâs not delivering the value the company needs, then you arenât in the right mindset to read this book. Set it aside and come back when youâre ready for blunt honesty, a truth that is sometimes agonizing but leads to better things. You can make a huge difference, but it all starts with your willingness to change in order to drive smart, organizational change. And sometimes willingness to change means we have to let go of the things we love. It means asking hard questions and running the risk of appearing foolish. It could mean you have to tell your boss that she made a critical mistake or confronting naysayers when you typically avoid conflict. It also means asking for help and advice from those around you, reaching out to connect with supporters and denigrators alike. Above all, willingness to change means being the kind of leader that your organization so desperately needs you to be.
Whatâs All the Fuss about Change?
Driving change can be scary when youâre acting alone. Throughout this book, youâll notice a common theme: pulling together all available resources to get the job done. Strategic leaders donât work alone in a siloâthey connect with their colleagues around the organization in order to gain a systemic perspective on the business and ensure that they are meeting the needs of internal and external customers. Strategic leaders also make smart, informed decisions based on robust evidence that has come from all types of data. When it comes to thinking about and using data, many people get overwhelmed. Itâs easy to get lost in the sea of vendors, tools, techniques, databases, dashboards, scorecards, frameworks, and all the other options available for managing and interpreting data. But when it comes right down to it, using data is all about driving change in a focused, strategic way.
Evaluation and analytics take data and turn it into information. Information provides you with knowledge, which you can synthesize into intelligence using your experience and understanding of your organization. From there, you are equipped with what you need to make strategic decisions, which in turn drive change. Understanding the change you are trying to drive will inform all of your efforts. Decisions that require a change to something (a strategy, a system, people, a program, an investment, etc.) should be based on data. Evidence-based (i.e., data-rich) decisions result in change that improves outcomes, reduces risks, and optimizes investments.
Youâve probably heard about evidence-based medicine, which has only grown in popularity since it was introduced by Dr. David Sackett in the late 1970s. Evidence-based medicine is the âidea that decisions in medical care should be based on the latest and best knowledge of what actually works.â This is the same concept we apply to leadership in the business worldâthat leaders make decisions based on data. If you think this all sounds crazily obvious, consider this: âStudies show that only about 15% of [doctorsâ] decisions are evidence-based,â which means that although there is a ton of medical research in existence, doctors arenât using it. The same applies in organizations: we have absurd amounts of data, but instead we make decisions based on gut feelings and what someone else is excited about. One caveat: itâs possible to go too far with data-driven decision-making, too. You always look at the big picture along with what your data is telling you. Strategic leaders use a combination of information to make smart decisions.
The subject of using data brings us to the topic that we know makes many of you without a strong mathematics background cringe. Itâs okay. You arenât alone, and you donât need to revisit college statistics to become a strategic leader. No matter what area you work in, you have the opportunity to look at business results and determine whether youâre doing the right things to get those business results. Some disciplines have a strong, obvious connection to business performance (sales, for example). For others, itâs less obvious. A good example is the field we came out of: learning and development, or training. The learning department was traditionally considered a cost center because training the workforce was considered a cost of doing business. We knew we needed to train people so they could perform and we could stay competitive and innovate. But when times turned tough and the workforce dwindled, training seemed like a luxury. We could no longer take people away from their jobs to participate in training, and we didnât need as many people building and delivering training. This is not a strategic approach, because it stifles the competitive and innovative nature of business. However, it has, in the past, seemed like a sensible business decision on the surface due to a lack of proof that training was impacting the desired business results. So, why keep investing in something that may or may not be working? There was no clear evidence either way.
Because we came out of a field that struggled to connect its investments to revenue, we can confidently say that you can find a link between anything youâre working on and the greater business strategy. If a direct or indirect link truly doesnât exist, then you need to ask why youâre doing it.
When it comes to analyzing data and showing business results, the answer is simple: if you donât already have a plan for evaluating your investments and decisions, you need one. That plan can be simple or robust, but it must be executable and help guide your strategic decision-making. Without understanding the impact of what youâre doing, youâre adrift. In your role, you may not need to have strong quantitative capabilities yourself, but business acumen and analytical awareness are critical leadership skills. Understanding analytics enables you to use data to drive change for winning results. Other leaders will take you seriously when they see that your decisions are fact-based and designed to move the company in the right direction. Leveraging all types of data when making decisions is a key component of strategic leadership, and it also empowers your organization by providing other leaders with data they need to build a truly competitive and innovative organization.
Leveraging all types of data when making decisions is a key component of strategic leadership.
You make decisions in life every day, some big and some not so big. Making an impulse purchase of a candy bar in a gas station is a decision that takes almost no thought. The cost is low, so even if you end up regretting the purchase, you arenât out much. Most people donât, on the other hand, buy an expensive sports car on impulse. You shop around, planning out where youâre going to store it and how youâre going to budget for all the higher ongoing costs of ownershipâmaintenance, tires, premium fuel, insurance, etc. In your own life, these details are usually easy to see and think through. As you get higher in an organization and have more responsibilities, you canât immediately see all the details yourself. This is why strategic leaders use data to monitor whatâs going on and make proactive changes when things arenât going the way they should.
How Do We Win?
A winning organizationâwhether itâs a large corporation, a small mom-and-pop business, a start-up, a department, a team, or some other functional groupingâoperates in alignment with the business. It has a vision and mission that are closely connected to corporate strategy, and everyone on the team is aligned to that vision. People on the team are enthusiastic about supporting the vision because they understand how their work connects to the organizationâs success. Who doesnât want to be part of a winning organization? The leader has an active, strategic role at the executive table and consistently steps back from everyday operations to evaluate everything the organization is doing. The leader makes sure all relevant stakeholders are informed, understand the desired impact, have their needs met, and play their part in enabling the organization to do its job. Further, everything a winning organization is doing is in some way making a needed impact on the greater business. When impact on the business misses the mark, the leader has the data necessary to identify the miss and moves quickly to remedy the situation. A winning organizationâs leaders are agile by evaluating what theyâre doing based on its impact on the business, making data-driven decisions, and making proactive efforts to change when change is warranted.
Whatâs a Strategic Win?
A strategic win drives the companyâs performance in some fashion. To get specific, you and your organization need to decide what defines a strategic win. The important thing is to make those decisions at the outset, because you wonât know youâre winning if you havenât defined success in the first place. The Impact BlueprintTM presented later in this book will be a great help in defining success and identifying the big-picture macro wins, as well as the micro wins that tell you if youâre making progress along the way.
Here are some examples of strategic wins.
Honeywellâs response to economic recession
The traditional school of thought about recessions is to restructure the workforce, that is, lay people off. When business softened, Honeywellâs CEO David Cote was reluctant to take this approach. He explains:
To understand that reasoning, look at what really happens when you do layoffs. Each person laid off gets, on average, about six monthsâ worth of severance pay and outplacement services. So in essence, it takes six months to start saving money. Recessions usually last 12 to 18 months, after which demand picks up, so itâs pretty common for a company to have to start hiring people about a year or so after its big layoff, undoing the savings it began realizing just six months earlier.
A winning organizationâs leaders are agile by evaluating what theyâre doing based on its impact on the business, making data-driven decisions, and making proactive efforts to change when change is warranted.
Instead of restructuring, Cote and his team implemented a series of unpaid furloughs. The organization worked through some heavy challenges during the furlough periods, but in the end the company emerged strong. Employee morale stayed higher than it wouldâve under layoffs, and as business began to pick up, the skilled workers were ready to jump back in. Coteâs leadership was strategic because he was able to see beyond the immediate pain of the recession. That, combined with some creative problem solving, put Honeywell ahead of its competitors when the economy was ready to grow again.
Educational assistance for employees
One strategic opportunity for McDonaldâs Corporation was the education support program, which had a rather low participation rate. The original design of the program aimed to give employees throughout the organization the opportunity to earn a four-year degree, which seemed to the team who launched it to be a useful benefit. When the team surveyed the audience eligible for the program to find out why they werenât taking advantage of the opportunity to get a four-year degree, they learned that the audience was still several steps away from that educational level. Many needed to complete a high school diploma or GED, and others felt that a two-year degree was more conducive to their goals. The team realized that the educational program would better serve this audience by offering pathways to a GED and/or two-year degree. Not only did they employ data to make this decision, but they asked the employees and partnered with outside organizations to find out how they had built their education strategies.
Improving workforce education levels also had the benefit of improving retention and strengthening the organizational leadership pipeline. Many employees were moving up through the ranks without a degree but eventually getting to a level where they needed additional knowledge and skills to meet the demands of the business world. Much of that was offered within the company, and the educational program helped to supplement internal training.
To continue winning and to employ the lessons learned from the tuition assistance program, the McDonaldâs team decided that they would gather more direct data on the front end to design and deliver the most beneficial program possible.
Leadershipâs pet project
A clientâs organization was spending millions on a sales training program with little to show for it. Sales numbers remained unchanged. The CEO was friends with the owner of the small training company that provided the sales program and thought it would be a big win for his company. The rest of the team, with no emotional attachment to the vendor, wanted to cut the program, but the CEO continued to fight for it. In these kinds of situations, hard data is so critical to getting your message across. You must be able to show results (or lack thereof) in business numbers. For the sales training program, the group (including the CEO) compromised by letting the sales training run for six more months. If at the end of that period results continued to be unchanged, they all agreed to cut the program. The metrics of success were clear to everyone involved, and they were able to detach from the personal factors involved.
Creating a winning organization requires strong, strategic leadership. Based on our experiences, both in and out of corporate L&D, weâve developed a leadership model that is a microcosm of the six factors for strategic leadership youâll read about later in this book, and it will help you begin to think about the way winning organizations operate.
1.Align with a motivating vision thatâs grounded in expectations. Defining an inspirational vision is the critical first step in providing your team with the direction and motivation to achieve success. A sound vision provides everyone with a clear line of sight to the strategic win. This vision needs to be grounded in the definition of success for your company and businessâbased on customer and stakeholder expectations. Weâll talk more about how to identify the companyâs strategy and success measures, as well as how to craft your vision, in later chapters. But as you define success, be sure to include what satisfaction looks like for your employees, customers, and shareholders (if applicable). Your vision should be a motivating statementâone thatâs tied to stakeholders and is a stretch for the organization. Everyone on the team should be able to relate to it, repeat it, confidently and enthusiastically explain it, and more importantly, live it! In fact, the vision statement should be incorporated into your daily language and interactions with others outside of the organization.
2.Define goals and strategies as a road map to success. Once youâve crafted a motivating vision, define the key goals and strategies needed to bring your vision to life. These become the roadmap to your destination. Identify the critical actions that must be executed to move you along the right path. Leaders and team members should focus on actions that will have the greatest impact on desired results.
3.Have the right players in the right roles. To have the right players in the right roles, you start by hiring the right people. Staff for success by keeping your standards high and hiring the best. They donât necessarily have all the technical knowledge or fancy credentials, but the right disposition. Look for people who have the right attitude, willingness to be team members, and a desire to learn. Do they reflect the vision and mission for your organization? Are they the role models you want? Will they relate to the work and stick around to see the results? Itâs not only much easier to accomplish your goals when you have strong players, itâs downright impossible to accomplish them with weak players. Donât waste time and effort trying to improve the people who may be strong performers but donât have the right attitude or lack the willivngness to learn. No matter how much time you sink into them, you canât force them to truly care about the job at hand or be a team player. Find the right fit for your team. Recruit, hire, train, and develop team players who have the ability and passion to bring your vision to life.
4.Create the best work environment so everyone thrives; celebrate success! Create an environment that allows people to not only do good work, but to thrive as theyâre doing it. Ensure workload is broken down into manageable chunks, and then match tasks and projects to the skills of each individual so they can accomplish their best work. People do their best work when they feel comfortable bringing their whole selves (mind, body, and spirit) to work. Take the time to get to know what motivates your teamâwhat jazzes them. Most people have the sense that they work for a person, not for the company, so stay connected with them as individuals. Recognizing and celebrating successes is a strong motivator to keep team members productive and engaged. If you celebrate what you want to see more of, youâll get it! Ask yourself: âWould you want to report to or work with you?â Whatâs good about reporting to you? What could be better?
Ask yourself: âWould you want to report to or work with you?â
5.Plan, Do, Study, Act. Winning leaders have a plan. They execute that plan. They learn what was revealed during the planâs execution, and then they act to make the informed change. Several later chapters will provide in-depth guidance to help you with strategic planning, execution, decision-making, and continual improvement.
6.Measure functional success and focus on continuous improvement. Item one entailed defining your vision of success. But to know if youâre on track along the wayâand if/when you achieve successâyou need to measure your progress. Establishing regular check-in routines will give you and the team the opportunity to recognize and celebrate progress, which creates energy to keep going forward or make needed course corrections at the right times. These routines also provide the ideal opportunity for feedbackâa tremendous gift when given and received in honesty and openness. Set ever higher goals to continually improve the business and to keep your stakeholders delighted.
People may not remember what you say, but they will remember how you make them feel.