Compelling evidence about which leadership skills are especially vital to successful growth strategies has just been released in a new study of 300+ C-level leaders and heads of operating units. While nothing new about the fundamentals of executive leader competencies was discovered, the specifics that are associated with different types of strategies appear to add new knowledge that coaches can draw upon with greater confidence.
This summary will highlight the challenges of three kinds of organizational growth and three sets of executive skills that were associated with success in each strategy. For a comparison of these fundamentals to our Executive Leadership survey, see figure 1.
For coaches and consultants, it is second nature to identify the strategic direction of our clients. The information in this study will help clarify the organization's type of strategy --organic, strategic alliances, or mergers and acquisitions--and provide additional information on how to prioritize the skills around that strategy. Another complication for coaches and their clients are the transitions from one strategy to another. Add to that the real-world situations of some organizations whereby they are pursuing a combination of these strategies and you can see the value in knowing what skills are required for success.
Organic Growth. These are the challenges cited most often by the 300+ leaders who responded to the survey: cultivating a satisfied and loyal customer base and responding to customer pressure for better products and services. The corresponding leadership capabilities included focusing on the customer, sticking with priorities, executing, and innovating. Nothing new here about leadership, of course, but the companies that reported greater organic growth called these out as mission-critical.
Growth through Strategic Alliances. Successful leaders of this strategy cited these challenges: alignment of goals, plans and organizational structures, information sharing and making good decisions. The corresponding leadership skills included communicating a compelling vision, building trust, engaging others and building networks and informal links.
Growth through M&A. Challenges included retaining top talent and demonstrating value to investors. The skills emphasized were: focusing on market trends and competition, bridging differences in styles, values, and cultures, adapting to change, and continuous process improvement.
One final set of imperatives is cited as common to all growth strategies:
* Understanding customers' unmet needs
* Communicating clear strategy, goals and metrics
* Setting performance objectives
* Building a climate of ownership
* Coaching and listening to others
* Keeping organizations focused on strategy
* Challenging the status quo
* External focus
The 300+ survey respondents were a "highly seasoned group…from a range of industries and regions around the world", equally balanced between EMEA, North America and APAC. All of the companies selected equaled or exceeded their industries in gross revenue and profitability; more than half of them achieved even higher levels in the last 3 years.
We were fortunate to hear a presentation of this research recently at the 2009 annual owners meeting of ISA, the Association of Learning Providers. Ed Boswell, CEO of The Forum Corporation and a key advisor to the research team, provided a full copy of the study as well as helpful diagrams that are not in the study. We highly recommend the full study to all of our clients and coaches: One Size Doesn't Fit All: the Distinct Leadership Capabilities for Organic, Alliance, and M&A Growth. Go to http://www.forum.com/library/research_studies-58.aspx to see it listed under the "Library" tab. You will need to register on the site in order to download the report.
