Abstract
There are many factors that today determine an organization’s success. Besides many resources such as money and time, leaders, managers, and their mode of leadership solely influence organizational success. Leaders and managers are responsible for making rules and policies and implementing strategies that are the key drivers in an organization. Appropriately implemented strategies lead to business success. Several literature theories have been published in addressing the importance of leadership in strategy execution. This article explores the impact of leadership on strategy formulation and implementation. In finding out the truth that dwells on the topic, this article critically reviewed 20 empirical studies that provided theoretical insights regarding the leadership role in strategy implementation.
Background
Many studies and research have been conducted before to evaluate and bring to light the importance of effective leadership in strategy execution and management. According to Oreg and Berson (2019), organization leaders and managers play a vital role in running and controlling major organization plans and activities. Furthermore, effective leadership in an organization promotes a positive culture, making it possible to achieve both short and long-term set goals. Moreover, studies on the importance of leadership on strategy execution have found that competent leaders with the required business skills and capabilities adopt better programs and execution plans. Recent studies have also pointed out the role of leadership in insinuating change in an organization. Novak, Breznik and Natek (2020) acknowledge the role of leaders and managers in strategic management. According to this study, leaders and managers are responsible for initiating environmental change in businesses. Moreover, selecting a working team is also critical as strategy execution is concerned. According to Chen et al. (2019), the success of any business strategy execution depends solely on the capabilities of its leaders plus the management team selected to work on the program.
Business leaders and managers are entitled to the responsibility to oversee and give directions. Halliwell et al. (2020) opined that influential leaders and managers set optimistic goals while steering all business operations through the adoption of well-thought and analyzed strategies. According to Joseph et al. (2018), influential leaders with the ability to utilize their skills unite the organization’s workforce and pursue a common shared goal. Leaders, therefore, affect the performance of business entities based on their competencies and ability to lead, select and manage their developed team. Therefore, this article is built on the belief that effective leadership in an organization is responsible for appropriate strategy execution. This research paper is based on the thematic analysis of various peer-reviewed articles on the importance of leadership for strategy execution. Thus, understanding what has been done to ensure that effective leadership is adopted in business organizations enhances the performance of strategies. Moreover, this research will finally identify what has not been done and suggest possible solutions as leadership for strategy execution is concerned.
Critical Review
Role of Leaders and Managers in Strategy Implementation
In ascertaining the role of leadership and management in strategy implementation, this paper has reviewed more than 20 empirical journals. The research found that most of the reviewed journals and articles were qualitative. This is good news because qualitative methods enable researchers to profoundly understand the topics of their discussion (Hawkins, 2018). Though some researchers have previously indulged in studies involving the role of leadership in strategy implementation, currently, as a result of technology, this is a new area of research that requires qualitative methods rather than quantitative analysis.
An organization’s success depends on how top business management and leaders craft effective business strategies and management plans. According to Galpin (2018), an organization without an adequately laid out and well-thought strategy is destined to fail even with the necessary resources. This is true because strategic plans are the roadmaps that steer organization activities towards a specific set objective, goals, and shared vision. Rahman et al. (2018) opined that a strategic plan improves activities coordination in an organization and encourages employees to work towards one goal. Moreover, studies have found a direct link between successful business strategy and active leadership. According to Tawse, Patrick and Vera (2019), organization leaders and top management are responsible for strategy formulation and subsequent executions. The top managers allocate various resources, such as finances and competent workforces to see through organizational plans. The articles reviewed also presented conflicting issues like the need for strategic planning. Tawse, Patrick and Vera (2019) argue that business planning thwarts business leaders and confines them to already established plans; hence there is no exploiting other alternatives that lead to surpassing results. However, (Hayati, Atefi and Ahearne, 2018)differs from this agreement and says that failure to plan is planning to fail. Hence, the study holds that strategic planning and organization leaders have crucial roles in strategy implementation.
One of the qualitative researches compared the processes of formulating and implementing a strategy. (Hayati, Atefi and Ahearne, 2018) found that developing a business strategy is relatively easy compared to its implementation process. Formulating a strategy thus involves drafting ideas on pieces of paper, while its implementation involves a wide range of functions that need many resources. Besides evaluating their effect on business life, these resources include money and human power. Therefore, it is the organization’s top managers, leaders, and senior executives to ensure that drafted strategies are appropriately put into practice without infringing on its accepted principles. According to George, Walker and Monster (2019), strategy implementation is an important area that many organizations globally value. Many qualitative researchers have agreed that the failure of an organization’s top managers and leaders to address strategic planning is the number one factor leading to many businesses’ falls. According to Tawse, Patrick and Vera (2019), the success of a business strategy starts at the point of crafting. Therefore, leaders need to be involved in the first step of strategy formulation. This is necessary because leaders have a clear vision at this prior stage regarding organizational change.
In particular, some analyzed studies pointed out the importance of clearly communicating vision across all departments in an organization. The findings from various articles revealed that a shared vision with articulated strategic initiatives for managers, leaders, and organization employees nurtures momentum for strategy implementation and thus enhances environmental change (Migale, Brent and Stimie, 2019; Radomska and Kozyra, 2020). Moreover, Iheanachor (2022) stresses the importance of good communication between leaders and top management. This research found that leaders and directors must possess good communication skills to pass instructions to their subjects for successful strategy execution. Additionally, the top managers and leaders must ensure that all organization workers are informed of what an organization intends to do to create a culture that nurtures a collaborative working environment. (Hayati, Atefi and Ahearne, 2018) opined on the importance of hierarchical communication in strategy implementation. When addressing their subjects, leaders and top managers should use layman’s language to ensure that all employees in an organization grasp all procedures to enhance working towards one shared goal (Hayati, Atefi and Ahearne, 2018). Concerning organizational communication, the research yielded that a leader should present organizational goals and objectives to all organization workers. Moreover, in successfully implementing a strategy, top managers and leaders must use interpersonal, technical, motivational, team building, and other leadership skills that unites all employees and create a positive organizational culture. George et al. (2019) stress the ability of leaders and managers to initiate and drive a motion for change in an organization to enhance successful strategy executions.
Many authors also agreed that successful strategy execution demands coordination in the entire organization. Sun et al. (2020) opined that leaders should fully delegate their responsibilities to their managers, just as employees show allegiance to the organization’s principles. Radomska and Kozyra (2020) further reinstated managers are responsible for initiating strategy implementations, and coordination throughout the system enables quick decision-making and thus translates to strategy execution. Therefore, Sun et al. (2020) suggested that managers should critically select competent teams that have the skills for project management hence taking the process from one stage to another. Further, Joseph et al. (2018) stressed the importance of dedicated teamwork with the required skills to enhance successful strategy execution. Furthermore, Galpin (2018) found that leaders and managers should lead by example by taking part in strategy execution, motivating their teams, and being imaginative and people-oriented. Leaders and managers must also be principled-oriented and show significant care as business ethics are concerned.
Finally, managers and leaders need to get goal-getters across the entire organization. Starting from the top, managers to an organization, workers should have inbuilt ambitions to achieve and support all organization activities. According to Galpin (2018), leaders should prioritize an organization’s objectives, and all departments that are to be affected by the strategy must participate in its implementation. Therefore, leaders and other key employees are expected to participate in strategy implementation. They are to take other employees through the strategy and most probably ask questions to ascertain if all employees understand the due process’s working principle.
How does Leadership Style Affect Strategy Execution?
According to the research findings, a significant literature review has been published to educate on the effect of leadership style on the process of strategy executions. One qualitative study indicated that leadership has a direct cause-and-effect link to an organization and its success (Hayati, Atefi and Ahearne, 2018). Moreover, Radomska and Kozyra (2020) have presented different leadership styles commonly adopted by various organizations. Further, Hansen and Pihl-Thingvad (2019) reinstated this finding by identifying autocratic, bureaucratic, democratic, charismatic, situational, transactional, and transformational as the commonly practiced types of leadership. Today, leadership theories define leaders based on their characteristics and how they use power to give instructions (Hayati, Atefi and Ahearne, 2018). For example, Hansen and Pihl-Thingvad (2019) suggested that the aristocratic leadership style possibly damages an organization irreparably because it forces employees to do as they say without consideration. This type of leadership has no shared vision since the leader and top managers make critical organizational decisions.
Charismatic is regarded as the most successful trait-driven leadership style. Leaders under this category have a vision and are well-guided by their personalities. According to Sy, Horton and Riggio (2018), charismatic leaders motivate and sometimes reward the best-performing employees. Moreover, Karim et al. (2020) confirm that charismatic leadership nurtures a fertile ground for creativity and innovation. A charismatic leader usually develops and adopts strategies that are good for an organization and thus face minimal resistance from the ground. Sy, Horton and Riggio (2018) describe transformational leaders as inspiring leaders that consider their employees. Therefore, a transformational leader has a sense of vision, mission, and purpose. This leadership style serves as an agent of change in many organizations. This is because transformational leaders lead by example, provide directions, motivate, support, and sometimes address organizational challenges.
Furthermore, Kwan (2020) holds that a transformational leader usually initiates change in an organization putting set goals and objectives into consideration. Other reviewed qualitative studies further supported that transformative leaders are well suited for exploring the organization’s core competencies because they are risk-takers. Sy, Horton and Riggio (2018) find that the transformational leadership style has a high potential to produce positive outcomes as a business is concerned.
Other qualitative research analyzed further relates leadership styles to strategy execution. According to Andersen (2018), transactional leadership styles assume that workers’ motivation depends on punishment and rewards. Furthermore, transactional leaders expect the organization’s employees to obey instructions given by their managers; as such, there is no self-motivation in transactional leadership. Finally, several studies also agreed that both transformational and transactional leadership styles positively influence strategy implementation instead of laissez-faire leadership.
Problem Statement
The impact of effective leadership on strategy execution is today becoming an issue of concern to both small and big organizations. Several studies have investigated the importance of leadership on strategy execution. For example, Radomska and Kozyra (2020) found that various resources are necessary for employee and leader training. Moreover, Sy, Horton and Riggio (2018) further noted that organizations should take employee and leader training seriously. Moreover, Tawse, Patrick and Vera (2019) have further acknowledged the importance of engaging workers in policy or strategy formulation and implementation. From these previous works on the topic, there is a clear indication that effective leadership has advantages as strategy execution is concerned. However, the purported importance of effective leadership to strategy execution has not been thoroughly investigated. Moreover, previous minor works describe the importance of leadership to strategy execution. This indicates that the topic has not been extensively covered to aid the conclusion on effective leadership in strategy execution.
Other previous research reviewed links effective leadership to successful strategy execution. Yet, the ongoing studies are still to find the truth about an organization’s strategy execution and leadership style. Moreover, the studies reviewed do not explain how effective leadership increases the chances of successful strategy execution. Thus, the late and ongoing research on this matter is expected to give detailed findings and a solid relationship concerning leadership and strategy execution. Further, the reviewed research does not explain why organizations do not seek workers’ and employees’ opinions during strategy or policy implementations.
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