Industrial and Commercial Training

Strategic leadership competencies: what is it and how to develop it?

Zumalia Norzailan, Rozhan B. Othman, Hiroyuki Ishizaki,
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Zumalia Norzailan, Rozhan B. Othman, Hiroyuki Ishizaki, (2016) "Strategic leadership competencies: what is it and how to
develop it?", Industrial and Commercial Training, Vol. 48 Issue: 8, pp.394-399, https://doi.org/10.1108/ICT-04-2016-0020
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 Strategic leadership competencies: what
is it and how to develop it?
Zumalia Norzailan, Rozhan B. Othman and Hiroyuki Ishizaki
Zumalia Norzailan is a Lecturer
Downloaded by University of Western Cape At 05:35 06 November 2018 (PT)
and Rozhan B. Othman is a
Professor, both at the Universiti
Teknologi Malaysia Kuala,
Lumpur Campus, Kuala
Lumpur, Malaysia.
Hiroyuki Ishizaki is based at the
Universiti Teknologi Malaysia
Kuala, Lumpur Campus, Kuala
Lumpur, Malaysia.
PAGE 394 j INDUSTRIAL AND COMMERCIAL TRAINING
Abstract
Purpose – The purpose of this paper is to discuss the nature of strategic leader competencies and the
learning methodologies that should be used to develop them.
Design/methodology/approach – A review of the literature on strategizing was done to formulate a model
of strategic leadership competencies. This paper also draws from various work on learning to propose how
strategic leadership competencies program should be designed.
Findings – The literature highlights the importance of incorporating deliberate practice, experience density,
reflective learning and mentoring into strategic leadership development programs.
Research limitations/implications – This is a conceptual work that draws from secondary material.
Further empirical examination can help validate the ideas proposed here.
Practical implications – This paper provides a better understanding of how developing strategic leadership
competencies are distinct from other leadership programs. It also provides practitioners with an
understanding on how to design their strategic leadership development programs.
Originality/value – This paper adds a new dimension to the discourse on strategic leadership development
programs by bringing together learning theories from sports education and managerial learning.
Keywords Deliberate practice, Experience density, Strategic leadership
Paper type Conceptual paper
Introduction
Strategic leadership involves dealing with issues commonly addressed by a firm’s top
management team. Developing strategic leadership competencies is distinct from developing
supervisory skills or developing leaders to lead operations (Stigter and Cooper, 2015, p. 21).
While the basic skills of leading people and operations are still important, it is not sufficient for
strategic leadership.
Mintzberg (1994) argues that strategizing requires the use of imagination and creativity.
Decisions made at the strategic level require the ability to deal with new challenges and threats.
Leaders at the strategic level have to develop insight and wisdom, the ability to think outside the
box and must be able to connect and synthesize ideas (Goldman et al., 2015). Gavetti (2011)
points out that strategic leaders must have the ability to see cognitively distant opportunities.
These are opportunities that are not obvious to others. Identifying such opportunities involves
the ability to explore and see the unfamiliar. Gavetti argues that besides understanding the
economics of competition, strategizing is also about the psychology of cognition. Table I
shows the difference between strategic leadership and operational leadership (Nuntamanop
et al., 2013).
Operational level leadership usually deals with problems related to ongoing activities and
processes. There are usually standard operating procedures and technical knowledge to guide
problem solving. Managers at this level are often accountable for short and medium term
j VOL. 48 NO. 8 2016, pp. 394-399, © Emerald Group Publishing Limited, ISSN 0019-7858 DOI 10.1108/ICT-04-2016-0020
 Table I Comparison between operational and strategic leadership

Operational leadership Strategic leadership

Low-medium ambiguity High ambiguity

Low novelty High novelty
Procedural based Creativity based
Functional focus Organizational focus
Short-medium term Long-term
Group leadership Organizational leadership
Low-medium external orientation High external orientation

performance indicators. Leadership at this level usually involves leading teams or functions. With
the exception of the marketing function, managers at this level usually focus on managing internal
capabilities and have low-medium external orientation.
Strategic leadership, on the other hand, involves dealing with how to respond to changes in the
external environment. Strategic leaders have to deal with challenges and discontinuities that
emerge from time to time (Goldman, 2012). This sometime requires using imagination to assess
and interpret the cues from the external environment and deciding how to respond to them
(Graetz, 2012, p. 457). Quite often, signs of the change or problem are not very clear and require
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a lot of sense making by strategic leaders (Stigter and Cooper, 2015, p. 21; Appiah-Adu and
Aming, 2016, p. 30). They have to consider competitors’ actions, changes in consumer
preferences, market trend and technological advancements. In addition, a strategic leader has to
realign internal capabilities and make changes to support the new strategy and develop
competitive advantage (Nuntamanop et al., 2013; Goldman et al., 2015). Whereas operational
leadership is about leading teams or a function, strategic leadership involves leading the whole
firm. They also have to deal with resistance and vested interest within the organization.

Strategic leadership competency model

Figure 1 presents a model of strategic leadership competency. This model has two layers. At the
outer layer of the strategic leadership competency model are the qualities needed to assume

Figure 1 Strategic leadership competencies

Need for achievement Willingness to lead

Lead with conscience

Strategic Change
thinking management
competencies competencies

Need for cognition Influence and Talent Business acumen

persuasion development
competencies competencies

Lead with conscience

VOL. 48 NO. 8 2016 j INDUSTRIAL AND COMMERCIAL TRAINING j PAGE 395

 strategic leadership role. These are a combination of personal characteristics and prior
experience. Certain personal predisposition makes a manager more suited for the strategic
leadership role. Strategic leadership needs someone who has high need for achievement. They
must be individuals who have the desire to take the firm to the next level. Need for cognition is a
person’s willingness to engage and enjoy thinking effort (Cacioppo et al., 1984). Individuals with
high NFC are more likely to search for new information, enjoy purposeful thinking and are more
likely to form judgment based on rational arguments. They enjoy exploring new possibilities and
options. To become a strategic leader, the person also has to have the willingness to lead.
De Vries et al. (2002) point out that some people have a high desire to be led and have his work
structured by a leader. A strategic leader, however, has to be someone who is willing to exercise
leadership and is not dependent on being led by others. Finally, to be effective as a strategic
leader requires that the manager possess business acumen. This is the product of education and
experience. It shapes their understanding of how businesses operate.
The inner components of this model are the strategic leadership competencies. At the core of this
inner layer is leading with conscience. Developing leaders who lead with conscience is important
to ensure that all the other competencies in this model are used for greater good. Strategic
leaders need to have strategic thinking competencies (Liedtka, 1998). This involves the use of
creativity and imagination to visualize new possibilities and thinking outside the box (Gavetti,
2011; Moon, 2013). Change management competencies are needed because new strategic
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ideas often require changes to existing capabilities and equilibrium. Strategic leadership involves
shifting the focus of the whole organization to enhance competitive advantage (Goldman et al.,
2015). Strategic leaders have to direct and motivate their followers to adapt (Nuntamanop et al.,
2013). Persuasion and influence competencies are needed because new strategic ideas have to
be sold to other leaders. These new ideas are not something others are already familiar with.
Finally, talent development competencies are related to the ability to develop future leaders. The
execution of strategies requires capable leaders at all levels. Having a cadre of capable leaders is
important in helping top management steer the firm during change.

Designing strategic leadership competencies development

Developing strategic leadership competencies involves changing the habit of managers. This
includes the thinking habits of leaders (Goldman, 2012; Stigter and Cooper, 2015). Besides
developing a long-term view of issues, they have to reflect on the situation faced and make sense
of cues around them. Given the inherent uncertainty present in any new idea, they have to be able
to learn quickly and adapt. Sometimes, they have to be flexible to exploit serendipitous
discoveries (Svensson and Wood, 2005). Likewise, they must be persistent and resilient in facing
difficulties and failures as they deal with uncertainties.

Strategic leaders also have to get out of the habit of thinking of their function only and be able to
develop a macro perspective (Goldman, 2012; Goldman et al., 2015; Stigter and Cooper, 2015,
p. 21). They need to have a holistic view of the firm as a system. This outlook must be reflected in
their willingness to assess ideas in term of their value to the firm and not just their function.
Changing these habits require more than just organizing training courses to teach managers
about strategy tools (Appiah-Adu and Aming, 2016, p. 30). Instead, developing strategic
leadership skills requires education and experience (Goldman, 2012). This involves the use of
learning experiences that are capable of changing mindset, transform behavior and develop new
competencies. These changes can be achieved by incorporating the following principles in the
strategic leadership development programs.

Deliberate practice
The literature on sports education (Ericsson et al., 1993; Coughlan et al., 2013; Hambrick et al.,
2013) shows that skills enhancement requires practice and repetitions. Learners need to be given
the opportunity to try the skills being taught, make mistakes, learn from the mistakes and repeat
their attempts in order to gain mastery. This form of learning is termed deliberate practice.
Preparing leaders for senior leadership position involves giving them the opportunity to solve

PAGE 396 j INDUSTRIAL AND COMMERCIAL TRAINING j VOL. 48 NO. 8 2016

 difficult and ambiguous problems. It is inevitable that some of them are bound to make mistakes
in the process. The learning program must be designed to give them the opportunity to keep on
trying and learn from their mistakes. Thus, an effective strategic leadership development program
has to incorporate deliberate practice. Meyer et al. (2013) consider undergoing deliberate
practice as the important predictor of leadership talent.

Experience density
In addition, judgment and decision-making skills can also be improved by incorporating
experience density in the strategic leadership development program. Tesluk and Jacobs (1998)
and Avery et al. (2003), propose that density of experience is developed by exposing the
learner to stress and challenges. This is achieved by exposing them to challenging assignments,
tight deadlines and unfamiliar problems. This stress will draw out the creativity of the learner. It will
also help them develop their ability to handle stress. This helps develop their psychological
resilience when dealing with challenges and stress when they are at the top management level
(Shin et al., 2013).

Reflective learning
Developing strategic leadership competencies also requires the ability to think through the issues
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faced. Solutions to novel and ambiguous problems are not obvious and the search for solutions
requires critical thinking. This requires that managers reflect on the problems and situations
before them. This is the process of reflective learning (Høyrup, 2004). It helps nurture the ability to
think rationally and logically. Reflective learning involves hypothesis-driven thinking where the
learner assess and reassess his understanding the causes-effect model of the problem he is
trying to solve (Høyrup, 2004; Goldman, 2012). In addition, reflective thinking also involves
intellectualizing difficulties (Høyrup, 2004; Dewey, 1933). Sometimes, managers may experience
pressure and stress when dealing with difficult problems. They may develop emotional responses
to these pressures and stress. These emotional responses can cloud their judgment. The
purpose of reflective thinking is to enable them to deal with difficulties in a logical and rational
manner. The learning process should incorporate moments for reflection so that learners can
assess their weaknesses, seek opportunities for improvement and maintain their objectivity when
dealing with difficult and stressful situations.

Mentoring
In order to make reflective learning more effective, it should be supported by mentors who assist
managers during their self-reflection (Gibson and Cordova, 1999; Dziczkowski, 2013). Murray
(1991, p. 9) defines mentoring as the pairing of a more senior and skilled employee with a junior
employee who typically has less skills and experience. It involves both the mentor and mentee
sharing their experiences. This can help enrich the skills of the mentee. Mentors can also provide
moral support during stressful situations. As we have mentioned earlier, developing strategic
leadership skills should involve providing experience density by creating stress and challenge in
the learning experience. This can be incorporated as a part of the deliberate practice by
increasing the level of difficulties of the learning experience. Mentors can help mentees reflect on
their experience and help them intellectualize their difficulties. Mentoring becomes the
mechanism that aids reflective learning (Goldman, 2012). This can help managers steer away
from developing negative emotional responses to difficulties. Mentoring links deliberate practice,
experience density and reflective learning so that they create a positive impact on the mentee.
Incorporating the above principles in strategic leadership development activities can begin with
classroom training on a particular subject, e.g., change management and project management.
The participants are then given assignments to implement special projects. These will usually
begin with small projects that can be performed in a few weeks. Each project will require working
with people from different functions and involves initiating change. In the initial stages, participants
are just expected to develop proposals for these projects. The proposal can be about assessing
the potential of a market, the viability of a product or where a new plant should be built. The
participants are given feedback on how to improve on their ideas and come up with better

VOL. 48 NO. 8 2016 j INDUSTRIAL AND COMMERCIAL TRAINING j PAGE 397

 proposals. Mentors will play their role here to help participants reflect on their experience and help
them deal with stress and difficulties. This incorporates deliberate practice and reflective learning
into the learning experience.
As their understanding and performance improve, participants are then given projects to
implement. The learning moves from developing proposals to actually doing it. These projects
may take a few months. Again, they are given feedback to learn from their mistakes and gain
insights from their experience. They are then given even bigger projects. This time the projects are
of a longer duration, much more complex and involve working with many stakeholders and
across functions. This incorporates experience density into the learning experience.
As the participants go through these learning experiences, they will have to deal with increasingly
complex problems, initiate something new, work with many parties and apply diverse and new
skills. There will be situations where they will have to make difficult decisions and provide
leadership. They may also find themselves having to make ethical choices and have their moral
fortitude tested. A rich experience like this will help develop new insights, wisdom and change the
habits of managers.

Epilogue
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The preceding discussion does not negate the role of more conventional forms of learning such
as classroom-based course. However, developing strategic leadership competencies is more
than just about imparting knowledge. A learning experience that provides the opportunity to use
the full range of skills required to lead strategically is also needed. This will help managers
overcome the habits formed in their current positions and develop the new habits needed to lead
at the strategic level. This why deliberate practice, experience density, reflective learning and
mentoring is an important aspect of strategic leadership development programs.

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Further reading
Mintzberg, H. (1978), “Patterns in strategy formation”, Management Science, Vol. 24 No. 9, pp. 934-48.
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No. 2, pp. 183-200.
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Review, Vol. 29 No. 2, pp. 222-40.
Zahra, S.A. and Nambisan, S. (2012), “Entrepreneurship and strategic thinking in business ecosystems”,
Business Horizon, Vol. 55 No. 3, pp. 219-29.

Corresponding author
Rozhan B. Othman can be contacted at: dr_rozhan@yahoo.com

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VOL. 48 NO. 8 2016 j INDUSTRIAL AND COMMERCIAL TRAINING j PAGE 399