Here’s something you’ll never hear in the business world: “Let’s promote her to a senior leadership position…she’s very strategic.” The greatest compliment a leader can receive is to be called “strategic.” A survey of more than 10,000 senior executives showed that 97% believe the leadership behavior most critical to the future success of the organization is “strategic.” Other research involving more than 60,000 senior executives around the world found that a leadership strategy approach was 10 times more important to perceived effectiveness than any other factor studied.
Business leaders, academicians and boards of directors agree with these findings:
“To me, the most important skill any CEO needs today is strategic acumen.” Indra Nooyi, former CEO of PepsiCo.
“After two decades of observation, it’s clear that mastery of strategy is not an innate skill. Most great CEOs learn how to become better strategic thinkers. David Yoffie, Harvard Business School Professor, Michael Cusumano Professor, MIT Sloan School of Management.
“The No. 1 trait of active CEOs that makes them attractive board candidates is strategic expertise.” Corporate Board Survey
The number one skill boards are looking for in CEOs is strategic ability. Cathy Anterasian, senior partner at Spencer Stuart.
As research and thought leaders demonstrate, the importance of strategy is universal. So, what exactly does “strategy” mean? The main definition of the word “strategy” from Webster’s Dictionary is: “of, related to, or marked by strategy.” Because this is as useful as an umbrella in a hurricane, I wanted to share the following definition:
Strategy: Have insights that give you an advantage.
We can break down the definition of strategy into two core elements: insights and strengths. Insights are when you combine two or more pieces of information or data in a unique way to come up with a new approach, new product or new solution that moves your business forward. Simply put, insight is learning that brings new value. Strengths are essentially elements of strategy. It usually refers to a desired outcome in the form of gains, profits, benefits, or a position of advantage.
When we use this definition of strategy, it helps us clarify what is and is not strategy. A person or a plan can be strategic because both are likely to have insights that bring an advantage. The word “strategy” is plastered in front of many other words to make them sound important, but their meaning does not hold up. Phrases like “strategic objective” or “strategic necessity” are examples of terms that sound correct
But fails the test of being able to accommodate and utilize what is learned. Eliminate the overuse of the word “strategy” and you’ll clarify and simplify communication between teams.
Strategic Quotient is a measure of strategic ability expressed through your mindset and behavior. Your strategic abilities include how you think, plan, and act strategically. The good news is that every strategic area can be developed and improved through deliberate practice. If IQ gets you hired, and emotional IQ gets you promoted, then SQ gets you into the C-suite.
The first step to realizing your strategic potential is understanding where you are today. I developed the Strategy Quotient (SQ) to help you accurately determine your baseline strategy capabilities. SQ assessments are based on over 20 years of research and are implemented strategically using the 3A framework across three key disciplines. The three disciplines are:
· Acumen (Thinking) – Generating insights that create new value.
· Allocation (Planning) – Focusing resources through strategic trade-offs.
· Action (action) – deciding priorities and executing plans.
The SQ is used to identify opportunities for the development of an individual’s strategic capabilities and, following targeted intervention, to determine whether the individual understands and applies the principles of acuity, distribution, and action. A person’s score on the SQ may indicate their likelihood of successfully applying and demonstrating the ability to use these strategies.
Primary and secondary dimensions of strategic quotient
The SQ assessment consists of 50 statements that determine a person’s performance level on how strategically they think, plan, and act. Here are five sample statements for SQ assessment:
Do you have a strategy? Take an assessment today and find out. After all, in today’s competitive business world, it has to be strategic… or it will disappear.
