Leader As Strategist

Bold and visionary leaders take their companies in the exciting new directions. Their confidence and right decision making ability are crucial for leadership and change. Over the years if we analyze number of once well run companies like Burlington Industries, Consolidated foods, Scott Paper, Mead, and Masco now have disappeared. These industries in later stages before becoming defunct were characterized by low productivity, high transportation costs , eroding prices, low returns and slow growth rates. In the mid-1980s more than 2,500 manufactures competed with 82 percent sales coming from the biggest 400 companies. There were substitutes and new entrants who captured the markets. With many new designs, knock off innovations, very long lead times the customers felt frustrated. Moreover, there was very little advertising.

The margin of the old existing companies with non competitive attributes began to dip .The strategist must understand the forces acting on the industry. The crucial is to have a differentiation that really matters in the industry. Take the example of the furniture industry .It is rules more by fashion than by function. IKEA the market leader created a new niche with differentiated economic model. A leader must introspect and serve as a voice of introspection when a bold strategy to reshape an industry's forces actually reflects indifference to them.

The strategist as operator/executor

A great strategy is not a dream of lofty ideas but a bridge between market economics and, ideas at the core of the business which accompanies through actions. The foundation rests on the clarity and real operating sensibility. Gucci a today a revered name once faced a crisis with plummeting sales and losses after the unbridled licensing. With distinctive red and green logo on every product right from sneakers to packs of the playing cards over nearly 22500 products reduced the brand equity and cheapened the brand.De Sole the company head asked its top managers to analyze the category sales trend over specific period. He wanted rely on data rather than intuition. Gucci's recent success had come from the seasonal fashion items, traditional customers and trend liner. De sole along with the lead designer tom ford looked into empirical evidence which concluded that it would be more feasible and hence profitable to position in the upper middle of the design market i.e. luxury aimed at masses.

There was an increased focused on fashion with trendy, exciting complemented with leather goods and ready to wear clothes each year. The company attained a new brand identity and there was a lot of excitement among the customers. Advertising was given the priority .The stores were modernized and with special attention to customer support .25 best suppliers were picked who were given the financial and technical attention. .Simultaneously the efficiency in the logistics was boosted. As a result the operating costs fell and flexibility rose. There were changes in Pricing, marketing, design, product line, distribution, manufacturing and logistics along with the organizational management and culture which were well coordinated, internally consistent and interlocking. The ultimate aim of producing products that were high quality fashion forward and of good value were attained .In course of time sales had risen multifold with high profitability Gucci regained the brand leadership. De Sole faced strictly binary decision and acted like a true operator strategist creating high value products.

A never-ending task

In today's entwined world, maintaining strategic momentum is a key challenge that confronts an organization. There is a challenge in decision making when multiple choices exists and it is the role of a strategist to choose the best with a specific set of strategy. Leaders need to conceptualize what their organizations do and how strategist can play a catalytic game changing role.