Even at successful companies, attempts to move in new strategic directions are often derailed by poor leadership. The best business plan in the world doesn’t stand a chance in incapable hands, and appointing the wrong person to execute a key component can doom the entire strategy.

The problem is that most companies assess their leadership capacity based on past performance and current responsibilities of their present-day leaders. Unfortunately, even the most stellar performance is no guarantee that a person has the ability to take a company to the next level.

Managing the leadership pool goes well beyond matching key talent at the higher levels with appropriate opportunities. The mission calls for a broad-based process that cultivates talent throughout an organization’s ranks while focusing on the company’s strategic options in the years ahead.

Today’s best leaders may not be tomorrow’s

It takes strong leadership to create sound business strategies – leadership that typically comes from key top-level management staff. But bringing such strategies to fruition also depends on leaders at all levels of an organization who must translate them into operational realities, make reliable judgments, and act on decisions. An effective “people process” can ensure that leaders throughout the company are well-equipped to manage strategic direction.

In order to ensure the success of future strategies, organizations should cast a wide net, looking beyond their few good men and women to find and develop potential leaders on a number of fronts. While an organization may have ample leaders with proven track records, those individuals may lack the necessary skills to take on the next big mission.

The best development approach doesn’t simply assess the abilities of employees; it also determines how those abilities can fit within future opportunities. A company should identify which leadership skills are expected to become more significant in the years ahead. It can then develop its talent pool according to the capabilities it expects to require when it pursues future strategic avenues.

Which comes first – the strategy or the talent?

This approach, using business strategies to drive leadership development efforts, requires a three-part commitment - one that promotes the long-term vision for the next three to five years, shores up near-term strategies for the next year or two, and continually matches employees with stretch assignments to strengthen their strategic management capacity. By linking people with strategy, an organization can zero in on the skill sets it will need in future business environments. 

Another effective method of leadership development is to work in the opposite direction, basing future strategies on the strengths of the existing talent pool. For example, an organization with exceptional marketing leadership might decide that the best way to maximize its “people potential” is to pursue new business strategies that rely heavily on marketing muscle while further refining those talents.

Whether a company takes a “pull” or “push” approach to leadership development, connecting people to strategy is essential. Taking a broad-minded view of strategic objectives and identifying the skills needed to accomplish them are the keys to success.