Strategic Leadership : short-term stability and long-term viability

Rare is the business leader who can articulate and instill a long-term vision and manage the day-to-day operations with the requisite obsession for detail. A leader who combines both styles is what these authors call a “strategic leader,” someone who, more than any other type of leader is best equipped to increase shareholder value. Leaders and potential leaders will find out what it takes when they read this article.

The business world has few leaders who have transformed their companies and the industries in which they operate. Two of the few are Jorgen Vig Knudstorp and Clive Beddoes.

When Jorgen Vig Knudstorp took over as the CEO of LEGO in 2004, things were looking bleak for this well-established, family-owned business. Over the next 5 years, he turned the company around by working on a new vision, building better relationships with employees and customers, empowering employees to make decisions at all levels of the hierarchy, and, at the same time introducing tight fiscal controls.

Clive Beddoes did the same at Westjet. During his 10-year reign, he transformed a small Calgary start-up into one of the most profitable airlines in North America, with over 55 destinations in Canada, Mexico and the United States. Westjet began with just 3 aircraft, flying mostly between cities in western Canada. Beddoes expanded into eastern Canada in 2000, at a time when the air travel industry was dominated by Air Canada. As a result of Beddoes’ leadership, Westjet now has 36 percent of the Canadian domestic market, compared to Air Canada’s 57 percent. Westjet has maintained healthy growth and profitability during the years and has weathered a number of major economic downturns brought about by events such as the September 11thattacks and a global recession.

Knudstorp and Beddoes exercised a style of leadership called strategic leadership. They enhanced the long-term viability of their companies through the articulation of a clear vision and, at the same time, maintained a satisfactory level of short-term financial stability. And they accomplished this while maintaining relatively smooth day-to-day operations.

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