Organisational Ecology and Strategic Leadership

An organisation's basic philosophy is more important tointerests of the company. Motivation to perform for
its result than technological and/ or economicthe company diminishes, motivation to fight for one's
resources, organisational structure, innovation andown or one's own group's interests (against other's in
choice of time. Thomas Watson Jr.the company) increase.
This article contains no information about technologicalMan is also hierarchical. Without obvious leadership, a
trends, economical predictions or market analyses. Itlasting struggle to establish the missing hierarchy starts
lays out five principle insights into how and why anyoff. This is wrongly often understood as expressions
enterprise in the world today should practise Strategicof a power need. This struggle is most often
Leadership internally in the organisation.superfluous. A clear-cut hierarchy based on Strategic
Both strategy and leadership are today a matter ofLeadership is the necessary first step to prevent
course. How comes, then, that so very few'power struggles'.
enterprises do actually practise Strategic Leadership?For all systems and organisations there is a theoretical
The reasons are many. Top managers want to keepoptimum degree of openness:
all ways open, not being bound to follow previously- Closed systems and monocultures degenerate and/
decided paths. They want to keep flexibility.or die out
Sometimes they have hidden agendas that would- Totally exposed systems lose integrity, identity and
surface if strategy was overtly formulated. In somefocus
cases middle management hides from strategy andFree flow of information, and free discussion between
leadership because they want to have the liberty toorganisational levels and lines is a necessity. No single
side with the top one day, the bottom the other - evenperson can be the informed specialist of everything in
on the same topic. Leadership is dangerous, manytoday's complex world. Strategic Leadership ensures
managers seem to feel. One sticks one's neck out,that this exchange of knowledge and opinion happens.
and it might be cut off. Strategic decisions might beThe organisation should be a truly open system
unpopular. Ore one's incompetence as strategic leaderinternally - and of course externally.
might become evident. Sometimes processes asA system that is very open runs the risk of losing
those presented here are avoided simply becauseintegrity, identity and focus. That is exactly another
they take time. There are so many good reasons -contribution from Strategic Leadership: a strategy that
and many of them are respectable and sensible.is owned by all hands implies integrity, identity and
No-strategy and no-leadership may be OK on afocus.
dreamy pacific island. However, in an environment withThe effect of influences to the ecosystem and upon
ever faster changing technology, markets andorganisations is dependant on:
international politics, and with an ever stronger- The content of the influence
competition long term survival depends on strategy- The context
and leadership. The competitively able enterprises of- The order in which the influences come
today and tomorrow are lean, delayered, decentralised,- The stage of development of the system
delegated and flexible. Such enterprises have strategy,The fruitful ongoing process of Strategic Leadership
it is known, owned and practised by more than a CEOshould be strictly led and follow certain patterns. Unless
and leadership is practised at all management levels.this is taken seriously, the situation could turn to the
Strategic Leadership is based on five insights into theworse. Power struggles, bureaucracy, de-motivation
essence of organisations. These insights are hereand wasted time could result. Content, context, syntax
formulated as principles:and the developmental stage of the system must be
Within the ecosystem, all components are dependantregarded.
on other components for their very existence.Ecosystems and organisations are governed by
Individuals and groups within an organisation arefeedback.
mutually dependant on each other and have superiorThe strategically led company depends, as we said, on
common interests.free flows of information and opinion. The company is
Whenever destructive conflicts appear on the scene,a complex, self-organising and self-correcting system.
the main reason is that the 'parties' involved are notAny breach in feedback loops is a threat to the
aware that they are parts of a system on which theycompany. Feedback should be encouraged, and it
all depend. Usually there is a lack of common goals isshould be seen as a matter of course, and an obvious
such situations. Strategy contains the common goals,duty of any employee. Feedback is encouraged and
identity and ethics. Without strategy, the organisation isput to system in Strategic Leadership.
fragmented into departments, professional groups andWe see then, that Strategic Leadership has a
working groups without co-operation or synergy.theoretical basis. This will be further detailed throughout
Individuals and/ or groups of people defend theirthis booklet. Empirical knowledge also strongly supports
territory against intruders, and hierarchical positionsthe necessity of Strategic Leadership. The studies of
against rivals.successful enterprises in the eighties and nineties show
There is no doubt that man is territorial. Withoutthat values and strategic goals are deeply rooted in
strategy, no common territory is defined. Thenthe corporate culture of those enterprises, and that
individuals and groups define their own territory, whichtheir managers practise more active leadership than
is defended and given superiority, even over themere administrative management.