Home / Student Leadership Development / Leadership Briefings / Seven Strategic Factors Seven Strategic Factors for Success Strategic success factors comprise performance areas of such importance that outright failure in one particular area can significantly impact the entire organization. Every organization has its own unique profile of strategic success factors, but here's a short list that all organizations have in common: Leadership Communication Strategic Alignment Teams and Teamwork Organizational Learning Conflict Resolution Change Management All seven have been important since people first formed organizations to accomplish tasks too big to be performed by individuals working alone, and all of them will continue to be a challenge as long as people work together. The form each takes is constantly evolving to fit changing circumstances, but every once in a while, major shifts occur which dramatically change what's required in each of these key areas. We're experiencing such a shift right now, moving from an industrial focus to an information enriched era. Globalization and information technology are placing different, challenging demands on leaders and organizations in virtually every performance area. Here are some highlights of these changes: Leadership "Command and control" management techniques of the past, carried many organizations to high levels of financial performance during periods when competition was not so great and things didn't change very fast, but its time has passed. The demands on the total organization are too great for a few people at the top to call all the shots. As we approach the 21st Century, successful organizations embrace the fact that leadership is an influence relationship that makes people want to follow or emulate another. It transcends a particular title, position or role. Because it is a behavior that can be observed, every individual within the organization can display leadership. Organizational executives maintain many of the traditional management authorities and accountabilities. However, significant changes do occur in their roles as organizational leaders, in that they become agents and facilitators of change. Communication In most organizations, there have been three pervasive patterns that will no longer work in the information era: (1) the primary flow of information was vertical, within departmental walls that were often impermeable, (2) information was hoarded and used as a source of power over others, and (3) people at the top often withheld crucial strategic information from those lower in the organization in the belief that they couldn't handle it. Effective Communications is probably the single most important component of organizational success today. It is imperative that all members of the organization receive information, either verbal or written, in regard to both the expectations and performance of themselves, their teams and the organization. The adage that individuals may question what you say, but believe what you do, reinforces the fact that communications are dependent upon consistent and credible behavior that matches one's verbal and written communication. Strategic Alignment Customer focus, business process reengineering and systems thinking are moving strategic alignment back to the top of many corporate agendas. It has become crystal clear that many of the greatest opportunities for productivity improvement and customer delight lie at the interfaces of the processes used to produce products and serve customers, and it is fruitless to excel in one process while lagging in others. The greatest responsibility of the executive leadership team is to articulate a vision and mission, provide direction and remove barriers between functional entities within the organization in order to strengthen and align all individuals and functional areas with the strategic intent of the organization. Teams and Teamwork A team can be defined as "two or more mutually dependent individuals who share a common objective or goal and rely on cooperation and communication in order to realize success." Teamwork is more crucial to producing results today than ever before, and at the same time, the very nature of teams and their functions are changing rapidly. In the past it was typical to go for long periods, even an entire career, as the member of one functional team. Today, membership on more than one team is the norm, and it is unlikely that anyone entering the work force will remain on the first team they join for more than a year at most. Because of this, everyone needs to learn to coordinate his or her efforts with those of other people and teams in the organization. Organizational Learning Creating a "Learning Organization" is crucial to the success of organizations today because at it's foundation is the process of "learning how to learn" collectively. It begins with self-knowedge and self-mastery and involves looking outward to develop knowledge of and alignment with others in the organization. Characteristics of "Learning Organizations" include: systems thinking, personal mastery, mental models, shared vision and team learning. Understanding and utilizing intellectual capital and knowledge management are two current imperatives facing organizations throughout the world today. Conflict Resolution The information era increases the potential for conflict in virtually every area of organizational life. Stakeholders are more informed and frequently more demanding. Associates are being asked to do more with less, without the promise of job security that existed in the past; aligning self-interests with corporate interests is not as simple as it used to be. Alliances, mergers, and acquisitions bring together cultures and set the stage for major internal conflicts and power struggles. Developing good conflict resolution skills needs to be high on everyone's personal and corporate agendas. Change Management Individuals and organizations that change before they have to will be the winners in global competition. People vary in their tolerance of change and in the degree to which they actively seek change in their lives. It is difficult to grasp the potential for the continuing acceleration of change on a global scale. With more people having more access to information, it is reasonable to expect more innovation and more competition on a daily basis. Merely accepting change and learning to tolerate it will not be enough to successfully compete in the next century. We must become eager seekers of change and understand how to manage it effectively both personally and organizationally. It has been said that opportunity occurs when challenge meets preparation. Because of this, the future belongs to those who are prepared. Individuals must take responsibility for updating their skills and knowledge. Teams must understand the two functions of teamwork: both how team members relate (group process) and how teamwork is accomplished (task focus). As a result of concentration on group process and task focus, groups of individuals can become transformed into unified work teams. And finally, organizations need to continuously improve their ability to transform data into value-added, actionable information to serve their customers. 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