What is Organizational Leadership?

All companies have leaders, but not every company has organizational leadership. Some direction is well defined, and much of it is ad hoc, which leaves employees uncertain about who actually sets the course. Ask yourself a blunt question: does your organization move because people are told to move, or because they understand where they are going and want to get there? It’s the difference between compliance and commitment, and it is the heart of organizational leadership.

So what does organizational leadership mean, and how does it take the form of communicating vision, strategy, and goals? Read on to find out what organizational leadership is, how a leader differs from a manager, and how vision, strategy, and clear goals and objectives turn intent into results.

What Is Organizational Leadership?

Organizational leadership is the practice of setting direction for an organization and aligning its people, resources, and daily actions behind a shared vision. It combines the discipline of management with the influence of leadership, so the organization not only runs well but also moves toward a future worth reaching. When trying to break down what we mean by the organizational leadership definition, we have to first ask what is the difference between a leader and a manager?

Are You a Leader or a Manager?

Let’s start with the most basic definition: a leader has followers, while a manager has subordinates. In other words, following a leader is voluntary (think pull), while reporting to a manager is compulsory (think push). Managers hold formal power within your organization. Leaders hold suggestive power. The two roles overlap in the strongest operators, but they are not the same, a point Harvard Business Review’s analysis of what leaders really do has made for decades.

Managers

Managers are described in the organizational structure. Leaders may be anywhere in the organization, or they may not be listed formally on the org chart at all. Look into your organization. Everyone knows who the leaders and managers are. The manager gives orders, describes the objectives, and measures the activity to see that the work gets done. That work is essential, and Harvard Business School Online’s comparison of leadership and management shows why organizations need both capabilities operating together.

Leaders

The leaders are the ones that everyone turns to for an explanation of why the job needs to be done. Good leaders are adept at getting buy-in. Remember that following a leader is voluntary, so without buy-in you are not leading. Authority can compel activity, but only trust and shared purpose can produce genuine commitment.

Leaders Have Vision

Motivation comes from either aspiration or desperation. Status quo is in the middle. If you are not aspiring to greatness, then you are in status quo on the downhill slide before desperation sets in. Leaders pull people toward aspiration before circumstances push them into desperation.

Aspiring to Greatness

Aspiring to greatness requires vision. Creating the future requires vision. Leaders communicate a vision that moves the organization beyond status quo and away from the inevitable desperation that would follow an organization without vision.

Vision is perhaps best illustrated by the artist Michelangelo. It is said that when he looked at a block of marble, he saw an angel inside, and carved to set it free. When you look into your business, the market, or your future, do you see what is possible? Are you able to remove the barriers to release the opportunity awaiting inside your organization? If so, that is vision.

Facilitating Change

Leaders consistently facilitate the changes required to realize their vision. Communicating vision is not one-way communication. Leaders create a dialogue, a sense of community that unites disparate groups within the organization. But vision cannot operate alone, it requires a clear strategy. The strategy brings vision down to earth and connects it to your daily actions.

Vision Through Strategy Innovation

Strategy is about taking the initiative from the competition through innovation and flexibility. Strategy couples survival and success. Organizations must do more than just survive (that is status quo), they must succeed at what they are doing. To be successful, organizations must be flexible enough to innovate. Innovation gives life to the vision, providing a path that others can follow.

What Does It Mean to Innovate?

Education and training introduces us to diverse thoughts and ideas. To innovate we must anticipate, be open to change, and be ready to see the new ideas when they happen. We must use our imaginations to see opportunities that offer something different and new. Moreover, we must find new ways to execute and improve the consistency, reliability, and quality within our operations.

Strategy Innovation

“Strategy innovation is shifting a corporation’s business strategy in order to create new value for both the customer and the corporation.” Want to learn more about strategy innovation? Read The Power of Strategy and Innovation by Johnston, Jr., and Bate. In it, the authors provide a systematic method for creating powerful strategies. Case studies, chapter summaries, and execution tips illustrate how to achieve breakthrough results.

Strategy, Goals, and Objectives

Strategy is realized through goals and objectives. Setting goals and choosing objectives is a lot harder than it sounds. Sure, anyone can set an objective, but can you easily transform objectives into results? That is because good objectives are built by leaders that have a clear vision, a good understanding of the kind of business metrics that can be achieved, and a keen sense of strategy.

Organizational Leadership Definition

This leadership behavior can take on the form of communicating vision, strategy, and goals & objectives. Successful process improvement programs are created from powerful visions, solid strategies, and clear goals & objectives. Put simply, organizational leadership is what connects a compelling vision to the disciplined execution that makes the vision real.

Frequently Asked Questions

What Is Organizational Leadership?

Organizational leadership is the practice of setting a clear vision and aligning an organization’s people, strategy, and daily actions behind it. It combines the influence of a leader with the discipline of a manager so intent becomes results.

What Is the Difference Between a Leader and a Manager?

A leader has followers and holds suggestive power, while a manager has subordinates and holds formal power. Following a leader is voluntary, while reporting to a manager is compulsory.

Why Is Vision Important in Organizational Leadership?

Vision moves an organization beyond the status quo and away from the desperation that follows an organization without direction. It gives people something to aspire to and a path worth following.

How Does Strategy Relate to Organizational Leadership?

Strategy brings vision down to earth by connecting it to daily actions through innovation and flexibility. It couples survival with success and is realized through clear goals and objectives.

How Do Leaders Turn Goals Into Results?

Leaders set clear objectives, understand the business metrics that matter, and secure buy-in so people commit voluntarily. That combination transforms objectives into measurable results.