Often, leaders function with a strategic mindset and a holistic approach. However, the best managers are the ones who think strategically and manage with the whole function in mind. To do both these things takes a level of maturity most managers don’t come by naturally. The nature of working within a leadership role is to think tactically and be responsible for one or two aspects of that function.
Most functional managers have been promoted to leadership roles by performing well in one or perhaps two areas. For instance, the head of marketing will have excelled in one of the following: advertising, communications, brand management, product management, direct marketing, and other areas incidental to their function.
As good as he is in one of these areas, he is probably only marginally competent in most of the others. It is rare to find someone who understands state-of-the-art concepts for all areas in the function, who can balance current functional needs with future business goals, and who understands the roles and contributions of all the other functions and how they impact and are impacted by his position.
Mature leaders recognize that they must grasp the large picture rather than the small piece with which they are comfortable
To ensure the leadership pipeline is open and free-flowing at this level, managers must learn to value, develop necessary skills, and spend time on functional strategy and managing the whole function. They must also be ready and able to recruit externally if they lack sufficient talent to meet immediate needs.
Let’s examine the strategic requirements first.
Functional Strategy
Up to this leadership level, managers have spent time creating supporting operating plans in a given area of their function for the functional strategy. Now they must shift to creating a functional strategy. The five requirements at this level are as follows:
1. Longer-Term Thinking
The business general manager must produce a long-range strategy, and the functional manager has to follow suit with a dovetailing plan. Matching the functional strategy time frame with the business strategy time frame is an unfamiliar task for a manager who has spent his work life thinking in annual terms. Again, the notion of maturity is a helpful concept here.
2. State-of-the-art
Staying ahead of the state-of-the-art curve is a challenge for functional managers. Keeping abreast with what’s possible technically, operationally, and professionally is essential; it will directly affect their function’s capabilities to contribute to the business’s competitive advantage. In our current environment, a strategy that is anything less than state-of-the-art is woefully behind the times.
In an internet society, information about new technologies is easily acquired, and people can find and bid for new opportunities electronically. Functional managers need to capitalize on the internet and other tools to keep informed about new developments that will maintain or achieve cutting-edge status for their function.
Companies like Dell and Toyota have gained a competitive advantage through state-of-the-art functional strategies. Customers can order a computer or a car customized to their specifications and receive it with unprecedented speed. Demand-flow technology has produced a competitive advantage for these organizations, and functional managers who master new processes and technologies can help their companies gain a similar edge.
Read also: Maturing into a leadership role
3. Complete Understanding of the Business Model in Detail and Long-Term Strategic Direction and Goals
This might seem obvious and easy to achieve, but it’s not. Partial understanding or even misunderstanding is often the norm for new managers simply because they have been isolated in their operational frame of reference for so long. Mature leaders recognize that they must grasp the large picture rather than the small piece with which they are comfortable. A functional manager possesses a good understanding if she can answer questions such as these:
– What is this business trying to accomplish?
– How does it want to position itself in the market?
– Has the strategy changed recently, or is it likely to change soon?
– Does my function contribute to our competitive advantage?
– What must each function contribute to that strategy?
– How does my function’s effort impact the strategy?
– How does my function impact the other functions’ ability to contribute?
– How does the business make profit?
4. Factoring All Aspects of the Function into Strategic Thinking
This is a place where functional managers need to shift their time applications. In the past, they probably spent little time learning about functional areas for which they weren’t responsible. Now it’s mandatory, and it requires a significant amount of time. No matter how competent a functional manager’s direct reports are, he is responsible for integrating all the pieces into a viable strategy. Without sufficient knowledge, he can’t do this effectively.
5. Ability to Make Trade-Offs Within the Function That Support Business Strategy, Profitability, and Competitive Advantage
This requirement involves recognizing the connections among various functional groups. The sometimes-complex linkages aren’t apparent unless continuous dialogue is taking place. Again, functional managers should take the time to talk to their direct reports and learn how each of their groups works best with other groups. Functional managers must also understand strategy and systems thinking to link what’s happening under their watch to the larger business issues and goals.
Please look out for a continuation of this article.
