**7. Components of strategic leadership**

When it comes to effective strategic leadership, there are five key components: (1) Creating an inspiring mission statement and sharing it with colleagues, (2) Developing high-level cognitive activity because developing strategies is hard mental work, (3) Gathering multiple inputs, that is strategy formulation which is democratic, (4) Anticipating and creating a future that involves the invention of a new world, and (5) Revolutionary thinking and action to get things accomplished.

The critical performance components of strategic leadership include the (1) Organization's Business Model which must be designed and driven by the leadership team, who must focus relentlessly on 'doing the right things for the business – not just 'doing things right'. (2) Organizational culture, particularly, the values or beliefs can either be the greatest enabler or inhibitor of organizational performance. (3) An organization's core shared purpose which becomes the 'anchor' that keeps the organization from 'drifting' into danger in the sea of turbulence. (4) Renewal that is the seamless integration of adaptability, innovation, and continuous learning, which is the secret ingredient that sustains the organization's 'vitality', its 'relevance' through time so its 'business model' never becomes outmoded. (5) Organization's vision, which is the destination the organization wants to reach. The organization is on a journey, and it is the responsibility of the leader to ensure that it ends up at the desired destination. (6) Principles of engagement which cover how the organization presents itself to

society including such topics as corporate governance, corporate social responsibility, sustainability or environmental programs, ethical practices and more. Over time these principles define and either strengthen or weaken the organization's image and even the strength of the brand. They cannot be minimized or trivialized. (7) Investing in the growth of the organization's human resources. When an organization aligns itself around a goal or vision, it can harness all of the organization's resources to achieve that goal. For the achievement of the vision, it is necessary to include the following elements: critical success factors, performance drivers, key business objectives (KBOs), and the strategies that assist in achieving these KBOs, all of which must be implemented perfectly to achieve the desired outcomes.

(8) Creation and delivery of value to all key stakeholders including society. Values are defined as any of the tangible or intangible benefits that the customer or stakeholder perceives he or she receives from you and would not realize from any other provider. As such it represents an immediate source of differentiation and is also the foundation for building and maintaining exceptional stakeholder relationships. (9) Agility and resiliency; agility involves identifying, assessing, and acting on opportunities (or threats) faster and better than competition. Resiliency involves recovering from problem situations better and faster than a competitor – minimizing the potential 'cost of lost opportunity'. (10) Relationship mastery; this is the capability to build and maintain exceptional and secure relationships with all key stakeholder groups including customers. In times of market turbulence nothing contributes more to the organization's stability than well-defined and secure relationships with key stakeholders. (11) Competitiveness and growth; the ultimate outcome which is driven by the above. There must be also a sensing system or strategic information architecture to support all the above components including a hyper-decision-making capability.
