Leadership Strategy

Why many companies are not able to make a financial progress and development?

Nowadays we know how important is the role of marketing in industry profitability and the importance of winning over competitors. These facts have come in large part from the economic infusion into the study of leadership strategy. Strategy has been narrowed to a competitive game plan, separating it from a company’s larger sense of purpose and the exaggerated emphasis on competitive advantage which has drawn attention away from the fact that strategy must be a dynamic tool for the development of a company over time.

Leadership Strategy

During all these years strategy has been lectured in various business schools and computer sciences institutions. It was identified as the most important duty of the chief executive officer (a person with important responsibility). The ubiquitousness SWOT model taught managers to improve their company’ s internal strength environment. Later cooperative planning and standards emerged analysis were added their own frameworks. It has been a time that strategy tool kit became far richer because of it. That said, something has been lost along the way. It has become more formulation than implementation! That is why companies experience financial loses every year and leaders blame it on the world’s financial crises, employee’s bad work performance and so on.

Take Norway as an example: Most of the executive managers, directors in the major government corporations and private sectors have problem with leading their companies and enterprises to the right direction. They do need leadership coaching.

They follow the same cliche formula that has been employed for many years at their companies all over again and changing managers and employees do not help it at all! The main issue is that whoever comes in and takes the boss’s place does the same procedures all over again with some minor so called “changes”: The new guy!

Most of the departments dislike changes. Because they have fear from becoming a failure or losing their big fat paycheck every month! They are not sure about as to whether or not the new idea could be working for them. Norwegians are not risk takers. They should understand that by implementing new strategies they will breathe a new life into their company’s existence.

I used to work as a system designer and developer at one of the Norwegian major companies in Trondheim Norway. My job was to fix system errors develop 3 calculators for their portal, writing use cases regarding these systems, developing GUI along with translation of the whole portal into English language. Because of my good working performance I was moved to a bigger 3 years old and sensitive project.

As soon as I started my work at that department, I noticed within a few days lack of cooperation among 35 employees who were programmers, designers, system developers and system maintenance employees. These problems clearly worried the company’s top executives. That is why they had to hire (via a recruiting company) a team of so called experts to jump in and drive this broken boat towards the island of victory and great result. However during the meetings I noticed these arrogant, strong headed project managers were following an old strategy that would have been doing more harm than good to such big cooperation. Such cliche strategy would also lead the company to major financial problems. It was like drilling a hole in the same boat in a stormy ocean. What do you think will happen to such boat?That’s what i thought as well! I warned them about what they would face within a short time and nobody listened. I resigned.Three months later, they declared bankruptcy, over 150 programmers, project leaders, system designers got laid off.


– Bad management and uncooperative co-workers
– Arrogant professional managers and project leader were unwilling to co-operate with each other
– Unwillingness to listen to constructive criticism and suggestions
– Ordinary employees had to carry on the huge responsibilities that the leaders dictated them to do, hoping to get finally the promotion
– Lack of leadership strategy
– Lack of implementing of new strategies that works
– The high level of employees absence
– Dissatisfaction of work environment

The new changes were not discussed with all employees during the meetings if there were any changes at all The result was obvious more financial problems and less profit with a not user-friendly system. I have been working in various departments both at the government and private sector and unfortunately I noticed the same pattern everywhere. Companies with satisfactory performance were able to implement the newest technologies and recruiting the right people at the right position.The major problem at all these companies is to have fear from the change and having the right knowledgeable leaders. Over the past few years strategy has become a plan that positions a company in its external landscape. Strategy should guide the development of the company and its purposes over time.

What is missing?

The goal should be the value creation. It should be utilized a suitable management strategy that is dynamic and open minded. It should give form as an organic process that is holistic, Adoptive and open minded. The time frame should be continuous and unending. The ongoing activities should foster competitive and advantages must develop the company through time.

In conclusion most strategies involve mystery. Interpreting that mystery is a responsibility that the chief of strategist the CEO should handle. The need to create and recreate reasons for a company’s existence sets the strategist apart from every other person in the company. Mastering the management system is an important job that should be given to the right people. 78% of people who are hired are not right for the job. This is one of the major problems at the Norwegian companies both at the government and private sectors. They have typically two or three round interviews but the techniques that they use scare away the right people .They put the wrong people in the positions which should belong to the suitable candidates.

It is clear that not only Norway but also many countries in North America and Europe have the same problem in respect of recruiting the right candidates. This issue may affect on a company’s performance as a result they lose more money by hiring the wrong person than the right one. Why you may ask?

*A wrong person for the job concentrates on doing their job while the right person will focus on getting the better result.

* A wrong candidate focuses on securing their job by having relationship with employees at the different departments at the company. This way the employer will not be able to fire him or her, because there is no one else who can do his/her job and everybody likes the person! The right person thinks of working as a team in order to be more successful.

* A wrong person never share ideas with their colleagues, because all they care about is monthly paycheck while the right person for the company wants to find a way to lead the company towards more success as a result he may get promotion and help the strategic plan to succeed.


 It is important for the companies to be more focused on using the right updated strategies, hiring right leaders and managers who care about the success and company’s development and employing the right candidates. Result will be obvious financial gain, better working environment and progress in development.

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