Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Research Article: 2022 Vol: 21 Issue: 3

Impact on Strategic Leadership of Strategic Models and Development

Rabiul Islam, University Utara Malaysia

Ahmad Bashawir Abdul Ghani, University Utara Malaysia

Emil Mahyudin, Universitas Padjadjaran

Nazariah Osman, University Utara Malaysia

Citation Information: Islam, R., Ghani, A.B.A., Mahyudin, E., & Osman, N. (2022). Impact on strategic leadership of strategic models and development. Academy of Strategic Management Journal, 21(3), 1-12.


The crucial and critical process that every leader needs to face is the changes from operational level to the strategic level in the organization. The role of strategic leaders is demanding and difficult, and it necessitates matching short-term success targets with long-term performance objectives. Qualitative research has been used in this study. By practicing behavioral theory, leaders can learn and decide what actions they want to take to become the type of leader they want among its advantages. This theory also allows leaders to be more flexible and adapt based on the situations they face. This is to ensure if the strategy is still valid in the future and could be used for a long time or they must modify the strategy. To maintain the sustainable development, organization needs strategic leaders who possess strategic leadership in helping the organization to achieve their intended goals. The strategic plan also shows the path to fulfilling the company's strategic goals or vision, while the financial plan demonstrates the path to achieving financial goals. Many people are not born leaders, but being an excellent leader takes practice and time for most people.


Leadership, Strategic Model, Path Goal Theory, Contingency Theory, Transformational Theory.


The role of strategic leaders is demanding and difficult, and it necessitates matching short-term success targets with long-term performance objectives. Strategic leaders, especially CEOs, give an impact to the company's success regardless of how long they stand firm on their situations. It is importance to have efficient strategic leader because it can be a source of competitive advantage for company. All strategic leadership is a leader but not all leaders can be considered and have the capabilities to be a strategic leader. As stated by Corporate Finance Institute leadership is an individual's or an organization's capacity to lead groups, teams, or organizations toward achieving their goals and objectives. It is crucial in management because it aids in maximizing productivity and achieving strategic and operational objectives. Leaders assist with the motivation of others, the provision of encouragement, the building of morale, the improvement of the work environment, and the initiating of action. Besides, Hitt (2017) stated strategic leadership is the ability to anticipate, envision, maintain flexibility, and empower others to create strategic change as necessary.

The crucial and critical process that every leader needs to face is the changes from operational level to the strategic level in the organization. This is because, the challenges that leaders need to face is huge and a lot of leaders struggle to complete this step and fail to do so. Since the dramatic developments in the market and its competitiveness plus the evolving perceptions of workers from one generation to the next generations, companies must cultivate strategic leaders who are capable of formulating and executing plans that produce the desired outcomes in order to achieve profitability and sustainability. In comparison to operational leadership, which is limited to overseeing only daily operations tasks, leaders who transition from operational to strategic leadership must assume a range of role in order to produce long-term strategic outcomes. This would help their businesses thrive and achieve a competitive edge. That would also make it simpler and quicker for them to execute the change management process. The strategic leader often takes on a variety of roles within the organization while demonstrating his leadership style. Furthermore, strategic thinkers recognize that financial capital is vital to operational growth. Organizations cannot grow until they have the financial support to carry out their vision. As stated by Gartenstein financial planning is the method of relating a company's financial activities to the overall strategy. Financial is only one part of the strategic planning process. Despite of inter linked between strategy of the organizations and financial planning, there are some differences in order for leader to differentiate and focus between long goals and short-term goals. Thus, this paper will analyze the differences between strategic and financial planning in developing strategies.

In today's era of rapid change, an organization desperately needs skilled leaders who can change based on the situation in achieving goals and objectives. In today's era of rapid change, an organization desperately needs skilled leaders who can change based on the situation in achieving goals and objectives. A leader of caliber can determine the long-term viability of an organization because it is able to predict the future based on the interpretation of current indicators that help to choose the right direction for the stability and growth of the organization. In addition, the success of a leader is not success alone, but it is supported by followers who believe in the leader's abilities. This belief is not an easy thing to acquire, and it is also one of the important elements in forming a team that is able to realize the plans that have been made. Therefore, leaders today need to be effective leaders where it requires vision and self - awareness, continuous communication and reinforcement, the ability to be a catalyst for a shared future vision, organization, as well as having followers motivated to act (Cress, 1996). Therefore, this study will describe in depth the definition of leadership from various sources, especially the definition from past researchers in addition to also taking the basic definition and international figures. Then, the study will touch on the concept of leadership itself from the existing concepts that have been put forward by research scholars. Next, the study will discuss the topic of differences between strategic and financial controls. Three versions of the motivational structure will be parsed one by one covering the three classical models.

Literature Review

According to Andrews (1971), he stated that in the concept of corporate strategy, strategy is a rational decision-making process by which the organization’s resources are matched with opportunities arising from the competitive environment. There is no doubt that environment does influence the organization performance, however the statement is being opposed by Grant (1991) where the writer argues that the resources that an organization have as well as their capabilities are the ones that influence the firm strategy. Despite these arguments, all the factors involved whether internal or external, their main purpose is to maximize the performance and helps the organization in achieving goals.

Strategic development consists of strategic planning, strategic formulation, and strategic implementation where strategic planning consists of several processes of data collection, analysis, strategy development, evaluation, selection, and implementation. This process is using SWOT analysis on the internal and external factor that influences the organization. Other than SWOT analysis, Porter (1997) had introduced three major strategic for an organization which are focus, differentiation and cost leadership. Besides, Porter also introduced competitive forces that will determine the attractiveness of an industry which are rivalry among existing competitors in the industry, bargaining power of buyers, barriers of entry into the industry, bargaining power of suppliers and threat of substitute products.

Leadership is probably the most written about social phenomenon of all time, yet it is a topic because it is still not well understood due to its complexity. For years, researchers have tried to study about leadership by focusing on the personality and traits of leaders, Situational and Contingency factors that can impact leadership styles and behaviors, charisma, and transformational leadership. Until now in this era, the topic of leadership is the most studied topic but still difficult to understand, in short it can be concluded that it is a complex and mysterious phenomenon (Almohaimeed, 2015).

The concept of strategic leadership as stated by Management Study Guide (MSG), the ability of a manager to articulate a strategic vision for the organization, or a part of the organization, and to inspire and convince people to adopt the vision is referred to as strategic leadership. The use of strategy in employee management is also often referred to as strategic leadership. While Alhyasat & Mat Sharif (2018) believed strategic leadership is the willingness to convince people to make everyday choices that improve the organization's long-term stability while preserving its short-term financial viability. On the other hand, Hitt (2017) defined strategic leadership as “the leader’s ability to anticipate, envision, and maintain flexibility and to empower others to create strategic change as necessary”. Strategic leadership is adaptable, entails guiding by subordinates, and helps firms in coping with the rapid pace of transition in today's globalized market setting. Furthermore, Alhyasat & Mat Sharif (2018) stated that strategic leadership is the ability to think and act strategically, which can give implications to the organization's strategic plan. Moreover, Palladan et al. (2016) stated that in the twenty-first century, strategic leadership and operational innovation are considered essential for achieving and sustaining strategic competitiveness. Some scholars believe that strategic leadership plays important factors in order to make the 4 company’s policy effective. Palladan et al. (2016) noted that strategic leadership has been generally acknowledged as one of the most recognizable leadership styles that plays an important and significant role in achieving competitive advantages. The key task of strategic leadership, according to Alhyasat & Mat Sharif (2018), is to control human and social resources. They agreed that organizations’ key strategic assets are human and social resources, and that such assets add value to the organization.

According to Gartenstein, is the method of determining where you expect your business to be in the future and then measuring a path to get there? Organizations, on the other hand, cannot go where they want to depart until they have the financial means to carry out their vision. Financial planning is the method of linking a company's financial activities to the overall strategy. According to Wiley a strategic plan sets out the business's course and priorities, as well as guidelines for meeting those objectives, while a financial plan looks at the resources required to meet those goals. He added that financial aspect of strategic planning is just one component of the overall operation.

Financial forecasting, according to Wiley is a prediction of both profits and expenditures that assists a company in identifying potential financial needs and planning based on projected earnings, expenses, and cash flow. When a company doesn't have the financial resources to finance its strategic strategy, it must either change the plan or find other ways to fund it. The distinctions between strategic and financial planning can also be seen in the goal setting process, which is split into long-term, medium-term, and short-term objectives.

As stated by Gartenstein long-term objectives are the most difficult to prepare for when they can stretch too far into the future for company to imagine practical financial plans. Medium-term objectives were found to cross the gap between long-term goals' lack of precision and the technicalities involved with short-term goals. As stated by Gartenstein medium-term priorities allow company to evaluate its success after a period has elapsed and, if possible, reconsider some of company strategic financial planning strategies in terms of how real-life events are occurring. Furthermore, the company's financial forecasts over the next six months can be meaningfully linked to its financial activity over the previous six months. However, if the company is predicting for a whole different business process, such as adding a wholesale division to a supermarket operation, this may become more difficult. According to Wiley, financial processes last for a certain amount of time. Most companies create budgets on a weekly, quarterly, and annual basis. Expenditures should be established for at least the next three years to five years. As stated by Wiley, expenditures should be updated on a regular basis based on existing data; however, "Entrepreneur" cautions companies from being so engrossed in the budgeting process that they fail to do business.

Development of Strategic Leadership Models

Strategic leadership could be defined as way of how manager express their strategic vision for the organization, and how they can motivate and persuade employees in order to acquire the vision. Strategic leaders create the organizational structure, allocate resources and express goals or vision that company should achieve. Other than that, strategic leadership can be said as the ability to influence other to voluntarily make day-to-day decisions that will enhance the long-term viability while maintaining their short-term financial stability at the same time (Rowe, 2001).

The first element of strategic leadership is that strategic leaders determine the firm’s purpose or vision where they give realistic statement about the existence of the firm and what are their uniqueness so that the members of organizations could plan and develop strategies to achieve their goals and vision. The second element is that strategic leaders utilize and maintain core competencies in which they need to list out all the resources and capabilities and combine them to the core competencies that are valuable, rare, difficult to substitute and costly to imitate. All the core competencies will help the organization in gaining competitive advantage when being compared with their rival. The third element of strategic leadership is that strategic leaders must develop human capital which consists of knowledge, skills, and abilities of the organization’s employees. The leaders could develop the knowledge and skills by providing training to them. The fourth components of strategic leadership are sustaining an effective organizational culture where strategic leaders need to know the organization’s culture and values in order to maintain a good working environment. Finally, the fifth components in strategic leadership are that strategic leaders emphasize ethical practices in order to shows good examples to the employees and create an organizational culture that embraces the ethical practices (Slawinski, 2007).

Three Versions of Motivational Structure

Leadership traits

The Great-Man theory looks at the efforts made by researchers in the 19th century in exploring the general leadership characteristics found in leaders. In this century, circumstances are forcing society to need leaders or warriors to determine the guidance towards their success. This theory is supported by historians such as Thomas Carlyle, who centered views based on the historical snippets of great men who are many Westerners. This center of thought advocates that “great leaders are born, not made”. Carlyle also states that "the history of the world is but the biography of great men". He also stated leaders are people with unique talents who can capture people’s imaginations. Moreover, this theory states masculinity is an essential characteristic of a successful leader. This theory also focusing primarily on male and military (Bolden et al., 2003). This also led to next school of Trait Theory. However, this thinking is increasingly diminished and challenged by contemporary researchers. Continuing from The Great Man Theory, Leadership Traits Theory focuses on identifying different personality traits and traits. The two are interrelated in successful leadership in a variety of situations. Carlyle believes where this leadership ability is something people are born with, and it is not something that can be developed like a skill (Cherry, 2018). Because of this argument, it has inspired many researchers to delve into the topic of trait -based leadership studies. Carlyle's theory of leadership is based on the following rationale (Cherry, 2018):

1. Certain traits produce certain patterns of behavior.
2. The pattern is consistent in a variety of situations.
3. People are “born” with leadership qualities.

Scholars continually list traits or qualities that have to do with leadership in large numbers. Almost all of the adjectives in the dictionary have a description of some positive trait, from ambition until regarding of zest for life (Bolden et al., 2003). Like the failure of the Great Man Theory, the Theory of Trait also received the same opposition and fate by later researchers who challenged the basic tenets of these two theories. Early researchers believed about the nature of a leader and based on physical characteristics, beliefs and social characteristics distinguished between a leader and a follower. However, the question that arises is whether the traits of the leader come from genetics or is acquired? Jenkins’s purpose of two traits where emergent traits (acquisition through heredity) as intelligence, height, attractiveness, meanwhile fundamental component of leadership compose of self-confidence and effectiveness traits (acquisition through experience or learning), including charisma (Ekvall & Arvonen, 1991). The failure of this school of thought to detect common traits in every single effective leader results the development of traits theory facing falling. This show in late of 1940s, scholars found in studying traits of military and non-military where certain traits developing by certain times (Khan et al., 2016).

Individual characteristics that describe successful leaders are referred to as leadership traits. Leader needs to have the capacity of a person or an organization to its subordinates to achieve goals and objectives. This is because leaders help to motivate others, the provision of encouragement and so forth. Besides as stated by Sparapani, personal characteristics that form successful leaders are known as leadership traits. Many leadership qualities are transferable from one industry to another. People in positions of leadership, whether in industry, government, or education, may use emotional intelligence, resourcefulness, and creativity to help workers achieve projects and fulfill business goals. Emotional intelligence can be described as the capacity to recognize, use, and control one's own emotions in a constructive manner to alleviate tension, interact efficiently, empathize with others, conquer obstacles, and defuse conflict.

To be a strategic leadership, there are some traits that leader needed such as self-managing, acting strategically, being an effective communicator, being accountable and responsible, having a vision for the future and so forth. While it may seem that certain people are born with these abilities, the fact is that most leadership qualities can be mastered and honed with experience and practice. As stated by Patel (2017), it's difficult to properly handle people if leaders can't manage them self. Self-management entails being able to priorities the objectives and taking responsibility for achieving them. Leaders must be able to manage their time, energy, and feelings while being mindful of their own talents, vulnerabilities, and biases. Furthermore, for today's leaders, a forward-thinking, open-minded attitude is needed. Strategic thinking is a continuous phase that entails evaluating the corporate situation. Being thoughtful, being flexible, focusing on the future, and maintaining an optimistic perspective is all ways that leaders will foster strategic though.

Behavioural Theory

Behavioral leadership theory is a management philosophy that evaluates leaders according to the actions they demonstrate in the workplace. Proponents of this theory believe that all you need to do to be an effective leader is learning a certain set of behaviors. If you are interested in becoming a more efficient leader or adopting a new leadership style, you can benefit from learning behavioral leadership theory. Behavioral leadership theory states that how leaders behave and assumes that these traits can be copied by other leaders. Both are the core of this theory. This is to prove that leaders are not born successful, but effective leaders can also be produced by learning. In this theory, the actions of the leader are given the focus and this theory also suggests in predicting the success of leadership is to look based on the actions of the leader. Action rather than quality is the focal point of behavioral learning theory. The “leadership style” under this theory encompasses patterns of behavior. Some leadership styles include people-oriented leaders, status-quo leaders, task-oriented leaders, country club leaders, dictatorial leaders, and more. In the end, it is the actions and behaviors of the leader that determine success in this theory.

By practicing behavioral theory, leaders can learn and decide what actions they want to take to become the type of leader they want among its advantages. This theory also allows leaders to be more flexible and adapt based on the situations they face. Other than that, this theory proves anyone is capable of being a leader. However, there are some weaknesses in behavioral theory. Among them although this theory allows for flexibility, it does not directly show how to behave in a particular situation. There are dozens of leadership styles derived from behavioral theory, but there is no right style for every situation. An example of a great behavioral theory is looking at task -oriented leaders versus people -oriented leaders. If there is a problem with the team, a task -oriented leader will look at the process to see if something needs to fit into the workflow. People-oriented leaders will look at these individuals and approach them, asking what the problem is. Whatever behavior you choose, behavioral leadership theory helps leaders focus on their actions and leverage their decisions to become great leaders. Here are some key behavioral leadership styles. However, each consists of a different set of behaviors and may have different outcomes based on the situation. People-oriented leaders, Dictatorial leaders, Opportunistic leaders, Paternalistic leaders, Sound leaders, Participative leaders, Task-oriented leaders, Indifferent leaders, Staus-quo leaders, Country club leaders.

As stated by Indeed team, having a positive behavior will inspire the team to be more productive and help them achieve their objectives. It also helps in the retention of top talent within the organization, as team members enjoy the ability to collaborate with leaders. This is the process by which a person can guide, control, and lead the work of others to achieve specific goals. To be someone who encourages and guides others to increase productivity and accomplish the organization's goals, good leadership habits are essential. Leadership habits are critical for increasing a team's success, retaining employees, and nurturing future leaders. Among leadership behavior that can stand out as fundamentally important, including honesty, confident, communication channel open, address issue and so forth. Honesty contributes to a fair and open working environment. Workers are more willing to trust the judgment and confide in leaders with their concerns if they believe that leaders are trustworthy. Besides, when accompany owner is trustworthy, it encourages their staff to believe him or her, which means that when they send the details or expect them to do something, the employers can do the right thing. This is crucial component of a positive corporate culture and organizational growth.

There are two types of leadership behavior which is tasking centered leader and person-centered leader. Choosing a leadership style that complements one's personal characteristics will help an individual succeed in any position. Some believed, task-oriented style corresponds to the concept of a leader, while the people-oriented style is concerned with the qualities of a leader. As stated by editorial Indeed team, task-oriented leaders delegate tasks, establish transparent procedures, and set goals to guarantee that all team members stay engaged and complete their portions of the project on schedule. This management style creates an organized workplace with well specified goals and schedules. Unfortunately, usually task-oriented leadership can fail to pay attention to the well-being of their team members, which can be a flaw in many leadership situations since task-oriented leadership is inherently autocratic. Typically, this model of leaders that are competent style is particularly useful for businesses that need stringent deadlines to be met. On the other hand, person-center leadership expands based on caring for each person in the organization to the next level.

Furthermore, person-center leadership emphasize on the importance of building relationship with subordinates, engaging with others, seeking to understand people, persistence, and tolerance. People leaders do not often have outstanding motivating abilities. They do, though, have the potential to turn up as humans such as with vulnerability, dignity, and care, as well as the ability to move individuals and processes based on a deep caring for people that translates into attitudes that embody that mentality.

Contingency Theory

According to the contingency leadership, there is no specific way to lead a team because the best way to lead the team will be determined by the situation and environment. The hypothesis proposes that in order to increase the chances of becoming a good leader, the leader should be able to analyze each scenario and determine whether or not the leadership style would be successful. In certain instances, this necessitates the person being self-aware, objective, and adaptable. As stated by Villanova University, there are numbers of sub school of contingency leadership theory such as Fiedler’s Contingency Theory, the Situational Leadership Theory, the Path-Goal Theory, and the Decision-Making Theory.

Contingency theory is a group of behavioral theories that state that there is no one best method or method for organizing and leading an organization in a management arrangement (Communication Theory, n.d.). On the other hand, in decision making, a leader can be flexible depending on internal or external factors. The pioneer in this theory was Fred Fiedler who introduced the very famous contingency model and it has opened a branch for the theory and the contingency model to develop in more detail. According to this theory, a leader can be very effective in one situation while it can be the other way around in another situation. Moreover, in maximizing the likelihood of being a productive leader, to decide whether the applied leadership style is effective or not, the leader needs to be able to examine every situation faced. In the context of the workplace atmosphere, there are various factors that can influence the effectiveness of a leader. This includes things like deadlines, team size, scope, and project size. Therefore, each leader has a different and unique leadership style from each other. It also affects the response to the situation in its own way. Thus, contingency theorists state that no matter how high a leader’s success is, there will always be situations that will challenge their 11 abilities. The fact is that leaders need to acknowledge where behind their success depend in part on personal skills and circumstances. Under contingency theory, there are different underlying sub-theories. Each has its own views on the topic of leadership although on a similar surface basis. These sub-theories consist of Fiedler's Contingency Theory, Situational Leadership Theory, then Path-Goal Theory and finally Decision-Making Theory.

Fiedler’s Contingency Theory

Under the theory, the idea put forward is about the effectiveness of leadership that depends not only on the style applied, but also control over the situation that arises. In addition, a strong relationship between leaders and members also needs to be had. The tasks presented must be clear and have objectives and procedures outlined. The power to inflict punishment as well as to reward must also be mastered. This theory strongly emphasizes that a leader’s attitude is a key trait in determining a leader’s ability to lead. Therefore, this theory is particularly suitable to be applied to non -team -based groups and groups need to be closely monitored.

Situational Leadership

The theory is also known as Hersey-Blanchard Situational Leadership Theory because it was introduced by Paul Hersey and Ken Blanchard in 19693. This model focuses on the maturity of the group led and the leadership style. There are four styles that influence the leadership style introduced by this theory namely telling, selling, participating, and delegating. In addition, there is also another mainstream for Situational Leadership Theory which is The Goleman Theory of Situational Leadership introduced by Daniel Goleman. This mainstream mediates six different styles with Hersey-Blanchard namely coaching leaders, pacesetting leaders, democratic leaders, affiliate leaders, authoritative leaders, and coercive leaders.

Path-Goal Theory

By combining two theories, namely goal setting and expectations into one, this theory mediates the idea that an effective leader helps group members in achieving their goals. This theory states that leaders need to assume the responsibility of ensuring that subordinates receive the support and information needed to ensure that the goals and objectives set can be achieved. In short, this theory presents the opinion that an effective leader will open up clear opportunities or avenues to help button employees in order to achieve goals. This theory also argues that effective leaders will try to remove barriers that limit subordinates.

Decision-Making Theory

One of the popular models or theories under the Contingency Theory sub-theory is the Vroom-Yetton-Jago Decision Making Leadership Model. Underlying this theory puts forward the idea that an effective leader can organize a situation, evaluate the situation and then be able to determine how many groups will support the effort. This theory also states that leaders need to adapt the appropriate leadership style. The points made by some of the models under Contingency Theory are different from each other, but the basics are the same. The view of this theory is that effective leadership depends on tasks, people and most importantly emphasized is the situation.


As noted at the beginning of this study, the topic of leadership is very broad and complex. This also includes the theories and models put forward by scholars. Apart from the three popular theories classics in this field, there are also theories that emerge and are often referenced either for application or as new spaces of study and argument. Among those to be discussed are Participative Leadership Theory and Transformational Theory.

Participative Leadership Theory

Participative leadership is a great style for managers interested in whole-team contributions and decision-making. Miller & Monge (1986) asserted that “participation has many conceptualizations from delegation to joint decision making and defined participation as joint decision making”. Similarly, participation or participative leadership is defined as “deciding jointly or as the shared influence in deciding between superior and subordinate through hierarchy” (Wagner & Gooding, 1987). Participative leadership is a style of leadership in which all members of the organization work together to make decisions as everyone is encouraged to participate. Here are the general steps of participatory leadership:

Discuss as a group

There is usually a leader who oversees the process. This leader facilitates a discussion about the issue at hand or the decision that needs to be made.

Provide information

The leader shares all pertinent information for deciding with the whole group.

Share ideas

The group shares ideas about how to solve the problem.

Process ideas and information: The leader summarizes the information and ideas for the group.

Make a decision

The group makes the best decision based on the information and ideas presented.

Implement the decision

All members of the organization implement the decision.

There are many forms in the decision -making process of participatory leadership. But the collective input of all members is a key element. Organizations such as universities, technology companies or construction firms which are the type of organization that has a specific role that requires little management or supervision are most appropriate and successful to apply participatory leadership. However, participatory leadership can be applied with varying levels of ownership across groups to meet the needs of any organization.

Transformational Theory

Transformational leadership is a style of leadership that states that a leader is someone who encourages, inspires and can motivate employees to innovate (Cherry, 2014). The theory also states that a leader can create change that can then help the development and shape the success of the organization in the future. All of this can be realized by applying a corporate culture that probes at the executive level, freedom in the workplace and employee ownership. Based on the theory of Transformational Leaders, leaders can motivate and inspire subordinate employees by believing that their employees to take over decisions while doing assigned work. However, trained workers are needed to see the results. This style, this style will give more space to employees which will produce creative employees, able to see the future as well as be able to express views for the solution of old problems. Employees under this style will also be prepared to become leaders in time through training and coaching.

A few years later, this theory received another development, and it has been adopted to this day under researcher Bernard M. Bass in 1985. Bass included how to measure the success of transformational leadership. Under the Bass model, leaders are encouraged to demonstrate authentic leadership. Moreover, a strong leader with an idea will inspire employees to follow it. Although the Bass model was a model introduced in the 70s, this style of leadership is still adopted at this point. This is because this authentic leadership style is not changing, but the environment for using it. Under the Bass model, there are four different components of transformational leadership presented (Cherry, 2014):

Intellectual stimulation

Aside from challenging the status quo, transformational leaders also encourage creativity among their followers. Followers will be given new opportunities to learn as well as encouraged to explore new ways of doing things.

Individualized consideration

Transformational leadership is also involved in providing support and encouragement to individual followers. Transformational leaders will remain in opening communication spaces to followers until followers can share ideas and it is so that leaders can give recognition to the contribution of unique ideas by each individual. This is also to foster supportive relationships.

Inspirational motivation

To articulate followers, transformational leaders need to have a clear vision. These leaders can also help followers experience the same passion and motivation to fulfill this goal.

Idealized influence

Transformational leaders serve as role models for followers. Because followers respect and trust the leader, followers will imitate this individual and internalized the leader’s ideals.

So, what makes this transformational leadership special? A leader who takes this style as a practice will make his group tend to be successful and loyal. This is because group members will give their maximum to the team and are very concerned about the group's ability in achieving objectives. Leader should create a vision for organization to achieve in five to ten years of time in the future which is it possible for employees and organization to work together to achieve the success. In order to achieve the vision, it is important for leader in ensuring that their employees are in align with the company (Cherry, 2014).


In conclusion, for an organization to sustain in the future, they must undergo strategic process and framework that were being introduced by researchers. The strategy process which is included strategic development that consists of strategic planning, strategic formulation, and strategic implementation. It is important for leaders to do an analysis of external and internal factors that influence the organization as well as evaluate the strategy that are being implemented.

This is to ensure if the strategy is still valid in the future and could be used for a long time or they have to modify the strategy. In order to maintain the sustainable development, organization needs strategic leaders who possess strategic leadership in helping the organization to achieve their intended goals. Strategic leaders who have the traits, personality and skills needed to become intangible resources for an organization that could not be replaced by others. Other than having strategic leaders, organization should practice organizational control that consists of strategic control and financial control in making sure that organization is in the right track and direction.

To sum up, strategic leadership, by its very essence, entails guiding by others, managing a whole organization rather than a functional subunit, and dealing with the dynamic market constant transition. Strategic leaders must understand to successfully control human behavior especially in unpredictable and uncertain situation because of the market situation complexity. Furthermore, strategic leadership are responsible to grab, find and looking into the opportunity when everyone thinks, there is no or difficult way to get the opportunity that are available. The crucial and critical process that every leader needs to face is the changes from operational level to the strategic level in the organization. Besides, strategic thinkers recognize that financial capital is vital to operational growth. Organizations cannot grow until they have the financial support to carry out their vision. Despite of inter linked between strategy of the organizations and financial planning, there are some differences in order for leader to differentiate and focus between long goals and short-term goals.

To be a global leader, leaders need to have abilities to manage and interact with people who have different cultural and background. The characteristic that global leader need include, have a good intercultural communication, cosmopolitan and high emotional intelligence. The detailed of strategic leadership models described into three categories which is leadership traits, leadership behavior and contingency leadership. A leader must be able to steer people, groups, or organizations for the accomplishment of goals and priorities, whether they be individuals or organizations. People in positions of leadership, whether in industry, government, or education, may use emotional intelligence, resourcefulness, and creativity to help workers achieve projects and fulfill business goals. One of the theories of leadership traits is the theory of great man. Great Man theory suggests that the capacity for leadership is inborn. As time goes on, this theory has emerged by saying that leaders were creations of their environment and background of the society in which they existed, and expert concluded that before a "great man" would remake his society, society must first remake him. Nonetheless, having a positive behavior will inspire the team to be more productive and help them achieve their objectives. Leadership behavior refers to the characteristics that make an individual effective as a leader. There are two types of leadership behavior which is tasking centered leader and person-centered leader. Choosing a leadership style that complements one's personal characteristics will help an individual succeed in any position.

Apart from that, leaders act as an importance person to play a role in the developing strategies in the organizations. Moreover, although strategic and financial planning are interrelated and interlinked but there are some differences between both. The strategic plan shows the path to fulfilling the company's strategic goals or vision, while the financial plan demonstrates the path to achieving financial goals. On the other hand, financial targets include all monetary that an organization wishes to do within a specific time frame. Furthermore, Strategic planning is the process of preparing for the future while keeping the company’s vision and purpose in sight, whereas financial planning is undertaken in order to meet the financial goals that have been established. Moreover, one of key that can lead to the highest performance of people and organizations is motivation. However, different people have different factors that can affect their motivation. Trust, recognition, and reward system among the motivation that leaders can give to their employees to boost the motivation. Finally, many people are not born leaders, but being an excellent leader takes practice and time for the majority of people.


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Received: 05-Feb-2022, Manuscript No. ASMJ-22-11452; Editor assigned: 08-Feb-2022, PreQC No. ASMJ-22-11452(PQ); Reviewed: 18-Feb-2022, QC No. ASMJ-22-11452; Revised: 23-Feb-2022, Manuscript No. ASMJ-22-11452(R); Published: 28-Feb-2022

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