Tactical change vs strategic transformation
Tactical change addresses visible pain points, reduces variation and speeds up delivery. It is necessary but insufficient when the external context is shifting. Strategic transformation reshapes the business model, operating system and culture to achieve durable advantage. It asks different questions: What are we building toward, what do we stop doing, and how do we redeploy assets to win later, not just today? Strategic leadership provides the lens and discipline to make these calls. (Hambrick and Wowak, 2021)
What strategic leadership adds to improvement
Strategic leadership integrates three tasks: setting direction, building capabilities and ensuring execution through others. It aligns mission, values and priorities so improvement work merges rather than separates. Effective strategic leaders balance short-term performance with long-term positioning by making explicit trade-offs and orchestrating change across levels. This is more than leading projects; it is about shaping context, choices and learning cycles so the organisation can renew itself. (Boal and Hooijberg, 2000)
Capabilities to shift from fixes to futures
Research highlights capabilities that matter for future-building: systems thinking, stakeholder sense-making, strategic decision quality and adaptability. Leaders enable distributed leadership and create clarity about where value will come from next. They cultivate dynamic capabilities like sensing, seizing and transforming, which link improvement activity to strategic priorities. These capabilities separate continuous improvement that optimises today from transformation that secures tomorrow. (Singh et al., 2023)
Linking improvement to innovation
Strategic transformation depends on innovation, not just efficiency. Improvement leaders help convert insights into innovative offerings, processes or platforms that advance the strategy. This requires deliberate choices about exploration, exploitation and governance that protects early-stage risks while scaling what works. Leaders frame innovation around strategic themes, align metrics to learning and adoption, and reduce organisational barriers that stall diffusion. (Cortes and Herrmann, 2021)
Direction, alignment and commitment in practice
To make strategy real, leaders translate intent into a small set of priorities, align structures and incentives and build commitment through communication and involvement. In improvement contexts, this means each initiative must name the strategic priority it serves, the capability it strengthens and the measure that shows progress beyond local efficiency. Clarity of roles, information flows and decision rights turn good intentions into coordinated action. (Davies and Davies, 2004)
Governing the portfolio, not just projects
Strategic leaders manage a portfolio that balances quick wins with platform moves. They time-box experiments, set kill criteria and redeploy resources decisively. By reviewing the portfolio through strategic themes rather than isolated cases, they channel effort to the highest strategic yield, cut initiative overload and allow improvement energy to build into real transformation. (Hambrick and Wowak, 2021)
Measures that signal real transformation
Operational KPIs still matter, but real transformation shows in different signals: shorter strategy cycles, a growing share of future-aligned revenue, rising capability maturity, greater shock resilience and stronger innovation throughput. Track performance and learning together, using lead indicators such as hypothesis velocity, decision latency and adoption curves. This prevents applause for local efficiency while strategic position quietly erodes. (Singh et al., 2023)
Culture as the engine of renewal
Cultures that enable strategic transformation invite inquiry, constructive challenge and informed risk taking. Leaders model curiosity, build psychological safety and run disciplined experiments. This makes it easier to spot weak signals and retire legacy practices. Over time, that cultural operating system becomes the engine that sustains transformation beyond individual programmes. (Boal and Hooijberg, 2000)
Your shift: from firefighting to future-building
Start by checking where your influence time actually goes. Move a set share into strategic work: sense making with stakeholders, shaping a small number of priorities, building capabilities and running portfolio reviews. Link every improvement to a strategic theme and drop activity that does not advance the chosen future. Set a steady cadence that keeps attention on the horizon while you deliver today’s results. (Davies and Davies, 2004)
Action Point
Block out two hours each week for strategic work. In that time, scan for external shifts, meet a cross-functional partner to align on one strategic theme, and review your initiative list against the strategy. Stop or pause at least one task that does not advance the future state. Add one experiment that could unlock a next-wave capability. Repeat for four weeks and review impact on clarity, focus and momentum. (Hambrick and Wowak, 2021)