Why Visionary Leadership Fails 





Why Visionary Leadership Fails 

Why Visionary Leadership Fails 

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Visionary leadership is widely seen as key to strategic change. That’s because visionary leadership does not just set the strategic direction — it tells a story about why the change is worth pursuing and inspires people to embrace the change. Not surprisingly, then, science and practice have a very positive view of visionary leadership as a critical leadership competency.

But our research finds that the positive impact of visionary leadership breaks down when middle managers aren’t aligned with top management’s strategic vision. This can cause strategic change efforts to slow down or even fail.

When we think of visionary leaders, our first blush response is to think of CEOs. Widely celebrated people like Steve Jobs, Walt Disney, and Oprah Winfrey come to mind. But visionary leadership is not just important for senior managers; it also matters for middle and lower level managers, who play a key role in carrying out strategic change. Their ability to inspire their own teams and create strategic alignment — a shared understanding of and commitment to the company’s strategy — within them is a core element in successful strategy execution.

This is why company leadership frameworks typically list visionary leadership as a key leadership competency for managers. For example, Google’s data-driven Project Oxygen identified visionary leadership as one of the eight traits of stellar middle managers.

However, this emphasis on visionary leadership relies on an untenable assumption: that managers outside the C-suite are always aligned with company strategy. What if they are not?

We studied visionary leadership and strategic alignment in two service organizations in Western Europe (one in the energy industry and another in the transportation industry). Both companies were going through similar processes of strategic change, and creating strategic alignment throughout the organization was a high priority goal in both companies. We surveyed 136 managers and their teams to assess visionary leadership (rated by team members), strategic alignment in the team (determined by computing the agreement between team member rankings of strategic priorities), and the strategic alignment of the managers with top management (determined by computing the agreement between the manager’s ranking of strategic priorities and the CEO’s ranking of strategic priorities). We also interviewed several of the managers and their employees to get a deeper understanding of the relationships found in the survey research.

Our findings unambiguously support the conclusion that visionary leadership is a double-edged sword. When middle managers were aligned with top management’s strategic vision, things played out as the widespread view of visionary leadership would suggest: the more these managers engaged in visionary leadership (by communicating their vision for the future and articulating where they wanted their team to be in five years,) the greater the shared understanding of strategy in their team, and the more the team was committed to strategy execution.

For managers that were misaligned with the company strategy, however, the dark side of visionary leadership became evident. The more these misaligned managers displayed visionary leadership, the less strategic alignment and commitment were observed among their teams.

Our interview findings extended these results. Employees of misaligned visionary managers indicated that their managers created confusion and uncertainty about what the company strategy entailed. This disengaged their teams from the company strategy. As one employee from a team with a misaligned visionary manager explained: “Well, we talk a lot about strategy with our manager. But I don’t see a clear company strategy. I rather choose to focus on my daily tasks and leave it [strategy] for what it is.” 

Whereas visionary leadership thus was a positive force when managers were aligned with the company strategy, it became a negative force standing in the way of strategic alignment when the manager’s vision diverged from the company’s.

The importance of these findings lies in the fact that they caution against what is common practice in many companies. Many companies invest heavily in leadership development. Almost invariably, visionary leadership is seen as a crucial leadership competency in such efforts.

At the same time, companies tend to invest markedly less in creating strategic alignment among their managers. Rather, managers are charged with aligning the organization around the strategy as if their own alignment with the strategy is a given by virtue of their position. Research on strategy execution has documented, however, that there are a range of reasons for why managers may not be aligned with company strategy (e.g., they’re too focused on the interests of their own business unit and can’t see the bigger picture). Managers’ strategic alignment cannot be assumed as a given.

How do you ensure that managers are aligned on your company’s strategy? Our experience working with companies around strategic alignment suggests it starts with creating strategic alignment among middle managers before strategy execution efforts begin. This should not be one-time communication but a dialogue; people will only take ownership of strategic change if they are consistently persuaded by its value. Our research suggests that such efforts are well-advised to ensure that companies benefit from developing their managers’ visionary leadership rather than suffer its dark side.

by Nufer Yasin Ates, Murat Tarakci, Jeanine P. Porck, Daan van Knippenberg, andPatrick Groenen

Nufer Yasin Ates is an Assistant Professor at the Faculty of Business Administration, Bilkent University. He is also affiliated with Tilburg School of Economics and Business, Tilburg University. Nufer’s expertise lies in strategy formulation and implementation, corporate entrepreneurship and strategic leadership. He helps organizations navigate through strategic change via strategy visualization and diagnostic tools.

Murat Tarakci is an associate professor of innovation management at Rotterdam School of Management, Erasmus University. His research investigates how to create innovative organizations. He examines what motivates managers’ search for new strategic initiatives, and how managerial power and leadership affect generating novel ideas. He regularly teaches and advises executives on digital transformation, strategy implementation, and innovation.

Jeanine P. Porck is an Assistant Professor at the Spears School of Business, Oklahoma State University. Her research interests include strategy process, intergroup relations, social identity, multiteam systems, and leadership. She studies the microfoundations of intrafirm relationships, where she is particularly interested in what helps or hinders teams to coordinate and align their efforts, and how these intrafirm relationships impact firm strategy and performance.

Daan van Knippenberg is Joseph F. Rocereto Chair of Leadership at LeBow College of Business, Drexel University, where he is also the Academic Director of the Institute for Strategic Leadership. Daan’s areas of expertise include leadership, team performance, and creativity and innovation; areas where he is not only an active researcher but also conducts diagnostic research to support organizations in strategy implementation efforts. His teaching concentrates on leadership development in the Executive MBA program and in executive education, and on developing researchers through PhD and DBA program teaching.

Patrick Groenen is professor in statistics and the director of the Econometric Institute of Erasmus University Rotterdam. His main research interests are in data science techniques both in their practical application as their development. In particular, he works on methods for visualising data and improvement of predictions through machine learning. He teaches courses in data science at various levels. In applied research, he has contributed amongst others to strategic alignment and HR analytics.