Creating wealth in organizations: The role of strategic leadership

Abstract

Wealth creation in entrepreneurial and established organizations is a complex, challenging task in today's global and technologically advancing business environment. Strategic leadership enhances the wealth-creation process in entrepreneurial and established organizations, and leads to above-average returns. On the other hand, managerial leadership will likely lead to average returns at best, but is most likely to achieve below-average returns and destroy wealth. Organizations led by visionaries who are not properly supported by strong managerial leadership may destroy wealth even more quickly than organizations led by managerial leaders. This article defines strategic leadership, differentiates among the concepts of strategic, visionary, and managerial leadership, and examines the differential links between the three types of leadership and wealth creation. When organizations restore strategic control and allow the development of a critical mass of strategic leaders, these leaders will be a source of abo...