The importance of context in developing leadership effectiveness is critical. For too long the focus of leadership development has overly emphasised personal qualities and competencies. Clearly, in developing a new appointment to a managerial role, it is essential to concentrate on the leader’s personal abilities with respect to a group of people.

For senior managers, leadership development needs to balance the development of personal qualities with the capabilities to understand the competitive environment and formulate strategies for success. This means developing the ability to analyse the external market in which their business seeks to prosper and to assess the internal environment of the organization.

What does current reality look like for the business with respect to market opportunities? The leader needs to develop the skills and confidence to operate from a ‘broad functional orientation’. He/she needs to develop the capability to address the ‘big picture’ issues. Having their own ideas about these issues is vital. However, these ideas are best used to stimulate the thinking and involvement of their next level managers.

Leadership is about what to do, about how to do it, and with whom. Involving the executive team in establishing common purpose or re-invigorating an existing purpose is crucial to being able to inspire people with meaning and focus. Key components in an effective leader’s approach will include managers in shaping direction to capitalise on market opportunities, and fashioning guiding principles to underpin how the business will operate.

It is critical that you understand the culture before you try to change it. As culture also interplays with structure and processes, an integrated assessment is essential for a clear picture of current reality. It is ‘enabling’ leadership that stimulates the engagement, ownership and commitment of people to the purpose and direction of the enterprise that achieves success.