Strategic leadership capabilities
Hitt et al. (1998) and Ireland and Hitt (1999) described the capabilities needed for effective strategic leadership in the new competitive landscape expected for the 21st century. They argued that effective strategic leaders had to: (1) develop and communicate a vision, (2) build dynamic core competencies,
(3) emphasize and effectively use human capital, (4) invest in the development of new technologies,
(5) engage in valuable strategies, (6) build and maintain an effective organizational culture,
(7) develop and implement balanced controls, and (8) engage in ethical pratices.

4.1. Develop and communicate a vision

First, strategic leaders–—hopefully in concert with others in the organization–—must develop a vision and communicate that vision broadly, to help guide the formation and implementation of strategies to achieve that vision. This form of guidance is important to establish the direction of the organization for its growth, types of products, and market focus, and to achieve the desired targets. Without the guidance provided by a vision, organizations can become chaotic and are unlikely to be as successful. 4.2. Build dynamic core competencies

A core competence is a major capability to perform important tasks (e.g., a function) quite well, and makes a valuable contribution to a firm’s competitive advantage. A dynamic core competence implies that the firm continues to develop and update the competence to be the leader, or at the forefront, in that capability. It also implies that the firm is prepared to develop a new competence to replace an existing one when necessary to maintain a competitive advantage, and/or to build a new advantage.

4.3. Emphasize and effectively use human capital

An emphasis on human capital suggests that strategic leaders attract and retain the absolute best employee