Effective leaders are able to identify the right strategy, structure, people, processes, technology, and cultural requirements for meeting marketplace and customer require- ments. This ability is not only based on experience and intuitive gifts, it also requires rigorous analysis of the condit.ions and standards operating in the marketplace. Great lead- ers are gifted in their ability to see possibilities and to be brutally honest about the reality of the situation. Seeing possibilities against the backdrop of realities is one of the most glaring attributes of effective leaders.

Doing the analysis means studying economic conditions, market opportunities, competitive threats, and organizational infrastructure and capabilities. These competencies characterize a leader who does his or her homework and who insists upon adequate decision support information.
Honing generic skills and establishing the right mind-set entails creating the conditions in which strategic thinking can occur. These competencies characterize a leader who under- st~s that leadership requires more than "faking it." Leaders with these competencies are able to create an environment in which innovative thinking thrives.