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Tuesday, May 20, 2025

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Are You a Leader or a Boss? The Choice is Yours

by Robert Levene, Gray, Gray & Gray, LLP


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Companies benefit from executives who establish clear strategic direction, implement effective delegation practices, and invest in both human capital and strategic capabilities

Leaders of heating oil, propane and HVAC companies face a fundamental strategic decision with far-reaching implications for their organizations. This decision centers on how they allocate their time, attention and leadership capital between operational management and strategic direction. The approach executives choose significantly impacts their company’s competitive positioning, organizational culture, and long-term market viability.


The Leadership Spectrum

Energy service executives typically align with one of four operational approaches:

  1. The Operational Manager: These executives immerse themselves in daily problem-solving and operational details, ensuring immediate business continuity but potentially limiting strategic growth.
  2. The Strategic Leader: These executives prioritize long-term planning, market positioning and competitive strategy while maintaining sufficient operational awareness to ensure strategic decisions are grounded in reality.
  3. The Passive Owner: These executives maintain minimal involvement in both operations and strategy, potentially compromising both short-term efficiency and long-term sustainability.
  4. The Balanced Executive: These leaders cultivate an optimal balance between operational excellence and strategic foresight, addressing immediate needs while simultaneously developing capabilities for future growth.

Most executives unintentionally gravitate toward operational management or passive ownership. However, research and industry experience suggest that the most successful organizations benefit from leaders who thoughtfully balance strategic vision with operational awareness, elevating both individual performance and organizational capabilities.


Strategic Leadership vs. Operational Management

Executives who concentrate exclusively on day-to-day problem resolution maintain business continuity, but often
at the expense of organizational development. Some leaders personally manage customer escalations, operational scheduling, and technical troubleshooting, which constrains their ability to provide broader organizational direction. Conversely, executives who disengage from operations may miss critical market signals and operational inefficiencies that could inform strategic decisions.

The most effective organizations are led by executives who establish clear strategic objectives, communicate these objectives consistently and develop high-performing teams capable of executing with excellence.

Consider a fuel company where the executive dedicates their time to scheduling, conflict resolution and customer service management. While the business maintains operations, it may gradually lose competitive advantage as market participants invest in logistics optimization, employee development or customer experience enhancement. In contrast, an executive who delegates operational responsibilities appropriately while focusing on expansion opportunities and capability development positions their organization for a sustainable competitive advantage.

Effective leaders establish organizational objectives, implement accountability structures, and ensure alignment between operational execution and strategic priorities. Strategic leadership does not require disengagement from operations. Rather, it involves developing systems and capabilities that enable proactive rather than reactive management.


Strategic Priorities vs. Operational Execution

While daily operations are essential for business continuity, executive leadership creates maximum value through strategic prioritization. Some executives invest their energy primarily in operational activities: dispatching, pricing, product procurement and issue resolution. Others delegate excessively without providing adequate oversight. The most effective executives maintain sufficient operational engagement to ensure excellence while focusing their primary efforts on future positioning.

Consider a propane company navigating market volatility. An operationally focused executive might maintain delivery schedules effectively but miss opportunities to implement price hedging strategies or expand service offerings during favorable market conditions. Conversely, an executive disconnected from operations might fail to identify efficiency challenges that impact profitability. The most effective executive maintains visibility into both dimensions, ensuring operational excellence while implementing strategic initiatives that strengthen organizational resilience.

The optimal approach involves thoughtful delegation of operational responsibilities while maintaining sufficient engagement to inform strategic decision-making. This balanced approach enables organizations to anticipate and shape market dynamics rather than merely responding to them.


Organizational Culture and Communication

Organizational culture represents one of the most powerful strategic levers available to executives - but only when intentionally cultivated. Some executives assume that hiring practices alone will establish desired cultural norms. Others unintentionally create cultural inconsistency through misaligned incentives, emphasizing customer service verbally while rewarding only productivity metrics, or prioritizing safety rhetorically while operationally emphasizing speed. Effective executives recognize that organizational culture requires deliberate design, consistent reinforcement, and strategic alignment.

Consider an energy company where technicians receive mixed messages - verbally encouraged to prioritize customer satisfaction while being evaluated primarily on call volume. Over time, employees internalize that efficiency metrics supersede customer experience, potentially undermining service quality and brand reputation. Contrast this with an organization where executives consistently reinforce core values, align incentive structures with strategic priorities and model desired behaviors.

Executives can allow organizational culture to develop organically or strategically shape it to drive desired outcomes. Strategic culture development involves values-based hiring, consistent expectation setting and recognition systems that reinforce organizational priorities. A strategically aligned culture enhances employee retention, strengthens customer relationships, and facilitates organizational scaling.


Strategic Risk Management and Growth

Sustainable growth requires deliberate planning and execution. Executives must decide whether to make calculated investments that strengthen organizational capabilities or maintain current operations until competitive pressures necessitate change. Some executives minimize risk exposure, potentially sacrificing growth opportunities and competitive positioning. Others pursue growth without adequate risk assessment, potentially compromising operational stability. Effective executives systematically evaluate opportunities, assess associated risks, and strategically invest in initiatives that advance organizational objectives.

Consider a propane company evaluating infrastructure investments before peak season. A risk-averse executive might forego capacity expansion, potentially leading to supply constraints, margin compression and operational strain during high-demand periods. Conversely, an executive who invests without adequate financial analysis might create cash flow challenges that compromise operational stability. An executive who combines demand forecasting with strategic financial planning positions their organization for sustainable competitive advantage.

The optimal approach balances operational stability with strategic growth. Executives who analyze market trends, develop financial resilience, and implement data-driven decision-making processes position their organizations to thrive across market cycles.


Strategic Choice and Organizational Impact

Executives leading heating oil, pro-pane and HVAC companies regularly make fundamental decisions that significantly impact employee experience, customer satisfaction and organizational performance.

High-performing organizations do not merely operate - they continuously evolve and strengthen their market position. These organizations benefit from executives who establish clear strategic direction, implement effective delegation practices, and invest in both human capital and strategic capabilities. This balanced leadership approach enables organizations to navigate industry evolution, attract top talent, and deliver consistent financial performance.

As an executive, you have the opportunity to determine your strategic focus. The effectiveness of this decision will significantly influence your organizational outcomes.

Robert Levene, the former President & CEO of Levco Energy, is a consultant with the Energy Practice Group at Gray, Gray & Gray, LLP. He can be reached at rlevene@gggllp.com.

Heating, Cooling and HVAC
May 2025
strategic planning
Driver/Tech Staffing
service manager

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