Strategic Leadership Flashcards
Strategic Leadership
The ability to anticipate, envision, maintain flexibility, and empower others to create strategic change as necessary.
* Multifunctional task that involves:
* Managing through others
* Managing an entire enterprise rather than a functional unit
* Coping with change from internal and external environments
* Attracting and managing human (includes intellectual) capital
* Leaders can make a major difference in how an organisation performs.
VUCA
- Volatility– The nature and dynamics of change, and the nature and speed of change forces and change catalysts
- Uncertainty– The lack of predictability, the prospects for surprise, and the sense of awareness and understanding of issues and events
- Complexity– The multiplex of forces, the confounding of issues and the chaos and confusion that surround an organization
- Ambiguity– The haziness of reality, the potential for misreads, and the mixed meanings of conditions; causeand-effect confusion
Strategic Leadership
Effective strategic leaders:
* Guide the organisation in ways that result in forming a vision and mission.
* Create goals that stretch everyone in the organisation to improve performance.
- Facilitate the development of appropriate strategic actions and determine how to implement them.
- Inspire and enable others to do excellent work and realise their potential.
- Build strong ties with external stakeholders to gain access to information and advice.
How do we create that mission and vision…what does it stand by
Cognitive component
Managerial Leadership
- Adopt impersonal, passive attitudes towards goals.
- View work as enabling process that involves some combination of ideas & people interacting to establish strategies & make decisions.
- Relate to other people according to their role in the decision making process.
- Maintain a low level of emotional involvement in these relationships.
- Influence only the actions & decisions of those with whom they work.
- Want stability & order and strive to preserve the existing order.
Managerial leadership is transactional
But need transactional as well to get things done
Operational focus need this (3 Factor Model)
Gamet of psychology
Visionary Leadership
- Shape ideas as opposed to reacting to them.
- Influence changes in the way people think about what is possible, desirable and necessary.
- Are concerned with ideas & relate to people in intuitive & empathetic ways.
- Are more likely to make decisions that are based on values.
- Are willing to invest in human capital & creating & maintaining as effective culture to ensure long term viability.
- Is future-oriented & concerned with risk taking.
- Want creativity, innovation and chaos; strive to change the existing order.
Create vision may not have strategy
Become problem as they don’t know how to use it
Don’t understand alot of things
Future oriented
Buy more assets
Managerial Leaders
-Want stability & to preserve the existing order
-Are comfortable handling short-term day-to-day activities
-Guide without a strategic vision.
- Constrained by values & by using explicit
knowledge
Strategic Leaders
-Manage the paradox created by use of
managerial & visionary leadership models
-Define boundaries by use of metaphors, analogies & models to allow for a mix
of contradictory concepts
-Guide knowledge creation by encouraging
contradictory capabilities (e.g. individual, group, and organizational tacit & explicit knowledge)
Visionary Leaders
- Are future-oriented concerned with risk-
taking
- Are not dependent on the organisation for
their sense of who they are - Control by socialisation & sharing common
norms, values & beliefs
Role of top-level managers
- The focus of strategic leadership is usually on top level managers.
- Top level managers play a critical role in strategy formulation and implementation.
- Their strategic decisions influence how an organization is designed and how goals are achieved.
- Top managers also develop structure, culture, reward systems, and policies/SOPs.
- Having a top management team with superior managerial skills is critical.
- Managers make a difference because of the discretion (or latitude for action) they use when making strategic decisions.
Chief of their vision
Come up with strategy and think how to implement
Good visionary and managerial skill
Effective leadership:
Six components of strategic leadership
- Determining the firm’s purpose or vision
- Exploiting and maintaining core competencies/resource portfolio
- Developing human capital
- Sustaining an effective organisational culture
- Emphasizing ethical principles
- Establishing balanced organisational controls
Determining Strategic Direction
- Involves specifying the vision and the strategy to achieve this vision over time.
- Vision is a picture of what the firm wants to be and in broad terms what it wants to ultimately achieve.
- Strategic direction is framed within the context of the opportunities and threats over the next 3-5 years.
- Ideal long-term strategic direction includes a core ideology and an envisioned future.
- Should serve to motivate, empower, and guide the organisation.
What is the business u are in and how u can go about it
Business brand cannot be marketed to a certain group of people e.g martial arts or boxing
Boutique business, broaden the business type…have a direction, how many franchise we need in the years to come
Effectively Managing The Firm’s Core Competencies
- Includes financial, social, organisational (competencies and capabilities), and human capital.
- Firm’s resources must be managed in a way that is consistent and supportive of strategy.
- Effective strategic leaders manage their firm’s resource portfolio by:
- Organising the resources into capabilities
- Structuring the firm to facilitate using those capabilities
- Managing each type and integration of resources
- Choosing strategies through which the capabilities are successfully leveraged
- Core competencies are resources and capabilities that serve as a source of competitive advantage for a firm over its rivals.
- Relate to an organisation’s functional skills.
- Leadership must verify that the firm’s competencies are emphasized when implementing strategy.
- Build their strategy around things they are good at and/or become good at doing things that are supportive of strategy.
- Firms must continuously develop/change their core competencies to prevail over competitors
What people pay for …gym to be accountable and motivated
How do we build a team from there
Who’s on the bus and build a strategy around there
All the stuff are dynamic
Developing Human and Social Capital
- Human capital – Knowledge, skills and abilities of a firm’s entire workforce, requiring investment in training and development.
- Social capital – Relationships inside and outside the firm that help it accomplish tasks and create value for customers and shareholders.
- Cooperative strategies, e.g. strategic alliances, may leverage complementary resources to develop social capital.
- Firms with strong social capital can access multiple capabilities, providing them with important flexibility to take advantage of opportunities and respond to challenges.
How to develop
Part of the ecosystem
How do they grow and get better at their job
How to develop social capital…outreach
Align initiative to that community is going towards
Sustaining an Effective Organisational Culture
- Organisational culture – the complex set of ideologies, symbols, and core values shared throughout the firm.
- Influences the way business is conducted.
- Shapes the context within which the firm formulates and implements its strategies.
- Also helps to regulate and control employee’s behaviour.
- Strong organisational culture may be a competitive advantage.
Culture
Drucker…eat culture for lunch
Culture maintain strategy
You as leader become relevant as business grow
Culture and values need to maintain
Regulate the behaviour of others
- Cultures can vary in strength depending on the degree to which they are embedded in company practices and norms.
Clear culture - Firms must match culture to strategy, as a culture that promotes attitudes and behaviours that are well-suited to strategy will help in the achievement of strategic competitiveness.
- Related firms should develop cooperative cultures
- Unrelated firms should develop competitive cultures
- Cost leaders should value economy, frugality and efficiency
- Differentiators should value innovation, quality, excellence
- Once developed, a company’s culture tends to last because:
- Organisations hire people who fit the firm and its culture
- Employees learn by observing the behaviour of others and through socialisation and systematic indoctrination of cultural values
- Storytelling of company legends and ceremonies that honour employees who display cultural ideals
- Visibly rewarding those who follow cultural norms
Maintain culture in a certain way
Emphasizing Ethical Practices
- Effectiveness of strategy implementation processes increases when based on ethical practices.
- Ethical practices create social capital and goodwill for the firm, and can be used to control employee judgment and behaviour.
- Actions that foster an ethical organisational culture:
- Establish and communicate ethics-related goals
- Continuously revise, update, and disseminate code of conduct
- Develop and implement ethical policies and procedures
- Use rewards to recognise ethical behaviour
- Create a working environment that treats all with dignity
Leader do affect Growth and strategy
Establishing Balanced Organisational Controls
- Controls – Formal, information-based procedures used by managers to maintain or alter patterns in organisational activities.
- Controls provide the parameters for implementing strategies as well as the corrective actions to be taken when implementation related adjustments are required.
- Act as limits on what employees can or cannot do.
- Financial controls:
- Focus on short-term financial outcomes
- Accomplished through setting objective criteria such as performance targets
- Strategic controls
- Focus on the content of strategic actions rather than their outcomes
- Accomplished through information exchanges that help develop strategies
Financial control is easier - u can monitor the budgeting
Strategic control
How do we strategise our goals? If not, do we quit
Sustaining a culture
There is no prescriptions on how to do it
It’s only a description
