Chapter 2 Flashcards
(35 cards)
Strategic Leadership
pertains to executives´ use of power and influence to direct he activities of others when pursuing an organisation´s goals.
- Power: the strategic leader´s ability to influence the behaviour of other organisational members to do things
What do strategic leaders do?
67% face-to-face meetings
working alone …
Level-5 Leadership pyramid:
Level 1: Highly capable individual:
makes productive contributes through motivation, talent, knowledge and skills
2: contributing team member:
use high level of individual capability to work efficiently with others in order to achieve team objectives
- competent manager:
is efficient and effective in organizing resources to accomplish stated goals and objectives - effective leader
presents compelling vision and mission to guide groups toward supieror performance - executive leader CEO
builds enduring greatness by combining willpower and humility
Strategic formulation
concerns the choice of strategy in terms of where and how to compete
strategic implementation
concerns the organisation, coordination, and integration of how work gets done
Vision
captures on organisation aspiration and spells out what it ultimately wants to accomplish
product-oriented vision
defines business of a good or service provided.
- focuses employees on improving existing products and services without considering underlying customers problems to be solved
costumer-oriented vision
defines business in term of providing solutions to customer needs
- allows the company to adapt to changing environment and focus on employees on how to best solve a problem for the costumer
Mission
describes what a company actually does (the products and services it plans to provide and the markets it will compete)
value
is a statement of principles to guide an organization as it works to achieve its vision and fulfill its mission
Top-down strategic planning
- a rational,
- data-driven
- top manager attempts to program future success
- we can predict future with the past assumption which works when environment is stable
scenario planning
strategic planning where the top manager envisions different what-if scenarios to anticipate plausible future events in order to derive strategic responses
black swan events
incidents that describe highly improbable but highly-impact events
dominate strategic plan
the strategic option that top managers decides most closely matches current reality and is then executes
intended strategy
the outcome of a rational and structured top-down strategic plan
realised strategy
is a combination of top-down strategic intentions and bottom-up emergent strategy
emergent strategy
describes any unplanned strategic initiative bubbling up from deep within the organisation. if these are successful they have the potential to influence and shape the firms overall strategy
strategic initiative
any activity a firm pursues to explore and develop new products and processes, new markets and new ventures
autonomous actions (bottom up strategy)
strategic initiative undertaken by lower-level employees on their violation and often in response to unexpected situations
serendipity
random events, pleasant surprises
- can have a impact on a firms strategic initiatives
serendipity
random events, pleasant surprises
- can have a impact on a firms strategic initiatives
resource-allocation process RAP
determinds the way it allocates its resources and can be critical in shaping its realised strategy
planned emergence
strategy process in which organisational structure and systems allow bottom-up strategic initiatives to emerge and be evaluated and coordinated by top management
Strategic decision making: theory of bounded rationality
when individuals face decisions, their rationality is confined by cognitive limitations and the time available to make a decision.
