Leadership & managing change

8/10/2019 Leadership & managing change

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BITSPilaniPilani | Dubai | Goa | Hyderabad

MMZG514 (Lecture # )Dr. Anubha Dadhich, Department of Management, BITS

Pilani.


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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

Creating Vision and Strategic

Direction

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Good business leaders create a vision,

articulate the vision, passionately own the

vision, and relentlessly drive it to completion.

Jack Welch


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Strategic Leadership

The ability to anticipate and envision the

future, maintain flexibility, think strategically,

and initiate changes that will create a

competitive advantage for the organization in

the future.

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Most important function of a leader

The most important function of a leader is todevelop a clear and compelling picture of the

future, and to secure commitment to that

idea.


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The Domain of Strategic Leadership

Architecture for alignment and

implementation

Strategy

Mission

Vision


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Examples of some brief Vision

Statements

Motorola

Become the premier company in the world

Ritz-Carlton (Amelia Island) Engineering Dept.

Where no hotel has gone beforefree of all defects

Johnson Controls Inc.

Continually exceed our customers increasing expectations

New York City Transit

No graffiti

Egon Zehnder

Be the worldwide leader in executive search



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Questions to Ask?

The leader must ask there questions to test his

or her vision:

1) Is this the right time?

2) Is this the right direction?

3) Are these the right goals?

This must then be shared with your team and have it

SUPPORTED.



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The Nature of the Vision

Current

reality

Staying the course

Vision



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What Vision Does?

Links the present to the future

Energizes people and gains commitment

Gives meaning to work Establishes a standard of excellence and

integrity



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Common Themes of Vision

Vision has broad appeal

Vision deals with change

Vision encourages faith and hope

Vision reflects high ideals

Vision defines the destination and the journey



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Vision must be able to:

Work at multiple levels

Be inspirational at all levels Encourage independent action

Develop Self-reference

Be supported by the Company LeaderShip



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Requirements for an effective

Vision

For a VISION to be effective it must be

developed by leaders.

Developed by leaders, those with strengths to

influence to establish direction

Must be communicated to followers and must

be supported by them.



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Requirements for an effective

Vision

Developed by leaders, those with strengths to

influence to establish direction

Must be communicated to followers and must

be supported by them.

Must be comprehensive and detailed so all

understands its meaning and direction.



Mission

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The organizations core broad purpose and reason for

existence.

It defines the companys core values and reason for

being, and it provides a basis for creating the vision.Whereas vision is an ambitious desire for the future,

mission is what the organization stands for in a

larger sense.



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Mission

Two critical parts:

Core values guide the organization

Core purpose is why the organization exists



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Leaders Framework for Noble Purpose

Purpose Description Basis for Action

Discovery Finding the new Pioneer

Excellence Being the best Fulfillment

Altruism Providing service Happiness

Heroism Being effective Achievement



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Strategic Management

Strategic Management

The set of decisions and actions used to formulate and

implement specific strategies that will achieve a

competitively superior fit between the organization and its

environment so as to achieve organization goals

Strategy

The general plan of action that describes resource

allocation and other activities for dealing with theenvironment and helping the organization attain its goals



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Develop Strategies Focusing On

Core competence

Developing synergy

Creating value for customers


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Core Competence

Something the organization does extremely

well in comparison to competitors.

Leaders try to identify the organizations

unique strengthswhat makes their

organization different from others in the

industry

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Synergy and Value

Synergy: the interaction oforganizational parts to produce a

joint effect that is greater than the

sum of the parts

Value: the combination ofbenefits received and costs paid

by the customer


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Strategy Formulation and

Implementation

Strategy Formulation

The integrating knowledge of the environment, vision, and

mission with the core competence in such a way as to

achieve synergy and create customer value

Strategy Implementation

Putting strategy into action by adjusting various parts of

the organization and directing resources to accomplish

strategic goals


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Strategy execution

Strategy executionmeans using specific

mechanisms, techniques, or tools for directing

organizational resources to accomplishstrategic goals. This is the basic architecture

for how things get done in the organization.

Strategy execution involves using several toolsor parts of the organization that can be

adjusted to put strategy into action.

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Strong leadership is one of the most

important tools for strategy execution.

Followers need line of sightto the

organizations strategic objectives, which

means they understand the goals and how

their actions will contribute to achieving

them.

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Making Strategic Decisions

Ease of Implementation

Hard Easy

Strategic

Impact

High

Low

High Impact, Hard to

Implement.

Major changes, but with

potential for high payoff

High Impact, Easy to

Implement.

Simple changes that have

high strategic impact

take action here first

Low Impact, Hard to

Implement.

Difficult changes with little

or no potential for payoffavoid this category

Low Impact, Easy to

Implement.

Incremental

improvements, smallwins; pursue for symbolic

value of success


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Stimulating Vision and Action

The Dreamer The Effective Leader

The Uninvolved The Doer

Action

Low High

Low

High

Vision

Four types of leaders are described based on their attention to vision and

attention to action.


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The dreamer,on the other hand, is good at

providing a big idea with meaning for self and

others. This leader may effectively inspire

others with a vision, yet he or she is weak onexecuting strategic action.

The person who is low both on providing

vision and stimulating action is uninvolved,not really a leader at all.

The leader who is all action and little vision is

a doer. 29


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The vision in this case is only a dream, a

fantasy, because it has little chance of ever

becoming reality.

To be an effective leader,one both dreams big

andtransforms those dreams into significant

strategic action, either through ones own

activities or by hiring other leaders who caneffectively execute the vision and strategy.

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How Leaders Decide ?

Leaders decide on direction through rational

analysis as well as intuition, personal

experience, and hopes and dreams.

Leaders make a real difference for their

organization only when they link vision to

strategic action, so that vision is more than

just a dream. Superior organizationalperformance is not a matter of luck. It is

determined by the decisions leaders make.

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How Leaders Decide ?

- SWOT Analysis

- Porters Five Analysis

SWOT

Strengths

Weaknesses

Opportunities Threats


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Porters 5 Competitive Sources

Potential new entrants

Bargaining power of buyers

Bargaining power of suppliers

The threat of substitutes

Rivalry among competitors


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THANK YOU !!

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Leadership & managing change

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