Session16 Strategic Leadership

7/29/2019 Session16 Strategic Leadership

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Copyright 2010 Pearson Education, Inc. Leadership in Organizationspublishing as Prentice Hall 12-1

Strategic Leadership by Executives


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Learning Objectives

Understand what organizational processes determine an

organizations performance.

Understand how top executives can influence

organizational processes and improve organizational

performance.

Understand the conditions that make strategic leadership

especially important.

Understand the conditions that make it more difficult for a

chief executive to make changes in an organization.


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Learning Objectives (Cont.) Understand how personal traits and tenure in office are

related to a chief executives leadership behavior.

Understand the primary types of research used to assessthe importance of strategic leadership and what has been

found.

Understand the potential advantages of executive teams

and the conditions that increase their effectiveness. Understand the procedures that can be used to monitor

the environment and formulate a good competitive

strategy.


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How Leaders Influence OrganizationalPerformance

Adaptation to the Environment

Efficiency and Process Reliability Human Resources and Relations


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Innovation and Adaptation Competitor and market analysis programs (market

surveys, focus groups, consumer panels,

comparative product testing, benchmarkingcompetitor products and processes)

Innovation programs (intrapreneurship, qualitycircles, innovation goals)

Knowledge acquisition (consultants, joint ventures,import best practices from outside)

Organizational learning (knowledge managementsystems, postmortems, joint ventures)


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Innovation and Adaptation (Cont.) Temporary structural forms for implementing

change (steering committee, task forces)

Growth and diversification programs (mergers andacquisitions, franchises, joint ventures)

Structural forms (research departments, smallproduct divisions, product managers, cross-functional product development teams, facilitiesdesigned to encourage innovation)

Appraisal, recognition, and reward systemsfocused on innovation and customer satisfaction


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Efficiency and Process Reliability Performance management and goal setting

programs (e.g., MBO, zero defects)

Process and quality improvement programs(quality circles, TQM, Six Sigma)

Cost reduction programs (downsizing,outsourcing, just-in-time inventory)

Structural forms (functional specialization,formalization, standardization)

Appraisal, recognition, and reward systemsfocused on efficiency and process reliability


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Human Resources and Relations

Quality of worklife programs (flextime, job sharing,

child care, fitness center) Employee benefit programs (health care,

vacations, retirement, sabbaticals)

Socialization and team building (orientation

programs, ceremonies and rituals, social eventsand celebrations)

Employee development programs (training,mentoring, 360 feedback, education subsidies)


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Human Resources and Relations (Cont.)

Human resource planning (succession planning,

assessment centers, recruiting programs) Empowerment programs (self-managed teams,

employee ownership, industrial democracy)

Recognition and reward programs focused on

loyalty, service, or skill acquisition


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Ways to Influence the PerformanceDeterminants

Leadership Behaviors

Programs, Systems, and Structure Competitive Strategy


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Need for Flexible, Adaptive

Leadership

Need to focus on multiple performance

determinants Need to find a balance between priorities

Enhance multiple priorities at the same time

Balance impacted by changes in importance of thedeterminants


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Coordinating Leadership Across

Levels and Subunits

Fates of different leaders closely intertwined

Conflict and resistance impedes performance Performance depends on how well competition

and disagreements are addressed


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Constraints on Executives

Internal Constraints

Coalitions in the organization Strong organizational culture

External Constraints Organizations primary products and services

Powerful external stakeholders Perception of the organizations performance

Constraints and Executive Traits as JointDeterminants


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Conditions Affecting the Need forStrategic Leadership

Periods of Reorientation

Periods of Convergence Influence of Top Management


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Strategic Leadership

Political Power and Strategic Leadership

Executive Tenure and Strategic Leadership Research on the Effects of CEO Leadership

Studies of CEO Succession

Case Studies of Strategic Leaders

Survey Field Studies on CEO Behavior and Firm

Performance


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Strategic Leadership by Executive

Teams

Potential Advantages of Executive Teams

Potential to make better strategic decisions Team members can compensate for weaknesses in the

CEO

More likely to represent diverse interests

Important tasks are less likely to be neglected

Executive Teams and Organizational Effectiveness


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Key Responsibilities for Top

Executives

Monitoring the Environment

Developing Competitive Strategy


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Monitoring the Environment


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Guidelines for Formulating Strategy

Determine long-term objectives and priorities

Assess current strengths and weaknesses Identify core competencies

Evaluate the need for a major change in strategy

Identify promising strategies Evaluate the likely outcomes of a strategy

Involve other executives in selecting a strategy


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Guidelines for External Monitoring

Identify relevant information to gather

Use multiple sources of relevant information Learn what clients and customers need and want

Learn about the products and activities of

competitors Relate environmental information to strategic

plans

Session16 Strategic Leadership

Documents

Transcript of Session16 Strategic Leadership