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Strategic Leadership and Change Management

Leadership and Motivation Group Presentation

Christina Ortiz

on 15 November 2012

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Transcript of Strategic Leadership and Change Management

Works Cited -about LONG TERM organizational performance
-organizations attempt to allign vision, mission, goals, capabilities, & strategies with external environmental trends
-Sucessful organizations 1. satisfy needs of present market(s)
2. adapt to changing market requirements with new strategies Strategic Management & Change Management -- Fundamental question in strategic management: why do some firms meet/exceed market expectations while others barely survive/go out of business?

- The answer lies in the role strategic leadership plays in creating an effective strategic road map for the organization

- The definition of Strategic Management is the process of developing a strategic road map; the set of decisions and actions used to formulate and implement specific strategies that are aligned with the organization’s capabilities and its environment, so as to achieve organizational goals Strategic Management
Framework Strategic Formulation •“Strategic formulation focuses on selecting strategies that reveal a strategic fit between external opportunities (O) and internal strengths (S) while avoiding external threats (T) and improving internal weaknesses(W)”. -(Luisser and Achua 402)
•SWOT technique of strategy formulation The 3rd Step:
Strategy Intervention •Its considered the most important and difficult step
•Action phase
•Takes places through the basic organizational architecture Lussier, R., & Achua, C. (2013). Leadership Theory, Application, and Skill Development (5 ed.). Toronto: South- Western Cengage Learning. Leadership & Motivation Strategic Leadership &
Change Management Analyze Internal
Environment Analyze External
Environment Vission/Mission Strategic Goals Formulate
Strategy Implement Srategy Evaluate Strategy Strategic Competitiveness and
Above-Average Returns Feedback Feedback Environmental Scanning -1st step in strategic management process
-allows strategic leaders to identify applicable environmental factors and industry leaders that weigh in on organizations visions, businesses models, etc. - Organizations environment is internal and external
- External environment shows opportunities and threats
-3 main levels of external environment
• The natural (physical resources such as wildlife and climate: Logical planet system)
• The general (economic, technological, political: Sociocultural forces that effect organizations long term performances)
• Task environment (government, local communities, customers, activist groups: directly affect organization) -Lots of external environmental pressures
on the companies
-Need a leader skilled at managing these complexities and uncertainties

The Leader must have:
•Operational Agility (seize opportunities and improve process in a focused business model)
•Portfolio Agility (reallocate bad resources into better ones)
•Strategic Agility (identify major opportunities in external environments
and quickly respond) -Internal environment presents strengths and weaknesses (ex. Brand name, talented employees, reputation)
-It is essential to functioning areas of marketing, production, etc.
- Combined analysis of external and internal = SWOT: strengths, weaknesses, opportunities, threats -Advances in telecommunications (rising price of gasoline, women entering the workforce etc.) have led to a flexible and distributed working arrangement
-workers able to work from home and foreign places
-companies slow to respond to this are losing out on talented employees who enjoy this -Accurate and timely interpretation of 3 types of environments plays a big part in future actions and effectiveness of an organization
-Some strategic leaders believe it is better to be a “pioneer” and make mistakes than to be a follower Three components of strategic formulation
1. creating a vision and mission statement
2. creating strategic objectives
3. establishing appropriate policies Vission and Mission
Statement • A compelling vision and mission creates meaning and purpose for the organizing
• Leaders vision inspire followers
• Mission statement specifies the organizations purpose
• Having workers work around the same purpose is challenging for management-vision and mission statements are a strategic tool for workers to come together 1) Who are we(core ideology)?
2) Why do we exist(core purpose)?
3) What do we believe in(core values)?
4) What inspires us(envisioned future)?
5) Where we are going(vision statement)?
6) What will the future look like when we get there(vivid description)? Six question to consider when creating a vision and mission statement Strategic Vision “Ambitious view of the future that everyone in the organization can believe in and that is not readily attainable, yet offers a future that is better in important ways than what now exists.” -(Luisser and Achua 402)

•Important to create a vision followers will accept as their vision Important Functions of a vision include:
•Facilitating decision making, in that it helps people determine what is good or bad, important or trivial.
•Inspiring followers by appealing to their fundamental human need to feel important and useful, and to be a part of something great.
•Linking the resent to the past by recognizing the need for changing old ways of doing work.
•Giving meaning to work by explaining not just what people do but why they do it.
•Establishing a standard of excellence. • Vision should be based on the input and values of followers
• Well-crafter vision is one that involves teamwork
• Simple yet inspiring
Examples: Coca-Cola: “People, Planet, Portfolio, and Profit-the five P’s”
Nike: “To crush the enemy”
merican Express: “To be the world’s most respected service brand” Mission Statement “Is an enduring statement of purpose that distinguishes one organization from other similar enterprises.” -(Luisser and Achua 403)
• Answers the question, “What business are we in?”
• Organizations core purpose and reason for existence
• Provides direction and focus
• Forms basis for objectives and strategies
• Positive emotions about the organization
• Core Values and Core Purpose are two components often presented •Focuses on the needs that the organization’s products/services are meeting.
•Broad but not too broad, specific, but not too specific
1)Vision statement represents a future aspiration
2)Mission statement represents the enduring character, values and purpose of the organization in the present Organizational Goals •Are desired long-term outcomes that an organization seeks to achieve for employees, customers, stockholders and others
• Financial goals: return on investment, sales, profits, earnings per share, or return on equity.
•Strategic goals: new customers, opening new market, or creating new products • People with specific goals perform better
• Focuses everyone in the same direction
• “S.M.A.R.T” goal: Specific, Measurable, Achievable, Result-based and Time-specific Selecting
Appropriate Strategies • A Strategy is an integrated, overarching plan of how an organization will achieve its objectives. -(Luisser and Achua 405)
• Formulate strategies that align with each of the components
• Must reflect the vision achieve, the desired objectives, fit with external opportunities and internal strengths while avoiding threats and improving weaknesses. To stay competitive with other companies, effective strategic leaders develop strategies that:
•Enhance value to the customers
•Create strategic synergistic opportunities
•Build on the company’s core competence Value to customer is essential to any strategy
• Value: is the ratio of benefits received to the cost incurred by the customer
• Synergy(Combined effort to greater the sum) occurs when a chosen strategy make organizational systems work together to produce a greater result then working alone
• Core Competence: is a capability that allows an organization to perform extremely well in comparison to competitors • Shared actions and interactions of employees across functional boundaries help to create an organizational identity that differentiates the organization from competitors.
• Organizational Identity: is the member’s consensual understanding of “who we are as an organization as a whole.” EX-Walmart.
• Strong leadership
• Collaboration at all levels is critical
• Resources
• Rewards or compensations aligned to the goal.
• Time
• Managers should be aware not to fall into “paralysis by analysis” It Requires Why is it difficult? • Involves bringing people together
• Interpersonal conflicts can affect the implementation
• Many components to be integrated into taking action Final Phase: Strategy
Evaluation & Control • Compares outcomes with the stated objectives and provides feedback
• Determines the overall effectiveness Three Key Activities • 1. Reviewing
• 2. Measuring
• 3. Taking corrective action
• *popular tool for #2 is a balance scorecard. Themes of Strategic Management
1. Globalization
2. Environmental Sustainablity
4. Technological Transformation -Act SMART and FAST
-respond quickly to marketplace demands
-need for EFFECTIVE strategic planning Globalization and
Environmental Sustainablity -every company faces competition for resources and market oppourtunites
-home market & other regions of world
-labour, jobs, information,knowledge, & capital move across boarders with less restrictions and at a greater speed
-International experience= IMPORTANT -natural environment CANNOT sustain itself if human behavior toward air, water, natural resources, & land doesn't change
-Nation leaders are expected to regulate pollution, deforestation and greenhouse gas emissions
-Sustainability-> conservation of natural resources & minimization of waste
-companies want environmentally friendly products- NEW TREND
-stakeholders expect companies to concider their impact on society and the environment
-Social Responsibility->ethical responsibility org. owes to stakeholders
-Sustainable Development-> caters to this generations needs without compromising next generations needs Strategic
Leadership -organizational success depends on decisions strategic leaders make
-refers to top management function done by CEO & executive team->Cheif Operating Officer (COO) & vice presidents of functional areas
-Executive Team create team of operational leaders OR functional managers
-help org deal with change
-Strategic Leadership-> person's ability to snticipate, envision, maintain flexibilty, think strategically, & work with others to initiate changes that will create a viable future for the org. Key Components
1. establishehing org. strategic decision
2. creating & sustaining distinctive competencies
3.developing human competancies
4. building & maintaining an effective corporate culture
5. enforcing ethical practices
6. instituting strategic controls
-forcasting events in the external environment that have the potential to impact business perfrmance
-finding & sustaining competative advantage by building core competencies & seeking correct markets
-evaluating strategy implementation & results systematically & making appropriate adjustments
-building hghly effective, motivated, & efficiant teams of employees
-selecting, developing, & mentoring talented team of top leaders
-deciding on appropriate goals & prorities
-communicating effectively Effective Strategic Leader must be capable of: Strategic Leadership
Failures -there is must to be learned from CEO failures
-failure-> quantifiable measures of poor performance of a leader's direct actions
Senior executives fail when...
1. strategic vision for the org. does not allign with positive environmental trends
2. deviate from mission to persue personal interests & not enough org interests
3. set long term goals that are too low or too high
4. engage or condone unethical content
5. set wrong strategies
6. fail to lead strategy implementation process
7. pay little or no attention to performance standards -Leaders lacking in experience or training may rely to heavily on intuition
-Executive Intuition-> instinctive ability to respond to problems withut the benefit of concrete facts and info
-Pros: fuel imagination, creativity, & innovation, contribute to corporate success
Cons: result in blunders
-Goal of Stategic Management-> build sustainable integrity programs that encourage positive self regulation and ethical behavior as routine Scott, K. E., & Johnson, M. (2011). Strategic Leadership: A Model for Promoting, Sustaining, and Advancing Institutional Significance. Community College Journal Of Research & Practice, 35(6), 454-469.
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