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7/29/2019 Session16 Strategic Leadership
1/21
Copyright 2010 Pearson Education, Inc. Leadership in Organizationspublishing as Prentice Hall 12-1
Strategic Leadership by Executives
7/29/2019 Session16 Strategic Leadership
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Copyright 2010 Pearson Education, Inc. Leadership in Organizationspublishing as Prentice Hall 12-2
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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Copyright 2010 Pearson Education, Inc. Leadership in Organizationspublishing as Prentice Hall 12-3
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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Copyright 2010 Pearson Education, Inc. Leadership in Organizationspublishing as Prentice Hall 12-4
How Leaders Influence OrganizationalPerformance
Adaptation to the Environment
Efficiency and Process Reliability Human Resources and Relations
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Copyright 2010 Pearson Education, Inc. Leadership in Organizationspublishing as Prentice Hall 12-5
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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Copyright 2010 Pearson Education, Inc. Leadership in Organizationspublishing as Prentice Hall 12-6
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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Copyright 2010 Pearson Education, Inc. Leadership in Organizationspublishing as Prentice Hall 12-7
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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Copyright 2010 Pearson Education, Inc. Leadership in Organizationspublishing as Prentice Hall 12-8
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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Copyright 2010 Pearson Education, Inc. Leadership in Organizationspublishing as Prentice Hall 12-9
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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Copyright 2010 Pearson Education, Inc. Leadership in Organizationspublishing as Prentice Hall 12-10
Ways to Influence the PerformanceDeterminants
Leadership Behaviors
Programs, Systems, and Structure Competitive Strategy
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Copyright 2010 Pearson Education, Inc. Leadership in Organizationspublishing as Prentice Hall 12-11
7/29/2019 Session16 Strategic Leadership
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Copyright 2010 Pearson Education, Inc. Leadership in Organizationspublishing as Prentice Hall 12-12
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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Copyright 2010 Pearson Education, Inc. Leadership in Organizationspublishing as Prentice Hall 12-13
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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Copyright 2010 Pearson Education, Inc. Leadership in Organizationspublishing as Prentice Hall 12-14
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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Copyright 2010 Pearson Education, Inc. Leadership in Organizationspublishing as Prentice Hall 12-15
Conditions Affecting the Need forStrategic Leadership
Periods of Reorientation
Periods of Convergence Influence of Top Management
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Copyright 2010 Pearson Education, Inc. Leadership in Organizationspublishing as Prentice Hall 12-16
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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Copyright 2010 Pearson Education, Inc. Leadership in Organizationspublishing as Prentice Hall 12-17
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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Copyright 2010 Pearson Education, Inc. Leadership in Organizationspublishing as Prentice Hall 12-18
Key Responsibilities for Top
Executives
Monitoring the Environment
Developing Competitive Strategy
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Copyright 2010 Pearson Education, Inc. Leadership in Organizationspublishing as Prentice Hall 12-19
Monitoring the Environment
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Copyright 2010 Pearson Education, Inc. Leadership in Organizationspublishing as Prentice Hall 12-20
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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Copyright 2010 Pearson Education, Inc. Leadership in Organizationspublishing as Prentice Hall 12-21
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