1
Chapter 13
Creating Vision and Strategic Direction
2
Chapter Objectives
Explain the relationship among vision, mission, strategy, and implementation mechanisms.
Create your personal leadership vision.
Use the common themes of powerful visions in your life and work.
Understand how leaders formulate and implement strategy.
Apply the elements of effective strategy.
3
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
4
Ex. 13.1 The Domain of Strategic Leadership
Architecture for alignment and implementation
Strategy
Mission
Vision
5
Vision
An attractive, ideal future that is credible yet not readily available
6
Ex. 13.2 Examples of Brief Vision Statements (selected)
MotorolaBecome the premier company in the world
Ritz-Carlton (Amelia Island) Engineering Dept.Where no hotel has gone before – free of all defects
Johnson Controls Inc.Continually exceed our customers’ increasing expectations
New York City TransitNo graffiti
Egon ZehnderBe the worldwide leader in executive search
7
Ex. 13.3 The Nature of the Vision
Current reality
Staying the course
Mov
ing
tow
ard
a de
sire
d
futu
re
Vision
8
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
9
Mission
The organization’s core broad purpose and reason for existence
10
Strategic Management
Strategic ManagementThe 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
StrategyThe general plan of action that describes resource allocation and other activities for dealing with the environment and helping the organization attain its goals
11
Core Competence
Something the organization does extremely well in comparison to competitors
12
Synergy and Value
Synergy: the interaction of organizational parts to produce a joint effect that is greater than the sum of the parts
Value: the combination of benefits received and costs paid by the customer
13
Strategy Formulation and Implementation
Strategy FormulationThe 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 ImplementationPutting strategy into action by adjusting various parts of the organization and directing resources to accomplish strategic goals
14
Ex. 13.7 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 payoff – avoid this category
Low Impact, Easy to Implement.Incremental improvements, “small wins;” pursue for symbolic value of success
15
Ex. 13.8 Linking Strategic Vision and Strategic Action
The Dreamer The Effective Leader
The Uninvolved The Doer
Action
Low HighLow
High
Vision
Recommended
