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Leadership
& Team Management MGMT
623
VU
Lecture
40
STRATEGIC
LEADERSHIP
Strategic
Leadership is 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.
"Without
a strategy the organization is like a
ship without a rudder, going
around in circles." Joel
Ross
and
Michael Kami.
Strategy
is the essential of all business
games. Even in real life
without strategy and plan one can
not be
successful.
Leader, manager, business man
and even individual need to do strategic
planning and
develop
strategies in the changing environment.
The
Three Big Strategic Questions
every
body needs
to
ask before thinking/planning a strategy
are:
o
Where
are we now?
o
Where
do we want to go?
o
How do
we get there?
What
is Strategy? A Team's
strategy consists of the set of
competitive moves they are
employing to
manage
the team/objectives of the
team/organization.
o
Strategy
is Team's "game
plan" to
·
Conduct operations
·
Compete successfully
·
Achieve Team
objectives
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
Business
Strategy Levels:
o
Corporate-level
strategy asks,
"What business are we
in?"
o
Business-level
strategy asks,
"How do we compete?"
o
Functional-level
strategy asks,
"How do we support the business-level
strategy?"
Strategic
Planning:
A
Basic Planning Model consists of
following steps.
o
Missions
and Goals
o
External
Analysis - Opportunities and
Threats
o
Internal
Analysis - Strengths and
Weaknesses
o
Selection
of Appropriate Strategies
o
Implementation
of Strategies
About
Mission Statement we have already
discussed during previous
chapters. Next two
stages/steps
are
AWOT analysis. After Analysis,
one needs to select
appropriate strategy and finally
implement it.
Examples
of SWOT Elements:
o
Strengths:
Favorable
location, talented workers,
state-of-the-art equipment
o
Weaknesses:
Unfavorable
location, outdated equipment, limited
capital
o
Opportunities:
Culturally diverse customer
base, changes in technology,
deregulation
o
Threats:
Ecommerce,
declining market, new
competitors
Sample
Strategies
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Leadership
& Team Management MGMT
623
VU
Depending
on the nature of business, analysis and priorities,
organization may choose any
strategy. Few
examples
are given bellow.
o
Cost
leadership
o
Focus
o
High
quality
o
Strategic
alliances
o
Growth
through acquisition
o
High
speed and first-mover strategy
o
Product and
global diversification
o
Sticking
to core competencies
o
Brand
leadership
o
Creating
demand by solving problems
o
Conducting
business on the Internet
Strategic
Leadership:
Strategic
Leadership involves: The
ability to anticipate, envision,
maintain flexibility and empower
others
to create strategic change
Vision
An
attractive, ideal future
that is credible yet not
readily available.
o
Links
the present to the future
o
Energizes
people and garners
commitment
o
Gives
meaning to work
o
Establishes
a standard of excellence and
integrity
Common
Themes of Vision:
o
Vision
has broad appeal
o
Vision
deals with change
o
Vision
encourages faith and hope
o
Vision
reflects high ideals
o
Vision
defines the destination and the
journey
Mission
The
organization's core broad
purpose
and reason
for existence
Strategy
Strategy
is Team's "game
plan" to
o
·
Conduct operations
·
Compete successfully
·
Achieve Team
objectives
Strategy
Formulation and
Implementation
Strategy
Formulation
o
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
o
Putting
strategy into action by adjusting
various parts of the organization and
directing
resources
to accomplish strategic goals
Strategic
Leadership
o
Requires
the Managerial Ability
to:
o
Anticipate
and envision
o
Maintain
flexibility
o
Empower
others to create strategic change as
necessary
o
Strategic
Leadership is:
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Leadership
& Team Management MGMT
623
VU
o
Multi-functional
work that involves working
through others
Effective
strategic leaders:
o
Manage
the Team's operations
effectively
o
Sustain
high performance over time
o
Make
better decisions than their
competitors
o
Make
straight, courageous, practical
decisions
o
Understand
how their decisions affect
the internal systems in use
by the team/organization
o
Solicit
feedback from peers,
superiors and team members about
their decisions and
visions
Determining
Strategic Direction:
o
Determining
strategic direction involves developing a
long-term vision of the
Team's strategic
intent
·
Five to ten years into the
future
·
Philosophy with goals
·
The image and character the Team
seeks
Ideal
long-term vision has two
parts:
o
·
Core ideology
·
Envisioned future
A
charismatic leader can help achieve strategic
intent.
o
It
is important not to lose
sight of the strengths of the
organization/team when making
changes
o
required
by a new strategic direction.
Leaders
must structure the team effectively to
help achieve the vision.
o
Exploiting
and Maintaining Core
Competencies:
Core
competencies
o
Resources
and capabilities of team
that serve as a source of
competitive advantage over
its
rivals
o
Leadership
must verify that the team's
competencies are emphasized in
strategy
implementation
efforts
o
Teams
must continuously develop or even
change their core
competencies to stay ahead
of
competitors
o
In
many large orgs, and
certainly in related diversified
ones, core competencies are
exploited
effectively
when they are developed and
applied across different
organizational units.
o
Core
competencies cannot be developed or
exploited effectively without
developing the
capabilities
of human capital.
Developing
Human Capital:
Human
capital
o
The
knowledge and skills of the org/team
entire workforce are a
capital resource that
requires
investment
in training and development
o
No
strategy can be effective unless the
org/team is able to develop and
retain good people to
carry
it out.
o
The
effective development and management of
the team's human capital may be the
primary
determinant
of a team's ability to formulate and
implement strategies successfully.
Sustaining
an Effective Organizational
Culture:
Organizational
culture
o
The
complex set of ideologies, symbols and
core values shared through the team/org,
that
influences
the way business is conducted.
o
Changing
a Team's/ organizational culture is more
difficult than maintaining
it
o
Effective
strategic leaders recognize when change
in culture is needed
o
Shaping
and reinforcing culture requires:
o
Effective
communication
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Leadership
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o
Problem
solving skills
o
Selection
of the right people
o
Effective
performance appraisals
o
Appropriate
reward systems
Emphasizing
Ethical Practices:
o
Effectiveness of
processes used to implement the
Team's strategies increases
when based on ethical
practices
o
Ethical
practices create social capital and
goodwill for the team/org
Actions
that develop an ethical organizational
culture include:
o
Establishing
and communicating specific goals to
describe the team's ethical
standards
o
Continuously
revising and updating the code of
conduct
o
Disseminating
the code of conduct to all stakeholders to
inform them of the team's/org's
ethical
standards
and practices
o
Developing
and implementing methods and
procedures to use in achieving the
team's/org's ethical
standards
o
Creating
and using explicit reward
systems that recognize acts of
courage
o
Creating
a work environment in which
all people are treated with
dignity
o
Leaders
set the tone for creating an
environment of mutual respect, honesty
and ethical practices
among
employees
Establishing
Organizational Controls:
Controls
o
o
Formal,
information-based procedures used by
leaders to maintain or alter
patterns in
team/organizational
activities
Controls
help strategic leaders
to:
o
o
Build
credibility
o
Demonstrate the
value of strategies to the team's/org
stakeholders
o
Promote and support
strategic change
185
Table of Contents:
- INTRODUCTION, ORGANIZATION THE STAGE FOR LEADERSHIP:Challenges, Value creation
- FOCUSING ON PEOPLE: THE KEY TO SUCCESS:People in the Process, Developing and Sustaining A World-class Workforce
- LEADERSHIP:Characteristics of Successful Leader, Why Study Leadership?
- LEADERSHIP (CONTD.):Characteristics of Leaders Who Fail, Why Leaders Fail?
- MANAGERS VS LEADERS:Characteristics, Effective Leadership, Respect for Diversity
- FOLLOWER-SHIP:Importance of Followers, Follower-ship Style
- LEADERSHIP PROCESS:Strategies for Cultivating Exemplary Followers, Important Traits of Leaders
- LEADERSHIP PROCESS (CONTD.):Qualities of Leaders, Self-Confidence, Integrity
- LEADERSHIP THEORIES/ APPROACHES:Personal Characteristics of Leaders, Managerial Grid
- CONTINGENCY THEORIES OF LEADERSHIP:The Fiedler Model, Situational Leadership Theory, Path-Goal Theory
- TRANSACTIONAL, CHARISMATIC AND TRANSFORMATIONAL LEADERSHIP:Visionary Leadership
- THE LEADER AS AN INDIVIDUAL:Personality, Situation, Heredity, Environment
- ATTITUDE-PERSONALITY:Job Satisfaction, Work Situation, Self - Monitoring
- BIG FIVE MODEL, MYERS BRIGGS TYPE INDICATOR (MBTI):Sub-Categories Defined, Information Gathering
- SITUATIONAL FACTORS:Social and psychological climate, Culture of the organization
- BECOMING A LEADER! WHAT DOES IT MEAN & HOW DO YOU GET IT?:Mission Statement, Leading oneself
- BECOMING A LEADER:Elements of Leadership, CONCEPT OF POWER,
- UNDERSTANDING POWER:Sources of Power, Responses to the Use of Power, Managing Political Behavior
- LEADERSHIP POWER & INFLUENCE:Positional Power, Being an Effective Leader
- LEADERSHIP AND EMPOWERMENT:Power sharing and Empowerment, Share Information
- MOTIVATION:Guidelines for Delegating, Human Resource Approach
- MOTIVATION AT WORK, MOTIVATION AND LEADERSHIP:What Factors Diminish Motivation in the Workplace
- LEADERSHIP COMMUNICATION:Communication & the Four Management Functions
- REVIEW-1:Organizational Performance, That is the Role of Management?, Leaders Vs Managers
- GROUP & TEAM CONCEPT:Groups versus Teams, Deciding When to Use a Team
- TEAM DYNAMICS:Stages of Group Development, Problem-Solving Teams, Benefits of Teams
- BUILDING THE TEAM:Leadership success requires, Strategies for Team Building
- A TEAM-BASED ORGANIZATION:Basic Steps, Span of Control, Categories of Decisions
- DECISION MAKING:Categories of Decisions, The Decision-Making Process
- TEAM DECISION MAKING:Team Problem Solving Techniques, Concept of QC
- EFFECTIVE TEAM COMMUNICATION:Team/Group Communications
- CONFLICT IN TEAM:Sources of Conflict, Scarcity of Resources, Dysfunctional Outcomes
- TRAINING/LEARNING OF TEAM:Training Methods, Phases of Learning Cycles
- LEARNING ORGANIZATION:A Litmus Test, Work Relations
- REWARDING & RECOGNIZING TEAMWORK:Compensating Teams, Individual or Team Rewards?
- MANAGING/LEADING VIRTUAL TEAMS:Communications in Virtual Organizations, Virtual Leadership
- EFFECTIVE TEAM MEETINGS:Better Meetings, Meeting Roles, Meeting Room Facilities
- LEADING TEAM:Team Leadership Structures, Leadership Demands and Duties, Leadership Direction
- REVIEW-II:Types of Teams, Characteristics of High Performance Teams, Sources of Conflict
- STRATEGIC LEADERSHIP:Strategic Management, Determining Strategic Direction, Developing Human Capital:
- LEADING CHANGE:Dynamics of Change, Change Models, Unfreeze
- CREATIVE LEADERSHIP:Awaken Your Senses, How Might These Definitions Be Integrated
- ETHICS IN LEADERSHIP:Character Traits Reflect Ethics, Manifests Honesty
- LOOKING AT THE FUTURE: WHAT COMES NEXT:Benefits of Teams, Ethical Leadership,
- TEAMWORK: LEARNING FROM NATURE:Social Behavior, Termites, Learning from Nature