Strategic Leadership
Leadership is the process of transforming organizations from what they are to what the leader would have them become.
Successful leaders are
Proactive – dissatisfied with the status quo
Goal oriented – visualizing successful futures
Focused on the creation & implementation of a creative vision – understanding the process
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Strategic Leadership:Creating a Learning Organization and an Ethical Organizationchapter 11Strategic LeadershipLeadership is the process of transforming organizations from what they are to what the leader would have them become.Successful leaders areProactive – dissatisfied with the status quoGoal oriented – visualizing successful futuresFocused on the creation & implementation of a creative vision – understanding the process11-*Exhibit 11.1 Three Interdependent Leadership ActivitiesStrategic Leadership11-*Strategic LeadershipSetting a direction requires the ability to scan the environment for knowledge aboutAll stakeholdersSalient environmental trends & events Then integrate that knowledge into a strategic vision of what the organization could becomeA clear future directionA framework for the firm’s mission & goalsLeading to enhanced employee communication, participation, & commitment11-*Strategic LeadershipDesigning the organization requires building mechanisms to implement the leader’s vision and strategies throughStructures & teamsSystems & processesLack of appropriate design could cause problemsManagers who don’t understand their responsibilitiesReward systems that are not motivatingInappropriate financial systemsInsufficient integrating mechanisms11-*Strategic LeadershipNurturing an excellent and ethical organizational culture is a key leadership activity, requiring that managers & leadersAccept personal responsibility for developing & strengthening ethical behaviorConsistently demonstrate that such behavior is central to the mission & vision of the firmDevelop & reinforceRole modelsCorporate credos & codes of conductReward & evaluation systems, policies & procedures11-*Strategic Leadership: Overcoming Barriers to ChangeLeaders must overcome barriers to changeOrganizations are prone to inertia, slow to learn, adapt, & change because ofVested interests in the status quoSystemic barriersBehavioral barriersPolitical barriersPersonal time constraints11-*Strategic Leadership: Effective Use of PowerLeaders must make effective use of powerInfluence other people’s behaviorPersuade them to do things they otherwise would not doOvercome resistance & oppositionSources of powerOrganizational bases of powerLegitimate, reward, coercive, informationPersonal bases of powerReferent, expert11-*Strategic Leadership: Effective Use of Power11-*Exhibit 11.2 A Leader’s Bases of PowerStrategic Leadership: Emotional IntelligenceThe valuable traits of successful leaders:Technical skills – like accounting, operations researchCognitive abilities – like analytical reasoning, quantitative analysisEmotional intelligence – like self-management, managing relationships with othersSelf-awareness, self regulation, motivation, empathy, social skills11-*Strategic Leadership: Emotional Intelligence11-*Exhibit 11.3 The Five Components of Emotional Intelligence at WorkSource: Reprinted by permission of Harvard Business Review. Exhibit from “What Makes a Leader,” by D. Goleman, January 2004. Copyright © 2004 by the Harvard Business School Publishing Corporation; all rights reserved.Strategic Leadership: A Learning OrganizationSuccessful learning organizationsCreate a proactive, creative approach to the unknownActively solicit the involvement of employees at all levelsEnable all employees to use their intelligence & apply their imaginationA learning environment involvesAn organization-wide commitment to changeAn action orientation, applicable tools & methods11-*Strategic Leadership: Creating an Ethical OrganizationEthics deals with right and wrongEthical beliefs come from religion, ethnic heritage, family practices, community standards, educational experiences, friends & neighborsOrganizational ethics promote an operating culture & determine acceptable behaviorEthical beliefs come from the values, attitudes, & behavioral patterns of leadershipUnethical business practices involve the tacit, if not explicit, cooperation of others11-*Strategic Leadership: Creating an Ethical OrganizationThe ethical orientation of the leader is a key factor in promoting ethical behaviorIntegrity & ethical values Shape behaviors Provide a common frame of referenceAct as a unifying forceHave a positive effect on employee commitment & motivation to excelCan create value & a competitive advantage11-*Strategic Leadership: Creating an Ethical OrganizationEthical frameworks for integrity include:The compliance-based ethics programPrevents, detects, & punishes legal violationsThe integrity-based ethics programEnables ethical conductExamines organizational members’ core guiding values, thoughts, & actionsDefines responsibility & aspirations for ethical conduct11-*