1. Strategic Leadership: Creating a Learning Organization and an Ethical Organization Chapter Eleven Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

2. Three Interdependent Activities of Leadership 11-2

3. Setting a Direction Scan environment to develop  Knowledge of all stakeholders  Knowledge of salient environmental trends and events Integrate that knowledge into a vision of what the organization could become 11-3

4. Designing the Organization Designing the organization  A strategic leadership activity of building structures, teams, systems, and organizational processes that facilitate the implementation of the leader’s vision and strategies. 11-4

5. Designing the Organization Difficulties in implementing the leaders’ vision and strategies  Lack of understanding of responsibility and accountability among managers  Reward systems that do not motivate individuals and groups toward desired organizational goals  Inadequate or inappropriate budgeting and control systems  Insufficient mechanisms to coordinate and integrate activities across the organization 11-5

6. Nurturing an Excellent and Ethical Culture Excellent and ethical organizational culture  an organizational culture focused on core competencies and high ethical standards 11-6

7. Overcoming Barriers to Change Reasons why organizations are prone to inertia and slow to change  Vested interests in the status quo  Systemic barriers  Behavioral barriers  Political barriers  Personal time constraints 11-7

8. The Effective Use of Power Power  a leader’s ability to get things done in a way he or she wants them to be done. Organizational bases of power  A formal management position that is the basis of a leader’s power. 11-8

9. Inspiring and Motivating People with a Mission or Purpose A Learning environment involves:  Organization-wide commitment to change  An action orientation  Applicable tools and methods  Guiding philosophy  Inspired and motivated people with a purpose 11-9

10. QUESTION The "top down" perspective of empowerment A. Encourages intelligent risk-taking B. Trusts people to perform C. Encourages cooperative behavior D. Delegates responsibility 11-10

11. Empowering Employees at All Levels Top-down perspective Start at the top. Clarify the organization’s mission, vision, and values. Clearly specify the tasks, roles, and rewards for employees. Delegate responsibility. Hold people accountable for results. 11-11

12. Empowering Employees at All Levels Bottom-up View Start at the bottom by understanding needs of employees Teach employees skills of self-management Build teams to encourage cooperative behavior Encourage intelligent risk taking Trust people to perform 11-12

13. Challenging the Status Quo and Enabling Creativity Create a sense of urgency Establish a “culture of dissent” Foster a culture that encourages risk taking Cultivate culture of experimentation and curiosity 11-13

14. Best Practices: Learning from Failures 11-14

15. Creating An Ethical Organization Ethical orientation  the practices that firms use to promote an ethical business culture,  Includes ethical role models, corporate credos and codes of conduct, ethically-based reward and evaluation systems, and consistently enforced ethical policies and procedures. 11-15

16. Creating An Ethical Organization Ethical values  Shape the search for opportunities  Shape the design organizational systems  Shape the decision-making process used by individuals and groups  Provide a common frame of reference that serves as a unifying force 11-16

17. Integrity-Based versus Compliance- Based Approaches Compliance-based ethics programs  programs for building ethical organizations that have the goal of preventing, detecting, and punishing legal violations. 11-17

18. Integrity-Based versus Compliance- Based Approaches Integrity-based ethics programs  programs for building ethical organizations that combine a concern for law with an emphasis on managerial responsibility for ethical behavior, 11-18

19. Integrity-based Ethics Programs Integrity-based Ethics Programs include: 1.enabling ethical conduct; 2.examining the organization’s and members’ core guiding values, thoughts, and actions; and 3.defining the responsibilities and aspirations that constitute an organization’s ethical compass. 11-19

20. Key Elements of Highly Ethical Organizations Role models Corporate credos and codes of conduct Reward and evaluation systems Policies and procedures 11-20