2 “Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion.”Jack Welch
3 “The Best Way to Predict the Future is to CREATE it!” Peter Drucker
4 Strategic LeadershipThe 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
5 Most important function of a leader The most important function of a leader is to develop a clear and compelling picture of the future, and to secure commitment to that idea.
6 Ex. 13.1 The Domain of Strategic Leadership VisionMissionStrategyArchitecture for alignment and implementation
7 VisionAn attractive, ideal future that is credible yet not readily available.It should evoke a picture in the mind and suggests a future orientation, implies a standard of excellence or virtuous condition, and has the quality of uniqueness!
8 Ex. 13.2 Examples of Brief Vision Statements (selected) MotorolaBecome the premier company in the worldRitz-Carlton (Amelia Island) Engineering Dept.Where no hotel has gone before – free of all defectsJohnson Controls Inc.Continually exceed our customers’ increasing expectationsNew York City TransitNo graffitiEgon ZehnderBe the worldwide leader in executive search
9 Questions to Ask?The leader must ask theree questions to test his or her vision:1) Is this the right time?2) Is this the right direction?3) Are these the right goals?This must then be shared with your team and have it SUPPORTED.
10 Ex. 13.3 The Nature of the Vision Moving toward a desired futureStaying the courseCurrent reality
11 What Vision Does Links the present to the future Energizes people and gains commitmentGives meaning to workEstablishes a standard of excellence and integrity
12 Common Themes of Vision Vision has broad appealVision deals with changeVision encourages faith and hopeVision reflects high idealsVision defines the destination and the journey
13 Vision must be able to: Work at multiple levels Be inspirational at all levelsEncourage independent actionDevelop Self-referenceBe supported by the Company LeaderShip
14 Requirements for an effective Vision For a VISION to be effective it must be developed by leaders.Developed by leaders, those with strengths to influence to establish directionMust be communicated to followers and must be supported by them.
15 Requirements for an effective Vision Developed by leaders, those with strengths to influence to establish directionMust be communicated to followers and must be supported by them.Must be comprehensive and detailed so all understands it’s meaning and direction.
16 MissionThe organization’s core broad purpose and reason for existence
17 Mission Two critical parts: Core values guide the organization Core purpose is why the organization exists
18 Leader’s Framework for Noble Purpose Purpose Description Basis for ActionDiscovery Finding the new PioneerExcellence Being the best FulfillmentAltruism Providing service HappinessHeroism Being effective Achievement
19 Strategic Management Strategic Management Strategy 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 goalsStrategyThe general plan of action that describes resource allocation and other activities for dealing with the environment and helping the organization attain its goals
20 Develop Strategies Focusing On Core competenceDeveloping synergyCreating value for customers
21 Core CompetenceSomething the organization does extremely well in comparison to competitors
22 Synergy and ValueSynergy: the interaction of organizational parts to produce a joint effect that is greater than the sum of the partsValue: the combination of benefits received and costs paid by the customer
23 Strategy Formulation and Implementation The integrating knowledge of the environment, vision, and mission with the core competence in such a way as to achieve synergy and create customer valueStrategy ImplementationPutting strategy into action by adjusting various parts of the organization and directing resources to accomplish strategic goals
24 Ex. 13.7 Making Strategic Decisions Ease of ImplementationHardEasyHigh Impact, Hard to Implement.Major changes, but with potential for high payoffHigh Impact, Easy to Implement.Simple changes that have high strategic impact – take action here firstHighStrategic ImpactLow Impact, Hard to Implement.Difficult changes with little or no potential for payoff – avoid this categoryLow Impact, Easy to Implement.Incremental improvements, “small wins;” pursue for symbolic value of successLow