Chapter 12 Strategic Leadership by Top Executives Matakuliah: A Kepemimpinan Tahun: 2008 / 2009

Bina Nusantara Learning Objectives Understand opposing views about the importance of chief executives in organizations. Understand empirical research findings on strategic leadership importance. Understand how impression management and attributions influence judgment about leader competence

Bina Nusantara Learning Objective Understand the conditions that determine how difficult it is for a chief executive to make changes in an organization Understand how tenure in office is related to a chief executive’s leadership behavior. Understand the potential advantage of executive teams and the conditions that increase their effectiveness.

Bina Nusantara Learning Objective Understand the difficult faced by executives in reconciling competing values. Understand some procedures commonly used to monitor the environment and formulate a good competitive strategy.

Bina Nusantara Constrains on Executive Discretion Internal Constraints External constraints Constraints and executive attributes

Bina Nusantara Attributions about Chief Executives Determinants of Attributions Attributions and Executive Discretion Impression Management by Executive

Bina Nusantara Research on Effects of Leadership Succession If leadership is important, and The external factors remain relatively constant, then New leadership should be associated with large changes in the performance of the organization.

Bina Nusantara Evolutionary Change and Strategic Leadership ReorientationConvergence

Bina Nusantara Political Power and Strategic Leadership Through institutionalization, a coalition of top executive can use political processes to maintain power even after their expertise is no longer critical to the organization.

Bina Nusantara Executive Tenure and Strategic Leadership Strategic leadership by the CEO is also affected by time in the office. The longer time CEO has the more time it has to organize its power. If the CEO time of service is long, it may cause the dysfunction of the organization.

Bina Nusantara Executive Teams Executives in the team collectively assume responsibilities of CEO Advantages of Executive Teams Executive Teams and Organizational Effectiveness

Bina Nusantara Competing Values in Strategic Leadership Concern for task vs concern for people Stability and efficiency vs Flexibility and adaptation Internal vs External focus

Bina Nusantara Monitoring the Environment Identify relevant information to gather. Use multiple source of information. Learn what client and customers want and need. Learn about competitor products and activities. Relate information to strategic plans.

Bina Nusantara Formulating Strategy Determine long-term objectives / priorities. Asses current strengths and weaknesses. Identify core competencies. Evaluate need for a major strategy change. Identify promising strategies. Evaluate likely outcomes of a strategy. Involve other executives in selecting a strategy.

Bina Nusantara Summary Controversy exists over the importance of a CEO’s impact on organizational effectiveness. A CEO has the most potential impact in times of crisis or environmental instability. Time in office, executive teams, and competing values also determine the effectiveness of CEOs. External monitoring provides information for strategic planning and crisis management.