Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Strategic Leadership: Creating a Learning Organization and an Ethical Organization chapter 11
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 11-2
Exhibit 11.1 Three Interdependent Leadership Activities Strategic Leadership 11-3
Strategic Leadership Setting a direction requires the ability to scan the environment for knowledge about All stakeholders Salient environmental trends & events Then integrate that knowledge into a strategic vision of what the organization could become A clear future direction A framework for the firm’s mission & goals Leading to enhanced employee communication, participation, & commitment 11-4
Strategic Leadership Designing the organization requires building mechanisms to implement the leader’s vision and strategies through Structures & teams Systems & processes Lack of appropriate design could cause problems Managers who don’t understand their responsibilities Reward systems that are not motivating Inappropriate financial systems Insufficient integrating mechanisms 11-5
Strategic Leadership Nurturing an excellent and ethical organizational culture is a key leadership activity, requiring that managers & leaders Accept personal responsibility for developing & strengthening ethical behavior Consistently demonstrate that such behavior is central to the mission & vision of the firm Develop & reinforce Role models Corporate credos & codes of conduct Reward & evaluation systems, policies & procedures 11-6
Strategic Leadership: Overcoming Barriers to Change Leaders must overcome barriers to change Organizations are prone to inertia, slow to learn, adapt, & change because of Vested interests in the status quo Systemic barriers Behavioral barriers Political barriers Personal time constraints 11-7
Strategic Leadership: Effective Use of Power Leaders must make effective use of power Influence other people’s behavior Persuade them to do things they otherwise would not do Overcome resistance & opposition Sources of power Organizational bases of power Legitimate, reward, coercive, information Personal bases of power Referent, expert 11-8
Strategic Leadership: Effective Use of Power 11-9 Exhibit 11.2 A Leader’s Bases of Power
Strategic Leadership: Emotional Intelligence The valuable traits of successful leaders: Technical skills – like accounting, operations research Cognitive abilities – like analytical reasoning, quantitative analysis Emotional intelligence – like self- management, managing relationships with others Self-awareness, self regulation, motivation, empathy, social skills 11-10
Strategic Leadership: Emotional Intelligence Exhibit 11.3 The Five Components of Emotional Intelligence at Work Source: Reprinted by permission of Harvard Business Review. Exhibit from “What Makes a Leader,” by D. Goleman, January Copyright © 2004 by the Harvard Business School Publishing Corporation; all rights reserved.
Strategic Leadership: A Learning Organization Successful learning organizations Create a proactive, creative approach to the unknown Actively solicit the involvement of employees at all levels Enable all employees to use their intelligence & apply their imagination A learning environment involves An organization-wide commitment to change An action orientation, applicable tools & methods 11-12
Strategic Leadership: Creating an Ethical Organization Ethics deals with right and wrong Ethical beliefs come from religion, ethnic heritage, family practices, community standards, educational experiences, friends & neighbors Organizational ethics promote an operating culture & determine acceptable behavior Ethical beliefs come from the values, attitudes, & behavioral patterns of leadership Unethical business practices involve the tacit, if not explicit, cooperation of others 11-13
Strategic Leadership: Creating an Ethical Organization The ethical orientation of the leader is a key factor in promoting ethical behavior Integrity & ethical values Shape behaviors Provide a common frame of reference Act as a unifying force Have a positive effect on employee commitment & motivation to excel Can create value & a competitive advantage 11-14
Strategic Leadership: Creating an Ethical Organization Ethical frameworks for integrity include: The compliance-based ethics program Prevents, detects, & punishes legal violations The integrity-based ethics program Enables ethical conduct Examines organizational members’ core guiding values, thoughts, & actions Defines responsibility & aspirations for ethical conduct 11-15