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Strategic Leadership Vs. Strategic Management

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1 Strategic Leadership Vs. Strategic Management
Team 3: Lamont Bradley Leslie Chappell Beth Desch Sandra Ziaja

2 Strategic Leadership Definition:
Is the process of using well considered tactics to communicate a vision for an organization or one of its parts. Strategic leadership typically manages, motivates and persuades staff to share that same vision, and can be an important tool for implementing change or creating organizational structure within a business. Sandra Ziaja Ref: Pedraza, J. 2013

3 Strategic Management Definition:
Strategic Management is the process of specifying an organization's objectives, developing policies and plans to achieve these objectives, and allocating resources so as to implement the plans. Sandra Ziaja Ref: Pedraza, J. 2013

4 What Does Strategic management and Strategic Leadership Have in Common?

5 Commonalities There are many commonalities in the strategic thinking processes applied to certain methodologies throughout organizational leadership. The same concepts used in Strategic management are used in Strategic leadership. Its the strategizing that connects the micro-level processes in company wide leadership and the broad range of practices involved in organizational management. As leaders work to build and implement intra-organizational strategies, through both formal and informal means, Management is strategically engaging in building that same momentum for the company as a whole; this makes these two methodologies similar. Just as the company begins to organize and make the shift to a new strategy worldwide you can expect changes to occur strategically in-houses to match the progress and goals of the company on a global level. Its process like these that make managing strategically and leading strategically synonymous in a sense. Lamont Bradley (Jerevicius, 2013)

6 Commonalities Organizations benefit from various growth spurts, analysis, and other strategically sought out data These benefits are earned by drawing feedback on what is necessary for their organization to create and sustain competitive advantage connections. Connections included are between, “processes and practices of strategizing; strategy formulation and implementation; and the formal and informal means through which strategy is created then later realized.”(Bailey & Kempster, 2005) Once these things are understood a company can lead and organize in a way that is most beneficial for the company to sustainably thrive for years to come. By utilizing the data collected on the status of many of the companies attributed gains and loses, one can assume that a strategic thinking company will take the necessary steps to ensure a viable future. Accurate data is key to seeing when and where improvement is needed. To be competitive one must be able to see where things can work in their advantage and how the company move closer to its goal by doing so. Lamont Bradley (Bailey & Kempster, 2005)

7 Commonalities A company’s ability to: anticipate, envision,
be able to adapt, think strategically, and partner with others ...Determines if they will be successful at initiating change that will create a viable future for the organization. Together strategic management and strategic leadership incorporate key processes that enables the successful implementation of strategic thinking. These methodologies are similar in potential of success and level of importance. If used correctly and collaboratively major accomplishments should be expected. As leaders continue on the nonstop work to build and implement intra-organizational strategies, through both formal and informal means, Management is strategically engaging in building that same momentum for the company as a whole; this makes these two methodologies similar. Lamont Bradley (Howland, Krupp, & Shoemaker 2013)

8 The Differences Between Strategic Leadership & Strategic Management
Provides the vision and direction for the growth and success of the organization. Provides the strategic analysis of both the internal and external environments. Focuses on the major purposes of the organization, such as the mission and vision. Focuses on developing policies and plans to support the mission of the organization. “In order to successfully deal with change within an organization, all executives need the skills and tools for both strategy formulation and implementation. Managing change and ambiguity requires strategic leaders who not only provide a sense of direction, but who can also build ownership and alignment within their workgroups to implement change” (Pedrazza, J. 2013) Sandra Ziaja Ref. Pedraza, J., 2013

9 The Differences Between Strategic Leadership & Strategic Management Cont.
Provides direction and inspiration for the organization. Allocates resources to implement the plans. Manages, motivates and persuades staff to share the same vision. Assesses strengths & weaknesses, opportunities & threats in the environment of the organization. Manages change within the organization. Works out the organizational responses to the changes in the business environment. Strategic leadership is more development oriented Strategic management is more goal oriented Strategic leadership provides direction and inspiration for the organization. This is done through “focusing on the choices that enhance the health and well-being of an organization over the long term” (Beatty, Quinn, 2010). Strategic leadership needs to also remain focused on the short-term objectives, that add to the long-term goals of the organization. A strategic leaders’ role is to manage and motivate staff to share the same vision for the organization. This is done through gathering information from all areas of the organization, and establishing relationships at all levels of the organization. Strategic leaders must communicate with employees at all levels which creates trust and motivation. “Strategic leadership is a management model that trains and encourages employees to best prepare the company for the future” (Pedraza, J. 2013). Strategic leadership manages change within the organization through knowledge management. This can be done through: Knowledge creation; innovation through training, seminars, professional development, and degree completion Knowledge dissemination; allows group members access to key information and support through intranets, web portals, and databases Knowledge application; helps group members apply learning to their jobs through mentoring, shadowing, on-the-job training, and workshops. Strategic management then is the process of allocating resources to implement the plans of the strategic leader. Strategic management has many roles, such as: Listener Team member Researcher Presenter Leader Strategic Management’s objective is to “achieve better alignment of corporate policies and strategic priorities” (Pedraza, 2013) This is done through: Specifying an organization’s objectives Developing policies and plans to achieve the objectives Allocating resources to be able to implement the plans. Process involves matching the companies’ strategic advantages to the business environment the organization faces. Sandra Ziaja Ref: Pedraza, J. 2013, Dattagupta, J. 2013

10 The Differences Between Strategic Leadership & Strategic Management Cont.
Have a high-level of cognitive ability Use multiple inputs for strategy formation. Anticipate and create a future by using revolutionary thinking Create vision for the organization Strategic management : Is used to maintain sustainability Is used to maintain a competitive advantage Is used to achieve the organizational objective. Involves adapting the organization to its business environment Strategic leaders need to have the ability to think, reason, and problem solve. “Managing change and ambiguity requires strategic leaders who not only provide a sense of direction, but who can also build ownership and alignment within their workgroups to implement change” (Pedraza, 2013). Strategic management “process involves matching the companies' strategic advantages to the business environment the organization faces. One objective of an overall corporate strategy is to put the organization into a position to carry out its mission effectively and efficiently” (Pedraza, 2013). Sandra Ziaja Ref: Pedraza, 2013

11 The Differences Between Strategic Leadership & Strategic Management Cont.
Strategic leaders use: Strategic thinking & planning Strategic acting Strategic learning Strategic influencing Knowledge management Strategic management uses: Strategic analysis that includes: External analysis Internal analysis Strategic management involves both: Strategy formation (content) Strategy implementation (process) Strategic management is partially planned and partially unplanned Strategic leaders use strategic thinking and planning to align with the organization’s goals and objectives. This can be done through information gained from a SWOT analysis for both internal and external environments. The strategic management team then conducts the analysis and provides the information to the strategic leaders. The leaders use the information to determine the strategic plan, by acting, learning and influencing others. Sandra Ziaja

12 How Do We As “Leaders” Best Introduce/use Methodologies of Strategic Leadership?
Leslie Chappell

13 Implementation To implement effective leadership strategies, there has to be an understanding of the organizational values and beliefs. The creation of a benchmark, or an organizational roadmap solidifies a foundation from which to plan success. Complete commitment to ideas and values from leadership helps an organization identify with the directional process, and permits all levels and groups of employees to communicate singularly. Leslie Chappell George Root III (n.d.)

14 Strategy The creation of a plan or goal defines the direction that an organization will follow. Implementing an effective strategy to reach set goals relies upon effective communication. Groups and individuals become more effective when they can network and share information The creation of boundaries sets the framework for allocated use of information, and permits everyone to operate within a standard. Leslie Chappell Rick Miller (2014)

15 Effective Managing Managing groups is a function of leadership, but simply implementing strategies and requiring expectations does little to improve an organization’s group to manage itself. Leadership must allow groups to struggle within the learning curve. When employees are unsure of their responsibility, they will ask; as they ask, they gain confidence. Provide resources and materials so that they have the basic necessities to start with. Ensure that failure is momentary, and provide a path to permits success. Leslie Chappell -Rick Miller (2014)

16 Mentoring Finding success interpersonally can be difficult for many people; in the age of social technology it is possible for individuals or groups to become socially engaged, resulting in misinformation and failure. An effective mean to overcome introversion is to coach people; make them a substantial part of the organizational success. Mentoring permits the building of confidence. Mentoring removes interpersonal barriers. Mentoring becomes natural for the mentee. Leslie Chappell Forbes (2013

17 Ownership of Responsibility
The most effective skill that a leader can provide is responsibility and conviction of the learning processes, and the decisions made to set the standards. Growing and learning from mistakes permits employees or groups to understand their personal capabilities, effectively gaining experience that can elevate career progression. Assign simple tasks that allow employees to become familiar with. Rotate individuals from group to group, to create a better understanding of tasks, and to work collaboratively. Prepare individuals to manage group presentations. Leslie Chappell -Rick Miller (2014)

18 Creating a “Leader” Effective communication and organizational goals are the foundation to creating and implementing effective leadership. Preparation and diversity can prepare most anyone for leadership success; with proper coaching and attention from leadership, the results will be effective in maintaining the roles of future leaders, and their ability to effectively implement and manage success and team ownership. Leslie Chappell

19 Examples Three examples of the commonalities & differences of strategic management vs. strategic leadership 1. Military 2. Corporate 3. Individual Beth Desch

20 Military Strategic management
- the military commander or senior officer has authority by legal status, and the enlisted are willing to comply because of the contractual arrangement - compliance is external not necessarily an internal value - subordinates comply from a obligation rather than an internal desire A truly excellent military leader will use both the authority of status and relationships to influence the troops. Beth Desch

21 Military Strategic leadership
- a strategic military leader is more likely a comrade who influences a fellow serviceman to internalize the military values and dedication - compliance is internalized by a confidence in the goals & operating system (Murphy, n.d.) Beth Desch

22 Corporate A Strategic Manager, or CEO in a healthcare setting is the one who develops policies, allocates resources, and analyses for sustainability. They might: 1. Write grants for new projects 2. Develop polices to support the mission 3. Analyze the strengths and weaknesses of the facility 4. Generate budgets 5. Plan for internal growth and adjustments in the marketplace CEO’s of corporations may be managers or leaders. The leader type are interested in influencing by relational means rather than by directive or cohersion. Beth Desch

23 Corporate A corporate leader inspires and motivates employees to internalize the company’s mission and vision by influencing dedication and ownership of the organization’s purpose. They will: 1. Be creative 2. Be encouraging 3. Go beyond the job descriptions to influence staff to make the company’s goals and values their own ( Bersin, 2012) Beth Desch

24 Individual Imagine an edict was decreed by the president that every young person must participate in a philanthropic venture simply because they are US citizens. Many would comply but not many would do it from an internal motivation. That is a Strategic management approach- expecting compliance because of the law, not because of an inner motivation. Doing good is nice, an exemplary goal, and would benefit many but if it’s not an internalized attitude, it will not make the kind of lasting changes that make a country or business great. This example is a hypothetical situation to compare the way management vs leadership is manifest by individuals to individuals. Beth Desch

25 Individual Conversely, Chris Rosati, who suffers from ALS, acted as an unlikely strategic leader when he gave two girls $50 and said “ do something good with this money”. The girls in turn helped a village in Sierra Leone. Chris influenced them with his actions and encouraging words, and the girls acted not simply from an obligation but from the influence of a leader. ( Hartman, 2015) Chris Rosati, who is an ALS sufferer wanted to see if the “butterfly effect” was possible by starting a domino effect of kindness. Similar to the pay it forward movement. This is an example of the way a single person can influence another and by doing so effect change. He is being a strategic leader by encouraging the shared purpose of giving. Beth Desch

26 Conclusion Strategic leadership is a part of strategic management and are similar in the end result. Both want success and growth for the company. The main difference is in the platform used to achieve those endeavors. Managers are working with resources and leaders are influencing individuals. Beth Decsh

27 References Bailey, A., Kempster, S. (2005). Becoming a Strategic Leader:Lessons form futher education.Center for excellence in Leadership. Beatty, K., Quinn, L Strategic command. Taking the long view for organizational success. Leadership In Action. Volume 30, Number 1. March/April 2010 Bersin, J. (July, 12, 2012). It’s not the ceo, it’s the leadership strategy that matters. Forbes Magazine. Retrieved from leadership-strategy-that-matters/ Dattagupta, J What is the relationship between strategic management and strategic leadership. Retrieved from: nd_strategic_leadership Forbes (2013). Leadership: 5 strategies that will turn your employees into leaders. Retrieved July 25, 2015, from employees-into-leaders/2/ Hartman, S. (2015, March 13). Proving the butterfly effect with a single act of kindness. CBS News. Retrieved from kindness/ Howland, S., Krupp, S., Schoemaker, P. Strategic Leadership: The essential skills. Retrieved July 29, 2015, from Harvard Business Review. February 2013 Issue. Jerevicius, O. (2013). Strategic Management & Strategic Planning. Retrieved July 27, 2015 from

28 References Cont. Miller, R. (2014). The 5 elements of effective leadership. Retrieved July 25, 2015, from Murphy, R. (n.d.). Strategic leadership vs. strategic management: Untying the Gordian knot. Retrieved from Pedraza, J What is the relationship between strategic management and strategic leadership. Retrieved from: nd_strategic_leadership Root, G. (n.d.). What is the role of leadership in strategic implementation? Retrieved July 26, 2015, from html


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