1. Creating Vision and Strategic Direction
Discussion 13
Creating Vision and Strategic Direction

2. “Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion.”
Jack Welch

3. Strategic Leadership
The 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

4. Ex. 13.1 The Domain of Strategic Leadership
Vision
Mission
Strategy
Architecture for alignment and implementation

5. Vision
An attractive, ideal future that is credible yet not readily available

6. Ex. 13.2 Examples of Brief Vision Statements (selected)
Motorola
Become the premier company in the world
Ritz-Carlton (Amelia Island) Engineering Dept.
Where no hotel has gone before – free of all defects
Johnson Controls Inc.
Continually exceed our customers’ increasing expectations
New York City Transit
No graffiti
Egon Zehnder
Be the worldwide leader in executive search

7. Ex. 13.3 The Nature of the Vision
Moving toward a desired future
Staying the course
Current reality

8. What Vision Does Links the present to the future
Energizes people and gains commitment
Gives meaning to work
Establishes a standard of excellence and integrity

9. Common Themes of Vision
Vision has broad appeal
Vision deals with change
Vision encourages faith and hope
Vision reflects high ideals
Vision defines the destination and the journey

10. Vision Works at multiple levels Must be inspirational at all levels
Encourages independent action
Self-reference

11. Mission
The organization’s core broad purpose and reason for existence

12. Mission Two critical parts: Core values guide the organization
Core purpose is why the organization exists

13. Leader’s Framework for Noble Purpose
Purpose Description Basis for Action
Discovery Finding the new Pioneer
Excellence Being the best Fulfillment
Altruism Providing service Happiness
Heroism Being effective Achievement

14. 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 goals
Strategy
The general plan of action that describes resource allocation and other activities for dealing with the environment and helping the organization attain its goals

15. Develop Strategies Focusing On
Core competence
Developing synergy
Creating value for customers

16. Core Competence
Something the organization does extremely well in comparison to competitors

17. Synergy and Value
Synergy: the interaction of organizational parts to produce a joint effect that is greater than the sum of the parts
Value: the combination of benefits received and costs paid by the customer

18. 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 value
Strategy Implementation
Putting strategy into action by adjusting various parts of the organization and directing resources to accomplish strategic goals

19. Ex. 13.7 Making Strategic Decisions
Ease of Implementation
Hard
Easy
High Impact, Hard to Implement.
Major changes, but with potential for high payoff
High Impact, Easy to Implement.
Simple changes that have high strategic impact – take action here first
High
Strategic Impact
Low Impact, Hard to Implement.
Difficult changes with little or no potential for payoff – avoid this category
Low Impact, Easy to Implement.
Incremental improvements, “small wins;” pursue for symbolic value of success
Low

20. Ex. 13.8 Linking Strategic Vision and Strategic Action
High
The Dreamer
The Effective Leader
Vision
The Uninvolved
The Doer
Low
High
Low
Action

21. SWOT
Strengths
Weaknesses
Opportunities
Threats

22. Porter’s 5 Competitive Sources
Potential new entrants
Bargaining power of buyers
Bargaining power of suppliers
The threat of substitutes
Rivalry among competitors