1. Strategic Leadership & Organisational culture
From Hoskisson and Hitt

2. Topics
Strategic Leadership
Organisational Culture
Balance Score card

3. What is Strategic Leadership
It is the ability to anticipate, envision, maintain flexibility and empower others to create strategic change as necessary

4. Critical skills required in strategic leadership
To fill key positions with talented people and manage them effectively
To be able to manage in changing times
To have the ability to manage knowledge and create and commercialise innovation

5. Who needs to show strategic leadership
Any individual with the responsibility for the performance of human capital and/or part of the firm is a strategic leader
The CEO, members of the Board of Directors, the top management team and the divisional general managers.

6. Style of Strategic Leadership
Transformational leadership
This style entails motivating followers to exceed the expectations others have of them, to continuously enrich their capabilities and to place the interest of the organizations above their own.
Transformational leaders develop and communicate a vision for the organization and formulate a strategy to achieve their vision
They make the followers aware of the need to achieve organisational outcomes and encourage them to achieve organisational goals and strive for higher achievements.

7. The role of top managers
To form and implement effective strategies
Use of discretion in making strategic decisions
Amount of decision making discretion depends on
Industry structure
Market growth rate
Degree of product differentiation
Characterisitcs of the organisation like age, size, resources
Characterisitcs of the manager inlcuding commitment to the firm, tolerance for ambiguity, skills in working with different people

8. Top management team
It is composed of key individuals who are responsible for selection and implementation of firm’s strategies.
The top management team requires to have broad knowledge of the firm’s operations as well as knowledge about the firm’s general, industry and competitor environment.
For that a firm requires a heterogeneous top management team – which has individuals with different functional backgrounds.
Individuals with different backgrounds may have communication problems and integrating their efforts is the CEO’s job.
Heterogeneous teams are positively correlated to innovation and strategic change – since heterogeneity forces them to think ‘out of the box’

9. CEO and top management team power
Board of directors need to control the CEO and the top management team but they lose control if the CEO is the chairman of the Board of Directors.
CEO duality - Should the CEO be the chairman of the Board of Directors ?????
Should the CEO have a long tenure or a short tenure
Long tenure brings human skills and domain specific knowledge , short tenure bring wide learning base due to wider experience.

10. Managerial succession
CEO – from internal managerial labour market or external managerial labour market ????
Effect of CEO succession and impact on strategy
Internal CEO succession External CEO succession
Homogeneous
Top management
Team
Heterogeneous
team
Stable strategy
Ambiguous: change in top management
Stable strategy with innovation
Strategic change

11. Key strategic Leadership actions
Determining strategic direction
Effectively managing the firm’s resource portfolio
Exploiting and managing firm’s core competencies
Developing human capital and social capital
Sustaining an effective organizational culture
Establishing balanced organisational controls

12. Effective strategic leadership
Determining strategic Establishing balanced
Direction organisational controls
Effectively Sustaining Emphasizing
managing the an effective ethical practices
Firm’s Organisational
Resource culture
portfolio

13. Sustaining effective organisational culture
Organisational culture – complex set of ideologies, symbols and core values.
Organisational culture influences how firms do business and helps regulate and control employee behavior and can be a source of competitive advantage.
Organisational culture should promote entrepreneurial mindset
Five dimensions for it are
1. Autonomy
2. Innovativeness
3. Risk taking
4. Proactive ness
5. Competitive aggressiveness

14. Balanced score card
It is a framework that can be used by firms to that they have established both strategic and financial controls to assess their performance
It is most appropriate for business level strategies but can be used for corporate, international strategies etc
There are four premises in the balanced score card
1. Financial control
2. Customer control
3. Internal business processes
4. Learning and growth

15. Financial control
Cash flow
Return on equity
Return on assets

16. Customer control Assessment of ability to anticipate customer’s needs
Effectiveness of customer service practices
Percentage of repeat business
Quality of communications with customers

17. Internal business processes
Asset utilisation improvement
Improvement in employee morale
Changes in turnover ratio

18. Learning and Growth Improvements in innovation ability
Number of new products compared to competitors
Increases in employees skills