1

Do Strategic Leaders

Matter?

2

Orientation

Have you got what it takes to be a strategic leader?

Strategic leaders contributions shape the organization’s future

Cognitive complexity and moral sensitivities

Believe in your capabilities

3

The Strategy Movement

Strategic Determinism vs. Strategic Choice

+ Internal structures and industry structures

Strategy and structure+ Environments and fit+ Leader’s role to identify correct strategy and

authorize implementation

Resource-based theories+ Leadership choice and strategic visions

+ Competitive advantage and core competencies

4

OVERVIEW

Maps: Platforms of Understanding Indication that top-level leaders can make a

difference Leadership and organizational level

+ Impact of top leaders is in strategy formulation+ Lower-level leaders moderators of strategy

implementation

Context: Strategic Leadership Processes

5

Nahavandi & Malekzadeh’s Platform of Understanding

Outlines two maps with conflicting implications of leadership impact

Strategic choice: leader’s vision or choice of strategy influences company’s success

Strategic determinism: Strategy not created through leader insight but discovered by analytical processes identifying relevant environmental, cultural and structural factors

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Can top level leaders make a difference?

Strategic determinism : Strategy identifies factors determined by environmental, structural, or cultural factors. It is thus not created by insight on the part of a leader but discovered by analytical processes

Strategic choice: Non-determinists’ propose that leaders have strategic choice. They can influence strategy formulation and corporate success.

Strategy Formulation and Strategy Implementation: Top leadership cadre influences strategy formulation. Lower level leaders have some influence in strategy implementation.

7

Nahavandi and Malekzadeh’s Integrative Framework

The strategic leader acts as a moderator between strategy and outcomes.

Strategic orientation of leaders may be challenge-seeking or controlling in orientation

High challenge-seeking leaders are innovative in their strategic choices.

High control leaders wish to retain control over decisions and actions.

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High-Control Innovator

Challenge-seeking leader who maintains tight control of

organization

High challenge seeking

CHALLENGE CHALLENGE SEEKINGSEEKING

Strategic Leadership TypesStrategic Leadership Types

Low challenge seeking

DESIRE FOR CONTROLDESIRE FOR CONTROLHigh control Low control

Participative Innovator

Leader seeks change through process of delegating control of

organization

Status Quo Guardian (SQG)

Challenge-averse leader who maintains tight control of

organization

Process Manager (PM)

Challenge-averse leader who delegates control of

organization

9

Upper Echelon Studies

Hambrick and Mason proposed that strategy in organisations reflected characteristics of its top executives (‘upper echelon’).

Highlighted the way the leader thinks and the values held.

Essentially, leaders within an upper echelon ‘made a difference’ through their cognitive styles and belief systems

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The Discretion of the Strategic Leader

Michael Porter’s method of identifying an organisation’s strategic ‘position’ indicated no need for leadership intervention in setting strategy.

This raises a dilemma of strategic choice: ‘Can I, as a leader, create a unique strategy for my organisation, or is it a process best to a team of strategic planners to determine analytically ?

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TIPPING POINT LEADERSHIP

Strategic transformations occur where there is a rapid shift in strategy orientation and strategy implementation

There are four hurdles (or tipping points), two of re-orientation, (cognitive and resource hurdles) and two of implementation (motivational and political hurdles)

These provide the four steps of the ‘what’ of strategic change

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Tipping Point Leadership

Cognitive HurdlePut managers face to face with problems and customersFind new ways to communicate

Resource HurdleFocus on the hot spots & bargain with partner organizations

Political HurdleIdentify & silence internal opponentsIsolate external ones

Motivational HurdlePut the stage lights on & frame the challenge to match the organization’s various levels

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What Sort of Strategic Leader Are You?

The integrative model of Nahavandi and Malekzadeh You should have a sense of your own concern for challenge, and

therefore your likelihood of flourishing in an environment requiring innovation and entrepreneurial leadership. A sense of your need for control as contrasting to willingness to encourage (empower?) followers will indicate the style with which you would approach your leadership tasks.

Are you mainly a strategy formulator or implementer? There is a fundamental challenge raised for practicing

leaders. Do you, or don’t you ‘make a difference’ in your strategic efforts ? Put another way, does your contribution matter, in organisational performance

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Summary

Strategic choice maps assume a strategic leader and other top echelon executives will make a difference.

If strategies are largely deterministic, significance of the strategic leader is minimal. Strategy can be left to a team of strategic planners

The characteristics which differentiate effective strategic leaders from others also remain under-defined, although cognitive complexity is often mentioned

Strategic transformations may be assisted through attending to ‘tipping points’ of cognitive, resource based, motivational or political kinds