Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 13-1 Chapter 13 Strategic Leadership by Executives

Copyright © 2010 Pearson Education, Inc. Leadership in Organizations13-1

Chapter 13Strategic Leadership by Executives


Learning Objectives Understand what organizational processes determine an

organization’s performance. Understand how top executives can influence

organizational processes and improve organizational performance.

Understand the conditions that make strategic leadership especially important.

Understand the conditions that make it more difficult for a chief executive to make changes in an organization.


Learning Objectives (Cont.) Understand how personal traits and tenure in office are

related to a chief executive’s leadership behavior. Understand the primary types of research used to assess

the importance of strategic leadership and what has been found.

Understand the potential advantages of executive teams and the conditions that increase their effectiveness.

Understand the procedures that can be used to monitor the environment and formulate a good competitive strategy.


How Leaders Influence Organizational Performance

Adaptation to the Environment Efficiency and Process Reliability Human Resources and Relations


Innovation and Adaptation Competitor and market analysis programs

(market surveys, focus groups, consumer panels, comparative product testing, benchmarking competitor products and processes)

Innovation programs (intrapreneurship, quality circles, innovation goals)

Knowledge acquisition (consultants, joint ventures, import best practices from outside)

Organizational learning (knowledge management systems, postmortems, joint ventures)


Innovation and Adaptation (Cont.) Temporary structural forms for implementing

change (steering committee, task forces) Growth and diversification programs (mergers and

acquisitions, franchises, joint ventures) Structural forms (research departments, small

product divisions, product managers, cross-functional product development teams, facilities designed to encourage innovation)

Appraisal, recognition, and reward systems focused on innovation and customer satisfaction


Efficiency and Process Reliability Performance management and goal setting

programs (e.g., MBO, zero defects) Process and quality improvement programs

(quality circles, TQM, Six Sigma) Cost reduction programs (downsizing,

outsourcing, just-in-time inventory) Structural forms (functional specialization,

formalization, standardization) Appraisal, recognition, and reward systems

focused on efficiency and process reliability


Human Resources and Relations Quality of worklife programs (flextime, job

sharing, child care, fitness center) Employee benefit programs (health care,

vacations, retirement, sabbaticals) Socialization and team building (orientation

programs, ceremonies and rituals, social events and celebrations)

Employee development programs (training, mentoring, 360 feedback, education subsidies)


Human Resources and Relations (Cont.) Human resource planning (succession planning,

assessment centers, recruiting programs) Empowerment programs (self-managed teams,

employee ownership, industrial democracy) Recognition and reward programs focused on

loyalty, service, or skill acquisition


Ways to Influence the Performance Determinants

Leadership Behaviors Programs, Systems, and Structure Competitive Strategy


Table: Management Systems, Programs, and Structural Forms Used to Influence The Performance Determinants


Need for Flexible, Adaptive Leadership

Need to focus on multiple performance determinants

Need to find a balance between priorities Enhance multiple priorities at the same time Balance impacted by changes in importance of

the determinants


Coordinating Leadership Across Levels and Subunits

Fates of different leaders closely intertwined Conflict and resistance impedes performance Performance depends on how well competition

and disagreements are addressed


Constraints on Executives Internal Constraints

Coalitions in the organization Strong organizational culture

External Constraints Organization’s primary products and services Powerful external stakeholders Perception of the organization’s performance

Constraints and Executive Traits as Joint Determinants


Conditions Affecting the Need for Strategic Leadership

Periods of Reorientation Periods of Convergence Influence of Top Management


Strategic Leadership Political Power and Strategic Leadership Executive Tenure and Strategic Leadership Research on the Effects of CEO Leadership

Studies of CEO Succession Case Studies of Strategic Leaders Survey Field Studies on CEO Behavior and Firm

Performance


Strategic Leadership by Executive Teams

Potential Advantages of Executive Teams Potential to make better strategic decisions Team members can compensate for weaknesses in

the CEO More likely to represent diverse interests Important tasks are less likely to be neglected

Executive Teams and Organizational Effectiveness


Key Responsibilities for Top Executives

Monitoring the Environment Developing Competitive Strategy


Monitoring the EnvironmentTable: Questions for External Monitoring


Guidelines for Formulating Strategy Determine long-term objectives and priorities Assess current strengths and weaknesses Identify core competencies Evaluate the need for a major change in strategy Identify promising strategies Evaluate the likely outcomes of a strategy Involve other executives in selecting a strategy


Guidelines for External Monitoring Identify relevant information to gather Use multiple sources of relevant information Learn what clients and customers need and want Learn about the products and activities of

competitors Relate environmental information to strategic plans


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Copyright © 2010 Pearson Education, Inc. Leadership in Organizations 13-1 Chapter 13 Strategic Leadership by Executives