Embed Size (px)
Citation preview
UNDERSTAND THE RELATIONSHIPBETWEEN STRATEGIC MANAGEMENT ANDLEADERSHIP
Unit aimAn understanding of the links
between strategic management, leadership and organizational direction
Skills to be able to apply this understanding
Learning outcomesExplain the link between
strategic management and leadership
Analyze the impact of management and leadership styles on strategic decisions
Evaluate how leadership styles can be adapted to different situations
Strategic ManagementArt and science of formulating,
implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives
Strategic Management: Concepts and Cases, Fred David
Set of managerial decisions and actions that determine the long-term performance of an organization
Concepts in Strategic Management and Business Policy, Wheelen, Hunger and
Rangarajan
Functions of Strategic ManagementReview strategic goals and
objectivesCreate, communicate and
implement changeImprove organizational
performanceDevelop and lead high
performance teams…..
Stages of Strategic Management
Strategy formulati
on
Strategy implementati
on
Strategy evaluatio
n
Strategy formulation ◦includes developing a vision and
mission, identifying an organization’s external opportunities and threats, determining internal strengths and weaknesses, establishing long-term objectives, generating alternative strategies, and choosing particular strategies to pursue
◦often called the planning stage
Strategy implementation ◦requires a firm to establish annual
objectives, devise policies, motivate employees, and allocate resources so that formulated strategies can be executed
◦often called the action stage
Strategy evaluation◦reviewing external and internal
factors that are the bases for current strategies, measuring performance, and taking corrective actions
◦often called the monitoring stage
Levels of Strategic ManagementStrategy formulation,
implementation, and evaluation activities occur at three hierarchical levels in a large organization: ◦Corporate◦Divisional or strategic business unit◦Functional
LeadershipProcess of social influence in which one
person can enlist the aid and support of others in the accomplishment of a common taskAn Integrative Theory of Leadership, Martin Chemers
Process of influencing others to understand and agree about what needs to be done and how to do it, and the process of facilitating individual and collective efforts to accomplish shared objectivesLeadership in Organizations, Gary Yukl
Practices of exemplary leadership
Establish principles for how people should be treated and how goals should be pursued
Create standards of excellence and set an example for others
Set interim goals so that people can achieve small wins
Unravel bureaucracy when it impedes action
Passionately believe that they can make a difference
Envision the future, creating an ideal and unique image
Enlist others in their dreams
Breathe life into their visions
Get people to see exciting possibilities for the future
Search for opportunities to change the status quo
Look for innovative ways to improve the organization
Experiment and take risks
Accept the inevitable disappointments as learning opportunities
Foster collaboration and build spirited teams
Actively involve others
Support mutual respect
Strive to create an atmosphere of trust and human dignity
Strengthen others, making each person feel capable and powerful
Recognize contributions that individuals make
Celebrate each other’s accomplishments
Make people feel like heroes
Concern for Production
Concern for People
(9,9) Team Management
(1,1) Impoverished Management
(9,1) Authority
Compliance Management
(5,5) Middle of the Road
Management
Leadership grid(1,9)
Country Club Management
Leadership stylesAutocratic (Telling). Manager makes
decisions with little or no involvement of non-managers.
Diplomatic (Selling). Manager makes decisions without consultation but tries to persuade non-managers to accept them.
Consultative (Consulting). Manager obtains non-managers' ideas and uses them in decision making.
Participative (Joining). Manager involves non-managers heavily in the decision (and may even delegate it to them completely).
Factors affecting style of leadershipType of businessOrganizational culture
◦Communication and flow of information
◦Decision making◦Behavioural rules / norms
Characteristics of the leaderCharacteristics of the followers
Impact of style of leadership on strategySuitability of the leadership style
to the situationAbility of the leadership style to
draw the most contribution from followers
How leadership style sees success◦With competition◦Within the organization◦employees
Managing Change
Motivating Change
Creating Vision
DevelopingPolitical Support
Managing the Transition
Sustaining Momentum
EffectiveChange
Management
Motivating changeCreating Readiness for Change
◦Sensitize the organization to pressures for change
◦Identify gaps between actual and desired states
◦Convey credible positive expectations for change
Overcoming Resistance to Change◦Provide empathy and support◦Communicate◦ Involve members in planning and
decision making
Creating a visionDiscover and Describe the
Organization’s Core Ideology◦What are the core values that inform
members what is important in the organization?
◦What is the organization’s core purpose or reason for being?
Construct the Envisioned Future◦What are the bold and valued outcomes?◦What is the desired future state?
Managing political supportAssess Change Agent PowerIdentify Key StakeholdersAssess Stakeholder Power and
InterestInfluence and manage
Stakeholders
Managing the transitionActivity Planning
◦What’s the “roadmap” for change?Commitment Planning
◦Who’s support is needed, where do they stand, and how to influence their behavior?
Management Structures◦What’s the appropriate arrangement
of people and power to drive the change?
Maintaining momentumProvide Resources for ChangeBuild a Support System for
Change AgentsDevelop New Competencies and
SkillsReinforce New BehaviorsStay the Course
Strategy, change and leadership
Leadership
Strategy
ChangeStrategy
implemented through a process
of change
A key function of leadership is to formulate and implement
strategy
Leadership is a key factor which determines the
success of change
management
