Handout Strategic Leadership tutorial

7/28/2019 Handout Strategic Leadership tutorial

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Handout SL

Pertemuan 1-2

Eksekutif Reguler

Mengapa Strategic Leadership?

Konsentrasi Strategic Management adalahKonsentrasi Strategic Management adalah Suatu konsentrasi studi manajemen yang lebih mengupayakan perolehan wawasan bagiSuatu konsentrasi studi manajemen yang lebih mengupayakan perolehan wawasan bagi

peserta untuk dapat mengambil keputusan strategis dan mampu mengendalikan sertapeserta untuk dapat mengambil keputusan strategis dan mampu mengendalikan sertamengevaluasi implementasi strategi atau bagian strategi dari suatu organisasi /mengevaluasi implementasi strategi atau bagian strategi dari suatu organisasi /perusahaan.perusahaan.

Apakah keputusan strategis hanya diperlukanApakah keputusan strategis hanya diperlukan--oleh / diwajibkanoleh / diwajibkan--bagi pimpinanbagi pimpinantertinggi suatu organisasi?tertinggi suatu organisasi? Tidak. Karena semakin banyak karyawan yang mampu berpikir strategis dan mendukungTidak. Karena semakin banyak karyawan yang mampu berpikir strategis dan mendukung

keputusan strategis, semakin mudah organisasi itu merubah, merencanakan, dankeputusan strategis, semakin mudah organisasi itu merubah, merencanakan, danmenjalankan strateginya.menjalankan strateginya.

Jadi bagaimana strategic leadership diarahkan untuk kelas ini?Jadi bagaimana strategic leadership diarahkan untuk kelas ini? Kelas ini akan mengkaitkan setiap langkah dalam mengelola strategi dengan pendekatanKelas ini akan mengkaitkan setiap langkah dalam mengelola strategi dengan pendekatan

leadership yang secara konsepsional maupun secara praktis diperlukan untukleadership yang secara konsepsional maupun secara praktis diperlukan untukmenjalankannya. Karena sesuai dengan tujuan konsentrasi Strategic Management danmenjalankannya. Karena sesuai dengan tujuan konsentrasi Strategic Management dankebutuhan organisasi, maka setiap individukebutuhan organisasi, maka setiap individu -- dalam posisi dan tanggung jawab apa pundalam posisi dan tanggung jawab apa pun --sangat diharapkan dapat menjalankan leadershipnya untuk memberikan kontribusinyasangat diharapkan dapat menjalankan leadershipnya untuk memberikan kontribusinyapada organisasi / perusahaan.pada organisasi / perusahaan.

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Jadi keuntungan apa yang bisa diperoleh

peserta dari kelas ini?

Setiap individu dapat mengidentifikasikan peran leadershipnya yang terbaikSetiap individu dapat mengidentifikasikan peran leadershipnya yang terbaikdalam posisi dan pekerjaannya saat ini.dalam posisi dan pekerjaannya saat ini.

Setiap individu dapat memahami peran leadership atasannya sehingga lebihSetiap individu dapat memahami peran leadership atasannya sehingga lebihbisa memberikan dukungannya.bisa memberikan dukungannya.

Setiap individu dapat memahami peran leadership bawahannya sehinggaSetiap individu dapat memahami peran leadership bawahannya sehinggalebih mudah untuk mendelegasikan wewenangnya dengan lebih efektif.lebih mudah untuk mendelegasikan wewenangnya dengan lebih efektif.

Setiap individu akan dapat memerankan leadershipnya terhadap atasan,Setiap individu akan dapat memerankan leadershipnya terhadap atasan,teman sejawat, dan bawahannya dalam konteks pekerjaan sehariteman sejawat, dan bawahannya dalam konteks pekerjaan sehari--harihari terlebih lagiterlebih lagi -- dalam keputusan strategis organisasi / perusahaan secaradalam keputusan strategis organisasi / perusahaan secara

efektif.efektif.

Last but not least, materi kelas ini bisa sebagai referensi untuk mendukungLast but not least, materi kelas ini bisa sebagai referensi untuk mendukungkarir kerja.karir kerja.

What is StrategicWhat is Strategic Decision?Decision? (Harper C. Stephen(Harper C. Stephen Forward FocusedForward FocusedOrganization)Organization)

A Decision for Long term Future Attainments.A Decision for Long term Future Attainments.

It is not routine activity, but it does certainly ableIt is not routine activity, but it does certainly ableto assure the future success.to assure the future success.

It is a change decision.It is a change decision. The real change is change the paradigm: the way weThe real change is change the paradigm: the way we

see the (future) world.see the (future) world.

If you see the same future, you do not lead, you justIf you see the same future, you do not lead, you justmanage the routines.manage the routines.

Your decisions should be unprecedented ones.Your decisions should be unprecedented ones.

Needs top management commitments.Needs top management commitments.



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Long-Range Planning Vs Strategic Planning (FlorenceGreen, Strategic Planning: Blueprints for Success, California Association of Nonprofit, 1994)

Long Range PlanningLong Range Planning

The future is predictable.The future is predictable.

Current trend would be continuedCurrent trend would be continued

and extended.and extended.

Planning is a periodical processes.Planning is a periodical processes.

Referring to the most possibleReferring to the most possible

future and more focused onfuture and more focused onmapping to what have happenedmapping to what have happened

and knowing why.and knowing why.

Questioning: In what business weQuestioning: In what business we

areare

Strategic PlanningStrategic Planning

The future is unpredictable.The future is unpredictable.

Expecting new trend, change, andExpecting new trend, change, andsurprised.surprised.

Planning is a continuous processes.Planning is a continuous processes.

Taking into account several possibleTaking into account several possiblefutures, and give emphasis to strategicfutures, and give emphasis to strategic

development with organizationaldevelopment with organizationalenvironment assessments.environment assessments.

Questioning: In what business weQuestioning: In what business weshould be? Do we do what it shouldshould be? Do we do what it should

be?be?

Menciptakan masa datang.

Top-down -- Bottom-up

Membimbing perilaku

manajemen

Berfokus padacustomer

eksternal lebih dulu

Efektivitas

Penekanan pada proses

Proaktif

Memperpanjang masa kini(biasanya lebih pendek dpperencanaan strategis)

Bottom-up / staff-generated

Tidak membimbing perilaku

manajemen Berfokus pada customer

internal dulu

Efisiensi

Penekanan pada rencana

Reaktif

Perencanaan lain :Perencanaan strategis :



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Kategori Perusahaan

a. Perusahaan yang sukses dimasa lalu dan mengagung-

agungkan masa lalu.

b. Perusahaan yang hidup di masa kini dan cukup sukses.

c. Perusahaan yang mempersiapkan diri untuk masa

depan dan mempromosikan diri mereka menghadapi

waktu berbeda.

d. Perusahaan yang menciptakan masa depan denganmerubah segala kemungkinan, peluang hasil yang bisa

diproses, bahkan kondisi lingkungan (alam).

(Harper C. Stephen) Forward-Focused Organization.

Empat Kategori Perusahaan Dalam Melihat Masa Depan

ForecastingNow

Past Now Future

Values and

ForesightVISION

Missioning

R

eflection

Past Performance is a

baseline for deciding

What we do for the

future now

Strategy is Directin g an dMapping



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Managing in New Competitive Era

GlobalizationGlobalization

Technology DevelopmentTechnology Development

Knowledge Management / EconomyKnowledge Management / Economy

CrossCross--Border Collaborations.Border Collaborations.

Rapidly Changing Global ScenarioRapidly Changing Global Scenario

Shortening life cycle of products and services If you understand thetechnology, it is obsolete

Rapidly changing business environment Its not the bigthat eats the small; its the fast that eats the slow

Globalizationof world economies, technologies and innovations

Shift of emphasis from a decaying industrial economy to a knowledge-

based entrepreneurial economy driven by innovative technology

"It's not the strongest nor most intelligent of the species that survive; it is the

one most adaptable to change" - Charles Darwin



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New KnowledgeNew Knowledge--driven Economydriven Economy

Shift from Industrial to KnowledgeShift from Industrial to Knowledge--Based EnterpriseBased EnterpriseTHE INDUSTRIAL ENTERPRISETHE INDUSTRIAL ENTERPRISE NEW KNOWLEDGENEW KNOWLEDGE--BASED ENTERPRISEBASED ENTERPRISE

Corporate AttributesCorporate Attributes Corporate AttributesCorporate Attributes

Economies of scaleEconomies of scale Smaller business unitsSmaller business units

Standardization of workStandardization of work Customization of workCustomization of work

Standardization of workforceStandardization of workforce Flexible, skill based workforceFlexible, skill based workforce

Financial capital as scarce resourceFinancial capital as scarce resource Human capital as scarce resourceHuman capital as scarce resource

Corporate HQ as operational controllerCorporate HQ as operational controller HQ as advisor & core competency guardianHQ as advisor & core competency guardian

Hierarchical pyramid structureHierarchical pyramid structure Flat or networked structureFlat or networked structure

Employees seen as expenseEmployees seen as expense Employees seen as investmentEmployees seen as investment

Internally focused topInternally focused top--down governancedown governance Internal & external distributed governanceInternal & external distributed governance

Individualistic orientationIndividualistic orientation Team orientationTeam orientationInformation based on "need to know"Information based on "need to know" Open & distributed information systemOpen & distributed information system

Vertical decision makingVertical decision making Distributed decision makingDistributed decision making

Emphasis on stabilityEmphasis on stability Emphasis on changeEmphasis on change

Emphasis on vertical leadershipEmphasis on vertical leadership Emphasis on empowered self Emphasis on empowered self--leadershipleadership

How to Achieve with 2

Approaches



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Alternative Models of Superior ReturnsAlternative Models of Superior Returns

ResourceResource--BasedBased

ModelModel

Industrial OrganizationIndustrial Organization

ModelModel

The External EnvironmentThe External Environment

An Attractive IndustryAn Attractive Industry

Strategy FormulationStrategy Formulation

Assets and SkillsAssets and Skills

Strategy ImplementationStrategy Implementation

Superior ReturnsSuperior Returns

ResourcesResources

CapabilityCapability

Competitive AdvantageCompetitive Advantage

An Attractive IndustryAn Attractive Industry

Strategy ImplementationStrategy Implementation

Superior ReturnsSuperior Returns

StrategicFit

StrategicStretch

Fit to Stretch 2ASPEK FIT STRETCH

1 Bagaimana

Perusahaan

membangun

COMPETITIVE

ADVANTAGE

Mengoreksi

Positioning Produk

menghadapi

perubahan-

perubahan yang

terjadi di pasar

???? Perbedaan

Competency

dibangun agar

menciptakan sesuatu

yang berbeda

sehingga bisa

tercipta kebutuhan

baru di pasar

????

2 Bagaimana

MEMPERTAHANKAN

BAGIAN PASAR(MARKET SHARE)

Mencari celah pasar /

pasar baru dan

mempertahankannya.

???? Merubah cara / arti

berbisnis (rule of the

game) di pasar.

????

3 Bagaimana usaha-

usaha yang dilakukan

dalam MENGURANGI

RESIKO?

Menambah porfolio

produk / bisnis

???? Membangun portfolio

Competencies

????

4 DUKUNGAN

INVESTMENT yang

diusahakan / yang

sering disetujui

Investasi untuk

bersaing di pasar

yang berubah dan

menambah divisi /

subdivisi

???? Investasi untuk

meningkatkan dan

menambah

Competencies.

????



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Blue Ocean Strategy Fit dan

Stretch

Blue Ocean vs. Red Ocean StrategyBlue Ocean vs. Red Ocean Strategy

Create uncontested

market space

Make the competition

irrelevant

Create and capture new

demand

Compete in existing

market space

Beat the competition

Exploit existing demand

Blue Ocean StrategyBlue Ocean Strategy Red Ocean StrategyRed Ocean Strategy



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Blue Ocean vs. Red Ocean StrategyBlue Ocean vs. Red Ocean Strategy

Break the value- cost

trade off

Align the whole system of

a firms activities with its

strategic choice of

differentiation and lowcost

Make the value-cost trade

off

Align the whole system of

a firms activities with its

strategic choice of

differentiation or low cost

Blue Ocean StrategyBlue Ocean Strategy Red Ocean StrategyRed Ocean Strategy

Generic Strategy

AverageCost in

Industry

AveragePrice in

Industry

CostLeadership

DifferentiationSuccessful

Stuck inthe Middle



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Two Strategic Logic

Industry Assumptions: Industrysconditions are given

Strategic Focus: A company shouldbuild competitive advantages. The aimis to beat the competition.

Customers: A company should retainand expand its customer base throughfurther segmentation andcustomization. It should focus on thedifferences in what customers value.

Assets and Capabilities: A companyshould leverage its existing assets andcapabilities.

An Industrys traditional boundariesdetermine the products and services acompany offers. The goal is tomaximize the value of those offerings.

Industrys conditions can be shape.

Competition is not the benchmark. Acompany should pursue a quantum leapin value to dominate the market.

A value innovator targets the mass ofbuyers and willingly lets some existingcustomer go. It focuses on the keycommonalities in what customers value.

A company must not be constrained bywhat it already has. It must ask, whatwould we do if we were starting anew?

A value innovator thinks in terms of thetotal solution customer seek, even if thattakes the company beyond its industrystraditional offerings.

Conventional Logic Value Innovation Logic

Four Action FrameworkFour Action Framework

EliminateEliminate

ReduceReduce

RaiseRaise

CreateCreate



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Four Action FrameworkFour Action Framework

The Case of Cirque du Soleil (A Circus Company)The Case of Cirque du Soleil (A Circus Company)

Theme

Refined environment

Multiple productions

Artistic music and dance

EliminateEliminate ReduceReduce

RaiseRaiseCreateCreate

Star performers

Animal shows

Aisle concession sales

Multiple show arenas

Fun and humor

Thrill and danger

Unique venue

Balanced Scorecard, Fit and

Stretch Strategic Implementation.



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Source: Kaplan and Norton

Customers/CitizensMeasure Target Initiat iveObjective Customers

Measure Target Initiat iveObjectiveInternal Business

Processes

Measure Target Initiat iveObjective

Learning & Growth

Learning & Growth

Objective Measure Target Initiat ive

Budget

Financial

Four Perspectives of the

Balanced Scorecard

StrategyStrategy

Balanced Scorecard

(Kaplan-Harvard)

Jangkavs

Jangka

Panjang Pendek

Efisienvs Kualitas

Internal vs External

Hasil vs Process



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RBT Strategic Alignment

Financial

Customer

Internal Process

Learning & Growth

1. Knowledge & skills of1. Knowledge & skills of

employees is foundation for allemployees is foundation for all

innovation and improvements.innovation and improvements.

2. Skilled, empowered2. Skilled, empowered

employees will improveemployees will improve

The ways they work.The ways they work.

3. Improved work processes3. Improved work processes

will lead to increasedwill lead to increased

customer satisfaction.customer satisfaction.

4. Increased customer4. Increased customer

satisfaction will lead tosatisfaction will lead to

better financial results.better financial results.

Internal Process PerspectiveInternal Process Perspective

Financial PerspectiveFinancial Perspective

Learning & Growth PerspectiveLearning & Growth Perspective

Customer PerspectiveCustomer Perspective

Return onInvestment

Pri ce Quali ty T im e Func tion ImageRelatio-

ship

Value Proposition

Sources of Growth Sources of Product iv i ty

Technology

Infrastructure+ +

Make theSale

Deliver theProduct

ServiceExceptionally

RevenueStrategy

ProductivityStrategy

1. The economic model of

key levers driving financial

performance

2. The value proposition of

target customers

3. The value chain of core

business processes

4. The critical enablers of

performance improvement,

change and learning

Generic Strategy Map

Staff

Competencies

Build theBrand

Climate for

ActionTechnology

Infrastructure



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Leader, Manager, Strategic

Leadership

Management Functions

Planning

Coordinating / Organizing

Directing or Actuating or Leading:

When youve planned a ground-breaking scenario and haveorganized perfectly the activities and the people, dont expect a

good film youll make, or even expect that the shooting will run as

you wish, except you make people move and act

Steven Spielberg, Film Director.

Controlling



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Management Functions

Planning Organizing Leading Controlling1.Defining goals 1.Determining 1.Directing Monitoring2.Establishing what needs to 2.Motivating activities to

strategy done all involved ensure that3.Developing 2.How it will parties they aresubplans be to done 3.Resolving accomplished

coordinate 3.who is to do conflicts as plannedactivities it

Resulting inAchieving the

organizations

stated purpose

LEADERSHIP



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Leadership Defined (Yukl)

_Leadership is the process of influencing

others to understand and agree about what

needs to be done and how it can be done

effectively, and the process of facilitating

individual and collective efforts to accomplish

the shared objectives.

Pemimpin dan Pimpinan

PemimpinPimpinan

(supervisor/manager)

PengakuanPengakuan

Pemberian (wewenang)Pemberian (wewenang)



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PEMIMPIN >< BOSS

Pemimpin adalah Teladan, Boss adalah Kedudukan(sering mengidentifikasikan dirinya dengan posisi /jabatannya).

Pemimpin menggunakan kekuasaan secara cerdasdan peka, Boss menggunakan kekuasaan untukmempertahankan kedudukan.

Pemimpin dihormati, Boss ditakuti.

Pemimpin mempertahankan fokus kelompoknyapada visi dan misi, Boss sempoyongan dari satu

krisis ke krisis yang lain.

John AdairJohn Adair

4 Kategori Pemimpin Maxwell

Pemimpin yang Terkemuka Dilahirkan dengan kualitas kepemimpinan

Telah melihat model kepemimpinan sepanjang kehidupannya.

Telah mempelajari tambahan kepemimpinan melalui latihan.

Mempunyai disiplin pribadi untuk menjadi pemimpin besar.

Pemimpin Hasil Belajar Telah melihat model kepemimpinan sepanjang kehidupannya.

Telah mempelajari kepemimpinan melalui pelatihan

Mempunyai disiplin pribadi untuk menjadi pemimpin besar.

Pemimpin Laten Belum lama ini melihat model kepimpinan.

Telah mempelajari kepemimpinan melalui latihan

Mempunyai disiplin pribadi untuk menjadi pimpinan besar.

Pemimpin yang Terbatas Hanya sedikit atau tidak pernah melihat pemimpin

Hanya sedikit atau tidak pernah mendapat latihan kepemimpinan

Punya keinginan untuk menjadi pemimpin.



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Four Different Ways of Understanding

Leadership

Person: is it WHO leaders are that makes them leaders?(Trait and Skills)

Result: is it WHATleaders achieve that makes themleaders? (Organization Performance and FollowersSatisfactions)

Process: is it HOWleaders get things done that makesthem leaders? (Behavior)

Position: is it WHEREleaders operate that makes themleaders? (Contingency)

(Keith Grint, 2005)

PhenomenonMost Managers:

Head

Doing things right

Resources

Telling/instructing

Process

Imposing rules

Freezing

Standardising

Providing Answers

Leader:

Heart

Doing right things

Creating/designing

Listening/empowering

Inspiring

Negotiating

Un-freezing & re-freezing

Creating new

Asking great Questions



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Tidak setiap orang akan menjadi

pemimpin terkemuka (besar),

tetapi setiap orang bisa

menjadi pemimpin yang lebih

baik.

Setiap Orang adalah Seorang Pemimpin

Tidak ada satu orang pun yang dikecualikan untukmenjadi pemimpin atau menjadi pengikut

Setiap orang memimpin di suatu bidang dan dipimpindi bidang lain.

Setiap orang mempengaruhidan dipengaruhioranglain.

Orang yang paling tertutup mempengaruhi 10.000orang lain dalam masa hidupnya.



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Thomas Frieden, Gabriel Jordi 39

Strategic Leadership is defined as the ability toStrategic Leadership is defined as the ability to

influence others to voluntarily make dayinfluence others to voluntarily make day--toto--dayday

decisions that enhance the longdecisions that enhance the long--term viability of theterm viability of the

organization, while maintaining its shortorganization, while maintaining its short--term financialterm financial

stability.stability.

(Rowe(Rowe

2001, p. 83)2001, p. 83)

ManagingManaging

VisioningVisioning

Strategic Leadership defined

Military Leadership

SKILLSSKILLS DIRECT LEADERSHIPDIRECT LEADERSHIP ORGANIZATIONALORGANIZATIONAL

LEADERSHIPLEADERSHIP

STRATEGICSTRATEGIC


INTERPERSONALINTERPERSONAL CommunicatingCommunicating Understanding SoldierUnderstanding Soldier CommunicatingCommunicating

SupervisingSupervising SupervisingSupervising Using DialogueUsing Dialogue

CounselingCounseling CounselingCounseling NegotiatingNegotiating

Achieving ConsensusAchieving Consensus

Building StaffsBuilding Staffs

CONCEPTUALCONCEPTUAL Creative ReasoningCreative Reasoning Establish IntentEstablish Intent EnvisioningEnvisioning

Creative ThinkingCreative Thinking Fil tering InformationFiltering Information Developing Frames ofDeveloping Frames of

ReferenceReference

Ethical ReasoningEthical Reasoning Understanding SystemsUnderstanding Systems Dealing with uncertaintyDealing with uncertainty

and ambiguityand ambiguity

Reflective ThinkingReflective Thinking

TECHNICALTECHNICAL Knowing EquipmentsKnowing Equipments Maintaining Critical SkillsMaintaining Critical Skills Strategic ArtStrategic Art

Operating EquipmentsOperating Equipments ResourcingResourcing Leveraging TechnologyLeveraging Technology

Predicting 2Predicting 2ndnd and 3and 3rdrd EffectsEffects Political Goals intoPolitical Goals into

military objectivesmilitary objectives

TACTICALTACTICAL DoctrineDoctrine SynchronizationSynchronization

Field CraftField Craft OrchestrationOrchestration



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ACTIONSACTIONS DIRECT LEADERSHIPDIRECT LEADERSHIP ORGANIZATIONALORGANIZATIONAL


STRATEGICSTRATEGIC


INFLUENCINGINFLUENCING CommunicatingCommunicating CommunicatingCommunicating Communicat ingCommunicating

Decision MakingDecision Making Decision MakingDecision Making Decision MakingDecision Making

MotivatingMotivating MotivatingMotivating MotivatingMotivating

OPERATINGOPERATING Planning and PreparingPlanning and Preparing Planning and PreparingPlanning and Preparing Strategic PlanningStrategic Planning

ExecutingExecuting ExecutingExecuting ExecutingExecuting

AssessingAssessing AssessingAssessing Strategic AssessingStrategic Assessing

IMPROVINGIMPROVING DevelopingDeveloping DevelopingDeveloping DevelopingDeveloping

BuildingBuilding BuildingBuilding BuildingBuilding

LearningLearning LearningLearning LearningLearning

Military Leadership



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A dual continuum of managerial, visionary and strategic leadership

(Rowe, 2001)



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Managerial Leadership


Involves stability and the preservation of the existing order, goals arise

out of necessities

Relate to people according to their roles in the decision making process

Are sensitive to the past, are reactive

Expert in functional area

Day-to-day activity

Engage in short-term performance

Belief in determinism: choices determined by internal and external

environment


Visionary Leadership

Are proactive, shape ideas, change the way people think

Develop new approaches for longstanding problems, take high

risk

Influence attitudes and opinions of others

Concerned with insuring the future of the organization

Know less than their functional area experts

Base their decisions on values

Believe in strategic choice



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Strategic Leadership

Synergistic combination of managerial and visionary leadership

Oversee day-to-day and long-term responsibilities

Value-based decisions, ethical behavior

Use strategic / financial control tools

Strong, positive expectations

Nonlinear / linear thinking

Believe in strategic choice: their choices impose change

Through strategic leadership an organization can timely adapt

its behaviors and exploit different growth opportunities

Definition of strategic leadership used:

Strategic leadership is defined as a persons ability to

anticipate, envision, maintain flexibility, think strategically, and

work with others to initiate changes that will create a viable

future for the organization.

Strategic Leadership



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Level of Conceptualization of Leadership

(Influence Processes)

Intra-Individual

Processes

Dyadic (Inter-personal)Processes

Group Processes(How a leader contributes tointernal group effectiveness)

Organizational Processes(How a leader contribute to the success of

organizational role in its environmental open system

7S McKinsey Strategic Leadership

Structur

e

Staff

Strategy

Skills

Systems

Style

Shared

values



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51

DeterminingStrategicDirection


Exploiting &Maintaining

CoreCompetencies


CoreCompetencies

DevelopingHumanCapital


Sustainingan Effective

OrganizationalCulture



EmphasizingEthical

Practices

EmphasizingEthical

Practices

EstablishingBalanced

OrganizationalControls



Exercise of Effective Leadership

Effective Strategic LeadershipEffective Strategic Leadership

52

Strategic direction means the development of a long-term vision of a firms strategic intent.

A charismatic leader can help achieve strategic intent.

It is important not to lose sight of the strengths of theorganization when making changes required by a newstrategic direction.

Executives must structure the firm effectively to helpachieve the vision.


Determining

Strategic

Direction

DeterminingDetermining

StrategicStrategic

DirectionDirection


CoreCompetencies

Exploiting &Exploiting &MaintainingMaintaining

CoreCoreCompetenciesCompetencies


DevelopingDevelopingHumanHumanCapitalCapital



SustainingSustainingan Effectivean Effective

OrganizationalOrganizationalCultureCulture

EmphasizingEthical

Practices

EmphasizingEmphasizingEthicalEthical

PracticesPractices



EstablishingEstablishingBalancedBalanced

OrganizationalOrganizationalControlsControls

Effective Strategic LeadershipEffective Strategic LeadershipEffective Strategic Leadership



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53

Exploiting &MaintainingCore Competencies

DeterminingStrategic

Direction


StrategicStrategic

DirectionDirection


CoreCompetencies









EmphasizingEthical

Practices


PracticesPractices

EstablishingBalancedOrganizational

Controls

EstablishingEstablishing

BalancedBalancedOrganizationalOrganizational

ControlsControls


Core competencies are resources and capabilities that serve asa source of competitive advantage for a firm over its rivals.

Strategic leaders must verify that the firms competencies areemphasized in strategy implementation efforts.

In many large firms, and certainly in related diversified ones,core competencies are exploited effectively when they are

developed and applied across different organizational units. Core competencies cannot be developed or exploited effectively

without developing the capabilities of human capital.

54


Determining

Strategic

Direction


StrategicStrategic

DirectionDirection


CoreCompetencies









EmphasizingEthical

Practices


PracticesPractices






Human capitalrefers to the knowledge and skills of thefirms entire workforce.

Employees are viewed as a capital resource thatrequires investment.

No strategy can be effective unless the firm is able todevelop and retain good people to carry it out.

The effective development and management of thefirms human capital may be the primary determinant ofa firms ability to formulate and implement strategiessuccessfully.



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55

Sustaining anEffectiveOrganizationalCulture


Direction


StrategicStrategic

DirectionDirection


CoreCompetencies









EmphasizingEthical

Practices


PracticesPractices


Controls



ControlsControls


An organizational culture consists of a complex set ofideologies, symbols, and core values that is sharedthroughout the firm and influences the way it conductsbusiness.

Shaping the firms culture is a central task of effective

strategic leadership. An appropriate organizational culture encourages the

development of an entrepreneurial orientation amongemployees and an ability to change the culture asnecessary.

Reengineering can facilitate this process.

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Every job in the company is essential and important

The benefits ofbusiness reengineering aremaximized when employees believe that:

All employees must create value through their work

Constant learning is a vital part of every persons job

Teamwork is essential to implementation success

Problems are solved only when teams accept theresponsibility for the solution

Changing Culture and Reengineering



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EmphasizingEthicalPractices


Direction


StrategicStrategic

DirectionDirection


CoreCompetencies









EmphasizingEthical

Practices


PracticesPractices


Controls



ControlsControls


Ethical practices increase the effectiveness of strategyimplementation processes.

Ethical companies encourage and enable people at allorganizational levels to exercise ethical judgment.

To properly influence employee judgment and behavior,

ethical practices must shape the firms decision-makingprocess and be an integral part of an organizationsculture.

Leaders set the tone for creating an environment ofmutual respect, honesty and ethical practices amongemployees.

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EstablishingBalancedOrganizationalControls

Determining

Strategic

Direction


StrategicStrategic

DirectionDirection


CoreCompetencies









EmphasizingEthical

Practices


PracticesPractices






Organizational controls provide the parameters withinwhich strategies are to be implemented and correctiveactions taken.

Financial controls are often emphasized in largecorporations and focus on short-term financial outcomes.

Strategic control focuses on the contentof strategicactions, rather than their outcomes.

Successful strategic leaders balance strategic control andfinancial control (they do not eliminate financial control)with the intent of achieving more positive long-termreturns.


Handout Strategic Leadership tutorial

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