Ch12 Powerpoint Hih9e

7/23/2019 Ch12 Powerpoint Hih9e

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2011 Cengage Learning. All Rights Reserved. May not be scanned,copied or duplicated, or posted to a publicly accessible website, in whole

or in part.

he Manage!ent o" #trategy$

Concepts and Cases %e

Part III: Strategic Actions:

Strategy Implementation

Chapter 12: Strategic Leadership


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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

he #trategic Manage!ent &rocess


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Chapter 12$ #trategic Leadership '#L(

) *verview$ +ight content areas

#trategic leadership and top-level !anagersi!portance

op !anage!ent tea!s and e""ects on "ir!

per"or!anceManagerial succession process using internal/eternal

labor !arets

alue o" #L in deter!ining "ir!s strategic direction

3!portance o" strategic leaders in !anaging "ir!s

resources*rgani4ational culture and actions to sustain it

+thical practices$ establish!ent and e!phasis

3!portance and use o" organi4ational controls


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#electing a 5ew C+*$ he 3!portance o"#trategic Leaders

) 6ro! 2007 to 200% average C+* tenure declined"ro! 8.9 years to around : years

) #uccession planning beco!ing !ore i!portant

;0 percent o" "ir!s have no succession plan

70 percent o" directors rate own plan as ine""ective

) &otential successors identi"ied early so they can begroo!ed to be C+* through$

Challenging wor assign!ents

)


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3ntroduction

) Regardless on ti!e in position leaders can !ae a!a>or di""erence in how a "ir! per"or!s

) +""ective strategic leadership is the "oundation "orsuccess"ully using the strategic !anage!ent process

) #trategic leaders "acilitate the develop!ent o"appropriate strategic actions and deter!ine how toi!ple!ent the! these actions are the path tostrategic co!petitiveness and above-average returns

) 5*+$ Many ea!ples o" well-nown C+*s are!entioned throughout the chapter to illustrate theirleadership styles


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Strategic leadership and top-level managersimportance

Top management teams and effects on firm

performanceManagerial succession process using internal/eternal

labor !arets







7/302011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

#trategic Leadership '#L( and #tyle

) #trategic leadership$ the ability to anticipate,envision, !aintain "leibility, and e!power othersto create strategic change as necessary

) Multi"unctional tas

Managing through others

Managing an entire enterprise rather than a "unctionalsubunit

Coping with change which is increasing in the globalecono!y

Most critical sill$ attracting and !anaging hu!an'includes intellectual( capital



#trategic Leadership and the #trategicManage!ent &rocess



he Role o" op-Level Managers

) Managers use their discretion when !aingstrategic decisions

) &ri!ary "actors that deter!ines a!ount o"!anagers decision-!aing discretion

+ternal environ!ental sources

*rgani4ations characteristics

Managers characteristics



6actors A""ecting Managerial =iscretion



he Role o" op-Level Managers

) op Manage!ent ea!s

?elps avoid potential proble! o" C+* !aing decisionsalone$ that o" !anagerial hubris

) ?ubris$ ecessive pride leading to a "eeling o" invincibility

) ?ubris can !agni"y the e""ects o" decision-!aing biasesCo!posed o" ey individuals who are responsible "or

selecting and i!ple!enting "ir!s strategies@ usuallyincludes o""icers o" the corporation '& and above( and



he Role o" op-Level Managers 'Contd(

) op Manage!ent ea!s$ 6ir! per"or!ance andstrategic change

A heterogeneous tea! consists o" individuals withvaried "unctional bacgrounds, eperiences education

ea! !e!bers co!e with a variety o" strengths,

capabilities nowledge and provide e""ective strategicleadership when "aced with co!ple environ!ental"orces and !ultiple staeholder relationships to !anage

) 3ntroduces a variety o" perspectives

) ?as a greater propensity "or strong co!petitive action

) ends to Bthin outside o" the bo,B leading to !ore creativedecision !aing, innovation, and strategic change

) *""ers various areas o" epertise to identi"y environ!entalopportunities, threats, or the need "or change

) &ro!otes debate


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he Role o" op-Level Managers 'Contd(

) op Manage!ent ea!s$ C+* and top!anage!ent tea! power

) op !anage!ent tea! characteristics give the C+*s tea! thepower relative to the board o" directors '


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per"or!anceManagerial succession process using

internal/external labor markets







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Managerial #uccession

) =e"ined$ &reselect and shape sills o" to!orrowsleaders

3nternal Managerial Labor Maret opportunities "or!anagerial positions to be "illed "ro! within the "ir!

+ternal Managerial Labor Maret opportunities "or!anagerial positions to be "illed by candidates "ro!outside o" the "ir!

) his decision i!pacts co!pany per"or!ance andthe ability to e!brace change in todayDs

co!petitive landscape

) #uccession, top !anage!ent tea! co!positionand strategy are inti!ately related


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+""ects o" C+* #uccession and opManage!ent ea! Co!position on #trategy


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)


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)


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#trategic leadership and top-level !anagers i!portance

op !anage!ent tea!s and e""ects on "ir! per"or!ance

Managerial succession process using internal/eternal

labor !aretsValue of SL in determining firms strategic direction

Importance of strategic leaders in managing firmsresources

rgani!ational culture and actions to sustain it

+thical practices$ establish!ent and e!phasis 3!portance and use o" organi4ational controls


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Gey #trategic Leadership Actions

) Certain actions characteri4e e""ective strategicleadership

hese actions interact with each other

he !ost e""ective strategic leaders create options as

the "oundation "or !aing e""ective decisions) =eter!ining #trategic =irection

=e"inition$ A "ir!Ds i!age and character over ti!e,"ra!ed within the contet o" the conditions in which theco!pany operates


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+ercise o" +""ective #trategic Leadership


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Gey #trategic Leadership Actions 'Contd(

) +""ectively !anaging "ir!s resource port"olio

Resources de"ined as "inancial, hu!an, social andorgani4ational capital

+ploiting and !aintaining core co!petencies

) Related to "ir!s "unctional sills 'i.e., !anu"acturing, "inance,!areting and R=(

=eveloping ?u!an '?C( and #ocial Capital '#C(

) ?C$ Gnowledge and sills o" a "ir!s entire wor"orce

) #C$ Relationships inside and outside the "ir! that help itacco!plish tass and create value "or custo!ers andshareholders


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) #ustaining an e""ective organi4ational culture

*rgani4ational culture$ co!ple set o"ideologies,sy!bols, and core values shared throughoutthe "ir!

3n"luences the way business is conducted?elps to regulate and control e!ployees behavior


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) #ustaining an e""ective organi4ational culture 'Contd(

+ntrepreneurial !ind-set

) #ource o" growth and innovation

) May be encouraged and pro!oted by strategic leaders

) 7 di!ensions o" an entrepreneurial !indset 1. Autono!y '6ree o" "ir! constraints( 2. 3nnovativeness '6ir!s tendency to support new ideas(

9. Ris aing

;. &roactiveness '


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) #ustaining an e""ective organi4ational culture 'Contd(

Changing the organi4ational culture and restructuring

) More di""icult to change culture than !aintain it

) #o!eti!es change !ust occur

ReHuires e""ective co!!unication and proble! solving

#electing the right people

+ngaging in e""ective per"or!ance appraisals

Measuring individual per"or!ance toward goals that "it with new values

Appropriate reward syste!s


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per"or!anceManagerial succession process using internal/eternal

labor !arets




"thical practices# establishment and emphasis

Importance and use of organi!ational controls


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) +!phasi4ing ethical practices$ Actions such asI

+stablish and co!!unicate ethics-related goals

Revise, update and disse!inate code o" conduct

=evelop and i!ple!ent !ethods procedures to use in

achieving "ir!s ethical standardsCreate/use speci"ic reward syste!s that recogni4e acts

o" courage

Create a woring environ!ent where all are treatedwith dignity


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) +stablishing balanced organi4ational controls

Controls$ 6or!al, in"or!ation-based procedures usedby !anagers to !aintain or alter patterns inorgani4ational activities

) 6inancial Controls

6ocus on short-ter! "inancial outco!es

&roduce ris-averse !anagerial decisions

) #trategic Controls

6ocus on the content o" strategic actions

+ncourage decisions that incorporate !oderate and acceptable levels o"ris


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) +stablishing balanced organi4ational controls

he


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#trategic Controls and 6inancial Controls in a

Ch12 Powerpoint Hih9e

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