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Transcript of ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted...
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6e©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 13
Creating Vision and Strategic
Direction
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2
Learning Objectives• Explain the relationship among vision,
mission, strategy, and mechanisms for execution
• Create personal leadership vision• Use the common themes of powerful
visions in life and work• Describe four basic approaches for
framing a noble purpose that followers can believe in
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3
Learning Objectives• Understand how leaders formulate and
implement strategy• Apply the elements of effective strategy
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4
Exhibit 13.1 - Linking Strategic Vision and Strategic Action
Source: Based on William D. Hitt, The Leader–Manager: Guidelines for Action (Columbus, OH: Battelle Press, 1988), p. 7
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5
Exhibit 13.2 - The Domain of Strategic Leadership
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6
Developing Strategic Leadership
Skills required
Anticipate threats and
opportunities
Challenge the status quo
Interpret trends
Achieve alignment
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7
What Vision Does
Links the present to the future
Energizes people and focuses attention
Gives meaning to work
Establishes a standard of excellence and integrity
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8
Mission• Organization’s core broad purpose and
reason for existence• Provides a basis for creating the vision• Parts
– Core values – Core purpose
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9
Exhibit 13.7 - A Leader’s Framework for Noble Purpose
Source: Based on Nikos Mourkogiannis, Purpose: The Starting Point of Great Companies (New York: Palgrave Macmillan, 2006); and Nikos Mourkogiannis, “The Realist’s Guide to Moral Purpose,” strategy + business Issue 41 (Winter 2005), pp. 42–53
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10
Elements of Strategy
• Something the organization does extremely well in comparison to competitors
Core competence
• Interaction of organizational parts to produce a joint effect that is greater than the sum of the parts
Synergy
• Combination of benefits received and costs paid by the customer
Value
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11
Strategy Formulation and Execution
• Integrating knowledge of the environment, vision, and mission with the core competence • To attain synergy and create customer value
Strategy formulation
• Putting strategy into action by adjusting various parts of the organization and directing resources to accomplish strategic goals
Strategy execution
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12
Tools for Strategy Execution
Create ongoing communication
Teach why certain actions are taken
Explain the changes and allay people’s fears
Remind employees about company strengths
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13
Exhibit 13.8 - Making Strategic Decisions
Source: Adapted from Amir Hartman and John Sifonis, with John Kador, Net Ready: Strategies for the New E-conomy (New York: McGraw-Hill, 2000), p. 95