Leadership:Understanding its Global Impact

Chapter 12:Strategic leadership

Learning objectives

• Understand the leadership role in strategy development and delivery

• Think strategically• Understand and respond to contemporary

leadership challenges such as social responsibility, environmental factors, the impact of technology, and innovation and globalisation

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Chapter contents• Spotlight: Kevin Rudd• Introduction• Thinking strategically• Creating a vision• Corporate social responsibility• Leader in action: Olivia Lum• Globalisation• Technology and innovation• Summary• Case study: Noel Pearson

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Spotlight: Kevin Rudd

• Kevin Rudd describes himself as a very determined … !

• Has a willingness to engage with the challenges that face the global community

• Is interested in ideas as the basis of action—and actions as the basis of bringing about change

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• Strategic leadership deals with the major purposes of an organisation; the province of top-level executives and politicians

• ‘the process of providing the direction and inspiration necessary to create and sustain an organisation, business or country in a globalised environment’

• Chapter focuses on the external environment

Introduction

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• Strategic leadership can be traced back to Greeks

• Applied to business in the second half of the nineteenth century (Ghemawat 2006)

• WWII provided a stimulus to strategic thinking in business and military

• Peter Drucker: Large businesses could take on the responsibility for shaping their environment, rather than simply responding to it

Historical context

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• Strategic thinking requires the leader be able to understand the dynamics of the environment

• Applies to governments, non-government agencies and business

… where many businesses are richer than countries, where business extends across national boundaries and where the behaviour of business can have a dramatic impact around the world, the ability to think strategically is essential —not just for the success of the organisation, but for the planet as a whole

The environment of business

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• Component parts of strategic leadership:– High-level cognitive activity– Gathering multiple inputs (listening)– Anticipating and creating a future

(Harrison)– Revolutionary thinking

Hamel 1996

Thinking strategically

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• Senge (1990) places great emphasis on shared vision

• Many corporate vision statements are not part of the democratic process

• Effective vision: brief, clear, focused, supportive of decision-making and inspirational

Creating a vision

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• Stakeholders are increasingly concerned about collateral damage– Social responsibility

Dubrin, Dalglish & Miller 2006: 4 aspects– Economic responsibilities

Friedman– Legal responsibilities – Ethical responsibilities – Philanthropic responsibilities

Dubrin, Dalglish & Miller 2006– Environmental responsibility

Parker 2007

Corporate social responsibility

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• Hyflux values:– Boldness Dare to dream, dare to do and dare

to excel.– Entrepreneurship Nurture the entrepreneurial

spirit, embrace challenge and master change.– Satisfaction Exceed internal and external

customer satisfaction, take pride in work and deliver excellence.

– Testimony Be the face behind the brand, excel in business conduct and embrace best practice in corporate governance.

Leader in action: Olivia Lum

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• Jeffrey D. Sachs (2003, 2008) & James McGregor Burns (2008)

• Most significant challenges of the 21st century:– Poverty—the greatest of the

strategic leadership challenges Burns 2003)

– Need for new leadership strategies– Efficacy

Globalisation

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• Burns 2003: strategic failure central to past approaches rose from the assumption that money and technology constituted the essential keys to overcoming poverty

• Appropriate technologies• Innovation - Dalglish & Matthews 2009• Strategic leadership in the 21st century

– Matching technology with the needs of the community is where innovative, strategic leadership has a significant role to play

Technology and innovation

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• Strategic leadership deals with the major purposes of an organisation

• In a world where many businesses are richer than countries … the ability to think strategically is essential … not just for an organisation but for the planet

• The question is now asked whether business bears responsibility to the community in which it operates (CSR)– the environment

– poverty

Summary

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• What is the nature of the challenges that Noel Pearson faces in developing an effective strategy for the Aboriginal people of North Queensland?

• What is his vision for Aboriginal Australians?

• What sort of leadership skills do you think he needs?

Case study: Noel Pearson

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