Chapter 1J:

StrategIc LeadershIp by
ExecutIves
u8PuvA karLhlk 88LuCnL Mandy LAPCu8A1A1L Clalre LCulnLAu Maxlme L88Cn Maxlme
rob|emat|c
Pow execuLlves can Lransform Lhelr companles Lo cope
wlLh globallzaLlon lncreaslng lnLernaLlonal
compeLlLlon and more rapld Lechnologlcal and
soclal change?
|an
l/ Pow leader lnfluence CrganlzaLlonal erformance ?
ll/ ConLralnLs on LxecuLlves
lll/ CondlLlons affecLlng Lhe need for sLraLeglc leadershlp
lv/ 8esearch on LffecLs of CLC Leadershlp
v/ SLraLeglc Leadershlp 8y LxecuLlve 1eams
vl/ 1wo key responslblllLles for Lop managemenL

ow |eader Inf|uence Crgan|zat|ona|

erformance ?
W Lff|c|ency and rocess re||ab|||ty
use people and resources Lo mlnlmlzes cosLs and avolds wasLed efforLs
W uman resources and ke|at|on
erformance depends on member moLlvaLlon and Lhe quallLy of Lhelr
soclal relaLlonshlp and neLworks
W daptat|on to the env|ronment
8espondlng ln approprlaLe ways Lo exLernal LhreaLs and opporLunlLles

Jays Lo lnfluence Lhe performance deLermlnanLs

W Leadershlp behavlors
Change CrlenLed behavlor
1ask CrlenLed behavlor
8elaLlon CrlenLed behavlor
W rograms SysLems and SLrucLure
CfLen called lndlrecL Leadershlp"
W ueclslons abouL compeLlLlve sLraLegy
1he prlmary focus of compeLlLlve sLraLegy ls adapLaLlon buL lL's
depends of efflclency and human caplLal
ow |eader Inf|uence Crgan|zat|ona|
erformance ?

ConstraInts on executIve
W lnLernal consLralnLs
owerfu| |ns|de forces or coa||t|on
Strong organ|zat|on cu|ture
res|stant to change
CreaL power and dlscreLlon when Lhe
CLC ls a ma[or owner
LlmlLed dlscreLlon when coallLlons have
enough power Lo block declslons
Large sLandardlzed organlzaLlons wlLh
a sLrong bureaucracy have an lnerLla
dlfflculL Lo overcome

ConstraInts on executIve
W LxLernal consLralnLs
naLure of Lhe organlzaLlon's producLs and servlces and Lype of markeLs
owerful exLernal sLakeholders
CllenLs
Source of key maLerlals
LnvlronmenLal regulaLlon
CovernmenL organlzaLlon

ConstraInts on executIve
W ConsLralnLs and LxecuLlve 1ralLs
lnLernal and exLernal consLralnLs lnLeracL wlLh leader
personallLy and skllls
SlLuaLlon wlLh severe lnLernal and exLernal consLralnLs
SlLuaLlon wlLh few lnLernal and exLernal consLralnLs

CondItIons affectIng the need for

strategIc IeadershIp
er|ods of reor|entat|on er|ods of convergence
8esponse Lo a varleLy of
envlronmenLal changes
Changes Lhe organlzaLlon sLraLegy
ShorL perlod of lnLense acLlvlLy
LxecuLlves should gulde and
coordlnaLe Lhe change
lf successful renew and revlLallze
Lhe organlzaLlon
Much longer perlods
Cnly small lncremenLal changes are
made
Mlnor changes of sLraLegy Lo adapL
Lo Lhe envlronmenL

CondItIons affectIng the need for

strategIc IeadershIp
W erlods of convergence
lncremenLal changes
AdvanLages
N CrganlzaLlon ls more efflclenL ln carrylng ouL lLs sLraLegy
ulsadvanLages
N lnLernal forces for sLablllLy are sLrengLhened
N Maklng harder for execuLlve Lo make ma[or changes

CondItIons affectIng the need for

strategIc IeadershIp
W lnfluence of 1op managemenL
MedlaLlng beLween forces for change and forces for
sLablllLy
lncremenLal changes requlres experLlse delegaLed Lo lower
levels
ulfflculL Lo geL supporL for ma[or changes when Lhere's no
obvlous crlsls

ase Study of Strateg|c Leader

W SLudled Lhe chlef execuLlve of large company ln
Llmes of uncerLalnLy and change
W 8esearchers used a comparaLlve case approach
W LlmlL of Lhe case sLudles
ulfflculLy ln geLLlng accuraLe and rellable lnformaLlon
ulfflculLy Lo assess Lhe lnfluence of a slngle CLC
llnanclal performance ls affecLed by many dlfferenL evenLs and by
acLlons of many parLles

ase Study of Lee Iacocca and h|||p

a|dwe||
lollower percepLlon of leader compeLence ls lnfluenced more
by hlghly vlslble acLlons ln Llme of crlsls
Lee Iacocca the hrys|er LC h|||p a|dwe|| LC of Iord Motors
1he company had experlenced ma[or
losses
Pe assumed Lhe leadershlp of Lhe
company ln flnanclal crlsls
lacocca carrled ouL a serles of dramaLlc
hlghly vlslble acLlons
Pe mosLly concenLraLed on less dramaLlc
acLlons
1he herolc savlor of Chrysler lord became proflLable agaln and
earned records proflLs

Case Study of Lee Iacocca and PhIIIp

CaIdweII
W lacocca became Lhe savlor of Chrysler for mosL
people Caldwell was unknown Lo mosL people
W Caldwell's acLlon were less vlslble or dramaLlc
Concluslons
Lop execuLlves can exerL slgnlflcanL lnfluence
successful Lop execuLlves ldenLlfy lmporLanL LhreaLs and opporLunlLles
Lake declslve acLlon Lo resolve serlous problems
bulld supporL for a relevanL compeLlLlve sLraLegy

Survey I|e|d Stud|es on LC 8ehav|or and

I|rm erformance
W CLC can lnfluence organlzaLlonal performance
ulrecL effecL
lndlrecL effecL
W 1he relaLlonshlp beLween CLC CharlsmaLlc
leadershlp and organlzaLlonal performance
W ulrecL relaLlonshlp beLween CLC leadershlp and
ob[ecLlve measures of flnanclal performance

Survey I|e|d Stud|es on LC 8ehav|or and

I|rm erformance
W LlmlLs of Lhe sLudles
1he lack of sLronger and more conslsLenL sLudy
W Pow CLC lnfluence really sLraLegy sLrucLure
programs sysLems and culLure?
Avold Lo aLLrlbuLe Loo much lnfluence Lo a slngle person
8e aware abouL Lhe lnfluence of oLher Lop execuLlves and leaders aL
mlddle and lower levels

Strateg|c Leadersh|p 8y Lxecut|ve 1eams

W Approaches followed by Lhe leader
1radlLlonal approach clear hlerarchy of auLhorlLy
Cfflce of chalrperson responslblllLy ls shared buL chalrperson has
more power
LxecuLlve 1eams collecLlvely assume responslblllLy

dvantages of Lxecut|ve 1eams

W Cover Lhe CLC
W Sense of belonglngness
W Less negllgence
W CommunlcaLlon and CooperaLlon ls more
W Jork Lowards Lhe common goal

Lxecut|ve 1eams and Crgan|zat|ona|

Lffect|veness
W ln execuLlve Leams ueclslon maklng ls noL only by CLC's buL also
oLher fellow members
Leads Lo organlzaLlonal effecLlveness
W luncLlonal background of Leam members
ulffer ln values and aLLlLudes
W Speclallzed fleld of Leam members
lmprove flexlblllLy ln declslon maklng
W 1he opLlmal mlx can be achleved Lhrough a loL of dlfferenL mlxLure
uLlllzaLlon of relevanL knowledge of Leam members
CommlLmenL of Leam members
1lme

"uaIIty of strategIc decIsIon

W CreaL experLlse
W Large Lop managemenL and less concenLraLlon on
power
W lmplemenLalon ls mosL dlfflculL
kespons|b|||t|es of 1op Lxecut|ves
W MonlLorlng Lhe organlzaLlon's exLernal envlronmenL
1hreaLs and opporLunlLles
lnfo abouL sLraLeglc plannlng and crlsls managemenL
W lormulaLlng compeLlLlve sLraLegy

W MonlLorlng Lhe envlronmenL

u|de||nes for externa| mon|tor|ng
ldenLlfy relevanL lnformaLlon Lo gaLher
use mulLlple sources of relevanL lnformaLlon
Learn whaLs cllenLs and cusLomers need and wanL
Learn abouL Lhe producLs and acLlvlLles of compeLlLors
8elaLe envlronmenLal lnformaLlon Lo sLraLeglc plans
1wo key respons|b|||t|es for top
management

1wo key respons|b|||t|es for top

management
W ldenLlfy relevanL lnformaLlon Lo gaLher
1o deLermlne whaL lnformaLlon deserves Lhelr aLLenLlon
W 1op managemenL needs relevanL
Llmely lnformaLlon
Lhe performance of Lhe organlzaLlon ln relaLlon Lo compeLlLors
progress ln aLLalnlng ob[ecLlves and capablllLles
W use mulLlple sources of relevanL lnformaLlon
lnformaLlon can be blased
Consequencles
W Learn whaL cllenLs and cusLomers need and wanL
More personal conLacLs are also deslrable

1wo key respons|b|||t|es for top

management
W Learn abouL Lhe producLs and acLlvlLles of compeLlLors
LssenLlal for maklng sLraLeglc declslons
1esLlng companles or governmenLal agencles
W 8elaLe envlronmenLal lnformaLlon Lo sLraLeglc plans
1o evaluaLe and revlse sLraLeglc plans ( LhreaLs and opporLunlLles )

1wo key respons|b|||t|es for top

management
W ueveloplng compeLlLlve sLraLegy
u|de||nes for formu|at|ng strategy
ueLermlne long Lerm ob[ecLlves and prlorlLles
Assess currenL sLrengLhs and weaknesses
ldenLlfy core compeLencles
LvaluaLe Lhe need for a ma[or change ln sLraLegy
ldenLlfy promlslng sLraLegles
LvaluaLe Lhe llkely ouLcomes of a sLraLegy
lnvolve oLher execuLlves ln selecLlng a sLraLegy

1wo key respons|b|||t|es for top

management
W ueLermlne long Lerm ob[ecLlves and prlorlLles
1o be based on Lhe sLaLe mlsslon and vlslon for Lhe organlzaLlon
ulfferenL SLraLeglc ob[ecLlves for dlfferenL Lypes of buslnesses
W Assess currenL sLrengLhs and weaknesses
?ou can use dlfferenL Lypes of analysls
N lor example 8evlew lndlcaLors of organlzaLlonal performance
levels of ldenLlflcaLlon
N Langlble resources
N condlLlons LhaL provlde an advanLage
N weaknesses as well as sLrengLhs

1wo key respons|b|||t|es for top

management
W ldenLlfy Core compeLencles
A core compeLency ls Lhe knowledge and capablllLy Lo carry ouL a
parLlcular Lype of acLlvlLy
W LvaluaLe Lhe need for a ma[or change ln sLraLegy
A new sLraLegy ln case of a performance crlsls
ln case of Lemporary worsenlng keep your sLraLegy
W ldenLlfy promlslng sLraLegles
A new sLraLegy wlll be greaLer lf Lhe quesL ls gulded by a clear
meanlngful concepLlon of

1wo key respons|b|||t|es for top

management
W LvaluaLe Lhe llkely ouLcomes of a sLraLegy
Consequences for Lhe key ob[ecLlves beneflLs and cosLs
1he cosLs exLra resources + losL producLlvlLy
W lnvolve oLher execuLlves ln selecLlng a sLraLegy
AuLocraLlc CLC llrm dramaLlc fallure desplLe earller successes
lull parLlclpaLlon of oLher members of Lhe Lop managemenL Leam

ConcIusIon
W SLraLeglc leadershlp ls carrled ouL by Lop execuLlves
W 8e aware of Lhe effecLs of execuLlves ln mlddle and
lower level ln organlzaLlon
W lL ls more lmporLanL for execuLlves for performlng ln
large organlzaLlons
W SLraLeglc leadershlp ls lmporLanL for Lop execuLlves
Chapter 1J:
StrategIc LeadershIp by
ExecutIves
u8PuvA karLhlk 88LuCnL Mandy LAPCu8A1A1L Clalre LCulnLAu Maxlme L88Cn Maxlme