©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. 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 2

©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. Learning Objectives Understand how leaders formulate and implement strategy Apply the elements of effective strategy 3

©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. Exhibit Linking Strategic Vision and Strategic Action 4 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. Exhibit The Domain of Strategic Leadership 5

©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. Developing Strategic Leadership 6 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. What Vision Does 7 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. Mission Organization’s core broad purpose and reason for existence Provides a basis for creating the vision Parts – Core values – Core purpose 8

©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. Exhibit A Leader’s Framework for Noble Purpose 9 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. 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 10

©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. 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 11

©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. Tools for Strategy Execution 12 Create ongoing communicationTeach 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. Exhibit Making Strategic Decisions 13 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