Creating Vision and Strategic Direction

“Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion.” Jack Welch

“The Best Way to Predict the Future is to CREATE it!” Peter Drucker

Strategic Leadership The ability to anticipate and envision the future, maintain flexibility, think strategically, and initiate changes that will create a competitive advantage for the organization in the future

Most important function of a leader The most important function of a leader is to develop a clear and compelling picture of the future, and to secure commitment to that idea.

Ex. 13.1 The Domain of Strategic Leadership Vision Mission Strategy Architecture for alignment and implementation

Vision An attractive, ideal future that is credible yet not readily available. It should evoke a picture in the mind and suggests a future orientation, implies a standard of excellence or virtuous condition, and has the quality of uniqueness!

Ex. 13.2 Examples of Brief Vision Statements (selected) Motorola Become the premier company in the world Ritz-Carlton (Amelia Island) Engineering Dept. Where no hotel has gone before – free of all defects Johnson Controls Inc. Continually exceed our customers’ increasing expectations New York City Transit No graffiti Egon Zehnder Be the worldwide leader in executive search

Questions to Ask? The leader must ask theree questions to test his or her vision: 1) Is this the right time? 2) Is this the right direction? 3) Are these the right goals? This must then be shared with your team and have it SUPPORTED.

Ex. 13.3 The Nature of the Vision Moving toward a desired future Staying the course Current reality

What Vision Does Links the present to the future Energizes people and gains commitment Gives meaning to work Establishes a standard of excellence and integrity

Common Themes of Vision Vision has broad appeal Vision deals with change Vision encourages faith and hope Vision reflects high ideals Vision defines the destination and the journey

Vision must be able to: Work at multiple levels Be inspirational at all levels Encourage independent action Develop Self-reference Be supported by the Company LeaderShip

Requirements for an effective Vision For a VISION to be effective it must be developed by leaders. Developed by leaders, those with strengths to influence to establish direction Must be communicated to followers and must be supported by them.

Requirements for an effective Vision Developed by leaders, those with strengths to influence to establish direction Must be communicated to followers and must be supported by them. Must be comprehensive and detailed so all understands it’s meaning and direction.

Mission The organization’s core broad purpose and reason for existence

Mission Two critical parts: Core values guide the organization Core purpose is why the organization exists

Leader’s Framework for Noble Purpose Purpose Description Basis for Action Discovery Finding the new Pioneer Excellence Being the best Fulfillment Altruism Providing service Happiness Heroism Being effective Achievement

Strategic Management Strategic Management Strategy The set of decisions and actions used to formulate and implement specific strategies that will achieve a competitively superior fit between the organization and its environment so as to achieve organization goals Strategy The general plan of action that describes resource allocation and other activities for dealing with the environment and helping the organization attain its goals

Develop Strategies Focusing On Core competence Developing synergy Creating value for customers

Core Competence Something the organization does extremely well in comparison to competitors

Synergy and Value Synergy: the interaction of organizational parts to produce a joint effect that is greater than the sum of the parts Value: the combination of benefits received and costs paid by the customer

Strategy Formulation and Implementation The integrating knowledge of the environment, vision, and mission with the core competence in such a way as to achieve synergy and create customer value Strategy Implementation Putting strategy into action by adjusting various parts of the organization and directing resources to accomplish strategic goals

Ex. 13.7 Making Strategic Decisions Ease of Implementation Hard Easy High Impact, Hard to Implement. Major changes, but with potential for high payoff High Impact, Easy to Implement. Simple changes that have high strategic impact – take action here first High Strategic Impact Low Impact, Hard to Implement. Difficult changes with little or no potential for payoff – avoid this category Low Impact, Easy to Implement. Incremental improvements, “small wins;” pursue for symbolic value of success Low

Ex. 13.8 Linking Strategic Vision and Strategic Action High The Dreamer The Effective Leader Vision The Uninvolved The Doer Low High Low Action