Do Strategic Leaders Matter?

Orientation Have you got what it takes to be a strategic leader? Strategic leaders contributions shape the organization’s future Cognitive complexity and moral sensitivities Believe in your capabilities

The Strategy Movement Strategic Determinism vs. Strategic Choice Internal structures and industry structures Strategy and structure Environments and fit Leader’s role to identify correct strategy and authorize implementation Resource-based theories Leadership choice and strategic visions Competitive advantage and core competencies

OVERVIEW Maps: Platforms of Understanding Indication that top-level leaders can make a difference Leadership and organizational level Impact of top leaders is in strategy formulation Lower-level leaders moderators of strategy implementation Context: Strategic Leadership Processes

Nahavandi & Malekzadeh’s Platform of Understanding Outlines two maps with conflicting implications of leadership impact Strategic choice: leader’s vision or choice of strategy influences company’s success Strategic determinism: Strategy not created through leader insight but discovered by analytical processes identifying relevant environmental, cultural and structural factors

Can top level leaders make a difference? Strategic determinism : Strategy identifies factors determined by environmental, structural, or cultural factors. It is thus not created by insight on the part of a leader but discovered by analytical processes Strategic choice: Non-determinists’ propose that leaders have strategic choice. They can influence strategy formulation and corporate success. Strategy Formulation and Strategy Implementation: Top leadership cadre influences strategy formulation. Lower level leaders have some influence in strategy implementation.

Nahavandi and Malekzadeh’s Integrative Framework The strategic leader acts as a moderator between strategy and outcomes. Strategic orientation of leaders may be challenge-seeking or controlling in orientation High challenge-seeking leaders are innovative in their strategic choices. High control leaders wish to retain control over decisions and actions.

Strategic Leadership Types High challenge seeking High-Control Innovator Challenge-seeking leader who maintains tight control of organization Participative Innovator Leader seeks change through process of delegating control of organization CHALLENGE SEEKING Status Quo Guardian (SQG) Challenge-averse leader who maintains tight control of organization Process Manager (PM) Challenge-averse leader who delegates control of organization Low challenge seeking High control DESIRE FOR CONTROL Low control

Upper Echelon Studies Hambrick and Mason proposed that strategy in organisations reflected characteristics of its top executives (‘upper echelon’). Highlighted the way the leader thinks and the values held. Essentially, leaders within an upper echelon ‘made a difference’ through their cognitive styles and belief systems

The Discretion of the Strategic Leader Michael Porter’s method of identifying an organisation’s strategic ‘position’ indicated no need for leadership intervention in setting strategy. This raises a dilemma of strategic choice: ‘Can I, as a leader, create a unique strategy for my organisation, or is it a process best to a team of strategic planners to determine analytically ?

TIPPING POINT LEADERSHIP Strategic transformations occur where there is a rapid shift in strategy orientation and strategy implementation There are four hurdles (or tipping points), two of re-orientation, (cognitive and resource hurdles) and two of implementation (motivational and political hurdles) These provide the four steps of the ‘what’ of strategic change

Tipping Point Leadership Cognitive Hurdle Put managers face to face with problems and customers Find new ways to communicate Resource Hurdle Focus on the hot spots & bargain with partner organizations Political Hurdle Identify & silence internal opponents Isolate external ones Motivational Hurdle Put the stage lights on & frame the challenge to match the organization’s various levels

What Sort of Strategic Leader Are You? The integrative model of Nahavandi and Malekzadeh You should have a sense of your own concern for challenge, and therefore your likelihood of flourishing in an environment requiring innovation and entrepreneurial leadership. A sense of your need for control as contrasting to willingness to encourage (empower?) followers will indicate the style with which you would approach your leadership tasks. Are you mainly a strategy formulator or implementer? There is a fundamental challenge raised for practicing leaders. Do you, or don’t you ‘make a difference’ in your strategic efforts ? Put another way, does your contribution matter, in organisational performance

Summary Strategic choice maps assume a strategic leader and other top echelon executives will make a difference. If strategies are largely deterministic, significance of the strategic leader is minimal. Strategy can be left to a team of strategic planners The characteristics which differentiate effective strategic leaders from others also remain under-defined, although cognitive complexity is often mentioned Strategic transformations may be assisted through attending to ‘tipping points’ of cognitive, resource based, motivational or political kinds