Leading Strategically

STRATEGIC LEADERSHIP 1 The task of exerting influence on other people’s pursuit of goals in an organizational context Leadership: Managing an overall enterprise and influencing key organizational out- comes, such as company wide performance, competitive superiority, innovation, strategic change, and survival Strategic leadership:

EXECUTIVE ROLES 2 Formal authority and status Interpersonal roles Figure head Leader Liaison Informational roles Monitor Disseminator Spokesperson Decision roles Entrepreneur Disturbance handler Resource allocator Negotiator

LEVEL 5 LEADERS 3 Level 5 leaders Build greatness through combination of will and humanity Level 4 leaders Can lead a group to superior levels of performance Level 3 leaders Organize people resources to accomplish predetermined objectives Level 2 leaders Work effectively with others as a member of a team to achieve group objectives Level 1 leaders Make individual contributions through talent and work ethic Capabilities

TWO ATTRIBUTES OF LEVEL 5 LEADERS 4 Professional modesty Professional will The ability to translate strategic intent into the resolve needed to pursue a strategy and usually to make hard choices over a period of time Being someone who prefers to share credit rather than hog it who tends to shun public attention, act with calm determination, and exercise ambitions on the company’s behalf rather than one’s own

WHAT DOES IT TAKE TO BE A CEO? 5 Charisma? There is little consensus on whether personality or background matters more An Ivy league MBA? Integrity International management experience?

LEADERSHIP CHARACTERISTICS 6 Differences in competence and action Companies are increasingly placing value on substantive work experience; looking beyond skin color, gender, and even the items on a resume. Evidence of being a strategic leader–someone who works not only to develop a plan, but also empower the organization to realize the vision behind it, are important indicators of leadership potential Personality differences A large amount of research has been done on personality or the psychological determinants of strategic leadership focusing specifically on: Locus of control Need for achievement Tolerance for risk or ambiguity Charisma and emotional intelligence Personality characteristics may be important; defining and isolating leadership abilities is difficult Background and demographic differences Background refers to factors such as: Work experience Education Demographic refers to factors such as: Gender Nationality Race Religion Network ties The profile of leaders is changing (e.g., more diversity among top management teams)

VISION – USES OF AMBITION AND AMBIGUITY 7 Sony’s vision in early 1950’s: “becoming the company that most changes the worldwide image of Japanese products as being of poor quality.” CitiBank’s vision in 1915: “the most powerful, the most serviceable, the most far reaching world financial institution the world has ever seen.” Vision statements generally express long-term action horizons, are ambitious and force the firm to stretch. their ambiguity allows flexibility for changing strategy or implementation tactics

VISION ANCHORED IN GOALS 8 Vision Goals and objectives Examples Wal-MartGrow sales and profits by 70% per year RyanairBe Europe’s largest airline in 7 years MatsushitaTo become a “super manufacturing company”