presentation by lucy kiruthu
TRANSCRIPT
Presentation by
Lucy Kiruthu
The Role of the Strategic Leader
A Literature Review
Lucy Kiruthu
DBA Student Year 1
Pro Peter Lewa Chandaria School of Business
USIU-Africa
EAMARC 2 – Nov 2015
Structure of the Presentation
1.An Introduction
2.Discussions / Findings
3.Conclusions, Recommendations and areas of Future Research
The Introduction 1.Understanding Leadership
Leadership “a process whereby an individual influences a
group of individuals to achieve a common goal” (Northouse,
2013 p. 5)
2. Link between leadership and business
success
Rothschild (1996) argues that “business units and product
lines have failed all because they had the wrong kind of leader" (p. 17).
Bass & Bass (2008) remarks that leadership is considered
by many as the single most critical factor in the success or
failure of organizations
The Introduction 3. What is Strategy?
The determination of the long-term goals and objectives of
an enterprise, and the adoption of courses of action and
the allocation of resources necessary for carrying out these
goals. (Chandler,1962)
A state of mind; the way in which a corporation endeavours
to differentiate itself positively from its competitors, using
its relative corporate strengths to better satisfy customer
needs. (Ohmae,1982)
The essence of strategy is having a unique position that is
difficult to match (Porter,1996)
Mintzberg, Ahlstrand and Lampel, (1998) argue that there
is no simple definition of strategy and define it using the
5ps namely plan, pattern, position, perspective, and ploy.
The Introduction 4. The link between Leadership and Strategy
Leadership is the starting point of strategy
(Allio, 2006; Hsieh and Yik, 2005).
Top executives play a key role in
determining organizational outcomes
(Hambrick, 2007)
The Introduction 4. The link between Leadership and Strategy cont
Strategic leadership goes beyond the leader
follower relationship to emphasize on
achievement of company-wide objectives in a
changing environment (Barnett, Greve & Park,
1994; Hitt, Ireland & Hoskisson, 2007; Lussier &
Achua, 2013)
Organizations are in need of strategic leaders who
must be able to influence in an environment that
is Volatile, Uncertain, Complex and Ambiguous
(Johansen, 2012; Hughes, Beatty and Dinwoodie,
2014).
The Introduction 5. What is Strategic Leadership?
Adair (2010) states that Peter Drucker was the first to
introduce the word strategic leadership to the
business world in the early 1970s
Rowe and Nejad (2009) argue that strategic
Leadership is about combining managerial and
visionary leadership skills
Hitt, Ireland and Hoskisson (2013) look at strategic
leadership as “the leader’s ability to anticipate,
envision, and maintain flexibility and to empower
others to create strategic change as necessary” (p.
375)
Discussions / Findings 1. Strategic Thinking
Mintzberg (1991) looks at strategic thinking as seeing
ahead, behind, above, below, beside, beyond and
more importantly seeing through but asks what is
the use of doing all this seeing if nothing is
done?
Bonn (2005) points out strategic thinking as an
important precursor to strategic decision-making
Goldman and Casey (2010) point out that lack of
strategic thinking at the top management level results
to poor organizational performance.
Discussions / Findings
Strategic thinking “doesn't come
naturally”
“Strategic thinking skills have to be
learned, cultivated, practiced, and
applied”.
(Kazmia &Naaranojab, 2015, P 45)
Discussions/ Findings 2. The Role of the Strategic Leader
The Strategic leader:-
i.Establishes and communicates the strategic direction
ii.Fosters strategic alignment
iii.Leads change
iv.Supports strategy execution
v.Aids in acquiring, developing and managing key resources
vi.Shapes the organizational culture
vii.Accentuates ethical practices
viii.Establishes organizational controls
(Jooste & Fourie, 2009; Rowe and Nejad, 2009; Adair, 2010; Pearson and Robinson 2011;
Ireland, Hoskisson and Hitt, 2013; Browning, 2013)
Discussions / Findings 3. Characters / Skills / Practices of the Strategic
Leader
Vision / ability to anticipate, eloquence,
consistency , articulation of the business
model, commitment, being well informed /
ability to learn, willingness to delegate and
empower / ability to challenge, astute use of
power, emotional intelligence, ability to
decide, honesty, trustworthy, ability to
interpret and align (Hill & Jones, 2010; Schoemaker, Krupp & Howland, 2013; Kabacoff, 2014)
Conclusions 1.Strategic thinking is core to strategic
leadership
2.Strategic leaders are rare (Rowe, 2001)
3.Strategic leaders understand both effective
leadership and strategic management
4.Strategic leaders are at the centre of
business success, they are therefore the best
kind of leaders to lead businesses
5.Strategic leadership can be learned (Kazmia
& Naaranojab, 2015)
Conclusions
5. Strategic leaders embrace different
leadership styles
6. Strategic leaders outperform other kinds of
leaders, they are able to keep the
organization focused on key business
objectives
Businesses are in need of a strategic
leader; a leader able to balance the short
term and long term goals of the business.
Recommendations
1.Businesses need to be more deliberate
about identifying and developing strategic
leaders
2.Every business that plans to survive in the
ever changing business environment needs a
strategic leader at the top
3.Business leaders need to learn to be
strategic and to practice strategic leadership.
Areas for Future Research
1. Explore why Strategic Leaders are
rare
2. Determine what motivates strategic
thinking and what motivates strategic
leaders to act
3. Find out what can be done to develop
more strategic leaders in Kenya
References
Adair, J., (2010). Effective Strategic Leadership – the complete guide to strategic management. London,
United Kingdom: Pan Books.
Allio, R. J., (2006). Strategic thinking: the ten big ideas. Strategy & Leadership, 34 (4) 4 – 13
.doi.org/10.1108/10878570610676837
Barnett, W. P., Greve H. R., & Park, D. Y., (1994). An evolution model of organizational performance.
Strategic Management Journal, 15, 11-28.
Bass, B. M., & Bass, R., (2008). The Bass Handbook of Leadership: Theory, Research, and Managerial
Applications. New York, NY: Free Press
Boal, K. B. & Hooıjberg, R., (2000). Strategic leadership moving on. Leadership Quarterly, 11, 515–549.
Bonn, I., (2005). Improving strategic thinking: A multilevel approach. Leadership & Organizational
Development Journal, 26 (5), 336-354.
Browning, J., (2013) Leading at the strategic level in an uncertain world, Washington, D.C. Dwight D.
Eisenhower School for National Security and Resource Strategy, National Defense University.
Chandler, A., (1962). Strategy and Structure: Chapters in the History of Industrial Enterprises. New York:
Doubeday.
Goldman, E. F., & Casey. A., (2010). Building a Culture That Encourages Strategic Thinking. Journal of
Leadership & Organizational Studies, 17(2), 119–128.
Hambrick, D. C., (2007). Upper Echelons Theory: An Update. The Academy of Management Review, 32
(2), 334-343.
References
Hill, C. W. L., & Jones, G. R., (2010). Theory of strategic management with cases. Mason, Ohio: South-
Western Cengage Learning
Hitt, M. A., Ireland, R. D., & Hoskisson, R.E., (2007). Strategic Management: Competitiveness and
Globalization, Mason, Ohio: Thomson/South Western.
Hsieh, T., & Yik, S., (2005). Leadership as the starting point of strategy. McKinsey Quarterly, 1(1), 67–76.
doi:10.1111/j.0955-6419.2005.00372.x
Hughes, R. L., Beatty K. C., & Dinwoodie, D., (2014). Becoming a Strategic Leader: Your Role in Your
Organization's Enduring Success, 2nd Edition. San Francisco, CA: Jossey-Bass
Ireland, R. D., Hoskisson, R. E., & Hitt, M. A., (2013). The Management of Strategy: Concepts and Cases,
Mason, OH: South-Western Cengage Learning.
Johansen, B. (2012). Leaders make the future: Ten leadership skills for an uncertain world. San
Francisco: Berrett-Koehler Publishers.
Jooste C. & Fourie, B. (2009). The role of strategic leadership in effective strategy implementation:
Perceptions of South African strategic leaders. Southern African Business Review, 13 (3), 51-68
Kabacoff, R., (2014). Develop strategic thinkers throughout your organization. Harvard Business Review
blog, https://hbr.org/2014/02/develop-strategic-thinkers-throughout-your-organization/
Kazmia, S. A., & Naaranojab, M., (2015). Cultivating strategic thinking in organizational leaders by
designing supportive work environment. Procedia - Social and Behavioral Sciences, 181, 43 – 52
Lussier, R. N. & Achua, C. F. (2013). Effective Leadership. Mason, OH: South-Western Cengage Learning.
Maxwell, J. C. (1999). The 21 indispensable qualities of a leader: Becoming the person that people will
want to follow. Nashville, TN: T. Nelson.
References
Mintzberg, H., (1987). Crafting Strategy. Harvard Business Review, 65(4), 66-75.
Mintzberg, H., Ahlstrand, B. W., & Lampel, J. (1998). Strategy Safari: The Complete Guide through the
Wilds of Strategic Management. New York, NY: Free Press.
Northouse, P. G., (2013). Leadership: Theory and practice. Thousand Oaks, CA: Sage.
Ohmae, K., (1982). The Mind of the Strategist. New York: McGraw Hill.
Olson, A. K., & Simerson, B. K., (2015). Leading with Strategic Thinking: Four Ways Effective Leaders Gain
Insight, Drive Change, and Get Results. Hoboken, New Jersey: Wiley & Sons.
Pearce, J. A., & Robinson, R. B., (2011). Strategic Management: Formulation, Implementation, and Control.
Boston: McGraw-Hill.
Rothschild, W. E., (1996). A portfolio of strategic leaders. Planning Review, 24 (1), 16 – 19.
doi.org/10.1108/eb054538
Rowe, W. G., & Nejad, M. H., (2009). Strategic Leadership: Short-Term Stability and Long-Term Viability.
Ivey Business Journal. 73(5): 6–11.
Rowe, W. G., (2001). Creating Wealth in Organizations: The Role of Strategic Leadership. The Academy of
Management Executive, 15(1), 81-94.
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