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Strategic Leadership is 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
“Without a strategy the organization is like a ship without a rudder, going around in circles.” Joel Ross
and Michael Kami. Strategy is the essential of all business games. Even in real life without strategy and plan one can not be
successful. Leader, manager, business man and even individual need to do strategic planning and
develop strategies in the changing environment. The Three Big Strategic Questions every body needs
to ask before thinking/planning a strategy are:
o Where are we now?
o Where do we want to go?
o How do we get there?

What is Strategy? A Team’s strategy consists of the set of competitive moves they are employing to
manage the team/objectives of the team/organization.
o Strategy is Team’s “game plan” to
• Conduct operations
• Compete successfully
• Achieve Team objectives

Strategic Management:
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

Business Strategy Levels:
o Corporate-level strategy asks, “What business are we in?”
o Business-level strategy asks, “How do we compete?”
o Functional-level strategy asks, “How do we support the business-level strategy?”

Strategic Planning:
A Basic Planning Model consists of following steps.
o Missions and Goals
o External Analysis - Opportunities and Threats
o Internal Analysis - Strengths and Weaknesses
o Selection of Appropriate Strategies
o Implementation of Strategies
About Mission Statement we have already discussed during previous chapters. Next two stages/steps
are AWOT analysis. After Analysis, one needs to select appropriate strategy and finally implement it.

Examples of SWOT Elements:
o Strengths: Favorable location, talented workers, state-of-the-art equipment
o Weaknesses: Unfavorable location, outdated equipment, limited capital
o Opportunities: Culturally diverse customer base, changes in technology, deregulation
o Threats: Ecommerce, declining market, new competitors
Sample Strategies
Depending on the nature of business, analysis and priorities, organization may choose any strategy. Few
examples are given bellow.
o Cost leadership
o Focus
o High quality
o Strategic alliances
o Growth through acquisition
o High speed and first-mover strategy
o Product and global diversification
o Sticking to core competencies
o Brand leadership
o Creating demand by solving problems
o Conducting business on the Internet

Strategic Leadership:
Strategic Leadership involves: The ability to anticipate, envision, maintain flexibility and empower
others to create strategic change

An attractive, ideal future that is credible yet not readily available.
o Links the present to the future
o Energizes people and garners commitment
o Gives meaning to work
o Establishes a standard of excellence and integrity

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

The organization’s core broad purpose and reason for existence

o Strategy is Team’s “game plan” to
• Conduct operations
• Compete successfully
• Achieve Team objectives

Strategy Formulation and Implementation
Strategy Formulation
o 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
o Putting strategy into action by adjusting various parts of the organization and directing
resources to accomplish strategic goals

Strategic Leadership
o Requires the Managerial Ability to:
o Anticipate and envision
o Maintain flexibility
o Empower others to create strategic change as necessary
o Strategic Leadership is:
o Multi-functional work that involves working through others

Effective strategic leaders:
o Manage the Team’s operations effectively
o Sustain high performance over time
o Make better decisions than their competitors
o Make straight, courageous, practical decisions
o Understand how their decisions affect the internal systems in use by the team/organization
o Solicit feedback from peers, superiors and team members about their decisions and visions
Determining Strategic Direction:
o Determining strategic direction involves developing a long-term vision of the Team’s strategic
• Five to ten years into the future
• Philosophy with goals
• The image and character the Team seeks
o Ideal long-term vision has two parts:
• Core ideology
• Envisioned future
o A charismatic leader can help achieve strategic intent.
o It is important not to lose sight of the strengths of the organization/team when making changes
required by a new strategic direction.
o Leaders must structure the team effectively to help achieve the vision.

Exploiting and Maintaining Core Competencies:
Core competencies
o Resources and capabilities of team that serve as a source of competitive advantage over its
o Leadership must verify that the team’s competencies are emphasized in strategy
implementation efforts
o Teams must continuously develop or even change their core competencies to stay ahead of
o In many large orgs, and certainly in related diversified ones, core competencies are exploited
effectively when they are developed and applied across different organizational units.
o Core competencies cannot be developed or exploited effectively without developing the
capabilities of human capital.

Developing Human Capital:
Human capital
o The knowledge and skills of the org/team entire workforce are a capital resource that requires
investment in training and development
o No strategy can be effective unless the org/team is able to develop and retain good people to
carry it out.
o The effective development and management of the team’s human capital may be the primary
determinant of a team’s ability to formulate and implement strategies successfully.

Sustaining an Effective Organizational Culture:
Organizational culture
o The complex set of ideologies, symbols and core values shared through the team/org, that
influences the way business is conducted.
o Changing a Team’s/ organizational culture is more difficult than maintaining it
o Effective strategic leaders recognize when change in culture is needed
o Shaping and reinforcing culture requires:
o Effective communication
o Problem solving skills
o Selection of the right people
o Effective performance appraisals
o Appropriate reward systems

Emphasizing Ethical Practices:
o Effectiveness of processes used to implement the Team’s strategies increases when based on ethical
o Ethical practices create social capital and goodwill for the team/org

Actions that develop an ethical organizational culture include:
o Establishing and communicating specific goals to describe the team’s ethical standards
o Continuously revising and updating the code of conduct
o Disseminating the code of conduct to all stakeholders to inform them of the team’s/org’s ethical
standards and practices
o Developing and implementing methods and procedures to use in achieving the team’s/org’s ethical
o Creating and using explicit reward systems that recognize acts of courage
o Creating a work environment in which all people are treated with dignity
o Leaders set the tone for creating an environment of mutual respect, honesty and ethical practices
among employees

Establishing Organizational Controls:
o Controls
o Formal, information-based procedures used by leaders to maintain or alter patterns in
team/organizational activities
o Controls help strategic leaders to:
o Build credibility
o Demonstrate the value of strategies to the team’s/org stakeholders
o Promote and support strategic change

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