Strategic Leadership

Ability to:
• Influence organizational members
• Effectuate organizational change

Strategic Leaders:
• Who are they?
• Effective strategic leaders
– Frames of reference
– Managerial resources
 Knowledge
of Business

Vision Contacts

Ability to
General Mgmt Managerial Assemble Top
Skills
Resources Mgmt Team

Relationships
Change Mgmt
with Key
Skills
Stakeholders

Leadership Special
Skills Expertise
 Senior Management Team (SMT)
• Who Comprises SMT?
• Effectiveness of SMT:
– Heterogeneity
– Cohesiveness
– Board of Director Involvement
• SMT Selection:
– Internal versus external candidates
– CEO Succession and SMT
composition
 Effects of CEO Succession & SMT Composition
on Strategy
Managerial Labor Market:
CEO Succession
Internal External
CEO Succession CEO Succession

Ambiguous:
Stable Possible Change
Homogeneous Strategy in Top Mgmt Team
SMT and Strategy
Composition
Stable Strategy Strategic
Heterogeneous
with Innovation Change
 CEO Power & Corporate
Governance

• CEO & Chairman of the Board

• CEOs with Long Tenure

• Most Effective Form of Governance

 Strategic Leadership Responsibilities

Determining Establishing
Strategic Control &
Direction Coherence
Strategic
Leadership
Exploiting & Emphasizing
Maintaining Ethical
SA & DC Practices

Sustaining
Developing
Effective
Human
Corporate
Capital
Culture
 Qualities of Visionary Leaders

Holistic (Comprehending Context)

 Interactive (Understanding Relationships)
 Insightful (Intuition)
Speculative (Contemplation Without Data)
 Imaginative (Could’s versus Should’s)
Contingency Thinking (Possible Futures)
 Sustaining an Effective
Corporate Culture

Fits the firm’s strategy

Adaptive
Promotes learning and human development
Promotes the sharing of R&C’s
Promotes corporate entrepreneurship
Promotes trust
 Sustaining an Effective Corporate
Culture
Culture also important because:
• Replace Policies, Procedures & Rules
• Capable of Being a Strategic Asset

Changing Corporate
Culture:
• Who Effectuates the Change?
• How is it Done?
 Promoting Ethical
Practices
• Communicate Ethical Values
• SMT: Key Role Models
• Codes of Ethics
• Rewards & Sanctions
• Hire based on shared ethical beliefs
• Ethics Training
• Ethics Committees
• Signing Documents