Development Team

Principal Investigator
Principal Investigator Prof.(Dr.) S.P. Bansal
Vice Chancellor, Maharaja Agreshen University,
Baddi, Solan, Himachal Pradesh, INDIA

Prof.(Dr.) YoginderVerma
Co-Principal Investigator Prof.Vice Chancellor, Central University of Himachal
Pradesh,Kangra Himachal Pradesh, INDIA

Paper Coordinator Dr. Anil Gupta

Senior Assistant Professor
University of Jammu, Jammu (J&K), INDIA

Content Writer Dr. Sudhanshu Joshi

Head, School of Management, Doon University,
Dehradun PIN 248001, Uttarakhand, INDIA

Strategic Management
Management
Strategic Leadership
 Co-Principal Investigator
Principal Investigator
Quadrant I
Paper Coordinator
Paper Coordinator
Description of Module

Subject Name Management

Paper Name Strategic Management

Paper Coordinator
Module Title Strategic Leadership

Module Id Module- 25

Pre-requisites Basic Knowledge of Leadership and Strategic Management

Objectives 1. To understand the concept, definitions and Scope of Strategic

Leadership

2. Discussion on various theories on Leadership such as behaviour and

style theories, situational and contingency theories, functional theory,
integrated psychologically theories, transactional and trans-
functional theories.

3. Future Scope and challenges that corporate leadership is facing in

competitive business environment.

Keywords Leader, leadership; stakeholders; strategic management; leadership

development

Learning Objectives:

The Learning objectives of the module is to explore the nature of strategic leadership and
nature of strategy, to address the following questions:
1. What is the definition and focus of strategic leadership?
2. How does strategic leadership differ from leadership?

Strategic Management
Management
Strategic Leadership
 3. What makes strategic leadership so difficult and challenging?
4. How can strategy-making and strategy-implementing processes work in organizations
to create enduring success?
5. What are the implications for leaders of making and implementing strategy?
1.Introduction
In simple words, the strategy can be defined as establishing a plan to achieve the mission
and envisioned future of the firm. In recent times,strategy is transformed phenomenally as
success tool that engaged various stakeholders to participate in the economic success of the
firms.The global economy and the worldwide trends bring new challenges filling the corporate
life. Along with the changing economic paradigm, the political and economic uncertainty
brings about an increased demand for ‘right leaders’ with visions and authority.
Moreover, the economic recession of the last decade has stressed the importance of
leadership as a significant part of the corporate strategic management. Viewed from a
distance of several years, this topic should be reconsidered and the situation analyzed from
different angles. Figure 1 depicts how Leadership prevails and act as the backbone of the
business decision making and organizational excellence.

“Who can do it”

Business
Individual
Environment
Leadership Potential

“What needs to done” “How it can be done”

Organization

Figure 1: Leadership role in an organization (Source: Author)

Strategic Management
Management
Strategic Leadership
 Following YouTube link explains the Need of Strategic Leadership for a Business
(Source:www.powtoons.com)
https://www.youtube.com/watch?v=EhNXknJree8
Strategic leadership ensured six skills, that encourage leaders to think strategically and
navigate the unknown effectively. Skills includes (a). Anticipate; (b) Challenge; (c) Decide; (d)
Align; and (e) Learn. An effective Strategic Leader should focus on developing these abilities
as suggested in the Table I
Table I: Abilities to be focused by the Strategic Leader
Anticipate Challenge Interpret
1. Interact with customers, suppliers, 1. Focus on the root causes of a problem 1. Force yourself to zoom in on the details
and other partners to understand their rather than the symptoms. and out to see the big picture.
challenges. 2. List long-standing assumptions about an 2. Actively look for missing information
2. Conduct market research to aspect of your business and evidence that disconfirms your
understand competitors’ perspectives, 3. Creation of Open Image among hypothesis.
gauge their likely reactions to new Stakeholders 3. Supplement observation with
initiatives or products, and predict 4. Capture input from people not directly quantitative analysis.
potential disruptive offerings. affected by a decision who may have a 4. Step away—go for a walk, look at art,
3. Use scenario planning to imagine good perspective on the repercussions. put on nontraditional music, play Ping-
various futures and prepare for the 5. Create a rotating position for the express Pong—to promote an open mind.
unexpected. purpose of questioning the status quo.
4. Understanding business strategies
of fast-growing rival and examine their
actions

Decide Align Learn

1. Reframe binary decisions by
explicitly asking your team, “What
other options do we have?”
2. Divide big decisions into pieces to
understand component parts and
better see unintended consequences.
3. Tailor your decision criteria to long-
term versus short-term projects.
4. Let others know where you are in
your decision process. Are you still
seeking divergent ideas and debate,
or are you moving toward closure and
choice?
5. Determine who needs to be directly
involved and who can influence the
success of your decision.
1 Bridge the organizational communication
gap .
2.Identify key internal and external
stakeholders, mapping their positions on
firm’s vision and organizational style and
pinpointing any misalignment of interests.
Look for hidden agendas and coalitions.
3. Use structured and facilitated
conversations to expose areas of
misunderstanding or resistance.
4. Reach out to resisters directly to
understand their concerns and then
address them.
5. Be vigilant in monitoring stakeholders’
positions during the rollout of your initiative
or strategy.
1 Institute after-action reviews, document
lessons learned from major decisions or
milestones (including the termination of a
failing project), and broadly communicate
the resulting insights. More
Reward managers who try something
laudable but fail in terms of outcomes.
2. Conduct annual learning audits to see
where decisions and team interactions
may have fallen short.
3. Identify initiatives that are not producing
as expected and examine the root causes.

Strategic Management
Management
Strategic Leadership
 2. Defining Strategic Leadership
The term “Strategic Leadership” refers as the strategic outlook of the manager’s potential to
express a strategic vision for the organization, or a part of the organization. Primarily involved
into motivating, persuade others to acquire the vision as a whole. Strategic leadership can
also be defined as utilizing strategy in the management of employees.

3. Factor affecting “Strategic Leadership”

The term “Strategic leadership” is getting momentum in last one decade, due to the following
factors:
1. Pace of Change: There is a quick change in the product / service innovation, new
products is being developed faster, fast change in the business landscape. Therefore,
there is an emerging requirement of establishing right relationship between changing
business landscape and leadership at business level.
2. Increasing uncertainty: Due to the uncertainty, long term forecasting and planning
becomes essentially important in recent times.
3. Growing ambiguity: Problem levels are required to be clearly indicated and required to
be solved using competent Human resource.
4. Increasing Complexity: Business problems are getting complex. The amount of usable
information required at process level getting importance for operational decisions.
At organization level there is an urgent requirement to develop an organizational Strategy to
support strategic leadership at larger, it is a learning process that includes five elements:
a. Positional assessment
b. Understanding the vision
c. Strategic formulation
d. Identifying and implementing tactics
e. Checking the Progress

Strategic Management
Management
Strategic Leadership
 Figure 2 : Organizational Strategy as learning Process (Source: Author)

4.Scope of Strategic Leadership

Conceptually, the focus of strategic leadership is sustainable competitive advantage, or the
enduring success of the organization. Sustainable competitive advantage is the key focus of
Strategic Leadership. Strategic leadership is exerted when the decisions and actions of
leaders have strategic implications for the organization.

The Scope of Strategic leadership can be understood as:

a. Strategic leadership is broad in scope.
b. The impact of strategic leadership is felt over long periods of time.
c. Strategic leadership often involves significant organizational change.

5. Properties of Strategic Leadership

a. Scope: The broad scope of strategic leadership means that it impacts areas outside the
leader’s own functional area and business unit—and even outside the organization. This
broad scope requires seeing the organization as an interdependent and interconnected
system of multiple parts, where decisions in one area provoke actions in other areas. The
scope of strategic leadership extends beyond the organization, acting on and reacting to
trends and issues in the environment.

b. Duration: Like its scope, the time frame of strategic leadership is also far reaching. The
strategic leader must keep long-term goals in mind while working to achieve short-term
objectives. In contrast, not all leadership requires this forward view to be effective. Very good
operational leaders manage day-to-day functions effectively and are skilled at working with
6

Strategic Management
Management
Strategic Leadership
 people to ensure that short-term objectives are met. This is important work, but it does not
always need to take the long term into account.

C .Organizational Culture: A third way strategic leadership differs from leadership in general
is that it results in significant change and impact the organization in the longer run. For
example, consider the strategic impact of a new compensation system that touches all parts
of the organization, provides a structure for defining differences in roles and appropriate
salary ranges, and ties performance plans and measures to the strategic objectives of the
organization, giving people a clear understanding of what is required to advance along
various career ladders.

6. Focus of Strategic Management

Strategic leadership provides a framework that primarily focused on values, vision, business
techniques that focus organizations to follow certain course of action to remain competitive
and relevant.
Strategic leadership ensured a learning organization to adapt various survival strategies to
remain competitive and sustain in the market place. Also, to ensure adoption towards
changing technology, climate change and economic factors risks the organization becoming
obsolete. It balances a focused analytical perspective with human dimension of strategy
making. Overall, Strategic leadership engage entire business in one strategic thread in order
to lay the foundation for building winning organizations that can define, commit, adjust and
adapt their strategy wherever required.

Strategic Management
Management
Strategic Leadership
 7. Process of Strategic Leadership

Figure 3 : Process of Strategic Leadership (Source: Author)

Figure 3 depicts the process of strategic leadership. Various stages involved in the Strategic
leadership includes
(i) Define Leadership requirements: As formal definition of leadership depict the term
leadership as a process of social influence in which a person can enlist the aid and
support of others to accomplish common task. Understanding the ‘Leadership
requirements’ become a focal requirement of successful and effective leadership.
Various factors that need to be consider while defining the leadership requirements
includes; Traits, situational interaction, function, behavior, power, vision and values.

Strategic Management
Management
Strategic Leadership
 (ii) Assess Current Behavior: There is always a need to evaluate the behavior of
successful leaders, determining a behavior taxonomy, and identifying broad
leadership styles. It is observed that positive reinforcement can be used to resolve a
business issues. Example, an employee does not show up to work on time every day.
The manager of this employee decides to praise the employee for showing up on time
every day the employee actually shows up to work on time. As a result, the employee
comes to work on time more often because the employee likes to be praised. In this
example, praise (the stimulus) is a positive reinforce for this employee because the
employee arrives at work on time (the behavior) more frequently after being praised
for showing up to work on time.
(iii) Assess Organizational Implications; Assessment of implication of leadership on overall
processes, functions and style is important to know the effectiveness of leadership.
(iv) Develop strategically individual team organization: For successful implications of
overall strategy, team structuring is required.
(v) Reassessment: Reassessment of processes, evaluating and redesigning the same for
next level.

8. Roles of Strategic Leaders:

Besides to activities like industry analysis, competitive analysis, strategic Leaders has to
perform lot of organizational roles and activities. The Roles and responsibilities primarily aims
to develop a Strategic Vision and Mission; Sitting Goals and Objectives; Crafting a Strategy,
Executing a Strategy and Evaluating the Performance.
In other words, we may define the scope of Strategic leadership as leadership as vision;
leadership as command, leadership as symbol and Leadership as Decision Making. Figure 4
depicts the scope of Leadership from different perspective.

Strategic Management
Management
Strategic Leadership
 Figure 4: Multiple roles of Strategic Leadership (Source: Authors)

9. Principles of Strategic Leadership

(Source: Strategy + Business, 2016)

10

Strategic Management
Management
Strategic Leadership
 Table II: 10 Principles of Strategic Leadership
I. Distribute responsibility. Strategic leaders
gain their skill through practice. For decision
making at different levels, distribution of
responsibility gives potential strategic leaders the
opportunity towards better decision making.
Case: In an oil refinery on the U.S. West Coast, a
machine malfunction in a treatment plant was
going to cause a three-week shutdown.
Ordinarily, no one would have questioned the
decision to close, but the company had recently
instituted a policy of distributed responsibility.
One plant operator spoke up with a possible
solution. She had known for years that there was
a better way to manage the refinery’s technology,
but she hadn’t said anything because she had felt
no ownership. The engineers disputed her idea at
first, but the operator stood her ground. The
foreman was convinced, and in the end, the
refinery did not lose a single hour of production.
When individuals like the plant operator are given
responsibility and authority, they gain more
confidence and skill. And when opportunities to
make a difference are common throughout an
organization, a “can-do” proficiency becomes part
of its identity. At Buurtzorg, a Dutch neighborhood
nursing organization, most decisions are made by
autonomous, leaderless teams of up to a dozen
nurses. A small central management team
supports and coaches the frontline nurses; there
is no other middle management. The company
achieves the highest client satisfaction levels of
all community nursing delivery in the Netherlands,
at only 70 percent of the usual cost. Patients stay
in care half as long, heal faster, and become
more autonomous themselves. And the nurses
gain skills not just for leading their part of the
enterprise, but in community leadership as well.
Strategic Management
Management
Strategic Leadership
2. Be honest and open about information. The
management structure traditionally adopted by
large organizations evolved from the military, and
was specifically designed to limit the flow of
information. In this model, information truly equals
power. The trouble is, when information is
released to specific individuals only on a need-to-
know basis, people have to make decisions in the
dark. They do not know what factors are
significant to the strategy of the enterprise; they
have to guess. And it can be hard to guess right
when you are not encouraged to understand the
bigger picture or to question information that
comes your way. Moreover, when people lack
information, it undermines their confidence in
challenging a leader or proposing an idea that
differs from that of their leader.
Some competitive secrets (for example, about
products under development) may need to
remain hidden, but employees need a broad base
of information if they are to become strategic
leaders. That is one of the principles behind
“open-book management,” the systematic sharing
of information about the nature of the enterprise.
Case: Southwest Airlines, Harley-Davidson, and
Whole Foods Market, which have all enjoyed
sustained growth after adopting explicit practices
of transparency.
Transparency fosters conversation about the
meaning of information and the improvement of
everyday practices. If productivity figures
suddenly go down, for example, that could be an
opportunity to implement change. Coming to a
better understanding of the problem might be a
team effort; it requires people to talk openly and
honestly about the data. If information is
concealed, temptation grows to manipulate the
data to make it look better. The opportunity for
strategic leadership is lost. Worse still, people are
implicitly told that there is more value in
expediency than in leading the enterprise to a
higher level of performance. Strategic leaders
know that the real power in information comes not
from hoarding it, but from using it to find and 11

3. Create multiple paths for raising and testing
ideas.
Developing and presenting ideas is a key skill for
strategic leaders. Even more important is the
ability to connect their ideas to the way the
enterprise creates value. By setting up ways for
people to bring their innovative thinking to the
surface, you can help them learn to make the
most of their own creativity.
This approach clearly differs from that of
traditional cultures, in which the common channel
for new ideas is limited to an individual’s direct
manager. The manager may not appreciate the
value in the idea, may block it from going forward
and stifle the innovator’s enthusiasm. Of course,
it can also be counterproductive to allow people
to raise ideas indiscriminately without paying
much attention to their development. So many
ideas, in so many repetitive forms, might then
come to the surface that it would be nearly
impossible to sort through them. The best
opportunities could be lost in the clutter.
Instead, create a variety of channels for
innovative thinking. Some might be cross-
functional forums, in which people can present
ideas to a group of like-minded peers and test
them against one another’s reasoning. There
could also be apprenticeships, in which promising
thinkers, early in their careers, sign on for
mentorship with leaders who are well equipped to
help them build their skills. Some organizations
might set up in-house courses or sponsor
attendance at university programs. Reverse
mentoring — in which younger staff members
share their knowledge of new technology as part
of a collaboration with a more established staff
member — can also be effective.
Case: Google has made use of a number of
channels to promote innovation. A few examples:
Employees can directly email any of the leaders
across the organization; the company established
“Google cafés” to spark conversation by
encouraging interaction among employees and
across teams; and executives hold weekly all-
Strategic Management
Management
Strategic Leadership
create new opportunities for growth.
4. Make it safe to fail. A company’s espoused
statement of values may encourage employees to
“fail fast” and learn from their errors. That works
well until there is an actual failure, leading to a
genuine loss. The most dreaded phone call in the
corporate world soon follows; it’s the one that
begins: “Who authorized this decision?” Big
failures are simply unacceptable within most
organizations. Those who fail often suffer in terms
of promotion and reward, if not worse.
You must enshrine acceptance of failure — and
willingness to admit failure early — in the
practices and processes of the company,
including the appraisal and promotion processes.
For example, return-on-investment calculations
need to assess results in a way that reflects the
agreed-upon objectives, which may have been
deliberately designed to include risk. Strategic
leaders cannot learn only from efforts that
succeed; they need to recognize the types of
failures that turn into successes. They also need
to learn how to manage the tensions associated
with uncertainty, and how to recover from failure
to try new ventures again
Case: Honda is one enterprise that has taken this
approach to heart. Like several other industrial
companies, the automaker has had a dramatic,
visible failure in recent years. The installation of
faulty equipment from its favored airbag supplier,
Takata, has led Honda to recall about 8.5 million
vehicles to date. Although the accountable
executives were fired, the company’s leaders also
explicitly stated that the airbag failure, in itself,
was not the problem that led to dismissal. The
problem was the lack of attention to the failure at
an early stage, when it could have been much
more easily corrected. As one Honda
executive told Jeffrey Rothfeder, author of Driving
Honda: Inside the World’s Most Innovative Car
Company (Portfolio, 2014) (and
an s+b contributing editor), “We forgot that failure
is never an acceptable outcome; instead, it is the
means to acceptable outcomes.”
12
 hands meetings (known as TGIFs) to give
employees at every level in-person access to
senior leaders. People at Google learn to make
the most of these opportunities — they know the
conversations will be tough, but that genuinely
worthwhile innovative thinking will be recognized
and rewarded.
5.Provide access to other strategists. Give
potential strategic leaders the opportunity to meet
and work with their peers across the organization.
Otherwise, they remain hidden from one another,
and may feel isolated or alone. Once they know
that there are others in the company with a
similar predisposition, they can be more
open, and adept in raising the strategic value of
what they do.
The first step is to find them. Strategic leaders
may not be fully aware themselves that they are
distinctive. But others on their team, and their
bosses, tend to recognize their unique talents.
They may use phrases like “she just gets it,” “he
always knows the right question to ask,” or “she
never lets us get away with thinking and
operating in silos” to describe them. A good way
to learn about candidates is to ask, “Who are the
people who really seem to understand what the
organization needs — and how to help it get
there?” These may be people who aren’t
traditionally popular; their predisposition to
question, challenge, and disrupt the status quo
can unsettle people, particularly people at the
same level.
Of course, you don’t want to create the
impression that some people deserve special
treatment. Instead, cultivate the idea that many
managers, perhaps even most, have the potential
to become strategic leaders. Then bring the first
group together. Invite them to learn from one
another, and to explore ways of fostering a more
strategic environment in the rest of the enterprise.
Strategic Management
Management
Strategic Leadership
6. Develop opportunities for experience-based
learning. The vast majority of professional
leadership development is informative as
opposed to experiential. Classroom-based
training is, after all, typically easier and less
expensive to implement; it’s evidence of short-
term thinking, rather than long-term investment in
the leadership pipeline. Although traditional
leadership training can develop good managerial
skills, strategists need experience to live up to
their potential.
One vehicle for creating leadership experiences
is the cross-functional “practice field,”
as organizational learning theorist Peter
Senge calls it. Bring together a team of potential
strategic leaders with a collective assignment: to
create a fully developed solution to a problem or
to design a new critical capability and the way to
generate it. Give them a small budget and a
preliminary deadline. Have them draw plans and
financial estimates of their solutions. Then run the
estimates through an in-depth analysis. This
project might include a simulation exercise,
constructed with the kind of systems simulation
software that has been used to model and
participate in wargames since the 1980s. You can
also let reality be their practice field. Have them
create the new capability or initiative on a small
scale, and put it into effect. Then track the results
assiduously. Assign mentors with experience to
help them make the most of their effort — without
sidetracking it.
Whether you set up the project in reality or as a
simulation, the next step should be the same.
Schedule a series of intensive discussions about
the results. Explore why these results appeared,
what the team might have done differently, and
how things could be different in the future if the
13
 group changed some of the variables. The goal is
to cultivate a better understanding than would be
possible without this type of reflection, and to use
that understanding as the basis for future efforts.

7. Hire for transformation. Hiring decisions
should be based on careful considerations of
capabilities and experiences, and should aim for
diversity to overcome the natural tendency of
managers to select people much like themselves.
Test how applicants react to specific, real-life
situations; do substantive research into how they
performed in previous organizations; and conduct
interviews that delve deeper than usual into their
psyche and abilities, to test their empathy, their
skill in reframing problems, and their agility in
considering big-picture questions as well as
analytical data. In all these cases, you’re looking
for their ability to see the forest and the trees:
their ability to manage the minutiae of specific
skills and practices, while also being visionary
about strategic goals. The better they are at
keeping near and far points of view
simultaneously available, the better their potential
to be strategic leaders.
For those hired, the on-boarding processes
should send explicit signals that they can
experiment, take on more responsibility, and do
more to help transform the organization than they
could in their previous career. They need to feel
that the culture is open to change and to diverse
views.
8. Bring your whole self to work. Strategic
leaders understand that to tackle the most
demanding situations and problems, they need to
draw on everything they have learned in their
lives. They want to tap into their full set of
capabilities, interests, experiences, and passions
to come up with innovative solutions. And they
don’t want to waste their time in situations (or with
organizations) that don’t align with their values.
Significantly, they encourage the people who
report to them to do the same. In so doing,
strategic leaders create a lower-stress
environment, because no one is pretending to be
someone else; people take responsibility for who
they truly are. This creates an honest and
authentic environment in which people can share
their motivations and capabilities, as well as the
enablers and constraints in their life.
9. Find time to reflect. Strategic leaders are
skilled in what organizational theorists Chris
Argyris and Donald Schön call “double-loop
learning.” Single-loop learning involves thinking in
depth about a situation and the problems inherent
in it. Double-loop learning involves studying your
own thinking about the situation — the biases and
assumptions you have, and the “undiscussables”
that are too difficult to raise.

10. Recognize leadership development as an ongoing practice. Strategists have the humility and
intelligence to realize that their learning and development is never done, however experienced they
may be. They admit that they are vulnerable and don’t have all the answers. This characteristic has
the added benefit of allowing other people to be the expert in some circumstances. In that way,
strategic leaders make it easy for others to share ideas by encouraging new ways of thinking and
explicitly asking for advice.

14

Strategic Management
Management
Strategic Leadership
 10. Strategic Leadership as sustainable competitive advantage
Individuals and teams enact strategic leadership when they think, act, and influence in ways
that promote the sustainable competitive advantage of the organization.
The focus of strategic leadership is sustainable competitive advantage, or the enduring
success of the organization. Indeed, this is the work of strategic leadership: to drive and
move an organization so that it will thrive in the long term. This is true whether the
organization is for-profit or nonprofit.
It depends only on whether your organization seeks and achieves an enduring set of
capabilities that provide distinctive value to stakeholders over the long term, in whatever
sector your organization operates or whatever bottom line you are measured by.

5. Strategic
Influencing

1. Strategic
4. Strategic
Learning Planning
and thinking
Strategic
Leadership

3. Strategic 2. Strategic
Acting leadership
team

Figure 5: Strategic Leadership as tool for sustainable advantage (Source: Author)

15

Strategic Management
Management
Strategic Leadership
 11. Traits of Strategic Leader:
There is always a need to understand the personal aspirations of a leader. It reflects the kind
of leadership one could have.
• Values. What values are most central and critical to how you approach work? What values
do you want to be known for practicing (not just preaching)?
• Leadership legacy. What do you want to be your leadership legacy to others? What do you
want others to say about your leadership after you’ve left your current position or the
organization? What lasting impact do you want to have—not just on the organization but also
on the people around you?
• Career aspirations. What kind of role would you like to have five or ten years from now?
Describe the critical elements of what for you would be an ideal opportunity for strategic
leadership

12. Strategic Leadership as Learning Process:

There are many theories and approaches to leadership that try to identify a methodology how
to identify and objectively measure effectiveness of leaders. Table III exhibit various
approaches to define leadership as the process.

Table III: Various Approaches to Strategic Leadership

Theory Approach
Antonakis, Cianciolo Leadership as situational and contingency approaches,
and Sterberg (2004) transformational leadership, transactional leadership, and trait
based theory, and information processing.
(Keller, 2006). The transactional leadership builds on monitoring and controlling
of followers and rewarding desirable behavior
(Judge, Piccolo, 2004). Two fundamental tools are suggested for effective strategic
leadership, namely - contingent reward and management by
16

Strategic Management
Management
Strategic Leadership
 exceptions
Bass (1997) and The transformational leadership is based on charisma of a
Judge, Piccolo (2004) leader and inner motivation of his collaborators. Tools including-
idealized influence (charisma), inspirational motivation,
intellectual stimulation and individualizes

13. Stakeholder Value in Strategic leadership framework

Strategic leaders are ultimately responsible for creating vision and value congruence across
the individual, unit, and organization levels as well as for developing effective relationships
between the organization and environmental stakeholders. Creating value for the multiple
stakeholders could be done with innovation and imagination by reinventing the methods and
systems so they produce more value for all stakeholders. Modern organizations must be
ambidextrous (i.e., able to execute and innovate) in order to be successful because of the
multiple environmental pressures they face and because they must organize a diverse
workforce to do this work. Discussion about diversity must include a variety of topics. With
regard to the demographic curve, it will be at least the subject ageing
Figure 6 illustrates, various processes comes under development to create stakeholder value

The Style

Leader’s Behaviors

Individual Leaders Organization System Value for Multiple

Culture + Followers Stakeholders

The environment The Outcomes

The internal perspective

Leader’s Activities

The System

The context (Internal + External Factors) 17

Strategic Management
Management
Strategic Leadership
 Summary:
 Strategic Leadership is at the same time a high position in an organization or society, a
personal characteristic, and a relationship between leaders and followers
 Strategic Leaders are partially born and partially made.
 Various traits of a Leader includes Value, Leadership Legacy, Career Aspirations.
 Individuals and teams enact strategic leadership when they think, act, and influence in
ways that promote the sustainable competitive advantage of the organization.

Progress Check Points

Question 1: Define the term “Strategic Leadership”. What is the scope of Strategic
Leadership in Corporate Landscape?

Question 2: How various theories on Strategic Leadership support its acceptability in

both service and manufacturing sector?
Question 3: List basic traits of strategic leader
Question 4: “Strategic Leadership is the tool to maintain competitive advantage”.
Discuss.

18

Strategic Management
Management
Strategic Leadership