Strategic

Leadership

OLIVETH O. GABORNO
Leadership

The ability to influence

a group toward the
achievement of goals
 Strategic
Leadership
 -Is the ability to anticipate, envision, maintain
flexibility, and empower others to create
strategic change as necessary.
 -Strategic leadership is the process of providing
the direction and inspiration necessary to create
or sustain an organization.
 Multifunctional task that involves
 Managing through others
 Managing an entire enterprise rather than a functional subunit
 Coping with change
 Attracting and managing human (includes intellectual) capital
 Being able to meaningfully influence others
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Strategic Leadership

FIVE IMPORTANT

COMPONENTS OF STRATEGIC
LEADERSHIP INCLUDE
 high-level cognitive ability
 multiple inputs to strategy
formulation
 anticipating and creating a future
 revolutionary thinking, and
 creation of a vision
 Components of
Strategic Leadership
Strategic Leadership Dimensions
HIGH- PARTICIPATIV
High challenge- CONTROL E INNOVATOR
seeking INNOVATOR (PI)
(HCI) Challenge-seeker
Challenge-seeker who
who maintains tight delegates control
control over of organization
CHALLENGE- organization
SEEKING
STATUS QUO PROCESS
GUARDIAN (SQG) MANAGER (PM)
Challenge-averse Challenge-averse
Low challenge- who maintains tight who delegates
seeking control over control
organization of organization
Low control
High control
NEED FOR CONTROL
 Strategic Leadership
&
Strategic Management

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The Role of Top Level
Managers

Their strategic decisions influence how

an organization is designed and how
goals are achieved.

Top managers also develop structure,

culture, reward systems, and policies.
 Several factors determine th amount
decision-making discretion including:
 Externalenvironmental sources
 Organizational characteristics
 Characteristics of the manager 8
 Factors Affecting
Managerial Discretion

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Top Management Teams
(TMT)

TMT composed of key individuals who are

responsible for selecting and implementing
firm’s strategies.
Usually includes officers of the corporation (VP and
above)
• and members of BOD.
TMT characteristics must fit strategy and
strategic implementation.
TMTs affect firm performance and strategic 10
The Role of Top Level Manager

 TMTs, Firm Performance & Strategic Change

 Top managers need to operate the internal organization and deal with the
external environment and stakeholders groups
 A heterogeneous TMT can facilitate this
 Managerial group of individuals with different functional backgrounds,

experiences, and education

 Introduce a variety of perspectives and can lead to better decisions

 Tend to "think outside of the box," leading to more creative decision

making, innovation, and strategic change

 Offers various areas of expertise and promotes debate

 Having a top management team that functions cohesively and having

members with expertise in the firms core functions and businesses is also
important

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The Role of Top Level Manager

 The CEO & TMT Power

 TMT characteristics can give the CEO’s team power relative to
the board of directors and can influence the amount of strategic
leadership the board provides
 Can affect CEO discretion and the ability to appoint board
members
 CEO Duality and longer tenure can also lead to greater CEO
power
 The relative degrees of power held by the board and TMT should
be appropriate for the organization
 TMT characteristics must fit strategy and strategy
implementation
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Managerial Succession

 The choice of executives is a critical decision

with
important implications for the firm’s performance
 Organizations select managers and strategic leaders from
two types of managerial labor markets
 Internal Managerial Labor Market – opportunities for
managerial
positions to be filled from within the firm
 External Managerial Labor Market – opportunities for managerial
positions to be filled by candidates from outside of the firm
 Impacts company performance and the ability to
embrace
change in today's competitive landscape
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 Succession, top management team composition
Effects of Succession and
Top management
Composition Strategy

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Managerial Succession

 Benefits of Internal Managerial Labor Market

 Leads to continuity and continued commitment to firm’s vision,
mission, and strategies.
 Insiders are familiar with company products,
markets, technologies, and operating procedures.
 Reduces turnover of existing personnel many of whom possess
valuable firm-specific knowledge.
 Favored when the firm is performing well.

 Benefits of External Managerial Labor Market

 Long tenure with the same firm is thought to reduce innovation.
 Outsiders bring diverse knowledge bases and social networks,
which offer the potential for synergy and new competitive
advantage.
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 Exercise Effective
Strategic Leadership

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 Key Strategic Leadership
Action

 Developing Policies and Procedures

 Developing Reward Systems

 McKinsey 7-S Strategy Implementation

Framework

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Key Strategic Leadership
Action

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