Leadership

Topic 3: Leadership
As Strategists
*Organizational Performance
*Setting strategic direction – situation analysis
*Setting strategic direction – vision, mission & values
*Strategy development & implementation
*Measuring strategic performance
*Developing strategy skills
• Complicated to measure
Financial measures
Profitability  Investment
Liquidity ratios
 Market Share
Financial Structure
But the picture is still incomplete because:
*Measures are only financial
*Historic in nature & little info regarding future
*No indication of operational functioning
Balanced Scorecard Approach (Kaplan & Norton)
Example
 THE TRIPLE BOTTOMLINE (ELKINGTON)

Measures success of business in

wider terms
PORTER’S FIVE FORCES MODEL
SWOT ANALYSIS
*Vision: Dream, picture or view of the future
Collin’s & Porras Approach Nanu’s Approach
To assist leaders in developing an
appropriate vision, Nanus (1992)
maintains that the "right vision"
has five characteristics:
• attracts commitment and
energizes people,
• creates meaning in workers'
lives,
• establishes a standard of
excellence,
• bridges the present to the
future, and
• transcends the status quo.
*Strategy
Chandler's definition: "determination of the basic
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.“
At the strategy development Phase, Kramar suggests
that leaders need to:
*Review/to revise the vision
*Set strategic goals
Goals should be SMART
*Develop action plans
*Allocate resources

*Challenge for leaders:

Translate vision into something tangible
Strategy Implementation
*Aligning employees expectations with strategic goals
*Aligning organization’s design to facilitate
achievement of strategic goals
*Ensuring organization is equipped to hire new
employees or develop existing employee skills
*Aligning organization’s performance mgt tools with
strategy
*Ensuring all staff, technology, systems & finance are
in place to accommodate strategy
According to Jain , three steps are involved in creating
a measurement system:
*Select appropriate performance measures
*Set performance standards
*Design reports
Leaders as strategists need a number of skills, like:

ENVISION
AN ALTERNATE
FUTURE