Chapter

13

Creating Vision and Strategic Direction

1 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Your Leadership Challenge

• • • Explain the relationship among vision, mission, strategy, and mechanisms for execution.

Create your personal leadership vision.

Use the common themes of powerful visions in your life and work.

2

Your Leadership Challenge (cont.) • Describe four basic approaches for framing a noble purpose that followers can believe in.

• Understand how leaders formulate and implement strategy.

• Apply the elements of effective strategy.

3

Strategic Leadership

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 future 4 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Ex. 13.1

The Domain of Strategic Leadership Vision Mission Where are we headed?

Who are we?

Strategy How do we get there?

Mechanisms for Execution What do we do right now?

5 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Vision

An attractive, ideal future that is credible yet not readily available 6 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Ex. 13.2

Examples of Brief Vision Statements

(selected)

Ritz-Carlton (Amelia Island) Engineering Dept.

– To boldly go where no hotel has gone before – free of all defects – No graffiti

New York City Transit

– No graffiti

Egon Zehnder

– Be the worldwide leader in executive search 7 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Vision Ex. 13.3

The Nature of the Vision Current reality Staying the course 8 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Common Themes of Vision

• • • • • Vision has broad appeal Vision deals with change Vision encourages faith and hope Vision reflects high ideals Vision defines the destination and the journey 9 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Mission

The organization’s core broad purpose and reason for existence 10 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Strategic Management

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 goals

Strategy

– The general plan of action that describes resource allocation and other activities for dealing with the environment and helping the organization attain its goals 11 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Core Competence

Something the organization does extremely well in comparison to competitors 12 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Synergy and Value

Synergy

: the interaction of organizational parts to produce a joint effect that is greater than the sum of the parts

Value

: the combination of benefits received and costs paid by the customer 13 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Strategy Formulation and Implementation

Strategy Formulation

– 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 Execution

– Putting strategy into action by adjusting various parts of the organization and directing resources to accomplish strategic goals 14 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Ex. 13.7

Making Strategic Decisions

High Ease of Implementation Hard

High Impact, Hard to Implement.

Major changes, but with potential for high payoff Easy

High Impact, Easy to Implement.

Simple changes that have high strategic impact – take action here first Strategic Impact Low

Low Impact, Hard to Implement.

Difficult changes with little or no potential for payoff – avoid this category

Low Impact, Easy to Implement.

Incremental improvements, “small wins;” pursue for symbolic value of success 15 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Ex. 13.8

Linking Strategic Vision and Strategic Action

High The Dreamer

Vision

Low Low The Uninvolved The Effective Leader The Doer High

Action

16 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.