DEVELOPMENT OF STRATEGY

CHAPTER 3 : STRATEGIC LEADERSHIP

Effective Leadership comes at the centre of the triangulation of individual, group and task

Individual

action-centred
leadership

Task Group
 3.2 Strategic Leadership

• Transformational Leadership focuses on the building of the strategic vision, the creation of identity,
empowerment and development of an appropriate culture
• Transactional Leadership more concerned with making sure that the operational flow is
appropriate to enable the strategy to be achieved
• Strategic Leadership = Transformational + Transactional
= Autocratic + Participative
 6 Key Skills Required For A Successful Strategic Leader

• Anticipate
• Challenge
• Interpret
• Decide
• Align
• Learn
 Principle-centred Leadership (1989)

• The 4 core dimensions required to be an effective leader:

• Security – secure in their own knowledge and ability to lead others
• Guidance – to have sufficient breadth of awareness to guide others in the optimal strategic
decision
• Power = must learn how to use power for the benefit of the individual, team and the task
• Wisdom – must find the time to think before acting and therefore bring that wisdom into their
strategic decision making
• These can be aligned with our concepts of strategic thinking
 Learning Outcomes

• Effective Leadership
• Strategic Leadership
• Transformational Leadership
• Transactional Leadership
• 6 skills
• Principle-Centred Leadership
 3.3 SWOT Analysis

Strengths Weaknesses

SWOT

Opportunities Threats
 SWOT

• Micro-Environment: often called the near environment (SPICCC Model)

• Suppliers
• Public
• Intermediaries
• Customers
• Competitors
• Company
• Macro-Environment: often called the far environment (PESTLE)
• Political
• Environmental
• Socio-Cultural
• Technological
• Legal
• Environmental
 Learning Outcomes

• SWOT
• Micro-Environment (Internal)
• Macro-Environment (External)
 3.4 Systems and Strategy

Systems Thinking (Peter Senge, 1999)

• Systems thinking stems from the tenets of systems theory where each process integrates with all
the others.
• Basically, it means the ability to see the big picture and to be able to see the interrelationships
between what might, at first, seem to be completely unrelated.
• the whole
• the parts
• the connection between the parts
 Resource Consideration

• “operational fit”
• Resources
• Capabilities
• Competencies
 Supply Chain Thinking

Inputs:
People Outputs:
Transformation
Capital Goods
USP
Material Services
Knowledge
 Learning Outcomes

• Systems Thinking
• Resources
• Supply Chain Thinking
 3.5 People and Strategy

The people involved in developing strategy:

• top managers and directors
• the role of the board
• other strategy makers, including:
• − middle managers
• − strategy consultants
• other stakeholders – whom to involve in strategy
• the agency problem when planning and implementing strategy – personal beliefs may be in
conflict with the role that the representatives are expected to fulfil
• the role of the company secretary in the strategy process
Initial Stakeholder Considerations

• Implies the input of a ‘stake’ (an interest, an investment, an involvement of some sort) into the
organisation.
• Owners as stakeholders
• Employees as stakeholders
• Customers as stakeholders
• Other supply chain stakeholders
 Learning Outcomes

• The role of stakeholders in strategy

 3.6 Key Strategic Actions

• strategic analysis
• determining strategic direction
• resource allocation processes
• strategy mapping
• communicating strategic decisions
Methodologies To Organise And Guide Strategy Making Activity:

• strategy workshops
• strategy projects
• business cases and strategic plans
 Learning Outcomes

• Strategic Actions
• Strategy making activity