12-05-2024

Session 24

NEERA J KUMAR KESHARBANI

Strategic Management
A S S T. P R O F. O F P R A C T I C E ( S T R AT E G Y A R E A )
NEERA JK.KESHA RBA NI@JG U. ED U.IN

IBM-2021 (Term VI) O F F I C E H O U R S : T U E S D AY ( F O R S E C - A , 4 : 1 5 P M T O 5 : 1 5 P M )

T U E S D AY ( F O R S E C - B , 1 : 3 0 P M T O 2 : 3 0 P M )
W E D N E S D AY ( F O R S E C - A & B , 1 0 : 0 0 A M T O 1 1 : 0 0 A M )

Strategy Implementation
[ Corporate Governance and Ethics] Done

[ Structure & Controls with Organizations ] Done

[ Leadership Implications for Strategy ] Today

[ Entrepreneurial Implication of Strategy ] Done

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Today’s Agenda
1. Leadership Implications for Strategy (Source: Chapter: Strategic leadership in “Strategic
Management: Competitiveness & Globalization: Concepts and Cases, 12e” Hitt, Ireland and Hoskisson, 2017.)

 Role and importance of strategic leadership for formulating and implement strategies
effectively.
The three elements of effective leadership: integrative thinking, overcoming barriers of change,
creative use of power.
Importance of strategic leadership in managing firm's resources.
What a strategic leader can do to establish and emphasize ethical practices.

2. Article: What makes a leader? (Published in: 2004)  Authors: Daniel Goleman

Strategy Implementation
Leadership Implications for Strategy
Role and importance of strategic
leadership for formulating and
implement strategies effectively.

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Strategy Implementation
Leadership Implications for Strategy
The three elements of effective leadership: integrative thinking, overcoming barriers of
change, creative use of power.
Integrative thinking : a process of reconciling opposing thoughts by generating new
alternatives and creative solutions rather than rejecting one thought in favour of another.
There are 4 stages:
Salience : to take stock of what features of the decision you consider relevant and important.
Causality: to make a mental map of the causal relationships between the features, that is, how
the various features are related to one another
Architecture: Use the mental map to arrange a sequence of decisions that will lead to a specific
outcome
Resolution: Make your decision.

Strategy Implementation
Leadership Implications for Strategy
Overcoming barriers of change: Organizations at all levels are prone to inertia and are
slow to learn, adapt, and change because: Many people have vested interests in the status
quo; There are systemic barriers; Behaviour barriers; Political barriers; and personal time
constrains.
Systemic barriers: barriers to change that stem from an organizational design that impedes the
proper flow and evaluation of information.
Behaviour barriers: barriers to change associated with the tendency for managers to look at
issues from a biased or limited perspective based on their prior education and experience.
Political barriers: Barriers to change related to conflicts arising from power relationships.
Personal time constrains: vested interest in status quo, People are risk averse and resistant to
change.

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Strategy Implementation
Leadership Implications for Strategy
creative use of power a leader's ability to get things done in a way he or she wants them to
be done. There are different ways a leader exercises such power:
Organizational base of power: a formal management position that is the basis of a leader's
power (Legitimate, Reward, Coercive, and Information Powers)
Personal base of power: a leader's personality characteristics and behavior that are the basis
of the leader's power. (referent power and expert power)
Referent power: a subordinate's identification with the leader (charisma helps the
subordinate see the leader as powerful)
Expert power: Leader's expertise and knowledge in a particular field.

Strategy Implementation
Leadership Implications for Strategy
Importance of strategic leadership in managing firm's resources

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Strategy Implementation
Leadership Implications for Strategy
Importance of strategic leadership in managing firm's resources

Effectively managing the firm’s resource portfolio:

Exploiting and maintaining core competencies.
Developing human capital and social capital.
 Human capital: Human capital refers to the knowledge and skills of a firm’s entire workforce. From the perspective of human
capital, employees are viewed as a capital resource requiring continuous investment.
 Social Capital: Social capital involves relationships inside and outside the firm that help in efforts to accomplish tasks and
create value for stakeholders

Strategy Implementation
Leadership Implications for Strategy
Importance of strategic leadership in managing firm's resources

Sustaining an effective organizational culture:

Entrepreneurial mind-set: 5 dimensions:
 autonomy (allows employees to take actions that are free of organizational constraints),
 innovativeness (reflects a firm’s tendency to engage in and support new ideas, novelty, experimentation, and creative
processes),
 proactiveness(describes a firm’s ability to be a market leader rather than a follower),
 risk taking (reflects a willingness by employees and their firm to accept measured levels of risks when pursuing
entrepreneurial opportunities) and
 competitive aggressiveness (is a firm’s propensity to take actions that allow it to consistently and substantially
outperform its rivals).
Changing the organizational culture and restructuring

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Strategy Implementation
Leadership Implications for Strategy
Importance of strategic leadership in managing firm's resources

Emphasizing ethical practices:

Ethical companies encourage and enable people at all levels to act ethically when taking
actions to implement strategies.
To properly influence employees’ judgment and behaviour, ethical practices must shape the
firm’s decision-making process and be an integral part of organizational culture.
Strategic leaders as well as others in the organization are most likely to integrate ethical
values into their decisions when the company has explicit ethics codes, the codes are
integrated into the business through extensive ethics training, and shareholders expect
ethical behaviour.

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Strategy Implementation
Leadership Implications for Strategy
What a strategic leader can do to establish and emphasize ethical practices.
1. developing and disseminating a code of conduct.
2. continuously revising and updating the code of conduct, based on inputs from people
throughout the firm and from other stakeholders
3. disseminating the code of conduct to all stakeholders to inform them of the firm’s ethical
standards and practices.
4. developing and implementing methods and procedures to use in achieving the firm’s
ethical standards (e.g., using internal auditing practices that are consistent with the standards)
5. creating and using explicit reward systems that recognize acts of courage (e.g., rewarding
those who use proper channels and procedures to report observed wrongdoings)
6. creating a work environment in which all people are treated with dignity.

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Strategy Implementation
What makes a leader?

https://www.youtube.com/watch?v=WICq_Pj8ZUk

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Thank You!

Any Question?

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