TRATEGIC

LEADER HIP

DR. dr. Hj. Andi Indahwaty Sidin, MHSM

M a g i s t e r A d m i n i s t r a s i R u m a h S a k i t
U n i v e r s i t a s H a s a n u d d i n
 Overview: Eight Content Areas

STRATEGIC LEADERSHIP IMPORTANCE OF SL

1 and top-level managers' 5 in managing firm's resources
importance

TOP MANAGEMENT ORGANIZATIONAL

2 teams and effects on firm 6 culture and actions to sustain
performance it

MANAGERIAL SUCCESSION ETHICAL PRACTICES:

3 process using 7 establishment and emphasis
internal/external labor
markets

VALUE OF SL IMPORTANCE
4 in determining firm's 8 and use of organizational
strategic direction controls
 Introduction

Regardless Effective Strategic leaders

on time in position leaders Strategic leadership is the
can make a major foundation for
difference in how a firm successfully using the
performs strategic management
process
facilitate the development of
appropriate strategic actions and
determine how to implement
them-these actions are the path
to strategic competitiveness and
above average returns

3
 Strategic Leadership (SL) and Style

STRATEGIC LEADERSHIP

Multifunctional Task the ability to anticipate,

envision, maintain
Managing through others
flexibility, and empower

Managing an entire enterprise rather others to create

than a functional subunit strategic change as
Coping with change which is increasing in the necessary
global economy

Most critical skill: attracting and managing human

(includes intellectual) capital
Strategic
Leadership
and the
Strategic
Management
Process
 The Role of Top-Level Managers

External Organization's Manager'

environmental sources characteristics s
characteristics

Managers use their discretion Primary factors that determines

when making strategic decisions amount of manager's decision-

making discretion

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6
Factors
Affecting
Managerial
Discretion
 The Role of Top-Level Managers

Helps avoid potential

Composed of key
problem of CEO making
individuals who are
decisions alone: that of
responsible
managerial hubris

Hubris: excessive For selecting and

pride leading to a implementing firm's
feeling of invincibility strategies;

Hubris can magnify Usually includes

the effects of officers of the
Top Management Teams decision-making corporation (VP and
biases above) and BOD

Top Management
T eams:
F i r m p e r f o r m a n c e
s t r a t e g i c c h a n g e
A heterogeneous team: consists of
individuals with varied functional
backgrounds, experiences &
education
Team members come with a variety
of strengths, capabilities &
knowledge and provide effective
strategic leadership when faced
with complex environmental forces
and multiple stakeholder
relationships to manage
Our Arrow
Introduces a variety of perspectives
a n d
Has a greater propensity for strong
competitive action
Tends to "think outside of the box" leading to
more creative decision making, innovation &
strategic change
Offers various areas of expertise to identify environmental
opportunities, threats, or the need for change
Promotes debate
 The Role of Top-Level Managers
(Cont'd)

Top Management Teams: More common in the United

States
CEO and top management team
power
Top management team Occurs most often in the
01 characteristics give the CEO's team largest firms
the power relative to the board of
directors (BOD) and can influence
the amount of strategic leadership
the board provides Increased shareholder
activism recently brought
CEO Duality – CEO serves as CEO the practice under scrutiny
02
and BOD
Criticized for causing poor
performance & slow
response to change
 Managerial Succession

Internal Managerial company

Labor Market performance and
opportunities for This
managerial positions to
be filled from within the decision the ability to
firm
Defined: impacts embrace change in
Preselect and today's competitive
shape skills of landscape
tomorrow's
leaders top management
Succession, team composition
External Managerial and
Labor Market
opportunities for strategy are
managerial positions to intimately related
be filled by candidates
from outside of the firm
 Effects of CEO Succession and Top
Management Team Composition on Strategy
 Managerial Succession

Continuity Reduced turnover

Benefits Retention of “private

Familiarity 
of
knowledge”

Continued Favored when the firm

commitment is performing well

Internal Managerial Labor Market

 Managerial Succession

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
 Certain actions characterize
effective strategic leadership

These actions interact with each other

The most effective strategic

leaders create options as the
foundation for making effective
decisions
KEY STRATEGIC LEADERSHIP ACTIONS

Determining
Strategic Direction
Definition: A firm's image and character
over time, framed within the context of
the conditions in which the company
operates
Exercise of Effective Strategic
Leadership
 Key Strategic Leadership Actions
Resources defined as financial, human,
social and organizational capital
01
Exploiting and maintaining
core competencies
02
Developing Human (HC)
and Social Capital (SC)
03
Related to firm's
functional skills (i.e.,
manufacturing, finance,
marketing and R&D)
• HC: Knowledge and skills of
a firm's entire workforce
• SC: Relationships inside and
outside the firm that help it
accomplish tasks and
create value for customers
and shareholders
KEY
Strategic
Leadership
Actions
(Cont'd) Organizationa
l culture: Influences Helps
complex set of Influences the Helps to regulate and
ideologies, symbols, way business is control employees'
and core values conducted behavior
shared throughout
the firm

S u s t a i n i n g A n E ff e c t i v e O r g a n i z a t i o n a l C u l t u r e
 Key Strategic Leadership Actions (Cont'd)

SUSTAINING AN EFFECTIVE 5 Dimensions Of An Entrepreneurial

ORGANIZATIONAL CULTURE
Mindset
AUTONOMY (FREE OF FIRM CONSTRAINTS)

Entrepreneurial Mind-set INNOVATIVENESS (FIRMS' TENDENCY TO SUPPORT NEW IDEAS)

• Source of growth and innovation
• May be encouraged and promoted RISK TAKING

by strategic leaders
PROACTIVENESS (BEING A MARKET LEADER VS. FOLLOWER)

COMPETITIVE AGGRESSIVENESS (FIRMS' PROPENSITY TO TAKE

ACTIONS IN ORDER TO OUTPERFORM RIVALS)
 Key Strategic Leadership Actions (Cont'd)

SUSTAINING AN EFFECTIVE
ORGANIZATIONAL CULTURE Requires Effective Communication And Problem Solving

Selecting The Right People

Changing the organizational culture
and restructuring
Engaging In Effective Performance Appraisals
• More difficult to change culture than
maintain it Measuring Individual Performance Toward Goals
• Sometimes change must occur: That Fit With New Values

Appropriate Reward Systems

 Emphasizing Ethical Practices: Actions Such As…

5
4 Working Environment

3 Specific Reward Create a working

environment
2 Ethical Standards Create/use specific
where all are
treated with
reward systems that dignity
1 Conduct Develop and
recognize acts of
courage
implement methods
& procedures to use
Goals Revise, update and in achieving firm's
disseminate code of ethical standards
conduct
Establish and
communicate ethics-
related goals

Key Strategic Leadership Actions (Cont'd)

 ESTABLISHING BALANCED

KE
ORGANIZATIONAL CONTROLS
YS
TR The Balanced Scorecard
AT Framework that allows strategic leaders to
EG verify that they have established both financial
and strategic controls to assess firm
IC
performance
EAL
DE

Controls: Formal, information-based procedures used by

managers to maintain or alter patterns in organizational
RS

activities
HIP

• Financial Controls
AC

1. Focus on short-term financial outcomes

TIO

2. Produce risk-averse managerial decisions

• Strategic Controls
NS

1. Focus on the content of strategic actions

2. Encourage decisions that incorporate moderate and
acceptable levels of risk
22
Strategic
Controls and
Financial
Controls in a
Balanced
Scorecard
Framework

23
 Thank You
"If your actions inspire others to dream more, learn more, do more and become more, you are a
leader."

- John Quincy Adams -