Chapter 11

Strategic Leadership

CA
 Key Definitions

Strategic Leadership
entails the ability to anticipate, envision, maintain
flexibility, and empower other to create strategic change
as necessary.

Managerial Frame of Reference

is the set of assumptions, premises, and accepted
wisdom that bounds – or frames – a manager’s
understanding of a firm, the industry in which it competes,
and the resources, capabilities, and core competencies it
uses in the pursuit of sustainable advantage.
Chapter 11 2
 Key Definitions

Top Management Team

is composed of the key managers in the organization who are
responsible for formulating and implementing a firm’s strategy or
strategies.

Heterogeneous Top Management Team

is composed of individuals with different experiences and different
educations.

Determining Strategic Direction for the Firm

refers to the development of a long-term of a firm’s strategic intent.

Chapter 11 3
 Key Definitions

Human Capital
refers to knowledge and skills of the firm’s workforce.

Corporate Culture
entails a complex set of ideologies, symbols, and values that are
shared throughout the organization and influence the way firm
conducts its business.

360 Degrees Performance Review

employees are evaluated by their managers, their peers, and all
subordinates in their division in areas such as team building, quality,
and focus.
Chapter 11 4
 Key Definitions

Managerial Opportunism
occurs when managers take actions that are in their own
best interest, but not in the best interest of the firm.

Strategic Control
focuses on the contest of strategic action rather than
their outcomes.

Chapter 11 5
 … Leadership for Our Nation’s
Corporation …

?
Do leaders really make
a competitive
difference?

Chapter 11 6
I don’t know, but here I am…

… I’ll do for American

Corporation what I
have done for
American Television!

Chapter 11 7
Two Types of Managerial Labor
Markets

Internal Labor Market

are the opportunities for managerial positions within a
firm.

External Labor Market

is the collection of career opportunities for managers in
firms/organization outside of the one in which they work
currently.

Chapter 11 8
 Iacocca’s Dilemma in the External
Labor Market…too Many Choices

It is a good thing
there is still an external labor
market with so many choices.
I am lucky that the design center
was a success!

Chapter 11 9
 Managerial Resources
Knowledge of
business

Vision Contacts

Ability to assemble
General Managerial top management
management skill Resources team

Relationship with Transformational

key stakeholders skills

Leadership skills Special expertise

Chapter 11 10
 Effects of CEO Succession and
Top Management Team Composition on Strategy

Managerial labor
market:
CEO succession

Internal CEO External CEO

succession succession

Ambiguous:
Homogeneous possible change in
Top Stable strategy
top management
management team and strategy
team
composition
Heterogeneous Stable strategy
Strategy change
with innovation

Chapter 11 11
 Exercise of Strategic Leadership

Strategic leadership

Determining Establishing
strategic Strategic
direction controls

Exploiting and Sustaining

Developing Emphasizing
maintaining effective
human ethical
core corporate
capital practices
competencies culture

Chapter 11 12
Determining the Firm’s Strategic Direction

I can see five to ten years

into our company’s future. Now if I
can only convince the board,
shareholders, end external capital
markets that I’m right! Now I know
why I am paid the big bucks.

Chapter 11 13
Growth in the U.S. Gross National
Product from 1948 to 1982:

One-third was attributed to increase in the

education level of the workforce.

Fifty percent of this growth resulted from

technical innovations and knowledge that
also are based strongly on education.

Fifteen percent of the growth was

attributed to investment in capital
equipment
Chapter 11 14
End of the session …

Chapter 11 15