©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6e©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 13

Creating Vision and Strategic

Direction

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2

Learning Objectives• Explain the relationship among vision,

mission, strategy, and mechanisms for execution

• Create personal leadership vision• Use the common themes of powerful

visions in life and work• Describe four basic approaches for

framing a noble purpose that followers can believe in

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3

Learning Objectives• Understand how leaders formulate and

implement strategy• Apply the elements of effective strategy

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4

Exhibit 13.1 - Linking Strategic Vision and Strategic Action

Source: Based on William D. Hitt, The Leader–Manager: Guidelines for Action (Columbus, OH: Battelle Press, 1988), p. 7

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5

Exhibit 13.2 - The Domain of Strategic Leadership

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6

Developing Strategic Leadership

Skills required

Anticipate threats and

opportunities

Challenge the status quo

Interpret trends

Achieve alignment

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7

What Vision Does

Links the present to the future

Energizes people and focuses attention

Gives meaning to work

Establishes a standard of excellence and integrity

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8

Mission• Organization’s core broad purpose and

reason for existence• Provides a basis for creating the vision• Parts

– Core values – Core purpose

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9

Exhibit 13.7 - A Leader’s Framework for Noble Purpose

Source: Based on Nikos Mourkogiannis, Purpose: The Starting Point of Great Companies (New York: Palgrave Macmillan, 2006); and Nikos Mourkogiannis, “The Realist’s Guide to Moral Purpose,” strategy + business Issue 41 (Winter 2005), pp. 42–53

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10

Elements of Strategy

• Something the organization does extremely well in comparison to competitors

Core competence

• Interaction of organizational parts to produce a joint effect that is greater than the sum of the parts

Synergy

• Combination of benefits received and costs paid by the customer

Value

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11

Strategy Formulation and Execution

• Integrating knowledge of the environment, vision, and mission with the core competence • To attain synergy and create customer value

Strategy formulation

• Putting strategy into action by adjusting various parts of the organization and directing resources to accomplish strategic goals

Strategy execution

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12

Tools for Strategy Execution

Create ongoing communication

Teach why certain actions are taken

Explain the changes and allay people’s fears

Remind employees about company strengths

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13

Exhibit 13.8 - Making Strategic Decisions

Source: Adapted from Amir Hartman and John Sifonis, with John Kador, Net Ready: Strategies for the New E-conomy (New York: McGraw-Hill, 2000), p. 95