Strategic LeadershipAbility to:• Influence organizational members

• Effectuate organizational change

Strategic Leaders:• Who are they?

• Effective strategic leaders– Frames of reference– Managerial resources

Knowledgeof Business

ContactsVision

Relationshipswith Key

Stakeholders

LeadershipSkills

SpecialExpertise

General MgmtSkills

Ability toAssemble TopMgmt Team

Change MgmtSkills

ManagerialResources

Senior Management Team (SMT)

• Who Comprises SMT?• Effectiveness of SMT:

– Heterogeneity– Cohesiveness– Board of Director Involvement

• SMT Selection:– Internal versus external candidates– CEO Succession and SMT

composition

Ambiguous:Possible Change

in Top Mgmt Teamand Strategy

Stable Strategywith Innovation

StrategicChange

SMTComposition

Managerial Labor Market:CEO Succession

Heterogeneous

Homogeneous

InternalCEO Succession

ExternalCEO Succession

StableStrategy

Effects of CEO Succession & SMT Compositionon Strategy

CEO Power & Corporate Governance

• CEO & Chairman of the Board

• CEOs with Long Tenure

•Most Effective Form of

Governance

Exploiting &Maintaining

SA & DC

DeterminingStrategicDirection

DevelopingHumanCapital

SustainingEffective

CorporateCulture

EmphasizingEthical

Practices

EstablishingControl &Coherence

Strategic Leadership Responsibilities

StrategicLeadership

Qualities of Visionary Leaders

Holistic (Comprehending Context) Interactive (Understanding Relationships)

Insightful (Intuition)

Speculative (Contemplation Without Data)

Imaginative (Could’s versus Should’s)Contingency Thinking (Possible

Futures)

Sustaining an Effective Sustaining an Effective Corporate CultureCorporate Culture

Fits the firm’s strategyAdaptive

Promotes learning and human developmentPromotes the sharing of R&C’s

Promotes corporate entrepreneurshipPromotes trust

Sustaining an Effective Sustaining an Effective Corporate CultureCorporate Culture

Culture also important because:• Replace Policies, Procedures & Rules• Capable of Being a Strategic Asset

Changing Corporate Culture:• Who Effectuates the Change?• How is it Done?

Promoting Ethical Practices

• Communicate Ethical Values• SMT: Key Role Models• Codes of Ethics• Rewards & Sanctions• Hire based on shared ethical beliefs• Ethics Training• Ethics Committees• Signing Documents