Chapter 12 Strategic Leadership – Flashcards
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Strategic leadership
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is the ability to anticipate, envision, maintain flexibility, and empower others to create strategic change as necessary
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Strategic Change
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is change brought about as a result of selecting and implementing a firm's strategies
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Transformational Leadership
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entails motivating followers to exceed the expectations other have of them, to continuously enrich their capabilities, and to place the interests of the organization above their own
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Top level managers are
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strategic leaders
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Primary factors for determining the amount of decisions making discretion
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1. External environmental sources such as the industry structure, the rate of market growth in the firm's primary industry, and the degree to which products can be differentiated 2. Characteristics of the organization, including its size, age, resources, and culture 3. Characteristics of the manager, including commitment to the firm and its strategic outcomes, tolerance for ambiguity, skills in working with different people, and aspiration levels
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Top management team
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is composed of the individuals who are responsible for making certain the firm uses the strategic management process, especially for the purpose of selecting and implementing strategies
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Heterogeneous top management team
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is composed of individuals with different functional backgrounds, experience, and education
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CEOs selected from within the firm tend to benefit from their
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o Clear understanding of the firm's personnel and their capabilities o Appreciation of the company's culture and its associated core values o Deep knowledge of the firm's core competencies as well as abilities to develop new ones as appropriate o 'Feel' for what will and will not 'work' in the firm
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Conditions suggesting a potentially appropriate preference to hire from outside include
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o The firm's need to enhance its ability to innovate o Firm's need to reverse its recent poor performance o The fact that the industry in which the firm competes is experiencing rapid growth
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The ideal long-term strategic direction
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a core ideology and an envisioned future
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core ideology
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ideology motivates employees through the company's heritage
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envisioned future
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encourages them to stretch beyond their expectations of accomplishment and requires significant change and progress to be realized
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Human Capital
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refers to the knowledge and skills of a firm's entire workforce
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5 dimensions characterize a firm's entrepreneurial mind set
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1) autonomy 2) innovativeness 3) risk taking 4) pro-activeness 5) competitive aggressiveness
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Balanced scorecard
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is a tool firms use to determine if they are achieving an appropriate balance when using strategic and financial controls as a means of positively influencing performance
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4 perspectives are integrated to form the balanced scorecard
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financial, customer, internal business processes, and learning & growth
