Creating Vision and Strategic Direction
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1 Chapter 13 Creating Vision and Strategic Direction 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1
2 Your Leadership Challenge Explain the relationship among vision, mission, strategy, and mechanisms for execution. Create your personal leadership vision. Use the common themes of powerful visions in your life and work. 2
3 Your Leadership Challenge (cont.) Describe four basic approaches for framing a noble purpose that followers can believe in. Understand how leaders formulate and implement strategy. Apply the elements of effective strategy. 3
4 Strategic Leadership The ability to anticipate and envision the future, maintain flexibility, think strategically, and initiate changes that will create a competitive advantage for the organization in the future 4
5 Ex The Domain of Strategic Leadership Vision Where are we headed? Mission Who are we? Strategy How do we get there? Mechanisms for Execution What do we do right now? 5
6 Vision An attractive, ideal future that is credible yet not readily available 6
7 Ex Examples of Brief Vision Statements (selected) Ritz-Carlton (Amelia Island) Engineering Dept. To boldly go where no hotel has gone before free of all defects No graffiti New York City Transit No graffiti Egon Zehnder Be the worldwide leader in executive search 7
8 Vision Ex The Nature of the Vision Current reality Staying the course 8
9 Common Themes of Vision Vision has broad appeal Vision deals with change Vision encourages faith and hope Vision reflects high ideals Vision defines the destination and the journey 9
10 Mission The organization s core broad purpose and reason for existence 10
11 Strategic Management Strategic Management The set of decisions and actions used to formulate and implement specific strategies that will achieve a competitively superior fit between the organization and its environment so as to achieve organization goals Strategy The general plan of action that describes resource allocation and other activities for dealing with the environment and helping the organization attain its goals 11
12 Core Competence Something the organization does extremely well in comparison to competitors 12
13 Synergy and Value Synergy: the interaction of organizational parts to produce a joint effect that is greater than the sum of the parts Value: the combination of benefits received and costs paid by the customer 13
14 Strategy Formulation and Implementation Strategy Formulation The integrating knowledge of the environment, vision, and mission with the core competence in such a way as to achieve synergy and create customer value Strategy Execution Putting strategy into action by adjusting various parts of the organization and directing resources to accomplish strategic goals 14
15 Ex Making Strategic Decisions Ease of Implementation Strategic Impact High Low Hard High Impact, Hard to Implement. Major changes, but with potential for high payoff Low Impact, Hard to Implement. Difficult changes with little or no potential for payoff avoid this category Easy High Impact, Easy to Implement. Simple changes that have high strategic impact take action here first Low Impact, Easy to Implement. Incremental improvements, small wins; pursue for symbolic value of success 15
16 Ex Linking Strategic Vision and Strategic Action Vision High Low Low The Dreamer The Uninvolved Action The Effective Leader The Doer High 16
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