Creating Vision and Strategic Direction

Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion. Jack Welch

The Best Way to Predict the Future is to CREATE it! Peter Drucker

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

Most important function of a leader

The most important function of a leader is to develop a clear and compelling picture of the future, and to secure commitment to that idea.

Ex. 13.1

The Domain of Strategic Leadership

Vision

Mission

Strategy

Architecture for alignment and implementation

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Vision
An attractive, ideal future that is credible yet not readily available. It should evoke a picture in the mind and suggests a future orientation, implies a standard of excellence or virtuous condition, and has the quality of uniqueness!

Ex. 13.2

Examples of Brief Vision Statements (selected)

Motorola
Become the premier company in the world

Ritz-Carlton (Amelia Island) Engineering Dept.

Where no hotel has gone before free of all defects

Johnson Controls Inc.

Continually exceed our customers increasing expectations

New York City Transit

No graffiti

Egon Zehnder
Be the worldwide leader in executive search

Questions to Ask?
The leader must ask theree questions to test his or her vision: 1) Is this the right time? 2) Is this the right direction? 3) Are these the right goals?
This must then be shared with your team and have it SUPPORTED.
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Ex. 13.3

The Nature of the Vision

Vision

Current reality

Staying the course

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What Vision Does

Links the present to the future Energizes people and gains commitment Gives meaning to work Establishes a standard of excellence and integrity

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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

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Vision must be able to:

Work at multiple levels Be inspirational at all levels Encourage independent action Develop Self-reference Be supported by the Company LeaderShip

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Requirements for an effective Vision

For a VISION to be effective it must be developed by leaders. Developed by leaders, those with strengths to influence to establish direction Must be communicated to followers and must be supported by them.

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Requirements for an effective Vision

Developed by leaders, those with strengths to influence to establish direction Must be communicated to followers and must be supported by them. Must be comprehensive and detailed so all understands its meaning and direction.

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Mission
The organizations core broad purpose and reason for existence

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Mission
Two critical parts:
Core values guide the organization Core purpose is why the organization exists

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Leaders Framework for Noble Purpose

Purpose Discovery Excellence Altruism Heroism Description Finding the new Being the best Providing service Being effective Basis for Action Pioneer Fulfillment Happiness Achievement

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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
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Develop Strategies Focusing On

Core competence Developing synergy Creating value for customers

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Core Competence
Something the organization does extremely well in comparison to competitors

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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

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

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Ex. 13.7

Making Strategic Decisions

Ease of Implementation Hard Easy
High Impact, Easy to Implement. Simple changes that have high strategic impact take action here first

High

High Impact, Hard to Implement. Major changes, but with potential for high payoff

Strategic Impact

Low

Low Impact, Hard to Implement. Difficult changes with little or no potential for payoff avoid this category

Low Impact, Easy to Implement. Incremental improvements, small wins; pursue for symbolic value of success

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Ex. 13.8

Linking Strategic Vision and Strategic Action

The Dreamer The Effective Leader
The Doer
High

High

Vision The Uninvolved

Low

Low

Action

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