Bus 499 Week 9 Part 2 Strategic Leadership Topic Narrative

Bus 499 Week 9 Part 2 Strategic Leadershipslide Topicnarration1int

Bus 499 Week 9 Part 2 Strategic Leadership slide Topic narration

1 Introduction Welcome to Senior Seminar in Business Administration. In this lesson, we will discuss Strategic Leadership. Please go to the next slide.

2 Objectives Upon completion of this lesson, you will be able to analyze strategic leadership.

3 Supporting Topics In order to achieve this objective, the following supporting topics will be covered: Strategic leadership and style; The role of top-level managers; Managerial succession; and Key strategic leadership actions.

4 Strategic Leadership Strategic leadership is the ability to anticipate, envision, maintain flexibility, and empower others to create strategic change as necessary. Multifunctional in nature, strategic leadership involves managing through others, managing an entire enterprise rather than a functional subunit, and coping with change that continues to increase in the global economy. Because of the global economy’s complexity, strategic leaders must learn how to effectively influence human behavior, often in uncertain environments. By word or by personal example, and through their ability to envision the future, effective strategic leaders meaningfully influence the behaviors, thoughts, and feelings of those with whom they work. The ability to attract and then manage human capital may be the most critical of the strategic leader’s skills, especially in light of the fact that not being able to fill key positions with talented human capital constrains firm growth.

5 Leadership Styles The styles used to provide leadership often affect the productivity of those being led. Transformational leadership is the most effective strategic leadership style. This style entails motivating followers to exceed the expectations others have of them, to continuously enrich their capabilities, and to place the interests of the organization above their own. Transformational leaders develop and communicate a vision for the organization and formulate a strategy to achieve the vision. They make followers aware of the need to achieve valued organizational outcomes. And they encourage followers to continuously strive for higher levels of achievement. These types of leaders have a high degree of integrity and character.

6 The Role of Top-level Managers Top-level managers are charged to make certain that their firm is able to effectively formulate and implement strategies. Managers use their discretion when making strategic decisions. The primary factors that determine the amount of decision-making discretion held by a managers are: External environmental sources; Characteristics of the organization; Characteristics of the manager. In addition, top-level managers develop the firm’s organizational structure and reward system. They also have a major effect on a firm’s culture. In most firms, the complexity of challenges and the need for substantial amounts of information and knowledge require strategic leadership by a team of executives.

7 Managerial Succession Many organizations use leadership screening systems to identify individuals with managerial and strategic leadership potential. These individuals are selected from two types of markets: internal and external. An internal managerial labor market consists of a firm’s opportunity for managerial positions and the qualified employees within the firm. An external managerial labor market is the collection of managerial career opportunities and the qualified people outside the organization in which the opportunities exist. There are several benefits when using an internal labor market. Insiders are familiar with the company, and internal hiring produces lower turnover among existing personnel. Hiring from inside retains important knowledge necessary for performance. However, long tenure with a firm may reduce strategic leaders’ flexibility and adaptability.

8 Key Strategic Leadership Actions Certain actions characterize strategic leadership; the most important ones include determining strategic directions, managing resources, sustaining organizational culture, and practicing ethics. Determining strategic directions involves specifying the desired future state of the firm in the next three to five years. Managing the firm’s resource portfolio—financial, human, social, and organizational capital—is critical. Organizational culture, encompassing shared ideologies, symbols, and core values, influences how the firm conducts business and can provide a competitive advantage. Ethical practices in strategy implementation support long-term success. Strategic leaders must ensure they emphasize financial and strategic controls; tools like the Balanced Scorecard help assess performance comprehensively.

9 Check Your Understanding

10 Summary We have concluded this lesson by reviewing the core concepts of strategic leadership, leadership styles—particularly transformational leadership—and key strategic actions, including defining strategic directions, managing resources and culture, and maintaining ethical standards. Strategic leadership enables organizations to adapt, innovate, and sustain competitive advantage in a complex, global business environment.

Paper For Above instruction

Introduction

Strategic leadership is an essential component of successful organizations, especially in today's dynamic and competitive global economy. It encompasses the abilities and actions required to anticipate change, develop a vision for the future, and guide an entire enterprise towards sustained competitive advantage. This paper explores the key aspects of strategic leadership, including its definition, styles, the role of top managers, managerial succession, and critical strategic leadership actions.

The Concept of Strategic Leadership

Strategic leadership is characterized by an organization's capacity to manage complex, uncertain environments effectively. It involves not only envisioning future opportunities and threats but also maintaining flexibility and empowering others to implement strategic change. Effective strategic leaders influence organizational behavior through their words, actions, and ability to develop a compelling vision. Managing human capital is especially vital, as talented personnel are vital for innovation and growth (Hitt, Ireland, & Hoskisson, 2017). As the global economy increases in complexity, strategic leaders must excel at influencing human behavior across diverse and uncertain contexts.

Leadership Styles and Their Impact

Leadership styles significantly affect organizational productivity and culture. Among these, transformational leadership is widely recognized as the most effective strategic style. Transformational leaders motivate followers beyond mere task completion by inspiring higher levels of achievement and fostering commitment to organizational goals (Bass & Riggio, 2006). They communicate a clear vision, encourage innovation, and uphold high standards of integrity and character. Such leaders cultivate an environment where employees feel valued and empowered, which enhances organizational adaptability and resilience.

The Role of Top-Level Managers

Top managers play a crucial role in strategic decision-making, including formulating and implementing strategies that align with organizational objectives. They possess decision-making discretion influenced by external environmental factors, organizational characteristics, and personal attributes (Finkelstein & Hambrick, 1996). Moreover, top managers shape organizational structures, reward systems, and organizational culture, which directly impact strategic success. Given the complexity of challenges faced by modern firms, strategic leadership at the executive level often requires a team approach, emphasizing collaboration among senior leaders (Ghemawat, 2007).

Managerial Succession and Talent Development

Effective managerial succession planning ensures continuity in strategic leadership. Organizations employ both internal and external labor markets to identify and develop potential leaders. Internal markets benefit from familiarity with organizational culture and lower turnover, but may limit fresh perspectives. External markets, while providing access to new ideas and skills, pose challenges related to integration and organizational fit (Rowe, 2011). Cultivating internal talent through leadership development programs and succession planning is essential for sustaining long-term strategic growth and adapting to change.

Key Strategic Leadership Actions

Strategic leaders engage in several critical actions to steer organizations toward success. These include defining strategic directions, managing resource portfolios, fostering organizational culture, and upholding ethical standards. Determining strategic direction involves setting a vision and strategic objectives aligned with anticipated future conditions. Managing resources encompasses financial, human, social, and organizational capital, emphasizing the importance of effective allocation and development. Organizational culture, shared values, and norms influence behaviors and can serve as a source of competitive advantage (Schein, 2010). Ethical practices underpin strategic processes, ensuring integrity and long-term sustainability.

Strategic Tools and Performance Measurement

Implementing effective control systems is vital for strategic success. The Balanced Scorecard, developed by Kaplan and Norton (1992), provides a comprehensive framework integrating financial and non-financial metrics to monitor organizational performance across multiple perspectives, including customer, internal processes, learning, and growth. This holistic approach enables strategic leaders to assess progress against objectives, make data-informed decisions, and foster continuous improvement. Ethical considerations and organizational learning are integrated into strategic controls, emphasizing responsible governance and adaptability.

Conclusion

In conclusion, strategic leadership is a complex, multifaceted discipline that requires a broad skill set, including visioning, motivating, decision-making, and managing resources. Leaders who excel in these areas can guide their organizations through change and uncertainty, fostering innovation and sustainable growth. The transformational style, coupled with strategic actions such as resource management and culture building, supports organizations in achieving competitive advantage in an increasingly interconnected world.

References

• Bass, B. M., & Riggio, R. E. (2006). Transformational leadership. Psychology Press.
• Finkelstein, S., & Hambrick, D. C. (1996). Strategic leadership: Top executives and their effects on organizations. Westview Press.
• Ghemawat, P. (2007). Redefining global strategy: Crossing borders in a mobile world. Harvard Business Press.
• Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2017). Strategic management: Concepts and cases: Competitiveness and globalization. Cengage Learning.
• Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard—measures that drive performance. Harvard Business Review, 70(1), 71–79.
• Schein, E. H. (2010). Organizational culture and leadership. Jossey-Bass.
• Rowe, W. G. (2011). Strategic leadership: The essential skills. Creativity and Innovation Management, 20(4), 285-294.