LEADERSHIP:
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Theory, Application, Skill
Development
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2d Edition
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Robert N. Lussier
and Christopher F. Achua
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This presentation edited and enhanced by:
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George W. Crawford
Asst. Prof. of Mgmt.
Clayton College & State University
Morrow, GA 30260
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Chapter 11
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Strategic Leadership and
Managing Crises and Change
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Chapter 11
Learning Outcomes
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• Role of leadership in strategic management
process
• Relevance of internal and external environment
• Importance of a vision and mission statement
• Relationship between corporate objectives and
strategies
• Importance of strategy evaluation
• 5-step process to crisis risk assessment
• 3 phases of the change process
• Major reasons for resisting change
• People and task-oriented techniques for
overcoming resistance to change
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STRATEGIC LEADERSHIP
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• The process of providing the
direction and inspiration necessary
to create and implement a vision,
mission, and strategies to achieve
and sustain organizational
objectives
• The purpose of strategic leadership
is to effectively implement and
guide the process of strategic
management
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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 organizational
goals
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STRATEGIC
MANAGEMENT
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The Strategic Leadership/
Management Process
• Analyze the environment
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– Internal (Why?)
– External (For What?)
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• Develop a strategic vision
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– An ambitious view of the future that
everyone in the organization can believe
in, that is reasonably attainable, and
which offers a future that is better in
important ways than what now exists
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The Strategic Leadership/
Management Process
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• Write a meaningful mission
statement
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– Defines the core purpose and
reasons for organizational
existence
– Should be both broad and precise
– Not easy
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• Can take months and years
– Must change as organization
changes
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The Strategic Leadership/
Management Process
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• Create Corporate Level Objectives
– Desired outcomes that an organization
seeks to achieve for stakeholders
– Include both financial and strategic
objectives
– Help everyone to focus in same
direction
– Targets against which performance is
compared
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The Strategic Leadership/
Management Process
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SMART Corporate Level Objectives
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-Specific
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-Measurable
-Achievable
-Relevant
-Timely
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The Strategic Leadership/
Management Process
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Formulate Strategy
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Strategy is the general plan of
action that describes resource
allocation and other activities
for exploiting environmental
opportunities and helping the
organization attain its goals
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The Strategic Leadership/
Management Process
• Formulate Strategy that:
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– Enhances value to customers
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• Ratio of benefits to cost
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– Creates synergistic opportunities
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• Whole is greater than the sum of the
parts
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– Builds on company core competencies
ã Performs extremely well in comparison to
competitors
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5 Elements of Good
Strategy Development
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• Arena: Where the organization will focus
its resources
• Vehicles: How the organization will get
there
• Differentiators: How the organization will
stand out in the market place
• Staging: What will be the speed and
sequence of moves
• Economic logic: How the organization will
obtain its returns
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The Strategic Leadership/
MGMT Implementation
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• Most difficult part of strategic
management
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– Also the most important
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• Without appropriate implementation,
the best of strategies can fail
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– Must be integrated and coordinated
– Must overcome resistance to change
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Strategy Evaluation
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• To determine the effectiveness
of strategic choices
• 3 fundamental activities:
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– Review internal and external
factors
– Measure performance against
objectives
– Corrective action
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Crisis Leadership
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• Leaders need skills and competence
to lead during crises
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– Like the U.S. and NYC on 9/11/01
– To provide stability, reassurance,
confidence, and a sense of control
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• “…tough times won’t create leaders, …
they show you what kind of leaders
you already have.” Larry Barton
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Preparing for Crisis
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• We cannot foresee future crises, but
we can prepare in a general manner
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– Pre-Crisis Planning
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– Crisis Team
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• Do not want to start from zero when crisis
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• Good mix of organizational skill sets
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Requires logs
Monitors complaints and behaviors
Identifies patterns or trends
Coordinates team activities
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Crisis Leader
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Risk Assessment
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• Used to anticipate crises
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– What could happen?
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• Tries to identify weaknesses and
threats
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– Where are we vulnerable?
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• Common tool in crisis planning
– What is the worst-case scenario?
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Risk Reduction Strategies
Crisis Prevention Simulations
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Risk Assessment & Ranking
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Risk
1 Identification
(Risk Chart)
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Risk Assessment Model
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Crisis Management
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Crisis Management
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Effective Crisis
Communication
• Can make or break
company reputation
• Spokesperson
determined in precrisis planning
• Failure can extend
crisis
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Leadership’s Role
• Stay engaged
• Lead from the
front
• Focus on the big
picture
• Communicate the
vision
• Work with crisis
management team
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Rapid response is vital
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Effective Crisis
Communications
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• First 24 hours crucial
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–Media’s need to know
–Tell company’s story
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ãPress releases
ãPress kits
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Effective Crisis
Communication & Management
Be there
Tell the truth
Tell what your are doing to fix crisis
Handle those affected with utmost
sensitivity
• Avoid presenting conflicting messages
• Show a plan on how you plan to avoid a
repeat in the future
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Effective Crisis
Communication & Management
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• Don’t lie or cover for the boss or the
corporation
• Go the extra mile
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– Beyond requirements of the situation
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• When things are going well, take
credit
– Without being self-absorbed
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• Remember that the media is your link
to the public
– Be honest & straightforward with them
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• Organizational Change
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Leading Change
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– Activities associated with planning,
designing, implementing, and internalizing
tools, procedures, routines, processes, or
systems that will require people to perform
their jobs differently
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• Organizations spend millions on change
efforts
• Organizational change is any transition
that requires change in human
performance
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Need for Change
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• Environment changing rapidly
New technology
Globalize economy
Changing market requirements
Intense domestic and international
competition
– New opportunities and threats for
leadership
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–
–
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Response to Pace of Change
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• Flatter, more agile
organizational structures
• More empowering, teamoriented cultures
ã Leaders must lead the
responses
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