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Competing For Advantage. Part I – Strategic Thinking Chapter 2 – Strategic Leadership. Effective Leadership Style.

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Competing for advantage

Competing For Advantage

Part I – Strategic Thinking

Chapter 2 – Strategic Leadership


Effective leadership style
Effective Leadership Style

Think about the characteristics of the leadership style of well-known CEOs are mentioned in the text, or in the business world. Who do you think has the most effective leadership style and why? What characteristics do these leaders possess?


Inspiring others

Inspiring Others

The Language of Leadership


Language of leadership
Language of Leadership

  • The Message Appeal - What’s said

  • Expressive Communication - How it’s said

  • The Setting - Where it’s said

  • The Messenger Credibility - Who says it


Language of leadership1
Language of Leadership

  • The Message Appeal - What’s said

  • Expressive Communication - How it’s said

  • The Setting - Where it’s said

  • The Messenger Credibility - Who says it


Key components
Key Components

  • Rhetorical Crafting – Use of symbolic language to give emotional power to the message

  • Framing – Defining the purpose of the organization in a meaningful way


Rhetorical crafting
Rhetorical Crafting

  • Metaphors & Analogies

    • Sun Tzu – Moral law, Heaven, Earth

    • Harrison Ford is like one of those sports cars that advertise acceleration from 0 to 60 m.p.h. in three or four seconds. He can go from slightly broody inaction to ferocious reaction in approximately the same time span. And he handles the tight turns and corkscrew twists of a suspense story without losing his balance or leaving skid marks on the film. But maybe the best and most interesting thing about him is that he doesn't look particularly sleek, quick, or powerful; until something or somebody causes him to gun his engine, he projects the seemly aura of the family sedan.


Rhetorical crafting1
Rhetorical Crafting

  • Metaphors & Analogies

  • Symbols

  • Organizational Stories

  • Focus on Audience

  • Sounds

    • Repetition

    • Rhythm

    • Balance

    • Alliteration


Framing
Framing

  • Amplifying Values – Identification and elevation of values basic to the mission

  • Belief Amplification – Ideas about which factors support or impede the achievement of those desired values

    • Mission Importance – why important?

    • Need for Mission – why arisen?

    • Antagonist of the Mission – who’s against us?

    • Efficacy of the Mission – why will we succeed?


Competing for advantage

“This conflict was begun on the timing and terms of others; it will end in a way and at an hour of our choosing.” alliteration, balance, rhythm


Competing for advantage

“Our responsibility to history is already clear: to answer these attacks and rid the world of evil.” values, mission, need, antagonists


Competing for advantage

“Today, we feel what Franklin Roosevelt called, ‘the warm courage of national unity’.'' metaphor, values


Competing for advantage

warm courage of national unity’.'' They are the names of men and women who began their day at a desk or in an airport, busy with life. They are the names of people who faced death and in their last moments called home to say, Be brave and I love you. They are the names of passengers who defied their murderers and prevented the murder of others on the ground. They are the names of men and women who wore the uniform of the United States and died at their posts. They are the names of rescuers--the ones whom death found running up the stairs and into the fires to help others.” repetition, need, audience


Competing for advantage

“We see our warm courage of national unity’.'' national character in rescuers working past exhaustion, in long lines of blood donors …one man who could have saved himself stayed until the end and at the side of his quadriplegic friend. A beloved priest died giving the last rites to a firefighter. Two office workers, finding a disabled stranger, carried her down 68 floors to safety. A group of men drove through the night from Dallas to Washington to bring skin grafts for burned victims.” amplifying values, beliefs, stories


Winston churchill
Winston Churchill warm courage of national unity’.''

“ We shall not flag nor fail. We shall go on to the end. We shall fight in France and on the seas and oceans; we shall fight with growing confidence and growing strength in the air. We shall defend our island whatever the cost may be; we shall fight on beaches, landing grounds, in fields, in streets and on the hills. We shall never surrender and even if, which I do not for the moment believe, this island or a large part of it were subjugated and starving, then our empire beyond the seas, armed and guarded by the British Fleet, will carry on the struggle until in God's good time the New World with all its power and might, sets forth to the liberation and rescue of the Old.” efficacy


Videos the language of leadership
Videos: The Language of Leadership warm courage of national unity’.''

Martin Luther King, Jr.

Col. Joshua Chamberlain


Martin luther king rhetorical crafting
Martin Luther King warm courage of national unity’.'' Rhetorical Crafting

  • Metaphors & Analogies

  • Symbols

  • Organizational Stories

  • Focus on Audience

  • Sounds

    • Repetition

    • Rhythm

    • Balance

    • Alliteration


Col joshua chamberlain framing
Col. Joshua Chamberlain warm courage of national unity’.'' Framing

  • Amplifying Values

  • Belief Amplification

    • Mission Importance – why important?

    • Need for Mission – why arisen?

    • Antagonist of the Mission – who’s against us?

    • Efficacy of the Mission – why will we succeed?


Individual strategic leaders and influences on their decisions
Individual Strategic Leaders and Influences on Their Decisions

  • Key Terms

    • Strategic Leadership – the ability to anticipate, envision, maintain flexibility, and empower others to create strategic change as necessary


Qualities of legendary ceos
Qualities of Legendary CEOs Decisions

  • Visionary

    • have a clear view of what they want to accomplish

  • Transformational

    • act as agents of change

    • motivates others to do more

    • organizational needs above their own


Strategic leadership
Strategic Leadership Decisions

  • Multifunctional

  • Managerial & Influential

  • Change tolerant

  • Uncertainty tolerant

  • Motivational


Skill hierarchy
Skill Hierarchy Decisions


Level 5 leaders
Level 5 Leaders Decisions

  • Self-confident enough to set up their successors for success

  • Humble and modest

  • “Unwavering resolve“

  • “Workmanlike diligence - more plow horse than show horse"

  • Give credit to others for their success and take full responsibility for poor results

  • “Attribute much of their success to 'good luck' rather than personal greatness"


Competing for advantage


Strategic leadership style
Strategic Leadership Style attributes:

  • Directive approach

  • Collaborative approach

  • Delegation

  • Each has its own set of advantages & disadvantages


  • Managerial discretion and decision biases
    Managerial Discretion and Decision Biases attributes:

    • Discretion – latitude for action or decision making

    • Hubris – excessive pride, leading to a feeling of invincibility

    • Heuristics – rules of thumb used in decision making



    Decision making biases
    Decision-Making Biases attributes:

    • Reliance on previously formed beliefs

    • Focus on limited objectives

    • Exposure to limited decision alternatives

    • Insensitivity to outcome probabilities

    • Illusion of control

    • Reliance on a limited set of heuristics


    Hubris
    Hubris attributes:

    • Excessive pride that leads to a feeling of invincibility

    • Magnifies the effects of decision-making biases


    Implications for ibp
    Implications for IBP attributes:

    • Be sure you don’t fall prey to decision making biases

    • Be sure you understand the effects of hubris

    • Play the role of Devil’s Advocate.

    • Question decisions constructively.

    • Other ideas?


    Top management teams
    Top Management Teams attributes:

    • Group composed of the CEO and key managers who are responsible for setting the direction of the firm and formulating and implementing its strategies


    Factors that influence the effectiveness of top management teams
    Factors that Influence the Effectiveness of Top Management Teams

    • Top management team heterogeneity

    • The CEO and top management team power

    • Executive succession processes


    Heterogeneous top management team
    Heterogeneous Top Management Team Teams

    • Introduces a variety of perspectives

    • Has a greater propensity for strong competitive action

    • Tends to "think outside of the box," leading to more creative decision making, innovation, and strategic change

    • Offers various areas of expertise to identify environmental opportunities, threats, or the need for change

    • Promotes debate


    Heterogeneous top management team challenges
    Heterogeneous Top Management Team Challenges Teams

    • Cohesion

    • Communication

    • Comprehensive examination of threats and opportunities


    The ceo and top management team power
    The CEO and Top Management Team Power Teams

    • CEO Duality - CEO also serves as chair of the board of directors to achieve power relative to the board

    • Independent Board Leadership Structure –the structure in which the board's ability to monitor top-level managers' decisions and actions (particularly in terms of financial performance) is enhanced by employing two different people to serve as CEO and board chair


    Ceo duality
    CEO Duality Teams

    • Is more common in the United States

    • Occurs most often in the largest firms

    • Receives scrutiny from increased shareholder activism

    • Is criticized for causing poor performance and slow response to change


    Top management power
    Top Management Power Teams

    • Members of top management can use their social and business ties with directors

    • Powerful CEOs can appoint members of the top management team or other sympathetic associates to serve on the board

    • CEO duality

    • CEO tenure


    Executive succession processes
    Executive Succession Processes Teams

    • Process can be internal or external


    Benefits of internal labor market
    Benefits of Internal Labor Market Teams

    • Continuity

    • Continued commitment

    • Familiarity

    • Reduced turnover

    • Retention of "private knowledge"


    Benefits of external labor market
    Benefits of External TeamsLabor Market

    • Since tenure with the same firm is thought to reduce innovation, outsiders can bring

      • diverse knowledge bases

      • new social networks

    • which may offer new synergies and new competitive advantages




    Acquire develop and manage key resources
    Acquire, Develop, and Manage Key Resources Teams

    • Key Terms

      • Organizational Culture–complex set of ideologies, symbols, and core values that are shared throughout the firm and influence the way business is conducted


    Hr practices linked to strategic success
    HR Practices Linked to Strategic Success Teams

    • Managing intellectual capital

    • Investing in capital resources

    • Building effective commitments to organizational goals

    • Incorporating international experience into the skill sets of employees


    Hr practices linked to strategic success cont
    HR Practices Linked to Strategic Success (cont.) Teams

    • Employing effective training and development programs to promote strategic vision and cohesion

    • Establishing effective reward plans

    • Instituting continuous learning

    • Leveraging the firm's expanding knowledge base


    Effective cultural qualities
    Effective Cultural Qualities Teams

    • Entrepreneurial opportunism

    • Employee autonomy

    • Innovativeness

    • Risk taking

    • Proactiveness

    • Competitive aggressiveness


    Overcoming cultural difficulties
    Overcoming Cultural Difficulties Teams

    • Effective communication

    • Effective problem solving

    • Effective staffing

    • Effective performance appraisals

    • Effective reward systems



    Actions for an ethical culture
    Actions for an Ethical Culture Teams

    • Employ ethical strategic leaders

    • Establish and communicate specific goals to describe the firm's ethical standards

    • Continuously revise and update the code of conduct based on stakeholder input

    • Disseminate the code of conduct to all stakeholders to inform them of ethical standards and practices

    • Develop and implement methods and procedures to use in achieving the firm's ethical standards

    • Create and use explicit reward systems to recognize bold acts that demonstrate ethical behavior and decision making

    • Create a work environment in which all people are treated with dignity


    What is strategic effectiveness
    What is strategic effectiveness? Teams

    Consistent, long-term

    goals and objectives

    Consistent, long-term

    goals and objectives


    What is strategic effectiveness1
    What is strategic effectiveness? Teams

    Consistent, long-term

    goals and objectives

    Consistent, long-term

    goals and objectives

    Reflects and understanding

    of the environment


    What is strategic effectiveness2
    What is strategic effectiveness? Teams

    Consistent, long-term

    goals and objectives

    Consistent, long-term

    goals and objectives

    Reflects and understanding

    of the environment

    Takes resources

    into consideration


    What is strategic effectiveness3
    What is strategic effectiveness? Teams

    Consistent, long-term

    goals and objectives

    Consistent, long-term

    goals and objectives

    Reflects and understanding

    of the environment

    Strategic

    Effectiveness

    (fit)

    Takes resources

    into consideration

    Effectively

    implemented


    Strategic vision vs mission
    Strategic Vision vs. Mission Teams

    • A strategic vision concerns “wherewe are going” or ”what do we want to be.”

      • Markets to be pursued

      • Future product/ market/customer/ technology focus

      • Kind of company management is trying to create

    • The mission statement focuses on its “who we are and what we do”

      • Current product and service offerings

      • Customer needs being served

      • Technologicaland businesscapabilities


    Mission statements
    Mission Statements Teams

    • Boundaries of the currentbusiness

    • Fundamental purpose that sets it apart from other firms of its type

    • Conveys

      • Who we are,

      • What we do, and

      • Why we are here


    Objectives
    Objectives Teams

    • Turns mission into performance outcomes

    • Organizations produce what is measured

    • Long and Short term


    Control systems
    Control Systems Teams

    • Financial Controls

      • focus on short-term financial outcomes

      • produce risk-averse managerial decisions

    • Strategic Controls

      • focus on the content of strategic actions

      • encourage decisions that incorporate moderate and acceptable levels of risk


    Competing for advantage

    Leading versus Lagging Indicators Teams

    • Current financial results are “lagging indicators” reflecting results of past decisions and actions—good profitability now does not translate into stronger capability for delivering better financial results later

    • However, meeting or beating strategic performance targets signals growing competitiveness & strength in the marketplace, thus developing the capability for better financial performance in the years ahead

    • Good strategic performance is thus a “leading indicator” of a company’s capability to deliver improved future financial performance



    Apple tablet exercise
    Apple Tablet Exercise Teams

    • What are the pros and cons of having Steve Jobs involved in the details of the tablet? More generally, why should Jobs rather than customer surveys form the basis of product development?

    • Why have tablet PCs previously fizzled? Why might the time be ripe now? Why might Apple succeed (if you think it will) where others have failed? What will Apple likely do differently?

    • If the Apple tablet PC is a hit, what transformative effects would it have on the way people use computers? Will this be a more or less significant product introduction than the iPhone?

    • Predicting the price and product features of the new Apple PC: not just the operating system, but also some of the ways this tablet will be different. How will issues of competition will shape the new tablet PC.