Chapter 13
Creating Vision
and Strategic
Direction
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Learning Objectives
• Explain the relationship among vision,
mission, strategy, and mechanisms for
execution
• Create personal leadership vision
• Use the common themes of powerful
visions in life and work
• Describe four basic approaches for framing
a noble purpose that followers can believe
in
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Learning Objectives
• Understand how leaders formulate and
implement strategy
• Apply the elements of effective strategy
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Exhibit 13.1 - Linking Strategic
Vision and Strategic Action
Source: Based on William D. Hitt, The Leader–Manager: Guidelines for Action (Columbus, OH: Battelle Press, 1988), p. 7
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Exhibit 13.2 - The Domain of
Strategic Leadership
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Developing Strategic
Leadership
Skills required
Anticipate
threats and
opportunities
Challenge the
status quo
Interpret
trends
Achieve
alignment
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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What Vision Does
Links the present to the future
Energizes people and focuses attention
Gives meaning to work
Establishes a standard of excellence and integrity
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Mission
• Organization’s core broad purpose and
reason for existence
• Provides a basis for creating the vision
• Parts
– Core values
– Core purpose
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Exhibit 13.7 - A Leader’s
Framework for Noble Purpose
Source: Based on Nikos Mourkogiannis, Purpose: The Starting Point of Great Companies (New York: Palgrave Macmillan, 2006); and Nikos Mourkogiannis, “The
Realist’s Guide to Moral Purpose,” strategy + business Issue 41 (Winter 2005), pp. 42–53
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Elements of Strategy
Core competence
• Something the organization does extremely well in comparison
to competitors
Synergy
• Interaction of organizational parts to produce a joint effect that
is greater than the sum of the parts
Value
• Combination of benefits received and costs paid by the customer
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Strategy Formulation and
Execution
Strategy formulation
• Integrating knowledge of the environment, vision,
and mission with the core competence
• To attain 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
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Tools for Strategy Execution
Create ongoing communication
Teach why certain actions are taken
Explain the changes and allay people’s
fears
Remind employees about company
strengths
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Exhibit 13.8 - Making Strategic
Decisions
Source: Adapted from Amir Hartman and John Sifonis, with John Kador, Net Ready: Strategies for the New E-conomy (New York: McGraw-Hill,
2000), p. 95
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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