Strategic
Leadership:
Creating a Learning
Organization and
an Ethical
Organization
chapter 11
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education
.
Strategic Leadership
11-2
 Leadership
is the process of transforming
organizations from what they are to what
the leader would have them become.
 Successful leaders are
 Proactive
– dissatisfied with the status quo
 Goal oriented – visualizing successful futures
 Focused on the creation & implementation of
a creative vision – understanding the process
Strategic Leadership
11-3
Exhibit 11.1 Three Interdependent Leadership Activities
Strategic Leadership
11-4

Setting a direction requires the ability to
scan the environment for knowledge about
 All
stakeholders
 Salient environmental trends & events

Then integrate that knowledge into a strategic
vision of what the organization could become
A
clear future direction
 A framework for the firm’s mission & goals
 Leading to enhanced employee communication,
participation, & commitment
Strategic Leadership
11-5
 Designing
the organization requires
building mechanisms to implement the
leader’s vision and strategies through
 Structures

& teams
 Systems & processes
Lack of appropriate design could cause problems
Managers who don’t understand their
responsibilities
 Reward systems that are not motivating
 Inappropriate financial systems
 Insufficient integrating mechanisms

Strategic Leadership
11-6
 Nurturing
an excellent and ethical
organizational culture is a key leadership
activity, requiring that managers & leaders
 Accept
personal responsibility for developing &
strengthening ethical behavior
 Consistently demonstrate that such behavior is
central to the mission & vision of the firm
 Develop & reinforce
 Role
models
 Corporate credos & codes of conduct
 Reward & evaluation systems, policies & procedures
Strategic Leadership:
Overcoming Barriers to Change
11-7
 Leaders
must overcome barriers to change
 Organizations are prone to inertia, slow to
learn, adapt, & change because of
 Vested
interests in the status quo
 Systemic barriers
 Behavioral barriers
 Political barriers
 Personal time constraints
Strategic Leadership:
Effective Use of Power
11-8
 Leaders
must make effective use of power
 Influence
other people’s behavior
 Persuade them to do things they otherwise
would not do
 Overcome resistance & opposition
 Sources
of power
 Organizational
 Legitimate,
 Personal
bases of power
reward, coercive, information
bases of power
 Referent,
expert
Strategic Leadership:
Effective Use of Power
11-9
Exhibit 11.2 A Leader’s Bases of Power
Strategic Leadership:
Emotional Intelligence
11-10
 The
valuable traits of successful leaders:
 Technical
skills – like accounting, operations
research
 Cognitive abilities – like analytical reasoning,
quantitative analysis
 Emotional intelligence – like selfmanagement, managing relationships with
others
 Self-awareness,
self regulation, motivation,
empathy, social skills
Strategic Leadership:
Emotional Intelligence
11-11
Exhibit 11.3 The Five Components of Emotional Intelligence at Work
Source: Reprinted by permission of Harvard Business Review. Exhibit from “What Makes a Leader,” by D. Goleman,
January 2004. Copyright © 2004 by the Harvard Business School Publishing Corporation; all rights reserved.
Strategic Leadership:
A Learning Organization
11-12

Successful learning organizations
 Create
a proactive, creative approach to the
unknown
 Actively solicit the involvement of employees at
all levels
 Enable all employees to use their intelligence &
apply their imagination

A learning environment involves
 An
organization-wide commitment to change
 An action orientation, applicable tools &
methods
Strategic Leadership:
Creating an Ethical Organization
11-13
 Ethics
deals with right and wrong
 Ethical
beliefs come from religion, ethnic
heritage, family practices, community
standards, educational experiences, friends &
neighbors
 Organizational
ethics promote an operating
culture & determine acceptable behavior
 Ethical
beliefs come from the values, attitudes,
& behavioral patterns of leadership
 Unethical
business practices involve the tacit, if
not explicit, cooperation of others
Strategic Leadership:
Creating an Ethical Organization
11-14
 The
ethical orientation of the leader is a
key factor in promoting ethical behavior
 Integrity & ethical values
 Shape
behaviors
 Provide a common frame of reference
 Act as a unifying force
 Have a positive effect on employee
commitment & motivation to excel
 Can create value & a competitive advantage
Strategic Leadership:
Creating an Ethical Organization
11-15
 Ethical
frameworks for integrity include:
 The compliance-based ethics program
 Prevents,
 The
detects, & punishes legal violations
integrity-based ethics program
 Enables
ethical conduct
 Examines organizational members’ core
guiding values, thoughts, & actions
 Defines responsibility & aspirations for ethical
conduct