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Chapter 13

Creating Vision and Strategic

Direction

Chapter Objectives

Explain the relationship among vision, mission, strategy, and implementation mechanisms

Create your personal leadership vision

Use the common themes of powerful visions in

your life and work

Understand how leaders formulate and implement strategy

Apply the elements of effective strategy

Strategic Leadership

The ability to anticipate and envision the future, maintain flexibility, think strategically, and initiate changes that will create a competitive

advantage for the organization in the future

Ex 13.1 The Domain of Strategic

Leadership

Architecture for alignment and

implementation

Strategy Mission Vision

An attractive, ideal future that is credible yet not readily

available

Ex 13.2 Examples of Brief Vision

Statements (selected)

Motorola

Become the premier company in the world

Ritz-Carlton (Amelia Island) Engineering Dept.

Where no hotel has gone before – free of all defects

Johnson Controls Inc.

Continually exceed our customers’ increasing

expectations

New York City Transit

No graffiti

Egon Zehnder

Be the worldwide leader in executive search

Ex 13.3 The Nature

of the Vision

Mov

ing

tow

ard

a de

sire

d

futu re

Vision

Common Themes of Vision

Vision has broad appeal

Vision deals with change

Vision encourages faith and hope

Vision reflects high ideals

Vision defines the destination and the journey

The organization’s core broad purpose and reason for

existence

Strategic Management

Strategic Management

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 organization goals

Strategy

The general plan of action that describes

resource allocation and other activities for

dealing with the environment and helping the organization attain its goals

Core Competence

Something the organization does extremely well in comparison to competitors

Synergy and Value

Synergy: the interaction of

organizational parts to produce a

joint effect that is greater than the

sum of the parts

Value: the combination of benefits received and costs paid

by the customer

Strategy Formulation and

Implementation

Strategy Formulation

The integrating knowledge of the environment, vision, and mission with the core competence

in such a way as to achieve synergy and create customer value

Strategy Implementation

Putting strategy into action by adjusting various parts of the organization and directing

Ex 13.7 Making Strategic

Decisions

Ease of Implementation

Strategic

Impact

High

Low

High Impact, Hard to Implement.

Major changes, but with potential for high payoff

High Impact, Easy to Implement.

Simple changes that have high strategic impact – take action here first

Low Impact, Hard to Implement.

Difficult changes with little

or no potential for payoff – avoid this category

Low Impact, Easy to Implement.

Incremental improvements, “small wins;” pursue for symbolic value of success

Ex 13.8 Linking Strategic Vision

and Strategic Action

The Dreamer The Effective Leader

Action

Low

High

Vision