S tra tegi c Man agemen t

CHAPTER 9
STRATEGIC
LEADERSHIP
For E ff ec tive
Organiz ation
OBJECTIVES
I d entify the found ation Enum er ate the factors in
01 05
for eff ective lead ership ; the d ev elop ment of

Know the im p ortance of m anag em ent team s;

S tate the strateg ies in
02 m anag erial lead ership as 06
d ev elop ing of
org anizational resources;
org anizational culture;
G iv e the d y nam ic of top - enum erate and state
and
03 07
lev el d ecision m aking ; g ood corp orate stand ard s
S ate the card inal and ethical v alues.
04 characteristics and
v alues of g ood team work;
THE
FOUNDATIO
N OF
EFFECTIVE
LEADERSHIP
E ff e ct iv e le a de rsh ip st ra t e gie s f ro m t he fo undat io n of
co rpo rat e ma na ge rs in ha ndling t he a ff a irs o f t he busine ss
e nte rprise t o wa rds t he a t t a inme n t o f it s co rpo rate go als
and o bje c t iv e s t hro u gh t he pra c t ic e s of strate gic
manage me nt pro c e ss.

St rate gic le a de rship a nd ma na ge me nt are impo rtant

dime nsio ns that de v e lo p ma na ge ria l c o mpe te ncie s in
ant icipat in g f ut ure e v e n t s in t h e bu sin e ss e nv iro nme nt . It
re fl e ct s t he a bilit y of t he c o rpo ra t e le ade rs to plan,
o rganize , dire c t a nd c o nt ro l the re so urce s of t he
o rganiza t io n as he exe rc ise s fl ex ibilit y and e mpo we rs
o the rs in t he st ruc t u re t o c re a t e st ra t e gie s t o achie v e t he
T he com p etitive land scap e of the new century enterp r ises need s
m ulti- functional lead ers with vision for com p etitiv e ad vantag e,
d ev elop ing strateg ies throug h coop erativ e d evelop m ent of p eop le' s
talents and cap ab ilities. With the rap id chang es in the b usiness
environm ent and the comp lex ities of b usiness op eration, strateg ic
lead ers m ust learn how to eff ectiv ely infl uence hum an b ehavior
throug h ex am p les and p ractices. M anag ers and em p loyees are
infl uence b y the lead er s at the top of the org anization in their work
hab its, thoug hts and feeling s and how they act in solv ing b usiness
p rob lem s.

T he success of the fi rm ' s op eration rested with the ab ility of the

lead ers to ap p ly lead ership strateg ies in m anag ing the hum an
cap ital. I t includ es the ab ility to m anag e knowled g e and skills, create
and com m ercialize innovations for comp etitiv e ad v antag e. Failure of
[Link] & Courag eous
Decisions
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E nvi ronment
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Consequences
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and Cap ab i l i ti es
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6.S oliciti ng Feed b ack
7.S trong Par tnershi p
CHARACTERISTICS OF
8.E ff ective Communi cati on
EFFECTIVE STRATEGIC LEADERS
Organiz ati onal l ead ershi p rest s
p rimaril y on the top executi ve
usual ly the Chi ef Op era ti ng Offi cer
(COO) or t he p resi d ent of the fi rm.

S tr ateg i c l ead er shi p ent ai l s

sub stanti al d eci si on-maki ng
acti vi t i es and the achi evement of
return i n i nvest ments i s p ri mar i l y
d ep end ent on the str ateg i c
ap p roa ches and l ead ershi p
MANAGERIAL LEADERSHIP AS
ORGANIZATIONAL RESOURCES
• To p execut i ves and managers wi th st rong
l eadershi p ski ll s are a key investment
• Strat egi c l eadershi p bui lds on management
ski l l s
• Leadershi p goes beyond management
kno wl edge
• Strat egi c l eaders are forward-thi nki ng
deci si on-makers
• Strat egi c l eaders l everage strengt hs and
RATIONALE IN ESTABLISHING WORK
TEAMS OF CORPORATE MANAGERS
The global economy is rapidly changing the
landscape of business. The corporate
organization has to go along in this fast-changing
industrial area. Countries all over the world are
racing for economic supremacy and the leading
corporate organizations are inventing new ways
to make products and services aff ordable. They
are looking for new markets and develop
competitive advantage in marketing their
prod ucts.

Strategic, decisions includes eff ective lateral

actions, concerning the implementations of plans
THE DYNAMICS OF TOP LEVEL DECISION
MAKING
1.T he External B usiness 2. T he Firm s I nternal
Environm ent Environm ent and its
• Analysis of the external C haracteristics
• T he com mitm ent of the fi rm
environm ent concerning for g rowth and exp ansion.
ind ustry structure. • T he size of the fi rm to
• Analysis of the m arket com p ete in the env ironm ent.
g rowth in the fi rm s' • T he org anizational culture of
p rim ary b usiness. the fi rm .
• Analysis of the num b er and • Av ailab ility of hum an and
typ e of com p etitors. cap ital resources.
• Political and Leg al • T he p atterns of coop eration
environm ent that aff ect and interaction am ong
b usiness cond ition. m anag ers and em p loyees.
•
THE DYNAMICS OF TOP LEVEL DECISION
MAKING
3. Th e Formati on of Manageri al Val ues an d Work
Ethi cs
• I nterp ersonal skills and relationship in d ealing with work
activities.
• D eg ree of m anag erial com m itm ent for the fi rm strateg ic
ob jectives.
• Perform ance and eff e ctiv eness toward s the d esired
strateg ic outcom es.
• Asp iration lev el for p ersonal g rowth and d ev elop m ent.
• T he d eg ree of self-confi d ence in d ecision m aking and
strateg ic actions.
• Tolerance for am b ig uity and sustained p ersonal
com m itment.
TH E MANAGE RIAL P E RfO RMANCE O F
MAN AGE ME NT TE AMS
Bei n g a t th e to p o rgan i za ti o n a n d th o se o f fi r st l a yer exec u ti ves i s n o t easy
as it requ i res a b ro a d kn o w l ed g e and u n d er sta n d i n g of th e g en er al
i n d u str y, th e c o mpeti to r s, a n d i n tern a l en vi ro n men t i n wh i c h th e fi rm
o p er a tes. Th e c o mpl exi ty o f th e c h a l l en g es a n d th e n eed fo r su b sta n ti al
a mo n g of i n fo rmati o n and kn o w l ed g e req u i res ma n agemen t teams of
c o r p o r a te exec u ti ves fo r th e i mp l emen ta ti o n str a teg i c l eadersh i p i n o rder
to
Leasa
d ifeg
n g uTeams
a rd th Eff
ei r opresen t atinvel
r ts Eff ec d fuy tu re sta tu s i n th e i n d u stry.
1. Desi gn th e wo r k str u c tu re th a t p ro vi d es fl exi b i l i ty an d au to n o my fo r
d ec i si o n maki n g .
2. Pro vi d e adeq u ate c o r p o r a te reso u rc es fo r memb er s to a c c o mpl i sh th e
ta sk.
3. Determi n e i f th e teams a re n ec essa r y to a c c o mp l i sh c o r po r ate go a l s a n d
o b j ec ti ves.
4. Determi n e th e eff ec ti ven ess o f tea m memb er s' c o n tr i bu ti o n to wo rk
tea ms.
1. M e mb e rs p a rticip a te a ctive ly an d
p o s itive ly.
2. M e mb e rs lis te n e d a n d re ce ive d th o u g h tfu l
fe e d b a ck .
3. Willin g to ta ke ris k a n d fo cu s o n u ltimate
g o a l.
4. T h e re exists o p e n co mmu n icatio n an d
te a mma te s tru st th e ju d g me n t o f o th e rs.
5. M e mb e rs ta ke th e in itia tive to g e t th in g s
d o n e o n time .
6. S u p p o rt o th e r te a m me mb e rs willin g ly.
7. U n d e rsta n d in g a n d co mn mitte d to te am
o b je ctive s a n d wo rk in g e n th u siastically.
8. M e mb e rs in fl u e n ce o th e rs a n d g e t
in vo lve d in d e cisio n ma k in g .
9. E n co u ra g e e ve ryo n e a n d a ck n o wle d g e
o th e rs. THE CARDINAL CHARACTERISTICS
AND VALUES OF GOOD WORK TEAMS
10. Hu mb le n e ss in a cce p tin g mistake s rath e r
th a n b la me o th e r me mb e rs .
Particip ative strategic leaderships require managers at the top
knowledge in meeting and patching up of diff erence of opinions and
ideas and in promoting camaraderie among its executives. It
requires a wide range of opinion seeking strategies and
exhaustively deciphers the validity and reliability of the opinion to
the issues at hand. It requires the d emocratic process of
consultations and decision making. The net benefi t of such actions
has been positive in the development of competitive strategies that
delivers the fi rm to its competitive advantage. Better strategic
decisions produce high level performance in increasing its market
share and business profi tability.
 FACTORS TO CONSIDER IN
DEVELOPMENT OF MANAGEMENT TEAMS
1. Th e mo re hetero geneo us th e
Members i n h i gh techn o l o gy
man agemen t team the more di ffi cu l t i t i s to
en vi ro nment i s i mpo rtan t as they
man age.
are co re i n the devel o pment o f
2. Di ff eren ces in o pi nio ns due to di ff eren t
n ew an d i nn ova ti ve pro ducts.
backgro u nd a nd experience.
Experi en ce a nd experti se i n th e
3. Di verse ba ckground may in hi bi t the
fi rms' co re busi ness a dded va l ue
pro cess o f decisio n making if n o t pro perl y
to th e eff ecti ven ess o f to p
man age.
man agemen t teams.
4. Subo pti mal decision may emerge w hen
th rea ts a nd o pportunities are n o t pro perl y
exami n ed.
5. Di ffi cu l ty i n bridging o f opi n i o n s due
di spl ay o f i n tellectual supremacy especi al l y
w hen o ne asserts his posi tion i n th e
 St r a tegic foc us a d a c tions
1. H igh dri ven wi th task- a re the ma k ing of div er se
or i ented goal s ma na ger s a s they a pproa c h
2. With clear and el evati ng t heir st r a tegic a c t ions in
ident ify ing env ironmenta l
goal s
c ha nge in new oppor tunit ies
3. Committed and comp etent
a nd threa ts t ha t requires
members who wor k hard diff erentia ted st ra tegies .
4. Collabor ati ve cl i mat e of St r a tegic a lignment a nd re-
trust among memb ers of the a lignment ma y be nec ess a r y
team a s oppor t unities a nd t hrea ts
v a r y in t he env ironment .
5. H igh stand ard of excel l ence
CHARACTERISTICS OF HIGH
PERFORMING TEAMS
 As s t ruc t ura lly d efi ne in m any
c o rp o ra t io ns , t he b oard of the d irecto rs
is t he p o lic y m aking body of the
c o rp o ra t e o rg a niz at io n w hile the chief
o p e ra t ing o ffi c e r is the im p lem enting
a rm o f t he b o a rd w ith reg ard s to the
p o lic y d e c is io ns . T he b o ard o f d irectors
a nd fo r re p re s e nting the sto ckho ld ers '
int e re s t in t he b usiness. H ig her
p e rfo rm a nc e le ve l is exp ect ed w hen the
b o a rd is a c t iv e ly and d irectly involved in
s ha p ing t he fi rm s ' s trateg ic d ecis io ns .

TH E po w e r be i n g
th e th ro n e
Th i s d u a l i ty o f fu n c ti o n s i n th e c o mp o si ti o n o f th e b o a rd a n d th e to p-l evel
ma n a g emen t team ma y h a ve p o si ti ve a n d n eg a ti ve eff ec ts. It i s p o si ti ve wh en
th e memb er s o f th e bo ard a re a l so h etero g en eo u sl y sel ec ted a n d h ave th e
exp er ti se i n th e di ff eren t o p er a ti o n o f th e b u si n ess. Better sti l l wh en th e
c o mp o si ti o n o f th e bo a rd i s n o t b a sed o n th e n u mb er o f sh ares i n th e
c o r p o r a ti o n bu t sel ec ted fro m a mo n g th e to p p er fo rmer s i n th e i n du str y. S i n c e
th a t th e str ategi es ema n a tes fro m b o a rd and i ts to p exec u ti ve' s po l i c y
d i rec
Th e ntieg
o nastibec
ve o mes
eff acctioounl da nbde pper
ec ts fo rma
o ssi b l e nw
ce o r i en
h en th eted .
memb ers o f th e bo a rd an d
th e to p exec u ti ves h ave th ei r o w n p er so n a l a g en d a r a th er th e i n terest o f th e
c o r p o r a ti o n . Wh en th e memb er s o f th e b o a rd a n d i ts c h a i rman a ppo i n ts
c ro n i es a n d ser vi n g as ru b b er sta mp o f to p ma n a g emen t th en th e n egati ve
eff ec ts i n strateg i c deci si o n i s fel t th a t ma y c a u se o p er a ti o n al pro bl ems i n th e
l o n g r u n . Th ese a re so me o f n eg a ti ve eff ec ts i n th e d o wn fa l l o f so me mu l ti -
n a ti o n a l a n d l o c al b u si n ess c o r p o r a ti o n s.
STAFFING THE
CORPORATE
TEAM Th e s ta ffi n g
me mbe rs is a
o f c o rpo ra te te a m
c ritic a l de c isio n f o r
o rga n iza tio n s, a s it c a n h a v e a
sig n ifi c a n t impa c t o n th e fi rm's
pe rf o rma n c e . Po o r se le c tio n o f to p
exe c u tiv e s c a n c a u se do w n f a ll f o r
bu s in e ss e s, and ma n y gia n t
mu ltin a tio n a ls have
u n d e rpe rf o rme d due to po o r
c h o ic e s a t th e to p.
 i nt ernal sourci ng external so urci ng
• In tern al so u rc i n g i n vo l ves • External sourcing i nvol ves
p ro mo ti n g o r h i r i n g fro m recr ui ting and hir i ng talent from
w i th i n th e o rg an i za ti o n . out side t he company.
• Ben efi ts: Emp l o yees kn o w th e • Benefi t s: Fresh i deas & per specti ves
(innovati ve problem-solvi ng)
c o mp an y (cu l tu re, pro d u c ts,
Exper i ence from other fi rms
p ro c ed u res) Hi g h mo r a l e &
(val uabl e str ategic i nsights) Diver se
c o mmi tmen t (redu c ed
ski ll sets (fi nding candi dates wi th
tu rn o ver ) Stren gth en s
speci fi c exper ti se)
c o r p o r ate c u l tu re (va l u ed & • Exampl es: Onl i ne job boards
a p p rec i a ted empl o yees) (target ed posti ngs) Recr uit ment
• Exa mp l es: In tern al j o b agencies (extensi ve net wor ks &
p o sti n g s Emp l o yee referr a l candidate screeni ng) Professi onal
p ro g r ams Su c c essi o n p l a n n i n g organi zations (speciali zed t al ent )
p ro g r ams Col l ege campuses (entr y-l evel
• Dr a wb ac ks: Li mi ted ta l en t talent recr uitment )
p o o l (di ffi c u l ty fi n d i n g • Dr awbacks: Time & cost (more ti me-
 Strategi c l eadershi p pl ays a cruci al rol e i n g u i di n g y ou r team
towards su ccess. Key characteri sti cs of eff ecti v e strategi c
l eaders i ncl u de: • Vi si on & Directi on (cl ear v i si on &
roadmap)
• Envi ronmental Scan n i n g (i de n ti fy
opportuni ti es & th reats)
• Strategi c Deci si on-M aki n g ( data-dri ven
decision s)
• Commun icati on (cle ar v i si on , strateg i e s &
decision s)
• Bu il di n g Hi gh -Performi n g Teams
(coll aborati on & empowe rmen t)
• Adaptabi l i ty & Chan g e M an agemen t

EFFECTIVE •
(eff ecti ve change man ag emen t)
Learni n g Ori entati on ( con ti n u ou s l earn i n g
STRATEGIC for l eader & team
COMPONENTS
OF EFFECTIVE
STRATEGIC
LEADERSHIP
 1. CORPORATE STRATEGIC DIRECTION
Th e fi rm mu st d evel o p a l o n g -term vi si o n o f i ts
str a teg i c i n ten t. Th e l o n g - term d i rec ti o n th a t i s
p l a n n ed and c o n c eptu a l i zed wi th i ts l evel
ma n a g emen t i s th e d ri ver o f str a teg i c l ea d er sh i p
b eh a vi o r i n terms o f c o r p o r a te p ro d u c ti vi ty a n d
exp a n si o n . Th e vi si o n i s th e c o n tr i b u ti o n o f p eo p l e
w i th r a n g e o f ski l l s to h el p th em a n a l yze th e va r i o u s
a sp ec t o f o perati o n .
2. MAINTAINING AND EXPLOITING CORE
COMPETENCIES
S tr a teg i c l ea d er sh i p en su res th at th e fi rm expl o i ts
and ma i n ta i n s i ts c o re c o mp eten c i es in th e
p ro d u c ti o n o f q u a l i ty p ro d u c ts, del i ver i n g th em to
c u sto mer s a t a p r i c e th a t i s a ff o rda bl e, a n d mai n tai n
su sta i n a b l e o p er a ti o n th ro u g h eff ec ti ve c u sto mer
rel a ti o n s. Co n si sten tl y th e fi rm mu st devel o p
i n n o va ti ve p ro d u c ts th a t c rea te va l u e fo r c u sto mer s
b y sh a r i n g i ts c o re c o mp eten c i es ac ro ss u n i ts an d
 3. ABILITY TO DEVELOP HUMAN
RESOURCES
S tr a teg i c l ead er sh i ps eman a te fro m th e d evel o p men t
o f h u ma n c api ta l th at ru n s th e w h o l e o p er a ti o n a l
str a teg i es o f th e fi rm. It i s th e a b i l i ty o f th e fi rm to
d evel o p th e c ri ti c al el emen ts o f str a teg i c l ea d er sh i p s
a n d eff ec ti ve i mpl emen ta ti o n s o f str a teg i es th ro u g h
c o mmi tted exec u ti ves an d emp l o yees o f th e fi rm.
Hu ma n i n ter ven ti o n an d tr a i n i n g a re i mp o r ta n t
c o mp o n en ts o f eff ec ti ve ma n p o wer p er fo rma n c e.
4. SUSTAINABLE AND EFFECTIVE ORGANIZATIONAL
CULTURE
Organizati onal cul ture is a complex set of cor por ate
i deologies and core val ues that i s shared throughout the
fi rm and i t i nfl uences the way busi ness i s conduct ed. The
fi rm can devel op core competencies in terms of i ts
capabi l iti es i t possesses and t he way they are used to
produce str ategic act ions. It refl ects the way t he fi rm
conducts business and t he way they control thei r
empl oyee's behavi or in deal ing with its var i ous
 5. CORPORATE ETHICAL STANDARDS AND
PRACTICES
Cor por at e et h i cs are syn on ymous wi th the i mage of the
fi rm in the bu si n ess wor l d. The eff ectiveness of the
cor por at e process i n creases when they are based on
et h i cal pr act i ces as i t bu i l ds the image of the fi rm among
i t s var i ou s st akeh ol der s. It enabl es peopl e in the
organ i zat i on al l evel t o act ethicall y in doi ng what i s
n ecessar y an d t ake pr i de i n impl ementing t he str ategi es.
Et h i cs i n creases t h e soci al capi tal base as i t refl ects
cor por at e goodwi l l t o i n di vi dual and groups in and outside
t h e organ i zat i on . 6. BALANCING ORGANIZATIONAL CONTROL
De ve lo p in g an d u sin g b alan ce o rg a n iz a tio n co n tro l is th e
fi n al co mp o n e n t o f e ff e ctive stra te g ic le a d e rs h ip .
C o n tro ls are n e ce ssary to h e lp e n su re th a t th e fi rm
a ch ie ve s th e ir o u tco me in te rms o f p e rfo rma n ce a n d
a ve rag e re tu rn , o rg an iz atio n al co n tro ls e mp h a siz e
strate g ic imp le me n tatio n an d fi n an cia l co n tro ls a s th e se
a re th e main re sp o n sib ility o f to p a n d ma n a g e ria l
exe cu tive s.
S TRATEG I C MANAG EMENT

GROUP 3
THANK
YOU
M EM B ER S :
Alv ero, D om inic
B elg ira, Ang ie
D esca, S am antha
Laurenio, C hristine M ae
Pam alu-an, J am es
Parejad o, C herry Ann
Ram os, D ustin Ann
Pasig ad o, R ico

BS B A I I -B