Strategy is the framework of choices that determines the nature and direction of an organization. The framework establishes the boundaries or parameters that define the scope of business activity. The criteria that determine what’s “in” or “out” in an organization are derived from a variety of sources, such as the current domain, the organization’s overriding beliefs and values, the competitive advantages identified, and shareholder and parent company interests. Strategy comes from the ancient Greek word meaning the art of leading an army. It is traditionally the “art of generalship”, with the word general meaning both the high military rank as well as the art of having a general, high level, overview. Choices are made in three dimensions of the organization: the products and services that it will offer, the markets that it will serve, and the key capabilities that it must deploy in order to take its products and service to market. Of course, the criteria that guide these choices vary. For example:
- The nature of an organization is what exemplifies it, describes its character, and makes its shape recognizable. It encompasses the choices that will be made about future products and services, as well as future customers and markets. In business today, strategy traditionally answers the question “How can we compete in the market, and maintain an advantage?”
- Strategic leadership provides the vision, direction, and the purpose of growth for any organization.
- Strategic leadership is not about micromanaging business strategies. Rather, it provides the umbrella under which businesses devise appropriate strategies and create value.
- In short strategic leadership provides the answers for the two questions; what should be the plan of action by providing the vision, direction, and creating the context for growth; how to execute the plan by sketching out a road map for the organization that will allow it to unleash its potential, by crafting the corporation’s portfolio, determining what businesses should be there, what are the performance requirements of the business, and what type of alliances make sense.
Business strategy needs to be linked to both systems (including IT strategy) and structure (HR strategy). Strategic leadership also defines the means, i.e., the culture, the values, and the ways of working together needed to achieve corporate goals. Achieving organizational success in not a chance occurrence but a well thought through set of actions. It is determined largely by the decisions leaders make it is responsibility of the top management to monitor the organizational internal and external environment, track industry and the competitive trends, sporting emerging market opportunities, identifying business threats and develop a plan for the vision for feature that followers can believe in. This series of activities form major part of what research describe a strategic leadership. Therefore, strategic leadership is the process of providing direction and inspiration necessary to create and implement a vision, a purpose and mission, a strategy to achieve and sustain organization objective.
Organization with effective strategic leadership are more likely to adapt the correct strategic approach; have a committed, supportive, strong management team; identify the focus on the target market; develop and sustain capabilities; and have excellent customer and client relationship. The distinguishing character of strategic leadership level, as compared with team-level and operational-level leadership, is that it implies responsibility for achieving the right balance between the whole, i.e., the organizational needs, the functional needs, and the individual and the team needs. It has been argued that the strategy formulation process is redundant in the environments that are evolving. At the same time, many researchers are spending a significant part of their academic lives exploring and understanding the strategic content and intent of corporate actions. While most research and debate on corporate strategy takes place in the US and Europe, Indian corporations freely import the outcomes. In fact, management experts and corporate heads also change their orientation toward the strategic planning process in tandem with the contemporary trends. Often, it has been asked about the desirability of undertaking a comprehensive strategic planning exercise or, the more hyped, visioning exercise for companies. The popularity of such long-term planning exercises seems to co-exist with the skepticism towards it. Where is the problem then? Strategic thinking, long-term planning or visioning is attempts by any organization to chart out a plan of intent and action for ensuring a sustained growth and existence in its context. Therefore, it is a growth and survival-related need. The basic assumption underlying such an effort is that any entity or organization needs to continuously prepare itself in order to survive the changing context. The issue gets more complex when the resources in the environment are limited. This chapter draws extensively from George Steiner work cited in his own language from his seminal book, Strategic Planning stated at an application level comprehensively.Posted by ZuzukiSX4 Posted on 31 Dec
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