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Unformatted text preview: Chapter 12: Strategic Leadership Chapter 12 Strategic Leadership KNOWLEDGE OBJECTIVES 1. Define strategic leadership and describe top-level managers importance. 2. Explain what top management teams are and how they affect firm performance. 3. Describe the managerial succession process using internal and external managerial labor markets. 4. Discuss the value of strategic leadership in determining the firms strategic direction. 5. Describe the importance of strategic leaders in managing the firms resources. 6. Define organizational culture and explain what must be done to sustain an effective culture. 7. Explain what strategic leaders can do to establish and emphasize ethical practices. 8. Discuss the importance and use of organizational controls. CHAPTER OUTLINE Opening Case Selecting a New CEO: The Importance of Strategic Leaders STRATEGIC LEADERSHIP AND STYLE THE ROLE OF TOP-LEVEL MANAGERS Top Management Teams MANAGERIAL SUCCESSION Strategic Focus The Model Succession at Xerox KEY STRATEGIC LEADERSHIP ACTIONS Determining Strategic Direction Effectively Managing the Firms Resource Portfolio Sustaining an Effective Organizational Culture Emphasizing Ethical Practices Establishing Balanced Organizational Controls Strategic Focus The Global Duke of Retail: The New Strategic Leader of Wal-Mart SUMMARY REVIEW QUESTIONS EXPERIENTIAL EXERCISES VIDEO CASE NOTES 12-1 Chapter 12: Strategic Leadership LECTURE NOTES Chapter Introduction : This chapter deals with the importance of strategic leadership, its effects on organizational outcomes, and the great challenges faced by strategic leaders. This indicates that effective strategic leaders must be able to use the strategic management process (illustrated in Figure 1-1 ) effectively by guiding the firm in ways that result in the formation of its vision and mission facilitating the development of appropriate strategic actions providing guidance that results in strategic competitiveness and above-average returns OPENING CASE Selecting a New CEO: The Importance of Strategic Leaders From 2005 to 2009, the average CEO tenure declined from 7.3 years to around 6 years. As CEO tenure gets shorter the need for improved succession planning increase and many believe it should be an ongoing concern. However, most boards of directors do a woeful job when it comes to succession planning. Surveys reveal that 40 percent of firms had no succession plan and more than 50 percent of directors rated their own succession planning as ineffective. One can look to Apple to see how important both strategic leadership and succession planning are to a company. Steve Jobs was a co-founder of Apple but left the company for 12 years. In his absence the company had disappointing performance. He returned in 1997 and since then Apple has had a number of market successes (in addition, Apple has had a number of business successes as well for example, it has become a very effective marketer)....
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- Spring '11