Presentation by

Lucy Kiruthu

The Role of the Strategic Leader

A Literature Review

Lucy Kiruthu

DBA Student Year 1

Pro Peter Lewa Chandaria School of Business

USIU-Africa

EAMARC 2 – Nov 2015

Structure of the Presentation

1.An Introduction

2.Discussions / Findings

3.Conclusions, Recommendations and areas of Future Research

The Introduction 1.Understanding Leadership

Leadership “a process whereby an individual influences a

group of individuals to achieve a common goal” (Northouse,

2013 p. 5)

2. Link between leadership and business

success

Rothschild (1996) argues that “business units and product

lines have failed all because they had the wrong kind of leader" (p. 17).

Bass & Bass (2008) remarks that leadership is considered

by many as the single most critical factor in the success or

failure of organizations

The Introduction 3. What is Strategy?

The determination of the long-term goals and objectives of

an enterprise, and the adoption of courses of action and

the allocation of resources necessary for carrying out these

goals. (Chandler,1962)

A state of mind; the way in which a corporation endeavours

to differentiate itself positively from its competitors, using

its relative corporate strengths to better satisfy customer

needs. (Ohmae,1982)

The essence of strategy is having a unique position that is

difficult to match (Porter,1996)

Mintzberg, Ahlstrand and Lampel, (1998) argue that there

is no simple definition of strategy and define it using the

5ps namely plan, pattern, position, perspective, and ploy.

The Introduction 4. The link between Leadership and Strategy

Leadership is the starting point of strategy

(Allio, 2006; Hsieh and Yik, 2005).

Top executives play a key role in

determining organizational outcomes

(Hambrick, 2007)

The Introduction 4. The link between Leadership and Strategy cont

Strategic leadership goes beyond the leader

follower relationship to emphasize on

achievement of company-wide objectives in a

changing environment (Barnett, Greve & Park,

1994; Hitt, Ireland & Hoskisson, 2007; Lussier &

Achua, 2013)

Organizations are in need of strategic leaders who

must be able to influence in an environment that

is Volatile, Uncertain, Complex and Ambiguous

(Johansen, 2012; Hughes, Beatty and Dinwoodie,

2014).

The Introduction 5. What is Strategic Leadership?

Adair (2010) states that Peter Drucker was the first to

introduce the word strategic leadership to the

business world in the early 1970s

Rowe and Nejad (2009) argue that strategic

Leadership is about combining managerial and

visionary leadership skills

Hitt, Ireland and Hoskisson (2013) look at strategic

leadership as “the leader’s ability to anticipate,

envision, and maintain flexibility and to empower

others to create strategic change as necessary” (p.

375)

Discussions / Findings 1. Strategic Thinking

Mintzberg (1991) looks at strategic thinking as seeing

ahead, behind, above, below, beside, beyond and

more importantly seeing through but asks what is

the use of doing all this seeing if nothing is

done?

Bonn (2005) points out strategic thinking as an

important precursor to strategic decision-making

Goldman and Casey (2010) point out that lack of

strategic thinking at the top management level results

to poor organizational performance.

Discussions / Findings

Strategic thinking “doesn't come

naturally”

“Strategic thinking skills have to be

learned, cultivated, practiced, and

applied”.

(Kazmia &Naaranojab, 2015, P 45)

Discussions/ Findings 2. The Role of the Strategic Leader

The Strategic leader:-

i.Establishes and communicates the strategic direction

ii.Fosters strategic alignment

iii.Leads change

iv.Supports strategy execution

v.Aids in acquiring, developing and managing key resources

vi.Shapes the organizational culture

vii.Accentuates ethical practices

viii.Establishes organizational controls

(Jooste & Fourie, 2009; Rowe and Nejad, 2009; Adair, 2010; Pearson and Robinson 2011;

Ireland, Hoskisson and Hitt, 2013; Browning, 2013)

Discussions / Findings 3. Characters / Skills / Practices of the Strategic

Leader

Vision / ability to anticipate, eloquence,

consistency , articulation of the business

model, commitment, being well informed /

ability to learn, willingness to delegate and

empower / ability to challenge, astute use of

power, emotional intelligence, ability to

decide, honesty, trustworthy, ability to

interpret and align (Hill & Jones, 2010; Schoemaker, Krupp & Howland, 2013; Kabacoff, 2014)

Conclusions 1.Strategic thinking is core to strategic

leadership

2.Strategic leaders are rare (Rowe, 2001)

3.Strategic leaders understand both effective

leadership and strategic management

4.Strategic leaders are at the centre of

business success, they are therefore the best

kind of leaders to lead businesses

5.Strategic leadership can be learned (Kazmia

& Naaranojab, 2015)

Conclusions

5. Strategic leaders embrace different

leadership styles

6. Strategic leaders outperform other kinds of

leaders, they are able to keep the

organization focused on key business

objectives

Businesses are in need of a strategic

leader; a leader able to balance the short

term and long term goals of the business.

Recommendations

1.Businesses need to be more deliberate

about identifying and developing strategic

leaders

2.Every business that plans to survive in the

ever changing business environment needs a

strategic leader at the top

3.Business leaders need to learn to be

strategic and to practice strategic leadership.

Areas for Future Research

1. Explore why Strategic Leaders are

rare

2. Determine what motivates strategic

thinking and what motivates strategic

leaders to act

3. Find out what can be done to develop

more strategic leaders in Kenya

References

Adair, J., (2010). Effective Strategic Leadership – the complete guide to strategic management. London,

United Kingdom: Pan Books.

Allio, R. J., (2006). Strategic thinking: the ten big ideas. Strategy & Leadership, 34 (4) 4 – 13

.doi.org/10.1108/10878570610676837

Barnett, W. P., Greve H. R., & Park, D. Y., (1994). An evolution model of organizational performance.

Strategic Management Journal, 15, 11-28.

Bass, B. M., & Bass, R., (2008). The Bass Handbook of Leadership: Theory, Research, and Managerial

Applications. New York, NY: Free Press

Boal, K. B. & Hooıjberg, R., (2000). Strategic leadership moving on. Leadership Quarterly, 11, 515–549.

Bonn, I., (2005). Improving strategic thinking: A multilevel approach. Leadership & Organizational

Development Journal, 26 (5), 336-354.

Browning, J., (2013) Leading at the strategic level in an uncertain world, Washington, D.C. Dwight D.

Eisenhower School for National Security and Resource Strategy, National Defense University.

Chandler, A., (1962). Strategy and Structure: Chapters in the History of Industrial Enterprises. New York:

Doubeday.

Goldman, E. F., & Casey. A., (2010). Building a Culture That Encourages Strategic Thinking. Journal of

Leadership & Organizational Studies, 17(2), 119–128.

Hambrick, D. C., (2007). Upper Echelons Theory: An Update. The Academy of Management Review, 32

(2), 334-343.

References

Hill, C. W. L., & Jones, G. R., (2010). Theory of strategic management with cases. Mason, Ohio: South-

Western Cengage Learning

Hitt, M. A., Ireland, R. D., & Hoskisson, R.E., (2007). Strategic Management: Competitiveness and

Globalization, Mason, Ohio: Thomson/South Western.

Hsieh, T., & Yik, S., (2005). Leadership as the starting point of strategy. McKinsey Quarterly, 1(1), 67–76.

doi:10.1111/j.0955-6419.2005.00372.x

Hughes, R. L., Beatty K. C., & Dinwoodie, D., (2014). Becoming a Strategic Leader: Your Role in Your

Organization's Enduring Success, 2nd Edition. San Francisco, CA: Jossey-Bass

Ireland, R. D., Hoskisson, R. E., & Hitt, M. A., (2013). The Management of Strategy: Concepts and Cases,

Mason, OH: South-Western Cengage Learning.

Johansen, B. (2012). Leaders make the future: Ten leadership skills for an uncertain world. San

Francisco: Berrett-Koehler Publishers.

Jooste C. & Fourie, B. (2009). The role of strategic leadership in effective strategy implementation:

Perceptions of South African strategic leaders. Southern African Business Review, 13 (3), 51-68

Kabacoff, R., (2014). Develop strategic thinkers throughout your organization. Harvard Business Review

blog, https://hbr.org/2014/02/develop-strategic-thinkers-throughout-your-organization/

Kazmia, S. A., & Naaranojab, M., (2015). Cultivating strategic thinking in organizational leaders by

designing supportive work environment. Procedia - Social and Behavioral Sciences, 181, 43 – 52

Lussier, R. N. & Achua, C. F. (2013). Effective Leadership. Mason, OH: South-Western Cengage Learning.

Maxwell, J. C. (1999). The 21 indispensable qualities of a leader: Becoming the person that people will

want to follow. Nashville, TN: T. Nelson.

References

Mintzberg, H., (1987). Crafting Strategy. Harvard Business Review, 65(4), 66-75.

Mintzberg, H., Ahlstrand, B. W., & Lampel, J. (1998). Strategy Safari: The Complete Guide through the

Wilds of Strategic Management. New York, NY: Free Press.

Northouse, P. G., (2013). Leadership: Theory and practice. Thousand Oaks, CA: Sage.

Ohmae, K., (1982). The Mind of the Strategist. New York: McGraw Hill.

Olson, A. K., & Simerson, B. K., (2015). Leading with Strategic Thinking: Four Ways Effective Leaders Gain

Insight, Drive Change, and Get Results. Hoboken, New Jersey: Wiley & Sons.

Pearce, J. A., & Robinson, R. B., (2011). Strategic Management: Formulation, Implementation, and Control.

Boston: McGraw-Hill.

Rothschild, W. E., (1996). A portfolio of strategic leaders. Planning Review, 24 (1), 16 – 19.

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Rowe, W. G., & Nejad, M. H., (2009). Strategic Leadership: Short-Term Stability and Long-Term Viability.

Ivey Business Journal. 73(5): 6–11.

Rowe, W. G., (2001). Creating Wealth in Organizations: The Role of Strategic Leadership. The Academy of

Management Executive, 15(1), 81-94.

THANK YOU