Challenges of Strategic Leadership 8. 5 Role of Strategic Leadership 17 19 8. Conclusions 21 Everybody can be a leader or is a leader but it is important to know who is a good and effective leader. A good leader probably is a leader who can help organization to achieve its objectives and goals. Leadership skills might be enough for a person to be a good leader but with strategic planning a person could just end up being an effective leader. Mr.. Annul is probably not a great historical figure such as Napoleon and not even one of the “big names” such as Bill Gate. He is just working as Head of
Department in Titmice Sad PhD (now is part of Maxis), a subsidiary of Time Engineering Bertha. Everyone in the office know how determine he is, working so hard yet smart. He even stays up late in the office not only to finish his works but to prepare for next weeks job. But what really makes him a leader is not only his determination but the output or ideas that being generated. His brilliant idea of creating two new sub units of Analysis and Operation Management unit and Revenue Assurance seem to have shortened the process flow and prevent any revenue leaking within organization.
As a result, organization could reduce cost and mime as well as gaining competitive advantage. His strategic plan together with his leadership skills is enough for him to be an effective leader. In today’s environment, leader is a person that not only responsible to followers but as an important asset to ensure the competitiveness of an organization. Organizations with few good and effective leaders could well gain more advantage than organizations with too many leaders. Roles of Strategic Leadership in achieving Competitive Advantage in an Organization.
There several issues that could be raised regarding leadership and strategic management. In this report, the issue of “Roles of strategic leadership in achieving competitive advantage in an organization” is chosen due to the concern of many organizations towards the role of their leaders and how the organization can gain benefit from their leaders. To continuously stay or even lead in industry, organization need to gain competitive advantage against their rival. To achieve this, organization need to have strategic plan that being yielded from leaders.
This creative thinking of a leader could well help an organization to grab any opportunities from heir competitors. For example, a strategic leader may design or produce a product at the lowest cost and relative to competitors thus, helping organizations to gain competitive advantage over their industry rivals. “Leaders are people who can discern the inevitable and act accordingly. When people talk about business acumen, discernment is a big part of it. It’s a bit like gut instinct, but a little more developed. ” (Donald Trump). Your ability to negotiate, communicate, influence, and persuade others to do things is absolutely indispensable to everything you accomplish in life. The cost effective men and women in every area are those who can quite competently organize the cooperation and assistance of other people toward the accomplishment of important goals and objectives. ” (Brian Tracy). The above are some quotes related to leadership. F-room Richard L. Daft, leadership is an influence relationship among leaders and followers who intend real changes and outcomes that reflect their shared purposes.
Leadership too can be defined as the process of influencing others towards achieving some kind of desired outcome (Jerome p. J. De Gong and Deanne N. Den I—;orator, 2007). From the above definitions, it is clear that leadership consists of several keywords that are influence, relationship, outcomes and purposes. In organizations, it is true that leadership is about influencing and motivating others to move into a leader’s direction or to achieve goals set up by leaders. But to get to this level, a leader must first possess all the qualities and characteristics in order to gain respect thus influence the employees.
Today’s leader are more compromise and tolerate as they act more to a person that can unite a group of people and together they come with ideas or cede on something. With this kind of approach, it can create a healthy environment where employees may find freedom to give their ideas and opinion and play some part in organization process. Though it may seem as a helping hand to a leader, a leader is still important in a way of setting up direction and strategically lay out the plan for others to follow. At the end of the day, result is the one that organizations seek for.
If a leader can yield an output that benefit organization such as earn more profit, then that person is an effective leader. 4. 0 Importance Of Leadership in Organization As been mentioned, a leadership or in particular effective leadership is crucial to any organizations. To be an effective leadership, a leader must possess several characteristics such as below: 1) Determination A leader must always shows how determines he/she is in achieving goals. This is important to make others to see a vision and together perform with the task given to achieve the desired outcomes. ) Strong Beliefs It is important for a leader to have his own stand and able to communicate his idea to the others. In other words, an effective leader must have confidence to his direction. ) Ability to analyze deader too should be able to study or analyze situation from a distance. This will help the leader to prepare and find a solution to future problems. 4) Knowledge Management Knowledge management is essential to a leader. It serves as advantage to a leader in managing his situation. It is also important for leader to make decision. ) Responsibility Good leaders possess accountability and at the same time, hold others accountable as well. This will set a leader as example for others to follow. In today’s environment, several changes Can be seen. Organizations today re keener towards machinery rather then manual. Information technologies (IT) seem to move pretty quicker into industry and organization in turn adapts IT quickly in their daily management. With this new technology era, organizations have to change their strategy in order to remain in industry.
New strategies such as outsourcing, e-strategy and globalization now seem to appear the more preferable by most organizations. Leader in organization too will definitely feel the impact as their role now seem to be much tougher than before. In today’s environment, leader should be more creative in way Of thinking, receiving and understand the situation. For example, traditional leaders always instruct their employees of what to do and how to do it. Today’s leaders share their power and knowledge in order to find output or idea by getting everyone involved and committed. . 0 Definitions of Strategic Management Strategic management can be defined as the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives (Fred R. David: Strategic management: concepts and cases). From the definition above, it is clear that strategic management consists of overall activities such as marketing, financing management, production, information technologies and research and design to achieve organizational success.
Strategy will then be implemented on how to formulate these activities such as allocating the right resources in order to achieve long-term organizational objectives. Therefore, strategic management process is the full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns (Hit, Ireland and Hosking’s; Strategic Management: Competitiveness and Globalization). 6. 0 Importance Of Strategic Management . 3 Competitive Advantage The purpose of having strategic management in organization is with out doubt to gain and maintain competitive advantage.
It is important to gain competitive advantage if an organization wants to stay and be a market leader in an industry or market. As a result, organization may well achieve their objectives and for profit organization, earning above average income. Gaining and keeping competitive advantage is essential for long-term success in organization. Therefore, organization should not only gain competitive advantage for a certain period Of time but must strive to achieve sustained competitive advantage.
This can be done by adapting to changes in environment and trends and effectively formulating, implementing and evaluating strategies. As gaining competitive advantage is essential for organizations, this means it is important as well for organizations to have the right strategy and this is why strategic management is being regarded as important in organizations. Successful organization is actually depending on its people and management which mean have the right leader and strategy. A combination of both may well lead organization to success and helping in creating competitive advantage. . 4 Strategic Leadership Strategic leadership is defined as a person’s ability to create a vision, to be example, and to add value to the firm. Strategic leadership is the art and science of combining results and hearts (Hindquarter and Frederica, 2002). From Hit, Ireland and Hosking’s in Strategic Management: Competitiveness and Globalization, defined strategic leadership as the ability to anticipate, envision, maintain flexibility, and empower others to create strategic change as necessary.
From the definition above, it is clear that strategic leadership must consists f several requirements such as envisioning (giving direction and purpose to all activities involved in organization), the ethical aspect of leadership and creating values for all key stakeholders with the organizations. The greater the space created by the four forces, the better the strategic leadership Envisioning Being an Example/ Courage Creating values for stakeholders Technology Figure 1 The four dimensions of strategic leadership (P. Sustenance, 1991) The ability to manage the human capital is the most critical part of the strategic leadership skills.
One of the key to competitive advantage will be the opacity of top leadership in creating social architecture capable of generating intellectual capital such as brainpower and expertise. Competent strategic leaders also in gaining the competitive advantage must be able to manage employees and suppliers to perform at peak efficiency. 8. 5 Strategic Leadership and Competitive Advantage As the global environment becomes more complex and competitive, the demand for a firm to achieve strategic competitiveness and high return increase.
However, the failure of strategic leaders to react appropriately and on ad hoc basis to mind set-related changes could be a set back. But to the fact, despite the changes, organizations still relying on strategic leaders in order to gain and sustain competitive advantage. Strategic leadership mainly focus their work on the key issues that shape the organization ability to earn above average returns and to some extend, strategic leaders even travel to other organization to study successful work process.
Thus, it is important to highlight that by having an effective strategic leaders, organization may find their own source of competitive advantage. 8. 6 Challenges of Strategic Leadership Today’s organizations need creativity. To ensure that, organizations need more employees who are able to perform well and understand customers. As the world is moving quickly into globalization and information technology era, some changes need to be made in organizations and this changes will also impact on the role of strategic leadership. Today’s strategic leadership is more open and participative.
Leaders have to overcome certain barriers such as new technology adaptation in order to grab new opportunity for organization. As number of competitors keeps increasing, organizations now demand more caliber and charismatic strategic leadership in their organization. Limited resources are another challenges for strategic leadership. Traditionally, it is a process of allocating some resources to activity (for example, production) to yield the desired output. But today’s, strategic leadership need to allocate the right resources at the right time to the right activity.