Strategic Implementation:

Strategic Leadership

Week 21,22
 Diadopsi dari sumber :

Buku Wajib:
Dess, Gregory, Gerry McNamara, Alan Eisner, Seung-
Hyun Lee.2020. Strategic Management: Text and
Cases 10th.New York: McGraw Hill

Buku tambahan:
Hitt, Michael.A, R.Duane Ireland, Robert E.
Hoskisson.2020. Strategic Management:
Competitiveness & Globalization (Concepts and
Cases).13th.Asia: Cengage
 Sub-CPMK
Mahasiswa mampu mengimplementasikan strategi kepemimpinan
dalam menciptakan organisasi pembelajaran dan organisasi etis
dalam suatu perusahaan (C3, A3)

Materi
1. Leadership: Three Interdependent Activities
2. Overcoming Barriers and Using Power
3. A Key Leadership Trait
4. Creating a Learning Organization
5. Creating an Ethical Organization
 1. Leadership: Three
Interdependent Activities
 1.1. Leadership: Three
Interdependent Activities
Leadership is proactive, goal-oriented, and focused on the
creation and implementation of a creative vision. Leadership is
the process of transforming organizations from what they are to
what the leader would have them become. This definition implies
a lot: dissatisfaction with the status quo, a vision of what should
be, and a process for bringing about change. Thus, leaders are
change agents whose success is measured by how effectively they
formulate and implement a strategic vision and mission.
 1.1. Leadership: Three
Interdependent Activities (Cont.)
Many authors contend that successful leaders must recognize
three interdependent activities that must be continually
reassessed for organizations to succeed. These are:
(1) setting a direction
(2) designing the organization,
(3) nurturing a culture dedicated to excellence and ethical
behavior; as following picture below.
 1.1. Leadership: Three
Interdependent Activities (Cont.)
(1) setting a direction
A holistic understanding of an organization’s stakeholders requires
an ability to scan the environment to develop a knowledge of all of
the company’s stakeholders and other salient environmental trends
and events. Managers must integrate this knowledge into a vision
of what the organization could become. A strategic vision provides
many benefits: a clear future direction; a framework for the
organization’s mission and goals; and enhanced employee
communication, participation, and commitment.
 1.1. Leadership: Three
Interdependent Activities (Cont.)
(2) designing the organization
At times, almost all leaders have difficulty implementing their vision and
strategies. Such problems may stem from a variety of sources:
 Lack of understanding of responsibility and accountability among
managers.
 Reward systems that do not motivate individuals (or collectives such
as groups and divisions) toward desired organizational goals.
 Inadequate or inappropriate budgeting and control systems.
 Insufficient mechanisms to integrate activities across the organization.
 1.1. Leadership: Three
Interdependent Activities (Cont.)
(3) Nurturing a Culture Committed to Excellence and Ethical Behavior
Organizational culture can be an effective means of organizational
control. Leaders play a key role in changing, developing, and sustaining
an organization’s culture and In sharp contrast, leaders can also have a
very detrimental effect on a firm’s culture and ethics. Clearly, a leader’s
behavior and values can make a strong impact on an organization, for
good or for bad. Managers and top executives must accept personal
responsibility for developing and strengthening ethical behavior
throughout the organization. They must consistently demonstrate that
such behavior is central to the vision and mission of the organization.
2. Overcoming Barriers and
Using Power
 2.1. Getting Things Done:
Overcoming Barriers And Using
Power
The success of their organizations often depends on how they, as
individuals, meet challenges and deliver on promises. We focus on
two capabilities that are marks of successful leadership—
overcoming barriers to change and using power effectively.
 2.1.1. Overcoming Barriers to
Change
Barriers to change, characteristics of individuals and organizations that
prevent a leader from transforming an organization. Organizations at all
levels are prone to inertia and are slow to learn, adapt, and change
because:
1. Many people have vested interests in the status quo. People tend to
be risk-averse and resistant to change.
2. Systemic barriers, barriers to change that stem from an organizational
design that impedes the proper flow and evaluation of information. A
bureaucratic structure with multiple layers, onerous requirements for
documentation, and rigid rules and procedures will often “inoculate”
the organization against change.
 2.1.1. Overcoming Barriers to
Change (Cont.)
3. Behavioral barriers, barriers to change associated with the tendency
for managers to look at issues from a biased or limited perspective
based on their prior education and experience. Cause managers to
look at issues from a biased or limited perspective due to their
education, training, work experiences, and so forth.
4. Political barriers, refer to conflicts arising from power relationships.
This can be the outcome of a myriad of symptoms such as vested
interests, refusal to share information, conflicts over resources,
conflicts between departments and divisions, and petty interpersonal
differences.
5. Personal time constraints a barrier to change that stems from
people’s not having sufficient time for strategic thinking and
reflection.
 2.1.2. Using Power Effectively
Power a leader’s ability to get things done in a way he or she wants them to be
done. It is the ability to influence other people’s behavior, to persuade them to
do things that they otherwise would not do, and to overcome resistance and
opposition. Effective exercise of power is essential for successful leadership.
 2.1.2. Using Power Effectively
(Cont.)
Organizational bases of power refer to the power that a person wields
because of her formal management position. These include:
 Legitimate power is derived from organizationally conferred decision-
making authority and is exercised by virtue of a manager’s position in
the organization.
 Reward power depends on the ability of the leader or manager to
confer rewards for positive behaviors or outcomes.
 Coercive power is the power a manager exercises over employees
using fear of punishment for errors of omission or commission.
 Information power arises from a manager’s access, control, and
distribution of information that is not freely available to everyone in
an organization.
 2.1.2. Using Power Effectively
(Cont.)
A leader might also be able to influence subordinates because of
his or her personality characteristics and behavior. These would be
considered the personal bases of power, a leader’s personality
characteristics and behavior that are the basis of the leader’s
power. These include:
1. Referent Power is a subordinate’s identification with the leader.
A leader’s personal attributes or charisma might influence
subordinates and make them devoted to that leader.
2. Expert Power is the leader’s expertise and knowledge. The
leader is the expert on whom subordinates depend for
information that they need to do their jobs successfully.
 2.1.2. Using Power Effectively
(Cont.)
A leader might also be able to influence subordinates because of
his or her personality characteristics and behavior. These would be
considered the personal bases of power, a leader’s personality
characteristics and behavior that are the basis of the leader’s
power. These include:
1. Referent Power is a subordinate’s identification with the leader.
A leader’s personal attributes or charisma might influence
subordinates and make them devoted to that leader.
2. Expert Power is the leader’s expertise and knowledge. The
leader is the expert on whom subordinates depend for
information that they need to do their jobs successfully.
3. A Key Leadership Trait
 3.1. Emotional Intelligence (EI)
Emotional intelligence (EI)
an individual’s capacity for
recognizing his or her own
emotions and those of
others, including the five
components of self
awareness, self-regulation,
motivation, empathy, and
social skills. Research
suggests that effective
leaders at all levels of
organizations have high
levels of EI.
 3.2. Emotional Intelligence: Some
Potential Drawbacks and Cautionary
Notes
Some additional potential drawbacks of EI can be gleaned by
considering the flip side of its benefits:
1. Effective Leaders Have Empathy for Others.
2. Effective Leaders Are Astute Judges of People.
3. Effective Leaders Are Passionate about What They Do, and
They Show It.
4. Effective Leaders Create Personal Connections with Their
People.
4. Creating a Learning
Organization
 4.1. Creating A Learning
Organization
Learning organizations organizations that create a proactive,
creative approach to the unknown; characterized by:
(1) inspiring and motivating people with a mission and purpose,
(2) empowering employees at all levels
(3) accumulating and sharing internal knowledge
(4) gathering and integrating external information, and
(5) challenging the status quo and enabling creativity
 4.1. Creating A Learning Organization
(Cont.)
Many organizations get so caught up in carrying out their day-to-
day work that they rarely, if ever, stop to think objectively about
themselves and their businesses. They often fail to ask the probing
questions that might lead them to call into question their basic
assumptions, to refresh their strategies, or to reengineer their
work processes.
 4.1.1. Inspiring and Motivating People
with a Mission or Purpose
Successful learning organizations create a proactive, creative
approach to the unknown, actively solicit the involvement of
employees at all levels, and enable all employees to use their
intelligence and apply their imagination.
A learning environment involves organization-wide commitment
to change, an action orientation, and applicable tools and
methods. It must be viewed by everyone as a guiding philosophy
and not simply as another change program.
 4.1.2. Empowering Employees at All
Levels
The central key to empowerment is effective leadership.
Empowerment can’t occur in a leadership vacuum. Leading-edge
organizations recognize the need for trust, cultural control, and
expertise at all levels instead of the extensive and cumbersome
rules and regulations inherent in hierarchical control.
Empowering individuals by soliciting their input helps an
organization to enjoy better employee morale. It also helps create
a culture in which middle- and lower-level employees feel that
their ideas and initiatives will be valued and enhance firm
performance.
 4.1.3. Accumulating and Sharing
Internal Knowledge
Effective organizations must also redistribute information, knowledge
(skills to act on the information), and rewards. To do so, firms need to
develop a culture that:
1. Encourages employees to offer ideas, ask questions, and express
concerns.
2. Encourages widespread sharing of information from various sources
3. Identifies opportunities and makes it safe to experiment.
4. Encourages collaborative decision making and the sharing of best
practices,
5. Utilizes technology to facilitate both the gathering and sharing of
information.
 4.1.4. Gathering and Integrating
External Information
Recognizing opportunities, as well as threats, in the external
environment is vital to a firm’s success. As organizations and
environments become more complex and evolve rapidly, it is far
more critical for employees and managers to become more aware
of environmental trends and events both general and industry-
specific and more knowledgeable about their firm’s competitors
and customers.
 4.1.4. Gathering and Integrating
External Information (Cont.)
First, company employees at all levels can use a variety of sources to
acquire external information. Firms can tap into knowledge from alliance
partners, suppliers, competitors, and the scientific community.

Second, benchmarking can be a useful means of employing external

information. There are two primary types of benchmarking.
 Competitive benchmarking restricts the search for best practices to
competitors
 Functional benchmarking endeavors to determine best practices
regardless of industry.

Third, focus directly on customers for information.

 4.1.5. Challenging the Status Quo and
Enabling Creativity
Companies that cultivate cultures of experimentation and curiosity
make sure that failure is not, in essence, an obscene word. They
encourage mistakes as a key part of their competitive advantage.
The following are some approaches to encourage risk taking and
learning from mistakes in an organization.
1. Formalize forums for failure.
2. Move the goalposts
3. Bring in outsiders.
4. Prove yourself wrong, not right.
 4.2. The Attributes of Superbosses
Research on the most effective strategic leaders has identified key
behaviors or “people strategies” that the most successful leaders
use to build high performance organizations. These superbosses not
only build strong firms but also help those around them accomplish
more than they ever thought possible:
1. Focus on intelligence, creativity, and flexibility
2. Find unlikely winners
3. Look for novel ways to get to know employees
4. Adapt the organization to fit the talent
 4.2. The Attributes of Superbosses
(Cont.)
Once in the firm, superbosses also figure out how to develop
employees. To do so, they:
1. Set high expectations
2. Help employees become a master
3. Encourage continual growth.
4. Maintain connection with their people
5. Creating an Ethical
Organization
 5.1. Ethical Organizations
Ethics a system of right and wrong that assists individuals in
deciding when an act is moral or immoral and/or socially
desirable or not.
Ethics is as much an organizational as a personal issue. Leaders
who fail to provide proper leadership to institute proper systems
and controls that facilitate ethical conduct share responsibility
with those who conceive, execute, and knowingly benefit from
corporate misdeeds.
 5.1. Ethical Organizations (Cont.)
Ethical orientation, the practices that firms use to promote an
ethical business culture, including ethical role models, corporate
credos and codes of conduct, ethically based reward and
evaluation systems, and consistently enforced ethical policies
and procedures.

The advantages of a strong ethical orientation can have a

positive effect on employee commitment and motivation to
excel. This is particularly important in today’s
knowledgeintensive organizations, where human capital is
critical in creating value and competitive advantages.
 5.2. Integrity-Based versus Compliance-
Based Approaches to Organizational
Ethics
Compliance-based ethics programs, programs for building ethical
organizations that have the goal of preventing, detecting, and
punishing legal violations. Such programs are typically designed by
a corporate counsel with the goal of preventing, detecting, and
punishing legal violations. But being ethical is much more than
being legal, and an integrity-based approach addresses the issue
of ethics in a more comprehensive manner.
 5.2. Integrity-Based versus Compliance-
Based Approaches to Organizational
Ethics (Cont.)
Integrity-based ethics programs, programs for building ethical
organizations that combine a concern for law with an emphasis on
managerial responsibility for ethical behavior, including:
(1) enabling ethical conduct
(2) examining the organization’s and members’ core guiding
values, thoughts, and actions
(3) defining the responsibilities and aspirations that constitute an
organization’s ethical compass
 5.2. Integrity-Based versus Compliance-
Based Approaches to Organizational
Ethics (Cont.)
Approaches to Ethics Management
 5.2. Integrity-Based versus Compliance-
Based Approaches to Organizational
Ethics (Cont.)
A firm must have several key elements to become a highly ethical
organization:
1. Role Models, For good or for bad, leaders are role models in their
organizations. They must be consistent in their words and deeds
2. Corporate Credos and Codes of Conduct, Corporate credos and codes of
conduct are mechanisms that provide statements of norms and beliefs as
well as guidelines for decision making
3. Reward and Evaluation Systems, generally speaking, unethical (or illegal)
behaviors are also more likely to take place when competition is intense
4. Policies and Procedures, Many situations that a firm faces have regular,
identifiable patterns.
 Summary
1. The three key interdependent activities in which all successful leaders must be
continually engaged : setting direction, designing organization, and nurturing the
culture.
2. Two elements of effective leadership: overcoming barriers to change and using
power effectively
3. The crucial role of emotional intelligence (EI) in successful leadership, as well as its
potential drawbacks.
4. Learning organizations are capable of adapting to change, fostering creativity, and
succeeding in highly competitive market.
5. Ethical orientations are embedded in the practices the firm uses to promote an
ethical business culture, including ethical role models, corporate credos and codes
of conduct, ethically-based reward and evaluation systems, and consistently
enforced ethical policies and procedures.
Thank You