Page 226 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Strategic Management

Notes It is rightly said:
“Visionary leadership inspires the impossible: fiction becomes truth”.
Strategic leadership thus enhances prospects for the organisation’s long-term success, while at
the same time maintaining its short-term financial stability.
12.2.1 Role of a Strategic Leadership

Leaders play a central role in performing six critical and interdependent activities in
implementation of strategies:

1. Clarifying strategic intent
2. Setting the direction
3. Building an organisation
4. Shaping organisation culture
5. Creating a learning organisation

6. Instilling ethical behaviour

Determining Designing
a direction the organization

Nurturing a culture
dedicated to excellence
and ethical behavior

1. Clarifying strategic intent: Leaders motivate employees to embrace change by setting
forth a clear vision of where the business’s strategy needs to take the organisation.
2. Setting the Direction: Leaders set the direction and scope of the organisation through
formulating appropriate corporate and business strategies.
3. Building the organisation: Since leaders are attempting to embrace change, they are often
required to rebuild their organisation to align it with the ever – changing environment
and needs of the strategy. And such an effort often involves overcoming resistance to
change and addressing problems like the following:
(a) Ensuring a common understanding about organisational priorities
(b) Clarifying responsibilities among managers and organisational units
(c) Empowering managers and pushing authority lower in the organisation

(d) Uncovering and remedying problems in coordination and communication across
the organisation
(e) Gaining personal commitment from managers to a shared vision

(f) Keeping closely connected with “what’s going on in the organisation”.
4. Shaping organisational culture: Leaders play a key role in developing and sustaining a
strategy supportive culture. Leaders know well that the values and beliefs shared
throughout their organisation will shape how the work of the organisation is done. And

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