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LEADERSHIP:LEADERSHIP:Theory, Application, Skill Theory, Application, Skill
DevelopmentDevelopment
2d Edition2d EditionRobert N. Lussier Robert N. Lussier
and Christopher F. Achuaand Christopher F. Achua
This presentation edited and enhanced byThis presentation edited and enhanced by: :
George W. CrawfordGeorge W. CrawfordAsst. Prof. of Mgmt.Asst. Prof. of Mgmt.
Clayton College & State UniversityClayton College & State University
Morrow, GA 30260Morrow, GA 30260
[email protected]@mail.clayton.edu
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Chapter 11
Strategic Leadership and Managing Crises and
Change
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Chapter 11Chapter 11Learning OutcomesLearning Outcomes
• Role of leadership in strategic management process
• Relevance of internal and external environment
• Importance of a vision and mission statement• Relationship between corporate objectives
and strategies• Importance of strategy evaluation• 5-step process to crisis risk assessment• 3 phases of the change process• Major reasons for resisting change• People and task-oriented techniques for
overcoming resistance to change
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STRATEGIC LEADERSHIP• The process of providing the
direction and inspiration necessary to create and implement a vision, mission, and strategies to achieve and sustain organizational objectives
• The purpose of strategic leadership is to effectively implement and guide the process of strategic management
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STRATEGIC MANAGEMENT
The set of decisions and actions used to formulate and implement specific strategies that will achieve a competitively superior fit between the organization and its environment so as to achieve organizational goals
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The Strategic Leadership/ Management Process
• Analyze the environment– Internal (Why?)– External (For What?)
• Develop a strategic vision– An ambitious view of the future that
everyone in the organization can believe in, that is reasonably attainable, and which offers a future that is better in important ways than what now exists
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The Strategic Leadership/ Management Process
• Write a meaningful mission statement– Defines the core purpose and
reasons for organizational existence
– Should be both broad and precise– Not easy
•Can take months and years– Must change as organization
changes
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The Strategic Leadership/ Management Process
• Create Corporate Level Objectives– Desired outcomes that an
organization seeks to achieve for stakeholders
– Include both financial and strategic objectives
– Help everyone to focus in same direction
– Targets against which performance is compared
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The Strategic Leadership/ Management Process
SMARTSMART Corporate Level Objectives
--SSpecific
-M-Measurable
-A-Achievablechievable
--RRelevant
-T-Timely
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The Strategic Leadership/ Management Process
Formulate StrategyStrategy is the general plan of action that describes resource allocation and other activities for exploiting environmental opportunities and helping the organization attain its goals
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The Strategic Leadership/ Management Process
• Formulate Strategy that:– Enhances value to customers
•Ratio of benefits to cost
– Creates synergistic opportunities•Whole is greater than the sum of the
parts
– Builds on company core competenciesBuilds on company core competencies•Performs extremely well in comparison to Performs extremely well in comparison to
competitorscompetitors
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5 Elements of Good Strategy Development
• Arena: Where the organization will focus its resources
• Vehicles: How the organization will get there
• Differentiators: How the organization will stand out in the market place
• Staging: What will be the speed and sequence of moves
• Economic logic: How the organization will obtain its returns
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The Strategic Leadership/MGMT Implementation
• Most difficult part of strategic Most difficult part of strategic managementmanagement– Also the most important
• Without appropriate implementation, the best of strategies can fail– Must be integrated and coordinated– Must overcome resistance to change
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Strategy Evaluation
• To determine the effectiveness of strategic choices
• 3 fundamental activities:– Review internal and external
factors– Measure performance against
objectives– Corrective actionCorrective action
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Crisis Leadership• Leaders need skills and
competence to lead during crises– Like the U.S. and NYC on 9/11/01– To provide stability, reassurance,
confidence, and a sense of control
• “…tough times won’t create leaders, … they show you what kind of leaders you already have.” Larry BartonLarry Barton
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Preparing for Crisis• We cannot foresee future crises, but
we can prepare in a general manner– Pre-Crisis Planning
• Do not want to start from zero when crisis occurs
– Crisis Team• Good mix of organizational skill sets
– Crisis Leader• Requires logs• Monitors complaints and behaviors• Identifies patterns or trendsIdentifies patterns or trends• Coordinates team activitiesCoordinates team activities
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Risk Assessment
• Used to anticipate crises– What could happen?
• Tries to identify weaknesses Tries to identify weaknesses and threatsand threats– Where are we vulnerable?
• Common tool in crisis planning– What is the worst-case scenario?
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Risk Assessment ModelRisk
Identification(Risk Chart)
Risk Assessment & Ranking
Risk Reduction Strategies
Crisis Prevention Simulations
Crisis Management
S
W
O
T
1
3
4
5
2
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Crisis ManagementRapid response is vital
Leadership’s Role• Stay engaged• Lead from the
front• Focus on the big
picture• Communicate the
vision• Work with crisis
management team
Effective CrisisCommunication• Can make or
break company reputation
• Spokesperson determined in pre-crisis planning
• Failure can extend crisis
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Effective Crisis Communications
•First 24 hours crucial–Media’s need to know–Tell company’s story
•Press releases•Press kits
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Effective Crisis Communication &
Management• Be there• Tell the truthTell the truth• Tell what your are doing to fix crisis• Handle those affected with utmost
sensitivity• Avoid presenting conflicting
messages• Show a plan on how you plan to
avoid a repeat in the future
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Effective Crisis Communication &
Management• Don’t lie or cover for the boss or the corporation
• Go the extra mile – Beyond requirements of the situation
• When things are going well, take credit– Without being self-absorbed
• Remember that the media is your Remember that the media is your link to the publiclink to the public– Be honest & straightforward with themBe honest & straightforward with them
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Leading Change• Organizational Change
– Activities associated with planning, designing, implementing, and internalizing tools, procedures, routines, processes, or systems that will require people to perform their jobs differently
• Organizations spend millions on change efforts
• Organizational change is any transition that requires change in human performance
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Need for Change• Environment changing rapidly
– New technology– Globalize economy– Changing market requirements– Intense domestic and international
competition– New opportunities and threats for
leadership
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Response to Pace of Change
•Flatter, more agile organizational structures
•More empowering, team-oriented cultures
•Leaders must lead the responses
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LEADING CHANGE• Not every leader can successfully
implement change– Role of the leader is to facilitate
change that results in better performance
• Change-oriented leaders are responding by initiating strategies that match the requirements of the turbulent environments in which organizations exist
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Stages In The Change ProcessThe Force Field Model
UnfreezingUnfreezing
ChangingChanging
RefreezingRefreezing
9-11
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THE EIGHT STAGE MODEL OF THE CHANGE PROCESS
1.1. Establish a sense of urgencyEstablish a sense of urgency2. Form a powerful guiding coalition3. Develop a compelling vision
4.4. Communicate the vision widelyCommunicate the vision widely5. Empower employees to act on the vision6. Generate short-term wins7. Consolidate gains, create greater
change8. Institutional changes in the
organizational culture
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Why Do People Resist Change?
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Why Do People Resist Change?
• Threat to self interestThreat to self interest
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Why Do People Resist Change?
• Threat to self interest• Uncertainty & loss of comfort zoneUncertainty & loss of comfort zone
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Why Do People Resist Change?
• Threat to self interest• Uncertainty & loss of comfort zone• Lack of faith in the changeLack of faith in the change
– That it is necessary– That it will succeed
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Why Do People Resist Change?
• Threat to self interest• Uncertainty & loss of comfort zone• Lack of faith in the change
– That it is necessary– That it will succeed
• Distrust of leadershipDistrust of leadership
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Why Do People Resist Change?
• Threat to valuesThreat to values– Personal– OrganizationalOrganizational
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Why Do People Resist Change?
• Threat to values– Personal– OrganizationalOrganizational
• FearFear– Of the unknown– Of being manipulated
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How Can a Leader Reduce Resistance to
People-Oriented Change?
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How Can a Leader Reduce Resistance
to People-Oriented Change?• Show relentless support & Show relentless support &
unquestionable commitment to the unquestionable commitment to the change processchange process
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How Can a Leader Reduce Resistance
to People-Oriented Change?• Show relentless support &
unquestionable commitment to the change process
• Communicate an urgency about Communicate an urgency about the need for the changethe need for the change
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How Can a Leader Reduce Resistance
to People-Oriented Change?• Show relentless support &
unquestionable commitment to the change process
• Communicate an urgent about the need for the change
• Continually communicate Continually communicate regarding the progress of the regarding the progress of the changechange
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How Can a Leader Reduce Resistance
to People-Oriented Change?• Avoid micromanagingAvoid micromanaging
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How Can a Leader Reduce Resistance
to People-Oriented Change?• Avoid micromanaging• Empower people to implement the Empower people to implement the
changechange
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How Can a Leader Reduce Resistance
to People-Oriented Change?• Avoid micromanaging• Empower people to implement the
change• Help people deal with the trauma Help people deal with the trauma
of the changeof the change
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How Can a Leader Reduce Resistance
to People-Oriented Change?• Avoid micromanaging• Empower people to implement
the change• Help people deal with the
trauma of the change• Prepare people for necessary Prepare people for necessary
adjustmentadjustment– Career counseling– Retraining
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How Can a Leader Reduce Resistance
toTaskTask-Oriented Change?• Assemble a coalition of supportersAssemble a coalition of supporters
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How Can a Leader Reduce Resistance
toTaskTask-Oriented Change?• Assemble a coalition of
supporters• Align organizational structure Align organizational structure
with new strategy for with new strategy for consistencyconsistency
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How Can a Leader Reduce Resistance
toTaskTask-Oriented Change?• Assemble a coalition of
supporters• Align organizational structure
with new strategy for consistency
• Survey the organizational Survey the organizational landscape for likely supporters landscape for likely supporters and opponentsand opponents
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How Can a Leader Reduce Resistance
toTaskTask-Oriented Change?• Recruit and fill key positions Recruit and fill key positions
with competent and committed with competent and committed supporterssupporters
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How Can a Leader Reduce Resistance
toTaskTask-Oriented Change?• Recruit and fill key positions
with competent and committed supporters
• Know when and how to use ad-Know when and how to use ad-hoc committees or task forces hoc committees or task forces to shape implementation to shape implementation activitiesactivities
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How Can a Leader Reduce Resistance
toTaskTask-Oriented Change?• Recruit and fill key positions
with competent and committed supporters
• Know when and how to use ad-hoc committees or task forces to shape implementation activities
• Know when a full-scale approach Know when a full-scale approach to implementation is neededto implementation is needed
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Discussion Question #1
Discuss how an organization’s objectives may affect its search for opportunities.
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Discussion Question #2
What are the key elements of the strategic management process?
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Discussion Question #3
What is the difference between a strategic vision and a mission statement?
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Discussion Question #4The essence of the strategic management process is adapting to change. Discuss.
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Discussion Question #5
What are the current factors or trends that make pre-crisis planning an important aspect of strategic leadership?
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Discussion Question #6
What are the three main components of a pre-crisis plan?
3
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Discussion Question #7
Describe the responsibilities of a crisis leader.
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Discussion Question #8
What is the appropriate role of organization’s top leadership during a crisis?
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Discussion Question #9
What are the phases of the eight-stage model of planned change?
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Discussion Question #10
What is the difference between people-oriented and task-oriented approaches to overcoming resistance to change?