Introduction
Strategic leadership involves strategizing the management of an organization. In this case, leaders are very influential in ensuring that organizational change establishes and is permanent.
There are different types of leaders. They include enforcers, visionary, serial transformational, administrator and deal maker leaders. However, due to specialization, the two kinds of leaders to be discussed briefly below are necessary in an organization setting in the process of transformation (Centre for Creative Leadership, 2005, p1).
The charismatic leader– This kind of a leader has personal quality and ability to mobilize and sustains an activity in an organization. During the process of change, a charismatic leader is able to mobilize the employees and sustain an efficient adoption towards the new dynamics.
A leader full of charisma can transform someone’s needs, values, goals and hopes. Though he is the popular kind of a leader, his leadership is observable and definable since his behavioral characteristics are very clear. A charismatic leader has three major components: envisioning, energizing and enabling which are vital to the process of organizational change (Schneier, 2011, Pg 281).
Instrumental leader- This kind of a leader ensures that every person in the management team as well as all the employees follow the proposed line of change to ensure that the process is consistent and permanent.
He invests in building of competent teams, clarifying the line of action to his team, both leaders and the employees, building in measurements and administration of rewards and punishment depending on how individuals handle the process. An instrumental leader ensures that the established process of change is not short lived but lasts permanently (Schneier, 2011, Pg 281).
Effective organizational transformation requires both charismatic and instrumental leaders. A leader with charisma ensures that people within the organization are energized, committed and gain a new organizational focus. An instrumental leader ensures consistency in the adoption of the new organizational approach.
From the exercise, we are going to evaluate strategic leadership through case studies provided in the models, compare leadership styles from the two case studies, give qualities of a good leader and discuss appointing of board of directors.
Evaluating strategic leadership
Strategic leadership refers to executives who how owe firm’s overall responsibility and solely responsible in the matters that affect organizational outcomes. Strategic leaders create principles and course that guides strategies formulation and implementation. More so they interact with stake holders, clients, government agencies and unions (Bondenm, 2009).
Strategic leadership involves the application of strategy in the management of an organization. This involves managing for value creation, in the roles of strategic leadership in organization change. In this case, leaders are very instrumental in ensuring that organizational change establishes and is permanent.
There are different types of leaders some of which cannot be able to see through a process of change while others are very good at it However, due to specialization, the two kinds of leaders to discussed briefly below are necessary in an organization setting in the process of change (Centre for Creative Leadership, 2005, p.1).
Is Kevin Robert’s a strategic leader? The case study suggests that he is. Kevin is the New York based CEO worldwide of Saatchi and Saatchi. This is one of the leading creative organizations in the world. He manages a team of 6000 people across 76 countries.
Mr. Kevin owes his success to his total determination, energy and enthusiasm. He joined the organization in 1997 as the CEO, when the company was in danger of running into debts. His core mission was to restructure the business. Against all odds, he managed to revive Saatchi and Saatchi into the best advertising agencies worldwide.
Kevin has put a clear vision in his organization. More so he understands combination of resources and capabilities that are beneficial, those that are rare, costly and difficult to replace. This concept enabled the firm gain competitive advantage. He has also managed to develop human capital. Human capital is the key to success of the organization, so strategic leaders invest in them through mentoring and training.
Strategic leaders emphasize on ethical practices such as honesty, trust integrity in decision making and thus are able to inspire their employees. They also establish balanced organizational controls.
These controls involves gathering of new information about the market and setting accompany target. Lastly they manage to sustain effective organizational complex culture and learn to shape their values and symbols in ways to allow the firm are more competitive.
Despite of the importance strategic leadership have in management, it may fail, and for instance, leaders may play deaf to the opinions of other subordinate stuff and condone unethical conduct.
Furthermore, strategic leadership is responsible of helping people psychologically to be able to perform when faced with challenges. After everything has been done for the employees and is set to do the work, it is important to give them emotional support in times of need.
A good leader should be able to listen to his employees, understand their problem and participate in coming up with a solution. Employees tend to have more confidence in that kind of a leader whereby a charismatic leader is better suit for this position (Schneier, 2011, Pg 282).
Comparison of the leadership styles of Kevin Roberts from Saatchi & Saatchi with that of Steve Jobs from Apple
Roberts and jobs are both strategic leadership in that they both had in some point determined strategic direction in their firms. They managed to develop human capital, exploit and maintain competences, sustained effective organizational cultures, emphasize on ethical practices and balanced organizational controls of their respective firms.
In addition to, both have transformational leadership; they are role model and inspirational to many. This type of leadership involves the ability of the leader to change the hearts and thinking of their followers, raising them to a higher than expected levels of dedication, sacrifice and performance (Jackson and Parry, 2001).
They also posses the five transformational leadership practices that have been studied, they include setting an example in ethical behaviors, through overcoming challenges, being creative, innovative and risk taker. Moreover, empowering team members and congratulating their achievements (Kouzes and Posner 1988).
However, their leadership styles differ completely. Steve Jobs leadership style is paradox, he is also commanding and more of dictatorial in that he made his own rules and would not listen to anybody. In an article by the Fortune Magazine (Fortune, 2007), he is portrayed as captivating and innovative leader.
Although a pacesetter leader, he is very influential, a performer and a great presenter. On the other hand Kevin Roberts is a democratic leader, more of visionary, and affiliative. He lays emphasis on importance of teamwork.
Characteristic of a leader in all industries
A good leader should help and make adjustments even in adverse situation should have several characteristics to help the industry satisfy and maintain their customers, irrespective the type of industry being led. To start with, they should be customer focused. This implies that any mistake that could bring dissatisfaction to the customers should be avoided. Customers are the most important factor towards success.
Secondly, leaders with a clear vision have ability to predict future trends that may impact their operations. This places a firm ahead of its competitors. Another important quality of leader is flexibility. Sometimes being too principled is a disadvantage in that, some market forces may result to disruption and adjustment.
Such disruptions may include new competitor offering more concepts than you do among others. A good leader should also invest in their human capital; they should focus on establishing the brightest human resource through improving skills and resource management.
Moreover, a good leader should embrace change; he or she should be influential and charismatic enough to help make changes in the firm acceptable to employees and their customers (Wart, 2011, p. 104; Woodman, 2007, p. 265). Firm leaders should portray confidence despite the occurrence the firm could be going through. At times there may be conflicts within the institution that may impede a firm’s success.
It is the leader’s obligation to resolve the situation. Furthermore, a good leader should have excellent communication skills; this will avoid misunderstanding between the employees, and clarity whenever is expected to give a speech on behalf of their institution. Lastly a good leader set an example to the followers.
Appointing a New Board of Directors
Managing major organization transformation requires structures, processes and systems that are mutually sustaining. There should be a clear strategic direction, alignment of organizational structure, reshaping of employment relations and changes to organizational culture (Spicer et al. 1996). Successful transformation is governed by establishing direction, aligning people, motivating and more others.
Secondly management, that entails planning, budgeting, organizing staffing and so on. The board and the CEO should implement strong leadership in order to revamp changes in the organizational. To manage the firm’s strategy, they have to redefine and communicate the firm’s unique position.
Telecom is one of the largest companies in New Zealand Exchange. It begun in 1987 and got privatized in 1990. There was a great debate on whether it was in the best interests of the country to privatize this infrastructure.
Since Wayne joined the company as the Chairman in 2006, he has made a great impact on Telecom industry. However, there are critics that the company utilizes its former monopoly status to overcharge their poor services.
When appointing his board of directors, it is important to put in mind that they play a great role to the industry. It should comprise of inside directors, elected to feed the board with the firm’s day to day operations, related directors and outsiders directors who often hold executive positions in other organization.
The advantage of this Multi-board membership is that outsider’s executive may bring about new methodologies to resolve situations. However we cannot rule the possibility of conflict of interests especially in a small country as New Zealand. These boards of directors are to be responsible in formulation (Picket and Picket, 2010, p. 162), ratification, evaluation of the corporate strategy (Montgomery and Porter, 1991, p. 449).
Other factors one may consider in the backgrounds of board are issues as gender, ethnic and educational experiences. Lastly board of directors should posses’ qualities in order to be effective; these are namely, independence, equity in share ownership and the quality of the board. At least, it should have a non executive director equivalent holding position in a similar industry where possible.
In conclusion, Strategic leadership and change management are two very close areas which are very interdependent. Change management can be very frustrating and at times disappointing if it is accompanied by poor leadership. To have proper and effective organization change, it is necessary to employ good management whose source is from the leaders.
This is why it is important as the case studies demonstrate, to learn the relationship between the two, including the theories describing them, their economic importance as well as the role of strategic leadership in change management.
Organizations always go through transformation throughout their life cycle (Harrison and Shirom, 1999, p. 307). This is because an organization starts when it is small and as people continues investing in it, it continues growing and there may be need for revolution. Also, the prevailing global and technological changes have got so much impact on the well being of an organization.
Organization change may either be planned or unplanned. Planned changes mainly are to improve the organization while the unplanned depends on its nature.
For example, natural unnatural disasters are not planned and the change enforced by them may not be positive whereas technological and global effects impacts organizations positively and they are not planned. Strategic leadership is very important in managing both of these changes to ensure that their results are always positive.
Several theories have been laid down to show the relationship between strategic leadership in change management. It is clear that the leaders should be in the front line in the implementation of the change process. Firstly, they should be the role models to the rest of the organization; they should make proper communication to the people and should ensure that the employees stick to the set plan to ensure consistency.
Though strategic leadership has got many benefits, it does not lack a few challenges that affect the effectiveness of the change process. For example, there may lack proper leadership to implement the change process or the change may be biased.
Also, the community may resist change making it hard for them to achieve their goals. Through proper leadership and proper prior preparation, it is possible to prevent negative results in a change process.
References
Bondenm, 2009. Strategic Leadership and Change Management.
Centre for Creative Leadership, (2005). Strategic Leadership: An Organizational Imperative.
Harrison, M. and Shirom, A. (1999). Organizational diagnosis and assessment: bridging theory and practice. NY: SAGE.
Jackson and Parry, 2001. The Hero Manager: Learning from New Zealand’s Top Chief Executives
Kouzes, M, J., and Posner, Z, B. (1988). Journal of Business Ethics.
Montgomery, C.A. and Porter, M.E. (1991). Strategy: seeking and securing competitive advantage. Boston: Harvard Business press.
Picket, K.H. and Picket, J.M., (2010). The Internal auditing Handbook. West Sussex: John Wiley and Sons
Schneier, C., (2011). Training and development Handbook., New York: HRD Press.
Wart, M.V., (2011). Dynamics of Leadership in Public Service: Theory and Practice. NY: M.E. Sharpe.
Woodman, R.W. (2007). Research in Organizational Change and Development, Volume 16. San Diego: Emerald Group Publishing.