BITS Pilani

Pilani|Dubai|Goa|Hyderabad
MMZG514 (Lecture # )
Dr. Anubha Dadhich, Department of Management, BITS
Pilani.
BITS Pilani
Pilani|Dubai|Goa|Hyderabad

Chapter 13# (T1)

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956

Creating Vision and Strategic
Direction

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
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Good business leaders create a vision,
articulate the vision, passionately own the
vision, and relentlessly drive it to completion.

Jack Welch
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Strategic Leadership

The ability to anticipate and envision the
future, maintain flexibility, think strategically,
and initiate changes that will create a
competitive advantage for the organization in
the future.

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
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Most important function of a leader


The most important function of a leader is to
develop a clear and compelling picture of the
future, and to secure commitment to that
idea.


BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
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The Domain of Strategic Leadership
Architecture for alignment and
implementation
Strategy
Mission
Vision
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
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Vision
An attractive, ideal future that is credible yet
not readily available.

It should evoke a picture in the mind and
suggests a future orientation, implies a
standard of excellence or virtuous condition,
and has the quality of uniqueness!
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
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Examples of some brief Vision
Statements
Motorola
Become the premier company in the world
Ritz-Carlton (Amelia Island) Engineering Dept.
Where no hotel has gone before free of all defects
Johnson Controls Inc.
Continually exceed our customers increasing expectations
New York City Transit
No graffiti
Egon Zehnder
Be the worldwide leader in executive search
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
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Questions to Ask?
The leader must ask there questions to test his
or her vision:
1) Is this the right time?
2) Is this the right direction?
3) Are these the right goals?

This must then be shared with your team and have it
SUPPORTED.

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
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The Nature of the Vision
Current
reality
Staying the course
Vision
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
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What Vision Does?
Links the present to the future
Energizes people and gains commitment
Gives meaning to work
Establishes a standard of excellence and
integrity

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
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Common Themes of Vision
Vision has broad appeal
Vision deals with change
Vision encourages faith and hope
Vision reflects high ideals
Vision defines the destination and the journey
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
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Vision must be able to:

Work at multiple levels
Be inspirational at all levels
Encourage independent action
Develop Self-reference
Be supported by the Company LeaderShip

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
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Requirements for an effective
Vision

For a VISION to be effective it must be
developed by leaders.
Developed by leaders, those with strengths to
influence to establish direction
Must be communicated to followers and must
be supported by them.

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
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Requirements for an effective
Vision

Developed by leaders, those with strengths to
influence to establish direction
Must be communicated to followers and must
be supported by them.
Must be comprehensive and detailed so all
understands its meaning and direction.
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Mission
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The organizations core broad purpose and reason for
existence.
It defines the companys core values and reason for
being, and it provides a basis for creating the vision.
Whereas vision is an ambitious desire for the future,
mission is what the organization stands for in a
larger sense.

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
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Mission
Two critical parts:
Core values guide the organization
Core purpose is why the organization exists
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
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Leaders Framework for Noble Purpose
Purpose Description Basis for Action
Discovery Finding the new Pioneer
Excellence Being the best Fulfillment
Altruism Providing service Happiness
Heroism Being effective Achievement

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
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Strategic Management
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 organization goals
Strategy
The general plan of action that describes resource
allocation and other activities for dealing with the
environment and helping the organization attain its goals
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
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Develop Strategies Focusing On
Core competence
Developing synergy
Creating value for customers
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Core Competence
Something the organization does extremely
well in comparison to competitors.
Leaders try to identify the organizations
unique strengthswhat makes their
organization different from others in the
industry


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Synergy and Value
Synergy: the interaction of
organizational parts to produce a
joint effect that is greater than the
sum of the parts
Value: the combination of
benefits received and costs paid
by the customer
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
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Strategy Formulation and
Implementation
Strategy Formulation
The integrating knowledge of the environment, vision, and
mission with the core competence in such a way as to
achieve synergy and create customer value
Strategy Implementation
Putting strategy into action by adjusting various parts of
the organization and directing resources to accomplish
strategic goals
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Strategy execution
Strategy execution means using specific
mechanisms, techniques, or tools for directing
organizational resources to accomplish
strategic goals. This is the basic architecture
for how things get done in the organization.
Strategy execution involves using several tools
or parts of the organization that can be
adjusted to put strategy into action.
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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
Strong leadership is one of the most
important tools for strategy execution.
Followers need line of sight to the
organizations strategic objectives, which
means they understand the goals and how
their actions will contribute to achieving
them.
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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
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Making Strategic Decisions
Ease of Implementation
Hard Easy
Strategic
Impact
High
Low
High Impact, Hard to
Implement.
Major changes, but with
potential for high payoff
High Impact, Easy to
Implement.
Simple changes that have
high strategic impact
take action here first
Low Impact, Hard to
Implement.
Difficult changes with little
or no potential for payoff
avoid this category
Low Impact, Easy to
Implement.
Incremental
improvements, small
wins; pursue for symbolic
value of success
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Stimulating Vision and Action

The Dreamer The Effective Leader
The Uninvolved The Doer
Action
Low
High
Low
High
Vision
Four types of leaders are described based on their attention to vision and
attention to action.

BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
The dreamer, on the other hand, is good at
providing a big idea with meaning for self and
others. This leader may effectively inspire
others with a vision, yet he or she is weak on
executing strategic action.
The person who is low both on providing
vision and stimulating action is uninvolved,
not really a leader at all.
The leader who is all action and little vision is
a doer.
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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
The vision in this case is only a dream, a
fantasy, because it has little chance of ever
becoming reality.
To be an effective leader, one both dreams big
and transforms those dreams into significant
strategic action, either through ones own
activities or by hiring other leaders who can
effectively execute the vision and strategy.

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
How Leaders Decide ?
Leaders decide on direction through rational
analysis as well as intuition, personal
experience, and hopes and dreams.
Leaders make a real difference for their
organization only when they link vision to
strategic action, so that vision is more than
just a dream. Superior organizational
performance is not a matter of luck. It is
determined by the decisions leaders make.

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
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How Leaders Decide ?
- SWOT Analysis
- Porters Five Analysis
SWOT
Strengths
Weaknesses
Opportunities
Threats
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Porters 5 Competitive Sources
Potential new entrants
Bargaining power of buyers
Bargaining power of suppliers
The threat of substitutes
Rivalry among competitors
BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956


THANK YOU !!
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