Strategic Leadership Essay
Harrison and Pelletier (1997) indicate that the determinants of strategic leadership constitute those factors which contribute significantly to success, fully implemented strategic decisions. CEOs may expect positive results from the strategic leadership and decision making if these factors will be used in the right time, place and way
We may name a few challenges that influence primary performance determinants. The first performance determinant is an adaptation to environment. Organization should learn how to adapt under conditions of uncertainty and instability of the environment. The challenges include the reactions to various external factors, such as political, economic, technological, competitive, etc.
The information about the environment should be accurately interpreted and understood by the members of organization. (Yukl, 2010)
Efficiency and process reliability as a performance determinant suggests a few challenges as well. Efficiency ensures that company implements competitive strategy via minimizing costs. To be competitive is quite a strong challenge, because organization has to be effective on every level, in each operation, in each technology.
Reliability suggests that company’s processes operate without unnecessary delays and errors. Challenges include avoiding extra costs for repairing or replacing products, damaged equipment or facing the lawsuits by customers, etc.
Human resources and relations may become a crucial performance determinant when work is complex or for example there is a need in highly qualified employees. In general, this determinant is vital for organization’s ability to compete as well, but of course it may be less important if the organizational processes are highly automated.
Many levels of organization are included into decision making process; therefore some adopted decisions may not be compatible with each other. As a result of incompatible decision making organization may face the problems with overall performance.
The implementation of the vision or the strategy that is not fully compatible and is not fully accepted by all organizational levels and by top management is not going to be made in an effective way. In this case managers may resist implementation of the strategy; subunits may have different priorities and views. There are two ways to avoid it: first option is based on CEO’s wise structural units’ coordination and the second one suggests entire executive team involvement into the process of integration.
Case studies provide us with a valuable practical experience of different CEO’s performance practices. They show the story of successful leadership examples and strategies not only for commercial organizations, but also for many other sectors, like politics, military, and nonprofit social organizations, etc.
Therefore the major merit of the case studies is the opportunity to learn from the best practices of CEO from all around the world and to learn from their organizations’ experience and mistakes as well.
Among the pitfalls of the case study method we can name a difficulty of getting accurate information about the perceptions and behavior of CEOs. (Yukl, 2010). Information may be not 100% reliable and fully objective. For example, it may show processes and events in a favorable image. It may be also hard to access the influence of certain leader.
The people’s opinions and comments on CEO’s actions may be affected by biases, attributions and leadership theories.
Taking into account the factors mentioned above we may sum up that in order for a case study to be reliable, it’s crucial to obtain the information for it from multiple sources with a various methods.
According to Yukl (2010), case studies are considered to be very useful sources in studies of leadership. Can you name the most brilliant example of well known organization that became a leader of its industry due to successful implementation of leadership strategies? What are the major performance determinants for this organization?
As an example of an interesting case study dedicated to the company that values leadership I would like to cite Box and Byus (2007) and their article “Ryanair: Successful Low Cost Leadership”.
Ryanair pays a huge attention to the one of the most important performance determinants – efficiency and process reliability. Due to such elements of this determinant as no “free” amenities such as snacks and drinks, non-reclining seatbacks, quick flight turnarounds and minimum baggage allowances, this organization has developed the greatest competitive strategy in comparison to the other low cost European airlines. (Box and Byus, 2007).
Ryanair’s services are sold at a min cost due to min. level of expenditures.
The company’s processes are reliable enough for it to be a leader among the European low cost airlines.
Ryanair’s principles include an absolute dedication to low cost performance in every element of the value chain, quick gate turnarounds, nonunion operations, performance-based incentive compensation plans, standardization on one type of aircraft, and flying to secondary airports, which provides significant savings for the company. (Box and Byus, 2007).
Although despite the fact that the company pays a lot of its efforts to increase efficiency, there are two slightly weakening determinants such as adaptation to the environment and human resources policy.
In regards to Ryanair’s adaptation to environment, its weak place is a relations with Irish government authorities.
Another problem of Ryanair’s strategic leadership is human resources: company has experience a few strikes in the previous years. The major issues are a compensation for pilots and flight attendants that is comprised partly of salary and partly based on efficiency issues. (Box and Byus, 2007).
