Unit 1 Strategic Management and Leadership
Unit 1 Strategic Management and Leadership
Unit 1 Strategic Management and Leadership
Taking initiatives and taking action to further the objectives of the organisation is referred to
as strategic management. On the other hand, leadership refers to guiding the members of
an organisation so that they can advance toward shared goals with other members of the
organisation and accomplish its objectives. Strategic management and leadership are
related on an internal level; neither is complete without the other. Leadership and strategic
management have a complex relationship. This essay will examine how strategic
management and leadership are related. Having the ability to unite people makes leaders
crucial to the task of strategic management. This does not imply that executives behave
without regard to the strategic plan. Leaders heavily rely on what has been decided and also
the individuals who have been given the various jobs. A strategic plan provides a feeling of
direction, which is the main justification. Visionaries can be leaders, but without something
tangible, their ideas are little more than fluffy air. Leaders may have considerable influence
in determining the ultimate goal, but attempting to achieve it without a strategy is akin to
walking through a dark forest without a compass. Developed strategies will also serve as
useful tools for any leader. The benchmarks and timetables provide justification for any
motivational efforts. Leaders strive to be problem solvers. Those same performance
indicators will alert a leader to issues that must be addressed. In addition, strategic
management is a living operation. It is not carved in solid stone. Planning and execution are,
respectively, the two pillars of strategic management and leadership. Due to the risk of
analysis paralysis, a business cannot spend all of its time planning. It can be just as harmful
to act without having any direction, and this frequently leads to an organisation taking the
incorrect path. Strategic management gives the means of getting there while leaders
provide a notion of where the goal should be in the end. A procedure and set of rules that
will enable the achievement of the ultimate objective are derived by leaders from all the
planning. It involves two functions that depend on one another and work together to
achieve the organization's goals.
Initial Meeting: During the first meeting, at the start of the assessment period, the
employee and supervisor will set joint goals that are clearly aligned with the
department, school, and university goals. A development strategy to support
objective achievement will also be devised and agreed upon.
Quarterly Feedback Sessions: During the feedback sessions, the employee and
supervisor will discuss the employee’s progress toward goal completion and any
support that may be needed.
Final Meeting: At the end of the evaluation period, the employee and supervisor will
evaluate overall performance and goals, as well as the consequences of the
development plan.
The field of performance management is challenging to navigate. It is always changing
hence an impressive performance management system is required. Every year, there are
current trends in performance management, but unfortunately, human resource
departments frequently get them completely wrong.
Employees are left feeling deflated, unmotivated, and unengaged as a result of this. The
inadequate levels of team and individual employee performance frustrate managers.
Thankfully, increased businesses are starting to realise the value of effective performance
management systems and the benefits that come with them. Understanding what an
effective performance management system is the first step towards revitalising and
improving your existing performance processes.
“Performance management is the continuous process of improving performance by setting
individual and team goals which are aligned to the strategic goals of the organisation, plan-
ning performance to achieve the goals, reviewing and assessing progress, and developing
the knowledge, skills, and abilities of people.” - Michael Armstrong
(https://www.koganpage.com/product/armstrong-s-handbook-of-performance-
management-9780749481209)
The "Planning" stage for the upcoming period is the first step in Armstrong's performance
management cycle. Planning ought to include:
There is no halting the rapid change that is taking on in the globe. Business executives need
to have an organisational change management plan in place since organisational change is
inevitable. It seems like basic sense at first: a plan is created first. Then, modification is
required to put that plan into practise. Business owners should begin planning their change
management strategies now in order to help their staff members overcome the emotional
and practical difficulties that come with it.
Naturally, changes inside businesses do not just happen. Changes to organisational design
typically involve procedures, systems, styles, cultures, or other elements. Change demands
work and pushes the organization's (parts of it) comfort zone. We might thus infer that this
need for change is somewhat urgent and inevitable. Such an organisational transformation
would result from a planned strategy change.
The pace of organisational change has dramatically risen throughout time. While many
businesses were successful, several of them also experienced failure. People who dreaded
technological change, the status quo, and its effects on their jobs were present in the
unsuccessful ones.
There are several factors that contribute to the failure of change management methods,
including inadequate communication, a lack of training, strategic flaws, a lack of vision, and
others. Making ensuring that there is proper communication among all organisation
members is the first step in overcoming these hurdles. It is crucial for executives to take the
initiative and let staff members speak up when necessary.
Second, developing a strategy based on the team's strengths and limitations can aid in
creating a change management approach that everyone will be able to stick with. Finally,
leaders should foresee and convey the eventual goal and result of this shift. Employees will
not be motivated enough to adapt the change in their job if they do not connect with the
change's overall vision well.
The process of establishing, planning, and putting into practise measures to successfully
integrate change throughout the business is known as organisational change management.
To achieve desired results, it is a process of risk mitigation and maximising change
management efforts. It is your duty as a leader to choose the course of change management
activities. The effectiveness of organisational change is influenced by several factors, but if
you are ready and have a clear plan, the path is manageable.
Almost all organizations—public and private, big and small—now view change as their main
issue. This is especially true of large, well-established "complex adaptive" organisations.
Change is pervasive, and it is virtually commonly believed that it is accelerating in both rate
and pace.
The "challenges of change" have received attention from a number of "gurus" (such as Tom
Peters and Charles Handy) and academics (particularly Colin Carnall, author of multiple
volumes on Managing Change).
Businesses must continually alter and adapt to address a range of issues, including changes
in technology, the emergence of new rivals, changes in laws and regulations, or shifting
economic patterns. If you don't, you risk failure or, worse, stagnation.
This is a checklist for analysing an organization's or a division's environment. The initial
abbreviation used was PEST, which stood for:
Political forces and influences, both large and little 'p', that may have an impact on
the organization's performance or its alternatives
Economic factors include the type of competition the organisation or its services face
and the financial resources that are accessible in the economy.
Demographic shifts, shifts in how people live, work, and think are examples of
sociological trends.
Technological innovations may be new methods of thinking or organising as well as
new ways of accomplishing both old and new things, as well as new ways of
addressing both old and new issues.
A variety of tools are available to aid with navigating transition. These include Backhard and
Harris' grid, PESTLe analysis, forcefield analysis, Kotter's eight steps to change, and Backhard
and Harris' grid.
Increased Urgency: This means that staff must understand why a change is necessary, such
as that the patients are unhappy.
assemble the ideal team in order to build the leading team.
Create a captivating idea that can be explained in a few minutes if you want to inspire
others.
Communicate for buy-in: This phase involves getting buy-in and communicating at the
proper volume.
Encourage action: Remove obstacles, increase hope and confidence for the transformation.
Create quick victories: This helps to boost motivation among participants, validates the
change in the near term, and points potential participants in the correct path.
Get it to stick: This is how it differs from many other ideas of change management. At the
process' conclusion, cultural transformation occurs spontaneously and is accepted.
Maintain your momentum: The time has come to alter the structures that will support the
transformation.
Kurt Lewin, a pioneer in the field of social sciences, created the management approach
known as "force field analysis" to help in scenario diagnosis. It will be helpful when
examining the factors involved in developing and conducting a change programme, and it
will surely be helpful in team-building exercises while striving to overcome change
resistance.
Lewin assumes that there are always both pushing and restraining factors at work that
shape any potential changes.
Not as an event, but as a process, change happens. Even though there was a go-live date, a
kick-off meeting, or announcement, organisational change does not occur instantly. People
don't just change because they got an email or went to a training session. When we go
through change, we transition from what we had known and done to the desired new way
of acting and performing our jobs.
Change can occasionally be intentional, the result of conscious thought and deed. Planned
change is the name for this kind of transformation. Change, on the other hand, occasionally
occurs in an apparent spontaneous and unplanned manner. Emergent change is the name
given to this kind of transformation.
Two possibilities exist for change to be emergent rather than planned:
1. Managers take a variety of actions that seem unconnected to the change that is
developing. Therefore, the shift was not anticipated. These choices, however, might
not be as unconnected as they initially appear since they may be based on unstated,
and sometimes unconscious, assumptions about the organisation, its environment,
and the future (Mintzberg, 1989). Such implicit presumptions determine the course
of seemingly unconnected and unrelated actions, causing the change process to be
shaped by "drift" rather than design.
2. The change in directions outside the control of managers is influenced by external
variables (such as the economy, rivals' actions, and the political climate) or internal
characteristics (such as the relative strength of various interest groups, knowledge
distribution, and uncertainty). Even the most meticulously planned and carried out
change programme may result in some unexpected effects.
One of the most widely used and embraced theories in the world is Kotter's idea of change
management. There are eight stages in this paradigm, and each one focuses on how
employees react to change.
Creating a feeling of urgency among employees may be the most effective method
to engage and inspire them throughout the process.
assemble the squad Choose the ideal combination of abilities and temperaments for
the team that will oversee bringing about change inside the firm.
Create the right vision - Consider not just the strategy but also the creativity,
feelings, and goals of the project of the workforce.
Be straightforward and open when communicating with others about the changes
you are putting into place.
Get things going by securing assistance, removing obstacles, and gathering
constructive criticism.
Focus on short-term objectives rather than the overall outcome. To increase staff
morale, set modest targets and acknowledge incremental successes along the way.
Reinforce and make change a part of the company culture by incorporating change.
Encourage staff to adapt and recognise them for the new behaviour.
Keep trying since barriers cannot be avoided and changes do not occur immediately.
Regardless of how challenging things may appear, be persistent during the change
management process.
One of the most well-known and useful models that enables us to comprehend
organisational and structural change is Lewin's Change Management Model. Kurt Lewin
developed and invented this paradigm in the 1950s, and it is still relevant today. Lewin, a
physicist and social scientist, used the shifting phases of an ice block to demonstrate how
organisational or structural change occurs. Three primary phases make up his model:
unfreeze, change, and refreeze. Let's examine these phases in more detail:
Unfreeze: According to Lewin's technique, the preparation for the change is the first
step of the change-process. This indicates that the organisation needs to prepare for
the change at this stage as well as the fact that change is essential and required. This
stage is critical since most individuals attempt to withstand change, and it's crucial to
end this status quo. The key in this situation is to convince individuals of the
necessity of changing the status quo and the benefits of doing so. In this level, an
organisation must also revisit and analyse its fundamental principles.
Change: This is the time when there is actually a shift or change. As individuals often
need time to accept new discoveries, occurring, and changes, the process may take
some time to complete. Good leadership and assurance are crucial at this point since
they not only help steer the process in the proper direction but also make it simpler
for the employees or other persons involved. So, for this step to be effective,
communication and time are essential.
Refreeze: The business or organisation starts to regain stability once the change has
been adopted and executed by the workforce. Refreeze is the name of the stage
because of this. At this point, things start to resume their usual speed and routine as
the employees and procedures start to refreeze. To ensure that modifications are
employed consistently and put into practise even after the goal has been met, this
phase needs the assistance of the people. With a sense of consistency now present,
employees become at ease with and confident in the new adjustments.
One of the few models that has survived as others entered and left the fashion scene is the
McKinsey 7-S framework or model. It has seven processes or stages for managing change
and was created by consultants working for McKinsey & Company in the 1980s.
Strategy is the strategy developed to overcome opposition and accomplish objectives.
According to McKinsey's 7-S framework, this is the initial stage of change and entails
creating a step-by-step process or future plan.
Structure: In this paradigm, the stage or characteristic relating to the organization's
organisational structure is called "structure."
Systems - This stage relates to the way daily tasks are carried out in order to complete a
task.
Shared values - An organization's shared values are the fundamental principles by which it
operates.
Style- refers to the way that changes and leadership are embraced or put into practise.
Staff - The workforce or employees and their capacities for work are referred to as the staff.
Skills-Competencies and other talents that workers who work for the company possess.