CHAPTER 9 Leading teams efforts effectively

STRATEGIC LEADERSHIP FOR EFFECTIVE ORGANIZATION 1. Design the work structure that provides flexibility and
autonomy for decision making.
Characteristics of effective leadership 2. Provide adequate corporate resources for members
1. Willing to make candid and courageous decisions that to accomplish the task.
may be difficult but necessary. 3. Determine if the teams are necessary to accomplish
2. Have foresights on the prevailing condition in the corporate goals and objectives.
environment 4. Determine the effectiveness of team members
3. Have clear understanding of the consequences of contribution to work teams.
their decisions 5. Ensure that all team members know and understand
4. Have clear visioning of employee’s needs and their respective role.
capabilities 6. Provide the training and corporate intervention
5. Motivates employees for effective and efficient through corporate consultants.
performance 7. Provide regular feedbacks regarding performance and
6. Knows the art of soliciting feedback from peers and
accomplishments.
supervisors
7. Develop strong partnership internally and externally
8. Good communication skills that facilitate effective The cardinal characteristics and Values of good work
execution of their strategic vision teams
1. Members participates actively and positively.
Managerial leadership as Organization resources 2. Members listened and received thoughtful feedback.
Top level executives and managers who know the art of 3 Willing to take risk and focus on ultimately goal.
managerial leadership is the greatest investment of the 4. There exists open communication and teammates
firm towards its desired goals and competitive trust the judgement of others.
advantage. 5. Members take the initiative to get things done on
time.
Strategic leadership stems from the development of 6. Support other team members willingly.
management process of planning, organizing, directing 7. Understanding and committed to team objectives and
and controlling and vital resources of human working enthusiastically.
8. Member influence others and get involved in decision
making.
The dynamics of top-level Decision making 9. Encourage everyone and acknowledge others.
10. Humbleness in accepting mistakes rather than blame
1. The External Business Environment
other members.
A. Analysis of the external environment concerning
industry structure. Participative strategic leaderships
B. Analysis of the market growth in the firm’s primary Requires managers at the top knowledge in
business meeting and patching up to difference of
C. Analysis of the number and type of competitors opinions and in promoting camaraderie
D. Political and Legal Environment that affect business among its executives.
condition
E. The degree in which product can be differentiate Factors to consider to Development of management
teams
2. The firms Internal Environment and its 1. The more heterogenous the management team the
Characteristics more difficult it is to manage.
A. The commitment of the firm for growth and 2. Difference in opinions due to different background
expansion and experience.
B. The size of the firm to compete in the environment 3. Diverse background may inhibit the process of
C. The organizational culture of the firm decision making if not properly manage.
D. Availability of human and capital resources 4. Suboptimal decision may emerge when threats and
E. The pattern of cooperation and interaction among opportunities are not properly examined.
managers and employee
5. Difficult in bridging of opinions due display of Components of effective Strategic leadership
intellectual supremacy especially when 1. CORPORATE STRATEGIC DIRECTION
one asserts his position in the organization. The firm must develop a long-term vision of its strategic
6. It requires high level of managerial leadership in the intent. The long- term direction that is planned and
process of consultant’s conceptualized with its level management is the driver
capabilities and democratic steering opinions. of strategic leadership behavior in terms of corporate
productivity and expansion.
Characteristics of high performing teams
1. High driven with task-oriented goal 2. MAINTAINING AND EXPLOITING CORE
2. With clear and elevating goals COMPETENCIES
3. Committed and competent members who work hard Strategic leadership ensures that the firm exploits and
4. Collaborative climate of trust among members of maintains its core competencies in the production of
the team quality products, delivering them to customers at a price
5. High standard of excellence that is affordable, and maintain sustainable operation
through effective customer relations.
Staffing the corporate team
A very critical organization decisions as it has important 3. ABILITY TO DEVELOP HUMAN RESOURCES
implications to the firms’ performance. It could be It is the ability of the firm to develop the critical
noted that wrong selection of top executives elements of strategic leaderships and effective
implementations of strategies through committed
Internal sourcing strategies executives and employees of the firm.
The assessment of people within the organization who
are ready for corporate governance. 4. SUSTAINABLE AND EFFECTIVE ORGANIZATIONAL
CULTURE
Advantages of hiring from the internal source Organizational culture is a complex set of corporate
a. Knowledge about the firm’s operations that brought ideologies and core values that is shared throughout the
them to firm and it influences the way business is conducted.
competitive advantage
b. Familiarity with company products and operation Two factors that develop Organizational culture
c. Knowledge of system and operating procedure A. DEVELOPMENT OF ENTREPRENEURIAL ORIENTATION
d. Development of high morale and commitment Entrepreneurial opportunities are important source of
e. Lower turn-over rate of valuable managers growth and innovation. It could be encouraged or
f. Higher sustained performance and lower training cost discouraged.

External sourcing strategies B. DIMENSION FOR EMPLOYEE MOTIVATION AND

It is the process of collecting career positions from ORIENTATION
outside the organization in other than the one for which THE CULTURE ANATOMY
they work currently. - It allows the employee to take actions that are free of
organizational constrains and permits individuals to be
Advantages of external Sourcing strategy self-directed.
a. Bringing in new blood to the organization THE CULTURE OF INNOVATION
b. Experience in other firm develop new strategies - It is the tendency of the firm to encourage employee
c. Changes in current strategies when top teams in to engage in experimentation and creative process or
homogeneous in character develop new products and support new idea
d. Innovation and New technology updates
e. Development of new system and procedure THE CULTURE OF RISK TAKING
- Progressive firms encourage risk-taking activities with
Effective strategic leadership minimum amount of control as the progress of firm
The making of effective leadership for corporate rests also with the risk involving innovation and
governance involves the long-term vision of the firms' procedures that may be fount out to be
strategic intent. This intent is looking to the future miles successful in the end.
ahead with vision that is consistent to its corporate
image and character.
THE CULTURE OF PRO- ACTIVENESS STRATEGIC ENTREPRENEURIAL PROCESS
- It is the tendency to be market leaders in the industry Entrepreneurial strategies are necessary to create the
rather than to be follower. firm's advantage in terms of market share and
profitability.
THE CULTURE OF COMPETITIVE AGGRESSIVENESS
- It is the tendency of the firm to develop strategies and I. STRATEGIC PLANNING PROCESS
actions that allows it is consistently and substantially 1. Entrepreneurial Visioning
outperform other firms in the industry. -A good vision anticipates the weaknesses,
opportunities, strength and threats (WOST) in the
CORPORATE CULTURE AND RE- ENGINEERING environment.
STRATEGIES
- Strategic leadership recognizes the importance of 2. Setting Goals and Objectives
corporate cultural changes when needed even it is quite -Strategic planning is the process of analyzing
difficult to change overtime the present environmental conditions through
the different data available to the entrepreneur.
5. CORPORATE ETHICAL STANDARDS AND PRACTICES
Corporate ethics synonymous with the image of the firm 3. Defining the Firm Strategies
in the business world. The effectiveness of the corporate -It is the setting of priority programs and policies to
process increases when they are based on ethical bring into the reality of the set plans according to the
practices desired objectives.

6. BALANCING ORGANIZATIONAL CONTROL 4. Setting Strategic Procedures

Developing and using balance organization control is the -Programs and activities need defined procedure and
final component of effective leadership. developed strategic action plans that set the firm in
motion with certainty and proper direction.
FACTORS USE IN ORGANIZATIONAL CONTROL
- The use of strategies in the implementation new 5. Setting the Timelines
programs -Strategic actions need the setting of timelines as each
- Factors that alter or revise existing procedures strategy must be done at the right time and at the right
- Activities that builds credibility to consumers and place.
stakeholders
- Activities that support strategic change 6. Setting and Allocating Capital Resources
- Controls that provide related adjustments in resources -Entrepreneurial strategies need budgets in terms of
- Financial and resource control in the implementation capital resources in order for it to operate effectively.
of strategies
II. Strategic Formulation Process
1.DETERMININGTHE HUMANCAPITAL
CHAPTER 10 Strategic actions and programs need people who have
ENTREPRENEURIAL FORMATION AND EVALUATION the skills necessary to carry out strategies.

STRATEGIC ENTREPRENEURSHIP FORMATION 2. SETTINGTHE COMPENSATIONAL STRATEGIES

The competitive landscape in the new century present The human power will not perform according to set
firms with substantial changes and complexity coupled strategies without the necessary compensation that is
with the presence of uncertain environment. Firms must based on their skills and capabilities.
take actions in order to survive the present business
environment. The approach to entrepreneur formation 3. SETTING PERFORMANCE TARGETS
must be focused on creating new value for customer Strategies and program implementation must be
satisfaction. evaluated in terms of accomplishments and the extent
by which these strategies are implemented.
INNOVATION FOR ENTREPRENEURIAL FORMATION
The key to competitive success in the development of 4. DEFINING THE TARGET STRATEGY
entrepreneurship is through innovation. A. KNOW YOUR PRODUCT OR SERVICE
First you must know the product or service that you will and capital to go into business. It is important that
offer to your customer. before going into the field of business the entrepreneur
B. ANALYZE THE MARKET POTENTIAL must know the business condition prevailing in the
The customer base will determine the success of your environment.
business venture. The wider the market potential, the -STRENGTH, WEAKNESS, OPPORTUNITIES, THREAT
more chances of growth and success.
C. DETERMINE THE MARKET STRATEGY Product And Market Level Analysis
A unique product or service needs effective marketing A. PRODUCT STRENGTH
and distribution strategy to get the customer into the • AVAILABLE TECHNOLOGY IN PROCESSING
basket of demand potential. -Technology is an important factor in producing the
D. KNOW THE COMPETITORS product as the economies of scale determine the price
Competitors in the markets are threats when they are index.
not properly identified, and their strategies are • THE SOURCE OF RAW MATERIALS
unknown. -The consistency of production is dependent on the
supply of raw materials.
Environmental Scanning • PRODUCT ATTRIBUTES AND MARKET
The environment of business is vast with opportunities ACCEPTANCE
as well as threats. The entrepreneur must look at the -The product must have the attributes that the
business potential as well as the prevailing condition in customer needs or wants.
the place of operation.
B. SUSTAINABLE PRODUCT OPPORTUNITIES
Business Location for Retail Establishments • PRODUCT DEMAND
A retail outlet would need a site that is convenient -Product demand is the greatest opportunity of the
for prospective customers in terms of parking entrepreneur. Demand must be sustained before
space or availability of transportation. competitors appear in the market.
• PRODUCT QUALITY
Factors to consider in choosing business location -Quality and standard products is the market wanted for
a. Rent and Space their money.
b. Terms of lease agreement • GOVERNMENT SUPPORT FOR LOCAL PRODUCTS
c. The type of goods or merchandise -The government support for local entrepreneur
d. The income level of prospective customer in the area opportunity is a for product development and expansion
e. Prospective sales in volume in the market.
f. Government regulations, taxation and ordinances
g. Location of the area in terms of traffic and weather C. THREATS TO PRODUCT PROFITABILITY AND MARKET
or rain flood EXPANSION
• Entrance of Competitors
Business Location for Industrial Plant or Manufacturing -Competition will reduce profitability as price war
Operation will be the strategy for competitive advantage.
Environmental factors in locating industrial plant or • Supply of Raw Materials
manufacturing facilities need environmental scanning as - The supply of raw materials will be generally higher as
it is a great factor in long term investment in building firms will be competing for the same supplier.
facilities and other equipment. • Poor Quality and High Price
-Entrepreneur must be able to produce the desired
The following factors must be considered: quality of products in order to get sustained patronage.
a. Land area of the Site
• Product Design and Appeal
b. Facilities for expansion
-Product design must appeal to customer
c. The availability of power and other utilities
demand.
d. Building and equipment
• Production Cost
e. Plant site accessibility to transportation
-Production cost is price determinants.
f. Traffic conditions
• Supply and Demand
-Intermittent product supply to the market will make
Analysis of the Business Condition
customer shift to other products.
It is not enough that the entrepreneur has the money
 • Weak Marketing and Distribution Strategy C. MARKETING AND DISTRIBUTION
-The competitive landscape needs marketing and The new paradigm shift in marketing is creating
distribution strategy that will sustain it product market demand, managing profitable operation through
share and above average return. attracting new customers, retaining current market and
establishing new market base.
III. Strategic Implementation Process
1. Managerial Leadership and Strategies D. FINANCIAL MANAGEMENT STRATEGIES
Business organization competes through strategic The success of the firm's strategic actions is greatly
operations that influence the environment. dependent on how the top management allocated their
financial resources in their operation.
A. THE TOP MANAGEMENT
• COMPETENCIES E. INFORMATION AND DATA BASE MANAGEMENT
-It is the ability to manage the firm towards its vision The process of combining the hardware technology and
and mission and to direct the organization to the computer literate people in gathering and storing data
attainment of its projected above average return. that support managerial functions
• SKILLS
-Human skills refer to managerial leadership strategies 3. Strategic Human Resources Management
in handling people while technical skills refer to the Strategic management process would flourish
operational strategies. with people who are proactive to change.
• ATTITUDE
-It is a personal commitment for excellence in handling Human Resources Staffing Strategies
the operational system of the firm. a. The right people with necessary education and
• HABITS training
-It refers to personal discipline that is developed in the b. Good social and psychological framework of mind for
individual manager in handling himself with the various strategic change
public in the organization. c. With right attitude and ethical values of work
d. Proactive to change and forward thinking
B. THE FUNCTIONAL ROLE OF TOP MANAGEMENT e. Technologically oriented in the use of new system and
• Determine strategic direction of the firm. procedure
• Exploit and maintain the firm core f. Potential for growth and advancement in the
competencies. Develop human resources for organizational structure
effective performance.
• Develop control mechanism and sustain IV. STRATEGIC EVALUATION PROCESS
balance operational strategy. It refers to the final review of the implementation of the
• Develop organizational culture and values of strategies that were made during the planning and
ethical standards. formulation stage

C. CHARACTERISTICS OF STRATEGIC LEADERS The Measurable Criteria (SMART)

A good leader is developed through time. 1.SYSTEMATIC
Strategic leadership is the art of making people follow The measuring instruments that will be applied are in
without telling them directly what a leader wants them consonance with the existing strategies against the
to do. trends and individual performance of the team players.
2.MEASURABILITY
2. FUNCTIONAL AND OPERATIONAL STRATEGIES It refers to the extent of performance made in terms of
A. PRODUCTION PROCESS product output, quality of product and market
Product innovation strategy, product design, acceptability.
production schedule, and quality materials. 3. ACCEPTABILITY
The strategies applied must be acceptable to the team
B. INVENTORY AND STORAGE MANAGEMENT players as they are achievable and provide criterion for
Inventory management can be a source of the maintenance of the firm competitive advantage.
competitive advantage when managed properly. 4.RESULT ORIENTED
Strategies must be measured in terms of result in
carrying out the competitive advantage
5.TIME BOUND
Effective strategic implementation needs to be
monitored in timely manner, accurate and relevantly
measured. Timely and relevant measurements when
effectively done could be an instrument in changing
strategy directions when the strategies have to be
realigned to the changing business condition.