Role of Leadership in Strategic Choice

Leadership

The Role of Leadership in Developing and Implementing Strategy

The role of a leader is important in the determination and implementation of strategy within an organization. The potential impact of a leadership maybe seen with many examples; one is the return of Steven Jobs to the role as CEO of Apple when the firm was struggling. Jobs returned to this role in Apple in 1997 when the firm was struggling. It was under the leadership of Jobs, that the firm adopted a new strategy, rebuilding the image of Apple and developing the lifestyle product range starting with the iPod and iTunes (Stone, 2011). As well as increasing market share the success may be seen in the capitalization of the firm which increased from $5 billion in 1997 to $350 billion in 2011 (Stone, 2011). Another example may be seen when Howard Schultz returned as CEO to Starbucks in 2008, a time when the firm was struggling (NBC News, 2008). Under Schultz the firm rebuilt their brand value and halted the los of customers to competing firms.

These examples prove the difference leadership can make, but what role did the leader actually play in the turnaround? Drucker (2006) describes leaders in a complex fashion; he argues that a leader is an individual that is more than a manager and cannot be defined by characteristics alone. Leaders, he argues, will have followers and will be able to inspire others (Drucker, 2006). It is also argued that leaders are likely to be very self critical. This compliments the view of Zaleznik (1977) who states that leaders are likely to have a vision and be self-motivated in pursuing that vision.

It is this vision that may be seen as key in the way a leader is involved in developing strategy for a firm and implementing that strategy. Strategizing will often start with a vision, an idea of what the company should be doing and where the company should be (Mintzberg et al., 2008). When strategy developed is the methodology of taking the company from its current position to the desired position (Mintzberg et al., 2008). Therefore, the development of the strategy may start with this vision, which is likely to emanate from a leader. However, a leader is not exclusively responsible for developing the strategy, as good leadership is often undertaken utilizing a democratic rather than an autocratic style, which recognizes the importance input of others (Buchanan and Huczynski, 2010). A leader may have the specific vision, but will also accept input from other employees that have specific knowledge of the firm, market or other influences that impact on the way strategies are developed. The utilization of delegation in order for strategies to be implemented is also important, as a leader cannot control all aspects of an organization. The strategies and organizational level may rely on leaders and managers within the organization at lower levels developing the tactical operational strategies (Mintzberg et al., 2008).

The implementation of strategy will be aided with the communication of vision by the leader. In many cases a change in strategic direction will require changes within the organization. Models of change such as those proposed by Lewin, Kotter and Senge may or take different approaches, but all agree that the role of a leader and the communication by that leader is key in employees accepting change (Buchanan and Huczynski, 2010). Communication regarding how and why change needs to occur will help to win over employees and gain their support and commitment to the organizational strategy. If a strategies to be successful, it is essential that the employees themselves actively support that change. Commitment by employees will also facilitate the evolution of strategy as incremental changes which may provide for further improvement may be noted throughout the hierarchy as a result of the motivation level.