Key Points:

1
Key Points Chapter 12 Strategic Leadership

• Understand the role of strategic leaders
• Identify the advantages and disadvantages of
  heterogenous top management teams
• Understand the importance of and issues involved
  in CEO succession
• Understand the importance of ethical behavior and
  how strategic leaders influence a firms ethical
  stance

2
Strategic Leadership

• The ability to anticipate, envision, maintain
  flexibility, and empower others to create
  strategic change as necessary
• Must deal with complex, ambiguous, and dynamic
  situations
• Must deal with all stakeholders (e.g., employees,
  customers, suppliers, government agencies,
  shareholders)

3
Role of Strategic Leaders

• Determine strategic direction
• Build, exploit, and enhance core competencies
• Develop human capital
• Sustain an effective organizational culture
• Emphasize ethical practices
• Establish balanced organizational controls

4
Top Management Teams

• Heterogeneity having a mix of functional
  backgrounds, educational backgrounds, races,
  genders, nationalities, experiences, etc.
• Positive Outcomes
• Drawbacks

5
CEO Succession

• What characteristics and experience should the
  new CEO have?
• Is the firm facing particular issues or problems
  that the CEO must be equipped to deal with?
• Insider vs. Outsider

6
Why are ethics important?

• Ethical component in many decisions
• Leaders set the ethical standards for their firms
• By example
• Through culture
• Code of conduct
• Give people tools for dealing with moral
  complexity and identifying and thinking through
  the moral implications of decisions
• Reputation is important