Strategic Management : Strategic Leadership

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Strategic leadership is defined as the ability to anticipate, envision, maintain the flexibility, think in strategic manner, and inspire change. It is essential to have a competent strategic leader as this will impact the performance of the firm directly due to being in the position to make crucial decisions on behalf of the firm (Ireland et al, 2005).
A clear distinguishment needs to take made. Strategy is sets of actions that are needed to be performed in order for change to occur that will lead to competitive advantage. Implementation is the transformation of the strategy into practice. Finally strategic leadership is the individual(s) that will take the lead and spearhead the strategies and supervise it’s implementation until delivered.
Most of the time the strategic leader of the firm is the CEO. Ireland et al, laid out some of the goals that the CEO should focus on for example growth. The CEO shall try to enhance growth of the organization instead of trying to cut staff and save by layoffs. Also Ireland thought that investment in the firm’s human capital should be one of the priorities of the firm’s CEO (Ireland et al, 2005).
Statistics shows that 2 out of 5 CEOs fail within the first 18 months of their appointment. This is mainly due to the poor selection process which results in wrong selection or selecting executives that are not totally skilled to be the firm’s CEO. As explained above, the strategic leader has great effect on the success of the firm.
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