Link Between Strategic Management & Leadership

Topics: Leadership, Management, Strategic management Pages: 5 (1597 words) Published: April 25, 2013
Executive Summary
The study reveals the link between the strategic management and the leadership. Strategic decisions are crucial for the growth and development of any organization and vary according to different management and different leadership styles. It also evaluates the utility of different leadership styles in context of different situations. Different theories of management and leadership are also evaluated in this report with regard to their impact on strategy of an organization. It is also concluded in the end that in the given scenario what should have been the approach of the leadership for the strategic decisions and the recommendations are made accordingly.

“Since change is the function of leadership, being able to generate highly energized behavior is important for coping with the inevitable barriers to change. Just as direction setting identifies an appropriate path for movement and just as effective alignment gets people moving down the path, successful motivation ensures that they will have the energy to overcome obstacle.” -John P. Kotter

The basic difference between managers and leaders is that managers don’t accept any change rather they believe in stability but leaders are supposed to bring changes. A leader has strategy and vision while a manager has plans and he executes his plans.(Kotter, 1990). As it is obvious from the given scenario that Dan J. was not able to handle challenges which his Printing Company encountered due to rapid change in technologies, competitive market, increasing expenses and pressure of pricing. He was working more like a manager, specifically store manager, than a leader. (Griffin , R. W. 1999).

Dan J as he is popularly known was the owner of a Printing Company in the Twin Cities. The term Twin Cities in the United States refers specifically to the cities Minneapolis and Saint Paul, both of which are in the mid western state of Minnesota. Lastly Dan j. took the services of C.M. Perme & Associates as consultants. C. M. Perme and Associates is known for engaging leaders from CEO to supervisors, since 1990. This decision of Dan J. brought substantial positive changes to his business figures. (John Adair, 2010).

Link between Strategic Management and Leadership
As John P. Kotter suggested that the change is the function of leadership and strategic decisions means decisions leading to substantial changes in management processes. Hence, Strategic Management and Leadership are closely related or in other words, inseparable. In fact, the terms leadership and strategic management are interchangeable because a leader performs key function like initiating, planning, supporting, controlling, evaluating, etc. Their other responsibilities include building, developing maintaining a team and achieving a common goal by keeping the individual member of the team motivated. (Griffin , R. W. 1999).

“As strategic leaders, top level managers must guide the firm in a ways that result in formation of strategic intent and strategic mission. This guidance may lead to goals that stretch everyone in the organization to improve their performance.” - Griffin , R. W. 1999

Strategic management is a process of coordinating technological, financial, material and human resources of an organization for enabling it and its stakeholders in achieving stipulated target efficiently and effectively. Strategic management is a wide term in comparison to leadership as far as scopes are concerned because leadership is mainly limited to organizing, directing and supporting individuals or the human resource in order to achieve the stipulated goal whereas strategic management refers to all resources within an organization.

Strategic leadership plays key role in responding to the challenges which businesses have to face due to rapid changes in technology, growing competition and globalization. Dan J. was facing the same problems and the business was declining tremendously. The stock...
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