Lecture Slides For Week 11

Strategic Management,
Week 11, Spring 2024,
Leading strategically and developing corporate

culture
‐Dr Kumar Biswas

Senior Lecturer in Management, School of Business, [email protected]
Recap From
Last week
9.3 Types of
structure in focus
• Any structural configuration depends on
the type of strategy employed, the nature
of products and services sold, the number
of reporting relationships required, and
the degree of geographic expansion
• Four common organisational forms
include:
• The simple structure
• The functional structure
• The multidivisional structure
• The matrix structure
The functional structure
Single‐business organisations often tend to be organised along functional

lines
Grouping together functionally similar tasks is conducive to exploiting scale

economies, promoting learning and capability building, and deploying
standardised control systems
Different functional departments however develop their own goals, values,

vocabularies and behavioural norms, which make cross‐functional
integration difficult
The multidivisional
structure
• It is a structure that permits decentralised
decision making where business‐level
strategies and operating decisions are
made at the divisional level
• The multidivisional structure is an example
of a loose‐coupled, modular organisation
where business‐level strategies and
operating decisions can be made at the
divisional level, while the corporate
headquarters concentrates on corporate
planning, budgeting and providing
common services
Matrix structures
• Organisational structures that formalise

coordination and control across multiple
dimensions are called matrix structures
• Organisations that require a high level of
innovation are more likely to benefit by
adopting a matrix structure
• The problem of the matrix organisation is
over‐formalised and excessive corporate
staffs and over‐complex systems that tend
to slow decision making and dull
entrepreneurial initiative
The McKinsey 7‐S model for strategy
evaluation and execution
• The 7‐S model describes the seven factors critical for effective
strategy execution:
• Strategy
• Structure
• Systems
• Staff
• Skills
• Style/culture
• Shared values
Chapter 10
Leading strategically
and developing
corporate culture
Learning objectives
10.1 Identify what it means to lead strategically in the global corporation
10.2 Review how leaders build adaptive capacity, and how they acquire and
assimilate knowledge in ways that transform current stocks of knowledge
10.3 Distinguish between the principles of operational and strategic agility

that enable organisations to effectively cope with change and uncertainty
Learning objectives
10.4 Review how CEOs achieve transformational behaviours, build top management
teams, encourage adaptation and innovation, and acquire and share knowledge
10.5 Think about leading strategically as a human capital resource for building global
talent and building shared knowledge
10.6 Ascertain how to develop a company’s corporate culture and to integrate its
benefits, and classify the relationship between leading strategically and corporate culture
10.7 Apply ethical leadership principles to leadership in action

Introduction
Often called ‘strategic leadership’ — leading strategically is about how to

communicate a vision for the future, and how to apply strategic decisions
Strategic agility, concerns how organisations as a whole flexibly respond to

complex, global and dynamic environments
There are key themes and priorities that must be established by top
leaders to invoke a number of performance measures
Relationship between leadership and culture

10.1 Leading strategically
• Means to understand how a number of different leadership
approaches can be applied in contemporary contexts
What does it mean to lead strategically?
• Five foundational pillars:
• Adaptive capacity
• Absorptive capacity
• Operational and strategic agility
• CEO behavioural dimensions, responsibilities and performance
• Building the corporate culture
Pillars of leading strategically
11.2 Adaptive capacity and
transformational learning
Adaptive capacity
• The ability of any organisation as a whole to unleash the potential of its systems
and people in ways that allow it to adjust and adapt to shifting environments
• Comprises of a systems perspective, a sociological perspective, a service
orientation and a psychological perpective
Absorptive capacity (AC) –
building dynamic capability
Absorptive capacity (AC) –
building dynamic capability
• Three ways to acquire new external

knowledge:
• Passive knowledge
• Active learning
• Interactive learning
10.3 Strategic agility
Is underpinned by the AC
The need to pursue market‐
dimensions of acquisition and
creating innovations
transformation
Operational and strategic agility

Operational agility is
serve as a synthesising capability
underpinned by the AC
that creates competitive
dimensions of assimilation and
advantage out of ‘conflicting’
exploitation
forces
Strategic inflection points for agile
companies
Actions of strategic leaders
• There are two parts to leading strategically:

• Specific leader attributes
• Specific business transformation moves
• Leaders have to:
• Think first
• Collaborate on multiple actions
• Act decisively
• Remain positive
• Be humble and courageous
Leader actions for strategic agility:
lessons from the field
10.4 CEO behavioural dimensions, responsibilities
and performance
TRANSFORMATIONAL THE TRANSFORMATIONAL WILL SHIFT BETWEEN A THE TOP TEAM WILL ALSO
BEHAVIOURS AND THE TOP LEADER IS ABLE TO TRANSFORMATIONAL EMBODY THESE BEHAVIOURS
MANAGEMENT TEAM COMMUNICATE AND CONNECT APPROACH AND A DAY‐TO‐DAY AS THEY WILL BE ALIGNED
WITH PEOPLE, CREATE TRANSACTIONAL APPROACH WITH THE CEO’S STRATEGIC
MEANING, MOBILISE SUPPORT, VISIONS
AND INSPIRE OTHERS IN THE
PURSUIT OF ORGANISATIONAL
EFFECTIVENESS
Transformational leader characteristics
10.5 Developing human capital –
managing talent
Identify that there is a difference between individual‐level Leaders need to think less about individual KSAOs and more
human capital — that is, knowledge, skills and abilities plus about how to develop the unit or company‐level human
other characteristics (KSAOs) possessed by individuals — and resources
unit‐level or company‐level human capital that can be leveraged
as an organisational capability
Developing the human capital stock
for managing talent
10.6 Developing corporate culture
Corporate culture is about how

leaders create shared social
The need to pay attention to what is
knowledge, which guides the
noticed and commented on within
behaviour and actions of
the organisation; what is measured,
employees, including the decisions
controlled and rewarded
necessary for internal integration
and external adaptation
How cultural values build high
performance cultures
10.7 Ethical practices
Ethical leaders tend to be fair, open and trustworthy, by nurturing trusting relationships so that
workers feel a fair reciprocation for their contributions
Ethical leadership is an important precursor and component of becoming a servant and

authentic leader
Building positive stakeholder perceptions of an organisation’s ethical identity has led to

increased satisfaction and financial performance
Summary
This session has covered many issues of strategic leadership and
corporate culture including:
• How and in what circumstances leading strategically matters
• That transformational behaviours are more likely to bring about
significant strategic change
• How building corporate culture is link with leading strategically
See you in your lectures and
tutorials
• Please come prepared with tutorial

materials for each week on Moodle
based on the learning materials covered
in the previous week.
© McGraw‐Hill Education.
References
• Grant, R., Murray, P.A., Orr, S., Butler, B. and Bezemer, P.J., 2021. Strategic Management (Essentials Edition). John Wiley
& Sons Australia, Ltd.
• Hill, C. W., Jones, G. R., & Schilling, M. A. (2016). Strategic management: Theory & cases: An integrated approach.
Cengage Learning. 12 edition
• UOW library online access link (Only three students may access to this E‐book at a given
time): https://ebookcentral.proquest.com/lib/uow/reader.action?docID=5323692
• Thompson Jnr., A.A., Peteraf, M.A., Gamble, J.E., Strickland III, A.J. (2019) Crafting & Executive Strategy: Concepts and
Cases: The Quest for Competitive Advantage, (22nd Edition), McGraw Hill Education, N.Y.
• Clegg, S. R., Whittle, A., Schweitzer, J., & Pitelis, C. (2022). Strategy: theory and practice.
• Johnson, G., Whittington, R., Scholes, K., Angwin, D., & Regner, P. (2017). Exploring strategy. Pearson.
• UOW library online access link (3 persons at a time):
• https://ebookcentral.proquest.com/lib/UOW/detail.action?docID=5989427
© McGraw‐Hill Education.

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Strategic Management,

Week 11, Spring 2024,

Leading strategically and developing corporate

‐Dr Kumar Biswas

Single‐business organisations often tend to be organised along functional

Grouping together functionally similar tasks is conducive to exploiting scale

Different functional departments however develop their own goals, values,

• Organisational structures that formalise

10.1 Identify what it means to lead strategically in the global corporation

10.3 Distinguish between the principles of operational and strategic agility

10.7 Apply ethical leadership principles to leadership in action

Often called ‘strategic leadership’ — leading strategically is about how to

Strategic agility, concerns how organisations as a whole flexibly respond to

Relationship between leadership and culture

• Three ways to acquire new external

Operational and strategic agility

• There are two parts to leading strategically:

Corporate culture is about how

Ethical leadership is an important precursor and component of becoming a servant and

Building positive stakeholder perceptions of an organisation’s ethical identity has led to

• Please come prepared with tutorial

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