Level Three Leadership 3rd Edition PowerPoint Lecture Notes

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Level Three Leadership3rd Edition

• PowerPoint Lecture Notes
• James G. Clawson

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Chapter 11

• Introduction
• Without strategy, leaders are ineffective they
  have no direction, no purpose
• Strategic thinking is especially important today,
  during the upheavals that accompany the shift
  from Industrial Age to Information Age
• Great leadership begins with great dreams
  without the ability to develop powerful strategic
  dreams, leaders abilities are undermined.
  Strategists dreams are of the external kind,
  typically, not the internal dreams discussed in
  the resonance chapter.

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• Definitions
• Strategic issue any issue that affects your
  ability to develop and maintain a competitive
  advantage
• A competitive advantage has three components
• It adds superior value
• It is difficult to imitate
• It enhances your own flexibility

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• Strategic challenges and issues occur in three
  domains (this is another way in which this is
  level three leadership.
• The organization
• The work group (every unit can be outsourced in
  todays world)
• The individual (every persons job is at risk)

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• Fundamentals of Strategic Thinking
• Strategy is the management of natural
  competition. (Henderson)
• Several models for understanding strategic
  thinking
• Fit Models. These models emphasize the
  importance of finding appropriate niches in the
  marketplace and optimal times to compete
• Andrews nine criteria for evaluating the
  strength of corporate strategies
• SWOT (Strengths, Weaknesses, Opportunities,
  Threats)
• Porters Five Forces Model
• Porters Generic Value Chain
• Core Capabilities

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• Intent Model. This model focuses on using core
  capabilities to develop a strategic advantage at
  some point in the future. It depends on both
  having a vision and having the determination and
  resources to bring that vision to pass
• Ecological Model. This model proposes that in a
  global marketplace, two companies may be
  competitors in one region and collaborators in
  another therefore they have a complex,
  ecological relationship rather than a simple
  business is war opposition. Strategy should
  acknowledge this complexity and explore
  objectives other than elimination of the
  competition
• Innovators Dilemma. Key measure is percent
  utilization of products features. Rational
  decision making encourages one not to compete
  with low tech, unsophisticated, low margin
  competitors.

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• Experience Economy. Pine and Gilmore argue for
  phases in economic history. Time between phases
  and the margins each major focus brought have
  diminished dramatically. Now that margins on
  services are declining world wide, they argue
  that people are paying high margins for
  experiences things that are gone once the
  moment has past, with no real value added except
  the experience and its memory. This seems to be
  true in any industry where customers can get
  competitive goods and services, the experience is
  the difference defining where customers will go
  next.

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• Good to Great. Jim Collins follows up his
  co-authored blockbuster, Built to Last, with Good
  to Great that argues for six differentiators
  among 1600 company sample in which only 11 made
  the jump from good to great over thirty years.
  Level Five Leadership (which has nothing to do
  with our frameworkits only the recognition of
  levels in an organization with a somewhat
  arbitrary definition of the superior executive,
  one with will and humility), first who then what,
  confront the brutal facts, hedgehog concept,
  culture of discipline, and technology
  accelerators.

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• Scenario Building. The concept developed at
  Royal Dutch Shell in the 70s to anticipate
  alternative possible futures and then to watch
  for them in the news to track which one was
  developing. Each possible (NOT best case and
  worst case) scenario has strategic implications
  for a company.

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• Strategic conversations. Learning to use the
  scientific method including observations, data
  collection, analysis, and using that data to make
  decisions creates a basis for good strategic
  conversations. This model omits the notion of a
  creative genius that can inductively construct
  the data in new ways to find leapfrogging
  strategies.
• Systems Perspective. The ability to see how the
  various forces and components of an industry fit
  together
• Focus on Intent. Without clear intent, strategy
  will vacillate
• Intelligent Opportunism. Finding, through
  careful analysis, the profitable places in which
  to do business
• Timing.
• Hypothesis. Implementation of intent must be
  based on a hypothesis about cause and effect
  relationships in the industry

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Chapter 12

• Developing strategic thinking is hard, continuous
  work. Sadly, many--most executives in my
  experience--seem to get confused when talking
  about strategy. Heres a simple framework for
  helping keep the various elements of strategy
  clear. These all can occur at the three levels,
  organizational, work group, and individual. It
  has five parts
• Mission Statement. An explanation of why the
  organization exists what business it is in, and
  for what reason. Dont waste time on committee
  generated mission statements that are generic and
  demotivating. to provide world class goods and
  services to our customer with a maximal profit to
  our shareholders. One short phrase, 2-10 words.

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• Vision Statement. Describes where the
  organization is going, through a vivid, often
  metaphorical description of the organizations
  long-term goal
• Values Statement. Outlines how the organization
  will go about its work what means to the end
  will and will not be tolerated
• Strategy. The path of choices the organization
  will make in moving toward its vision. This is
  often the longest section.
• Operating Goals. The periodic milestones and
  objectives the organization will use to monitor
  the progress of its strategy. Often mistook for
  strategy in response to twenty-something analysts
  from Wall Street whove never run anything.