Chapter 1: Strategic Management and Strategic Competitiveness 25
1-6 Strategic Leaders
Strategic leaders are people located in dif-
ferent areas and levels of the firm using the
strategic management process to select stra-
tegic actions that help the firm achieve its
vision and fulfill its mission. Regardless of
their location in the firm, successful strategic
leaders are decisive, committed to nurturing
those around them, and committed to help-
ing the firm create value for all stakeholder
groups.^126 In this vein, research evidence
suggests that employees who perceive that
their CEO is a visionary leader also believe
that the CEO leads the firm to operate in
ways that are consistent with the values of
all stakeholder groups rather than emphasiz-
ing only maximizing profits for shareholders.
In turn, visionary leadership motivates
employees to expend extra effort, thereby
helping to increase firm performance.
When identifying strategic leaders, most of us tend to think of CEOs and other top-
level managers. Clearly, these people are strategic leaders. In the final analysis, CEOs
are responsible for making certain their firm effectively uses the strategic management
process. Indeed, the pressure on CEOs to manage strategically is stronger than ever.^127
However, many other people help choose a firm’s strategy and then determine the actions
for successfully implementing it.^128 The main reason is that the realities of twenty-first
century competition that we discussed earlier in this chapter (e.g., the global economy,
globalization, rapid technological change, and the increasing importance of knowledge
and people as sources of competitive advantage) are creating a need for those “closest to
the action” to be making decisions and determining the actions to be taken. In fact, all
managers (as strategic leaders) must think globally and act locally.^129 Thus, the most effec-
tive CEOs and top-level managers understand how to delegate strategic responsibilities to
people throughout the firm who influence the use of organizational resources. Delegation
also helps to avoid too much managerial hubris at the top and the problems it causes,
especially in situations allowing significant managerial discretion.^130
Organizational culture also affects strategic leaders and their work. In turn, strate-
gic leaders’ decisions and actions shape a firm’s culture. Organizational culture refers
to the complex set of ideologies, symbols, and core values that are shared throughout
the firm and that influence how the firm conducts business. It is the social energy that
drives—or fails to drive—the organization.^131 For example, Southwest Airlines is known
for having a unique and valuable culture. Its culture encourages employees to work hard
but also to have fun while doing so. Moreover, its culture entails respect for others—
employees and customers alike. The firm also places a premium on service, as suggested by its
commitment to provide POS (Positively Outrageous Service) to each customer.
1-6a The Work of Effective Strategic Leaders
Perhaps not surprisingly, hard work, thorough analyses, a willingness to be brutally
honest, a penchant for wanting the firm and its people to accomplish more, and tenac-
ity are prerequisites to an individual’s success as a strategic leader. The top strategic
Strategic leaders are
people located in different
areas and levels of the
firm using the strategic
management process to
select strategic actions that
help the firm achieve its
vision and fulfill its mission.
Organizational culture
refers to the complex set
of ideologies, symbols, and
core values that are shared
throughout the firm and
that influence how the firm
conducts business.
Thomas SAMSON/Getty Images
Tony Hsieh, CEO of Zappos.com, an online shoe and clothing retailer,
has been helpful in shaping Zappos’s entrepreneurial culture.
