386 Part 3: Strategic Actions: Strategy Implementation
is important, especially given that the crux of strategic leadership is the ability to manage
the firm’s operations effectively and sustain high performance over time.^9
The primary responsibility for effective strategic leadership rests at the top, in partic-
ular with the CEO. Other commonly recognized strategic leaders include members of the
board of directors, the top management team, and divisional general managers. In truth,
any individual with responsibility for the performance of human capital and/or a part of
the firm (e.g., a production unit) is a strategic leader. Regardless of their title and organi-
zational function, strategic leaders have substantial decision-making responsibilities that
cannot be delegated.^10 Strategic leadership is a complex but critical form of leadership.
Strategies cannot be formulated and implemented for the purpose of achieving above-
average returns without effective strategic leaders.
As a strategic leader, a firm’s CEO is involved with a large number and variety of tasks, all
of which, in some form or fashion, relate to effective use of the strategic management process.^11
ThyssenKrupp is the largest steel manufacturer in Germany with a long and successful tenure.
However, ThyssenKrupp began to suffer financial problems, and a new CEO was recruited
to turnaround the firm’s performance. Accepting responsibility for reshaping the firm and
handling the controversies facing it was Dr.-Ing. Heinrich Hiesinger. Formerly affiliated with
another large German firm—Siemens—Hiesinger became chair of the executive board of
ThyssenKrupp in January 2011. Hiesinger faced a number of issues. For example, the firm
reported heavy losses during 2011 and 2012 and another smaller loss in 2013. The resignation,
in March 2013, of ThyssenKrupp’s supervisory chair and various scandals that emerged during
the chair’s service were additional problems requiring Hiesinger’s attention. The range of
issues with which Hiesinger had to deal highlights the complexity of a strategic leader’s work
as well as the influence of that work on a firm’s shape and scope. He obviously dealt with the
problems effectively because the firm returned to profitability in 2014 and continued on a
positive path in 2015.^12
A leader’s style and the organizational culture in which it is displayed often affect the
productivity of those being led. ThyssenKrupp’s Heinrich Hiesinger has spoken about
these realities, saying that in the past at the firm he is leading there was an “understanding
of leadership in which ‘old boys’ networks’ and blind loyalty were more important than
business success.”^13 Hiesinger worked hard to earn both trust and credibility with the
firm’s stakeholders.
The style of leadership used by those
in top management positions is important.
Likely, the leader’s style will be based, at least
partially, on his or her personal ideology and
experience.^14 For example, based on his per-
sonal ideology, Tim Cook, CEO of Apple,
initiated more philanthropic activities for the
firm, and he spoke out on important social
issues, such as treating all people equally
regardless of ethnicity, gender, or sexual
orientation. He also delegated responsibility
and authority to other members of the Apple
leadership team and empowered them to act.
In this way, Cook displayed forms of what
are referred to as responsible leadership
(demonstrating concern for the firm’s stake-
holders and society at large).^15 Although
Cook has tried to guard the Apple corporate
culture, he has obviously made changes inPATRIK STOLLARZ/Getty Images
Heinrich Hiesler, Chairman of the Board for ThyssenKrupp, is addressing
the shareholders as a part of his effort to maintain their trust.