Unit 2 Strategic Leadership PDF

Unit 2: Strategic Leadership Kaulu Chibubi-Bpharm, MBA Outline 1. Setting direction 2. Culture, values and ethos 3. Decision-making 4. Engagement and community leadership 5. References 1. Setting Direction Key terms  Strategic planning: Ensures that the organization is doing...

Unit 2: Strategic Leadership Kaulu Chibubi-Bpharm, MBA Outline 1. Setting direction 2. Culture, values and ethos 3. Decision-making 4. Engagement and community leadership 5. References 1. Setting Direction Key terms  Strategic planning: Ensures that the organization is doing the right things. Addresses what business the organization is in, or ought to be in, provides a framework for more detailed planning and day-to-day decisions.  Vision is what the organization wants to be at some future time point.  Vision statement should make people think and should motivate people to strive for something greater. Cont…  The mission is the purpose of the company.  The mission statement defines what the company does or is. Steps in Setting Direction for an Organization 1. Draft a mission statement  It is a statement of the present going ahead into the near future.  It is a document written to create a sense of purpose for customers and employees.  The mission statement should be short—usually no more than two sentences.  It focuses on the common purpose of the organization and may draw from the values or beliefs held by the organization.  The mission statement should help to differentiate the company from others that provide the same products or services. Cont… 2. Define organizational values  Values are beliefs and judgments that are important and acceptable that individuals or groups hold.  Organizational values are important as they help organizations set standards that organizations and employees can aspire to. Cont… 3. Conduct strategic planning (3-5 years) Includes 3 phases a. Pre-planning phase: Defined as the steps necessary to organize the strategic planning effort—or “planning for the planning.” The objectives of the planning efforts are defined as well as the procedures that will be used to accomplish those objectives. Where and who will be involved in the planning is established during this phase. Cont… b. Planning Phase: In this phase of strategic planning, ideas are actively generated for the organization. Situation (SWOT) analysis is done which involves establishing where, what and how the organization is in the present.  Key elements of a written strategic plan: (1) The organization’s vision, (2) strategies, (3) Goals for each strategy, (4) Objectives required to meet those goals, and (5) Tasks or action plans to complete the objectives. SWOT Analysis  SWOT summarises the key issues from the business environment and the strategic capability of an organisation that are most likely to impact on strategy development.  The aim is to identify the extent to which strengths and weaknesses are relevant to, or capable of dealing with, the changes taking place in the business environment.  SWOT analysis is really only useful if it is comparative – if it examines strengths, weaknesses, opportunities and threats in relation to competitors.  A SWOT analysis should help focus discussion on future choices and the extent to which an organisation is capable of supporting these strategies. Cont… c. Post-planning Phase  Once the major pieces of the planning phase have been developed, the post- planning phase begins.  This phase includes three vitally important steps: (1) Communicating the plan, (2) Implementing the plan, (3) Monitoring progress once the plan is implemented. Cont… 4. Draft annual operational plans  These are Short term (1–5 years) plans.  Their scope is specific to the immediate actions that need to be taken to move the organization forward.  Their viewpoint is internal—day-to-day accomplishment of tasks. Cont… 5. Review and update/revise documents periodically at least every 2 years  For an organization to establish if it’s on course in line with its plans it should always review and update as well as revise its plans periodically. 2. Culture, values and ethos Key terms  Culture refers to a group or community whose members share common experiences and values that determine the way the members see the world. These groups may be based on gender, race, or nationality (Silva, 2013).  Values are beliefs and judgments that are important and acceptable that individuals or groups hold. A high-ranking job that is a status symbol in Asian countries and working for a reputed organization are examples of values. These are based on one’s or a group’s ethnic background, racial origin, religion, gender, place of birth, or age (Silva, 2013). Cont….  Norms are acceptable forms of behaviour or conduct within a community or a group.  Diversity has been defined as embracing the differences that exist among the various cultural groups (Silva, 2013).  Ethos is the characteristic spirit of a culture, era, or community as manifested in its attitudes and aspirations. Cultural Indicators  In a pharmacy, the individuals originating from various cultures may demonstrate work patterns contrary to what is expected by the management, depending upon the importance attached to the indicators by the individual.  Therefore, the pharmacy leader must have a clear understanding of these indicators to resolve the issues.  They are as follows: Cont… 1. Uncertainty avoidance: This is the extent to which a culture is encouraged or discouraged to take risks. (Japan, Iran Vs Singapore, Sweden) 2. Future orientation: This signifies the importance attached to the past, present, and future. People in past orientation (China) countries place a high value on the past and venerate traditions. 3. In-group collectivism: People in this culture express pride, loyalty, and collectiveness in their organization and families. Cont… 4. Power distance: This indicator measures the distance between the superior and the subordinate. In countries such as Argentina and Spain, where power distance is high, inequality is accepted and bosses are powerful. People in Australia, Canada, and Denmark, where the distance between hierarchical levels is low, do not accept inequality. 5. Performance orientation: This reflects the importance attached to the achievements of individuals. Cont… 6. Value orientation: This indicator is a measure of the degree of importance attached to human values. Euro-American cultures believe that some people are good and some bad. On the other hand, people in high-value orientation societies place importance on human values and believe that people are fundamentally good. 7. Assertiveness: Cultures high in assertiveness demonstrate assertiveness, confrontation, and aggression in their relationship with others. Benefits of Diversity in an organization 1. Improved team performance 2. Enhanced productivity and efficiency 3. Improved customer relations, community relations, and reputation 4. Broader base for recruitment 5. Reduced absenteeism, high staff morale, and increased retention of staff 6. Variety of viewpoints of solving problems 7. Creativity and innovation 8. Broader skill range Necessary Skills for Managing Diversity 1. Cultural empathy: Empathy refers to putting yourself in another person’s “shoes” in order to understand how the other person thinks and feels. 2. Understanding: Closely associated with empathy is the need to develop an understanding of how your attitude affects the other person. 3. Enhanced awareness: The manager should be aware of his or her behaviour that may affect the other person. Cont… 4. Building sensitivity: Being aware of the culture and the situation is an important transferable skill. People from different cultures have different ways of thinking, behaving, and different values and needs. 5. Awareness of consequences: Prejudicial behaviour and lack of sensitivity or understanding may have serious consequences for other parties. 6. Being fair: The manager must treat all the staff in a fair manner, irrespective of cultural differences. This is achieved through equal opportunity and diversity policies that embrace differences in culture. 3. Decision-making Key terms  Decision-making is the process of identifying and choosing among alternative courses of action in a manner appropriate to the demands of the situation. The act of choosing implies that alternative courses of action must be identified, weighed, and weeded out (Kreitner, 2009). Strategic Decision-making  Strategic issues are ultimately decided upon in many ways.  Success and failure are not always rational.  Strategic decision making is also liable to several biases like: Champion’s bias, the likelihood that people will exaggerate the case in favour of their particular proposal. Sunflower syndrome, the tendency (like sunflowers following the sun) to follow the lead of the most senior person in the decision-making process, or to try to anticipate their view even before they have expressed it. Cont…  Decision makers often hold exaggerated opinions of their competence, leading to over- optimistic decisions, especially where there is little data available.  At the same time, they can be risk averse, being unduly deterred by substantial downsides, even when the chances of such downsides are very slight.  Because of the aforementioned short-comings in strategic decision-making the following methods have been found to be useful in making decisions in fast-changing environments like health care. Cont… a. Build multiple, simultaneous alternatives.  Having several alternatives on the table at the same time helps to encourage critical debate.  This can help counter phenomena such as champion’s bias and the sunflower syndrome.  It is also faster than taking proposals sequentially, where alternatives are only sought out after a previous proposal has been examined and rejected. Cont… b. Track real-time information.  Immediate information from current operations, rather than statistical trends and forecasts is preferred.  In fast-moving environments especially, a quick decision may be better than a delayed decision, and trend data is liable to be rapidly outdated anyway. c. Seek the views of trusted advisors.  Experienced managers in the organisation or sector can provide fast feedback on what is likely to work or not work based on their deep knowledge from the past. Cont…  The instincts of experienced managers are faster, and often both more reliable and more credible, than lengthy analysis undertaken by junior managers or consultants. d. Aim for consensus, but not at any cost.  Fast decision makers seek consensus amongst the decision-making team, but do not insist on it.  Consensus can be too slow and often leads to mediocre choices based on the lowest common denominator.  Fast decision makers recognise that debates cannot always be resolved to everybody’s satisfaction. 4. Engagement and community leadership  It seems obvious that a community would be engaged in work that will impact that community.  However, many times decisions are made for a community without that community providing any insight or offering any comments.  Innovative leaders practice exclusion and are proactive to include all the stakeholders during the planning and decision making process.  A proactive leader first defines the community and then begins the process of engaging that community in a conversation. Cont…  Community is defined by the project leader, based on the situation, and described by “who is included and who is excluded from membership”  Engagement means that the individual understands the purpose of the initiative, develops a sense of ownership, commits to the process and the outcome, and works toward achieving success.  The goals of community engagement are to build trust, enlist new resources and allies, create better communication, and improve overall health outcomes as successful projects evolve into lasting collaborations. Steps in the engagement process The engagement process is complex but manageable. Initially the leadership will:  Convene a small group to clarify and validate the vision.  Discuss and define the initiative and its potential impact.  Set the purpose and goals for community engagement.  Define the community.  Know and respect the community’s characteristics. Cont…  Develop a relationship with the community, build trust, work with formal and informal leadership, find the community gatekeeper, identify the project champion, meet with the local organizations, and learn the assets and challenges for that community.  Find the common interests.  With the community defined and a relationship established, the work is ready to continue. The following four phases provide an outline for the community engagement process. Phase 1: Setting Up the Stage  Invite the stakeholders to a conversation on the vision. Go to the community instead of having the community come to you.  Create a constructive environment for dialogue  Identify the person or the organization that has convened the group.  Outline the purpose and process for the conversation.  Define the issue and why it is important. Cont…  Determine the interest and merit in hosting future discussions.  Set the next steps if the group wants to move to Phase II. Phase 2: Gather the facts, brainstorm, & Select  Create an environment where people are free to ask questions and brainstorm  Gather facts related to the issue and its impact  Clarify the issue’s alignment with the community’s values, ethics, vision, and mission.  Brainstorm and gather alternative solutions.  Select the best practice/solution. Use decision-making tools to reduce the number of options.  Assess the community’s readiness to move to Phase III. Phase III: Plan and Review  Write the implementation action plan  Discuss the proposal with the appropriate stakeholders searching for insight and response.  Use the feedback to assess and revise the plan. Stay focused on the solution.  Confirm the community’s readiness to move to Phase IV. Phase IV: Implement and Evaluate  Secure required funding, staffing, and management team.  Implement the plan.  Evaluate the impact.  Report the status to the community and gather feedback.  Revise the plan and evaluate again. 5. References 1. Dessele S.P. & Zgarrick D.P. (2009) Pharmacy Management: Essentials for All Practice Settings. 2nd Ed. New York: McGraw Hill Medical 2. Johnson J. et al (2008). Exploring Corporate Strategy. 8th Ed. London: Prentice Financial Times 3. Kreitner, R. (2009). Management. 11th ed. New York: Houghton Mifflin Harcourt Publishing Company. 4. Silva T. (2013) Essential Management Skills for Pharmacy and Business Managers. New York: CRC Press References 5.https://www.uvm.edu/sites/default/files/ community_engagement_handout.pdf