Sunday 7 May 2017

Leadership & Culture on Strategic Management

1. Leadership and Culture
According to Prince and Robinson (2013), organization leadership is the process and practice from the executive to direct and guide people form the organization direct to the vision all the time. Besides, it develops leadership, the future of its organization, and the culture of the organization.

Furthermore, Kotter (1990) explained that management is all about facing complexity. Its practice and procedure generally are the responses against dynamical issue from 20th century: the rose of big organizations.
Without a reliable management, a complex company tended to be screwed up on some issues which threat its existence. A good management creates a level of order and consistence among some primary dimensions such as quality and profitability level of the product. Otherwise, leadership is all about how to face the change. The reasons of why leadership becomes much more important in several years, because the business has been being more competitive and more fluctuated. Therefore, doing something the same according to yesterday or doing 5 percent better are no longer the formula of success. Primary changes are necessary. Those are making the company could survive and compete effectively in the new environment.  
It is very clear that nowadays, leadership is much more needed rather than management. It is very needed in order to face very fast and dynamic business environment.
2. Leadership and Culture on Strategic Management Process
According to Prince and Robinson (2013), Leadership and culture on strategic management process are mapped in Picture.

Strategic Management Process
Source: Prince and Robinson (2013)

According to the picture, it is shown that leadership and culture are on the box of “Restructuring, reengineering, and refocusing the organization”. That position has the major impact to the strategic control, innovation, and entrepreneurship. Yet, it has the feedback to the external factors with the minor impact.
Internally, leadership and culture could control the company strategically and it could continuous improvement from the company including its employees. Hence, it creates the distinctive value of the company itself. 
Externally, leadership and culture could give the feedback or response to every shifting occurred externally. Although it only gives the minor feedback, it still could give some adjustments for the company to face every shifting condition which occurred externally.

Pearce, John A. & Robinson, Richard B. (2013). Manajemen Strategis-Formulation, Implementation, and Control. Translation. Sari,Nia Pramita. Jakarta: Salemba Empat
Porter, M. (1979). How Competitive Forces Shape Strategy. Massachusetts: Harvard Business Review.
Porter, M. (1980) Competitive Strategy: Techniques for Analyzing Industries and Competitors.  New York: Free Press

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