Strategy Formulation, Communication, and Planning

Digital Marketing - Study Notes:

The classic definition of leadership hasn’t changed over time. Leadership is the process of influencing an organization, or group within an organization, in its efforts towards achieving an aim or goal (Stodgill, 1950). Without effective leadership, the risk is that people in an organization are unclear about its purpose or lack motivation to deliver the strategy to achieve it. While leading strategic planning is often associated with top management and chief executives, in practice, it typically involves managers at different levels of an organization with different roles (Gerry, 2017), who need to become leaders as well as managers.

Levels of management

Top managers

There are three key roles that are argued to be especially significant for top management, especially CEOs, in leading strategic planning and change.

• Envisioning future strategy Effective strategic leaders at the top of an organization need to ensure that a clear and compelling vision of the future exists. They must clearly communicate a strategy to achieve it both internally, and to external stakeholders.
• Aligning the organization to deliver that strategy This involves ensuring that people in the organization are committed to the strategy, motivated to make the changes needed, and empowered to deliver those changes.
• Embodying changeA strategic leader will be seen by others, not least those within the organization, but also other stakeholders and outside observers, as intimately associated with a future strategy and a strategic change programme.

Middle managers

A top-down approach to managing strategy sees middle managers as implementers of top management strategic plans. However, middle managers have multiple roles in relation to the management of strategy:

• Advisers to more senior management on requirements for change within an organization: This is because they are often the closest to indications of market or technological changes that might signal the need for change.
• ‘Sense making’ of strategy: Top management may set a strategic direction, but how it is explained and made sense of in specific contexts is often left to middle managers. For example, a region of a multinational, or a functional department, may, intentionally or not, be left to middle managers.
• Reinterpretation and adjustment of strategic responses as events unfold: For example, middle managers may have to intervene when dealing with relationships with customers, suppliers, and the workforce.
• Local leadership of change: Middle managers have the roles of aligning and embodying change, as do top management, but at a local level.

Strategy formation roles

Roles in the strategy formation process can vary as tasks and responsibilities are divided in alternative ways (De Wit, 2020).

Top vs middle vs bottom roles

• High-level tasks, such as setting vision and defining strategic objectives, and activities are divided among members of the top management team.
• Other tasks and responsibilities, such as developing action plans, and activities are delegated to divisional managers, business unit managers, and department managers.
• It is more common to see participation by people lower in the organization in activities such as external and internal assessment, and option regeneration.
• Top management generally retains the responsibility for selecting, or at least deciding on, which strategic option to follow.

Line vs staff roles

• Supervisors, Team Leaders, and Staff members are usually responsible for achieving results.
• They often participate in conceiving the strategies they will have to realize.
• Staff members are recruited specifically for roles in the strategy formation process.

Internal vs external roles

• Outsiders are recruited to perform outsourced activities such as diagnosis activities or to facilitate the strategy formation process in general.
• Some organizations have external consultants engaged in all aspects of the process.

Changing roles for strategizing managers

Most management practices were initiated in the 19th century. Many managers still function in that manner. However, managers nowadays need to become creators of environments that will allow their companies to achieve competitive advantage.

Modern strategy planning needs flexible leadership with emotional intelligence. Leaders must be recast as social-systems architects who enable innovation and collaboration. Management must also orient itself to the achievement of noble, socially significant, sustainable strategic goals. It is possible to argue that by developing an understanding of competitive advantages, recognizing the primary steps and key players in the strategic planning process, and evaluating and avoiding the common pitfalls, we can appreciate and evaluate the role strategic leaders play in the planning process.