Strategic Leadership

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Strategic Leadership

Strategic Leadership

There have been different thought methods on what form of organizational culture is required in order to be receptive to innovation and respond appropriately to change. One view is that the organization needs a level of flexibility and a degree of slack. On this end of the spectrum, the organization needs to be able to build a degree of slack and a tolerance for some degree of inefficiency. However, there are those who believe there is no room for inefficiency in a successful organization. On this end of the spectrum, the argument is that an organization needs to have a stringent system of order to ensure operational efficiency. In reality, both flexibility and order are needed for a company to thrive in innovation and change.

To bring change in an organizational culture is a herculean task which encompasses a number of leadership challenges. The major reason behind the complexity of this process is that organizational culture entails a set of interconnected roles, values, processes, assumptions, attitudes, communications practices and goals (Shehabuddeen, 2007, pp.20-29).

Commonly, the most effective strategy to initiate change is to deploy leadership tools, which include, a story or vision of the future, then reinforce the changes made by deploying management tools, for instance, defining the role and the performance evaluation system. Use of power tools is most appropriate when all other efforts fail to implement the change. These power tools include punishment and coercion as a last option.

In general, organizations make several mistakes in implementing cultural change, which includes; Excessive use of power tools and little use of leadership tools.

Initiating by providing a vision; however, later failing to cement the changes made through management tools

Deploying power tools before communication a story or the vision of the future (Franken et al, 2009, pp.49-73).

Since General Motors ruled out the auto industry for a number of decades, and was the world's largest car maker from 1931 to 2008. However, GM failed to sustain its name due to poor leadership and a bankruptcy petition was filed against GM on June 1, 2009. In this petition, the poor performance of GM was indicated by the amount of its debts escalating to the amount of its existing assets. (Harvard Business School, 2010)

Though GM does not want to make this bankruptcy, a full stop to its business, it has decided to expand the operations to some emerging markets such as China and India. The government of India supports a comprehensive system which will bring about a rapid increase in the growth of the industry while creating an Automotive Mission Plan (AMP) as well as opening new ways of R&D in the country (Mathew, 2010).

The government of China has also started to reduce the financial barriers in the automotive industry which will help GM to establish its own cost structures for the cars manufactured in China. These countries will help GM to revitalize their brands in their markets. GM has been the top automaker in China in 2009 and will be the market leader for ...
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