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388 PART 5: THE LEADER AS SOCIAL ARCHITECT
In this chapter, we first provide an overview of the leader’s role in creating

the organization’s future. Then, we examine what vision is, the underlying themes
that are common to effective visions, and how vision works on multiple levels.
The distinction between vision and the organization’s mission is also explained.
We then discuss how leaders formulate vision and strategy and the leader’s contri-
bution to achieving the vision. The last section discusses the impact this leadership
has on organizations.

Strategic Leadership
Superior organizational performance is not a matter of luck. It is determined
largely by the choices leaders make. Top leaders are responsible for knowing the
organization’s environment, considering what it might be like in 5 or 10 years,
and setting a direction for the future that everyone can believe in. Strategic
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Strategic leadership
Strategic leadership leadership is one of the most critical issues facing organizations. Strategic leader-
the ability to anticipate and
the ability to anticipate and ship means the ability to anticipate and envision the future, maintain fl exibility,
envision the future, maintain
envision the future, maintain
fl exibility, think strategically, and
fl exibility, think strategically, and think strategically, and work with others to initiate changes that will create a
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initiate changes that will create
initiate changes that will create competitive advantage for the organization in the future. In a fast-changing
a competitive advantage for the
a competitive advantage for the world, leaders are faced with a bewildering array of complex and ambiguous
organization in the future
organization in the future
information, and no two leaders will see things the same way or make the same
choices.
The complexity of the environment and the uncertainty of the future can
overwhelm a leader. Thus, many are inclined to focus on internal organizational
issues rather than strategic activities. It is easier and more comforting for leaders
to deal with routine, operational issues where they can see instant results and feel
a sense of control. In addition, many leaders today are inundated with informa-
tion and overwhelmed by minutiae. They may have diffi culty fi nding the quiet
time needed for “big-picture thinking.” One study looked at the time ex-
ecutives in various departments spend on long-term, strategic ac-
Action Memo
tivities and found discouraging results. In the companies studied,
84 percent of finance executives’ time, 70 percent of information

As a leader, you can learn to think
technology executives’ time, and 76 percent of operational manag-
strategically. You can anticipate and
ers’ time is focused on routine, day-to-day activities. Another study
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envision the future, and initiate changes
found that, on average, senior executives spend less than 3 percent of
that can help the group or organization
thrive over the long term.
their energy on building a corporate perspective for the future, and in
some companies, the average is less than 1 percent. Yet no organiza-
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tion can thrive for the long term without a clear viewpoint and frame-
work for the future.
Exhibit 13.1 illustrates the levels that make up the domain of strategic
leadership. Strategic leadership is responsible for the relationship of the ex-
ternal environment to choices about vision, mission, strategy, and their imple-
mentation. At the top of Exhibit 13.1 is a clear, compelling vision of where the
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organization wants to be in 5 to 10 years. The vision refl ects the environment
and works in concert with the company’s mission—its core values, purpose, and
reason for existence. Strategy provides direction for translating the vision into
action and is the basis for the development of specifi c mechanisms to help the
organization achieve goals. Strategies are intentions, whereas implementation
is through the basic organization architecture (structure, incentives) that makes
things happen. Each level of the hierarchy in Exhibit 13.1 supports the level
above it. Each part of this framework will be discussed in the remainder of this
chapter.