7. Strategic Leadership
• Strategic leadership & top-level managers
importance
• Top management teams effects on firm
performance
• Value of strategic leadership in determining
firm’s strategic direction
7
12. Strategy Performance Management
Tools
Balanced scorecard
Strategic planning and management system that can
be used to align strategy and organization
Measures firm’s performance from four perspectives
13. Key Strategic Leadership Actions
• Establishing Balanced Organizational Controls
• Strategic leaders are responsible for the development and effective use of
strategic and financial controls
• Controls provide the parameters for implementing strategies as well as the
corrective actions to be taken when implementation related adjustments are
required
• The challenge is to achieve an appropriate balance of financial and strategic
controls
• The Balanced Scorecard
• Framework that allows strategic leaders to verify that they have established both
financial and strategic controls to assess firm performance
• Underlying premise is that firms jeopardize their future performance possibilities
when financial controls are emphasized at the expense of strategic controls
• An appropriate balance of strategic and financial controls allows firms to achieve
higher level of performance.
• Uses multiple perspectives
13
Editor's Notes
This table summarizes some of the more prominent biases examined by decision-making researchers.