How can we be strategic in organisational decisions? Schoemaker, Krupp & Howland (2013) expressed that the determinants of strategic leadership are those which essentially contribute to the success of strategic decisions. Business leaders can expect positive results from strategic leadership and strategic decision. For optimal results, we should employ the components correctly in the right time and place.
Performance determinants
1. External environment
Adaptation to the environment is one of the determinants. Organisations need to figure out how to adjust under various conditions of uncertainty and insecurity. To further elaborate, the difficulties involve the organisation’s reaction to various external variables. For example, political, economic, and technological, etc. Lastly, the external environment should be interpreted and understood clearly by the organisational bodies (J.Davies & B.Davies ,2004).
Other performance determinants, such as efficiency and process reliability, pose challenges as well.
2. Efficiency
To be efficient, organisational processes have to be executed while minimizing resources. In order to stay competitive, organisations have to be productive and adept, while maintaining organisational efficiency across various business functions and processes.
3. Process Reliability
Process reliability suggests that organization's work procedures have to steer clear of postponements and mistakes. Challenges involve avoiding additional expenses for repairing or replacing products, harmed hardware or facing claims by clients.
Role of HR
HR and relations are pivotal in organisational success, especially when work processes are complex are intricate. For instance, when there is a gap in the talent pipeline, organisations will seek competent representatives with the right qualifications. This is when HR and relations come to the fore. Generally, these determinants affect the organisation’s ability to compete in the business landscape. Nonetheless, HR may be less pertinent if organisational processes are highly automated and fluid.
Decision-making process
The decision making process involves numerous levels of organisation. Subsequently, some decisions may not complement well with one another. As an aftereffect of in-congruent decisions, organisations may face problems during general execution.
Reference:
- Schoemaker, P, Krupp,S & Howland,S,2013, Strategic Leadership : The Essential Skills, Harvard Business Review, pp.2-4
- Davies, B.J & Davies,B, 2004, Strategic Leadership, Carfax Publishing, pp.30-37
