Strategic Leadership

Strategic Leadership: A Case Of Ford Motors

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Contents
Introduction ............................................................................................................................................ 3 Company profile...................................................................................................................................... 3 Part-A Strategic Leadership .................................................................................................................... 4 Implication of strategic leadership in Ford ............................................................................................. 7 Implementation and dealing the change ................................................................................................ 8 Organizational change ............................................................................................................................ 9 Game theory and simulation ................................................................................................................ 12 Conclusion ............................................................................................................................................. 14 Reference .............................................................................................................................................. 15

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Introduction
The new idea and innovation had come up with constant enhancement of mankind. The new innovative and effective idea is demand to accomplish the requirement of company and customer. Good or successful business dependable on its leaders and the leadership strategies organization follow. Change leadership and strategic leadership is important subject for building a successful organization. Many studies and research had describe that leadership factor is affecting in business positively or negatively. Leaders always hold tools for its management functions and techniques for handling the markets and its external bodys like suppliers, government and customer. Visionary leaders always look up for successful performance in market. This leader will guide its follower to follow vision and achieve the targets to be successful. The important management skills are considered as leadership because its helps firm to achieve their targets and reach up to optimum place in their journey. The concept and literature of leadership is been discuss from ancient times. Only single leader can win the battle field, but with the time the leadership concept had been develop and raise high in studies. There are many barriers found in leaders had change as new style and theories of leadership evolve. By John Clippinger the napoleon leaders and their creative leadership style was explore in the study. Many experts had given the business leadership style for development in the growth of business. The purpose of this assignment is to look forward to various style and theories of leadership and implement the best working style in the Ford. As consultant the overall of business of company is lowering because of some management issues, ford needs to look up to for a leadership change in its management which will lead to growth in company as more diversified workforce be working, new ideas and traditional hierarchy will be break off, new working style would be developed.

Company profile
It is one of the largest automobile units in production in the globe. There are like 600 million cars of Ford moving in the roads of world. The annual sales of ford are 350 billion and its increasing year on year. The ford had diversity work force working in different department such as maintenance, insurance, finance, distribution and repairs overall the globe. Ford is known from its transformational and contemporary leadership management. Fords vision is to be the worlds leading automotive company. It is a management declaration of the direction the Company is taking and sends a clear message to customers,
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competitors, suppliers and shareholders. Fords vision doesnt mean the biggest; it means the best. In Ford terms, leadership means product excellence linked to being the best in customer satisfaction, value, cost and profitability. In order to achieve this vision Ford 2000 set out seven strategies for leadership1. The new worldwide strategy would be created in order to integrated the plants of production with other plants as well. The Ford 2000 had build such an innovation for company that no local based would their in production plants. The main objective is to satisfy the needs of customer as by keeping focus on effective usage of resources so this will lead to low cost. Ford leadership is holding purely dynamic as they hold different thinking which helps them to accelerate in market pace. According to Alex Trotman, the Ford Chairman, Ford 2000 will:

Provide economies of scale; Create quantum improvements in processes; Involve investment in Ford people; Lead to worldwide adoption of the best practices at Ford; Provide the shortest possible distance between good ideas and great products2.

Part-A

Strategic Leadership
There are many views, discussion, theories model and application on leadership and leadership by various business scholars and experts. The views of Dr John Clippinger describe by giving huge essential of leadership in team work. The author says that leader does not promote him but always makes and efforts to up lift in its team. In the huge organization leaders are working in team and leading their team to achieve the pre determines goals. Effective teams help to reach on goals more easy way than working harder. Sometimes leadership quality is present in individual nature from their birth only. Many authors say that leadership is inborn, its that characteristic which is not taught to everyone and every follower is not a leader. Very few legendary persons make their history such as Adolof Hitler

http://businesscasestudies.co.uk/ford/strategiesforleadership/introduction.html#ixzz2RIeDnX xM 2 http://businesscasestudies.co.uk/ford/strategiesforleadership/introduction.html#ixzz2RIeDnX xM
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and Abrahim Lincoln etc. This legendary person holds some of the few qualities or

characteristics in them so they can shine out and lead huge projects and people. There are some characteristics which makes person as leaders, these specific characteristics is discussed by Stogdil 1974 in research examined that is clear vision, positive approach and assertive thinking etc. its known that leadership characteristic is based on sole person as suggested in various leadership theories. There are various theories such as trait theory which gives some of characteristics of leaders. From view of Stogdil (1974) that normal individual can become a leader its not necessary that leaders are only born by birth. The author Helen Eckmann (1999) had examined that great man theory is of leadership is also supporting that proves that leaders come up with massive adversities and great troubles faced by them. Leadership is boundless, as in modern era new implementation and development in leadership meaning had come up. In this paper we will various leadership theories and model in proper sequences as they had explored. There are advantages and limitations of this theories based on the different factors that is moving on, different business implemented leadership style based on nature and size of business. X and Y theory of behavioral leadership Lewins theory of participation Transactional leadership theory Trait theory of leadership Great man theory of leadership Situational theory of leadership Transformational leadership theory Contingency theory of leadership

The theories help to overlook the limitations that are faced by leaders in different situations. In Great man theory of leadership, the leaders have instinctive features and they come up in leading position by working much harder in their current phase. Maxwell (1998), in describing empowerment, asserts, The peoples capacity to achieve is determined by their leaders ability to empower (126). The term Great Man Theory has been originally associated with the nineteenth century Scottish historian Thomas Carlyle, (1841) who

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declared, The history of the world is but the biography of great men (p. 127). The author (Northouse, 2004) had found many qualities of leadership from Trait theory.

The transformational theory was introduce by Downtown 1973 and further its concept was developed by James burn 1978, it is know that transformational theory is process and not methods. In this leader bring huge change in organization for development in current situation or to become successful in achieve. In this leaders think for various alternatives and motivate its employee to follow then and achieve their desire targets. This concept of transformational leadership theories was accepted by James O. McDowelle 2009. In this theory leaders are visionary and they hold art of making influence their employee to work according to goal achievement. In this theory Emotional intelligence plays vital role, making good rapport over its followers.

Viewing the limitation of transformational leadership, the transactional leadership come up in this the leaders have to follow the rules and regulations which are standard for both leaders and followers in this method the give and take process is very much balance (Karl Kuhnert, 1987). The transformational theory helps organization to grow where as transactional theory is rational and shrink down easily (Bass 1985). The views of (Paul Hershey, 2000) had described that in situational leadership the leaders keep eye on their subordinates and their work for looking daily performance. The situational leadership of implementation of leadership style is present middle top level of vast organization. The unit performance is focused based on such methods. The contingency theory is contrasting the situational leadership theory, as here targets are track on daily basis, where as in other only good situation makes units to raise profitable seeing example of seasonal business the situational leadership seems to useless. There is only one point where both theories match up that is there is no single path which is correct for achieve the success targets (Jack Welch 2007). In the traditional leadership methods some of theories are implication that is great man theory, behavioral leadership theory, trait theory of leadership etc. these theories is putting focus on individual distinctive leaders who is efficient and effective in influencing the huge followers to follows on its views and goals. In the profitable business, the complexity increase as some distinct theories like traditional ones they executed other factors also plays
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vital role in success of organization. The leadership affects business in relations to change management. Due to new management the workforce and operation function becomes effective so there are huge chances of getting in to success path. The change in management is only differing the in leadership methods and techniques. In the organization a wide outlook of leadership is develop in order to win the competitive edge over competitors. Contemporary leaders play vital role in raising business growth and development. The author Denison (1995) had executed its views on contemporary leadership style as in this leadership style leaders are having vision to work and had ability in dealing with complex situations, takes accurate and timely decision based on situation and circumstances. Seeing the current situation in Ford, it is not recommend that only traditional strategy would be helpful, as with the time accurate and strategic decision needs to taken which helps to grow units with space of globalization and advance technology. The contemporary leadership is necessary on part; as its would be more advantages in transform the new changes and complex situation in which firm is functioning.

Implication of strategic leadership in Ford

For the organizational change Ford, had implemented the transformational leadership in their management. The values seen in the employees of ford are integrity, flawless execution and building effective relationship. The ford always makes its people to think and behave in different manner. In one of the general statement is shown that we are mindful of our company's culture and respectful of its rich cultural values. For becoming successful in financial capacity, protection or social responsibility the transformational mindset needs to developed in triple bottom lines onwards because its helps to recognize the target and vision of company. Ford leadership programme had developed in such a way that community service aspects is also look forward and it hold huge social context perspective. The leadership model in ford had change to 21st century model. They are been incorporated with fully renewable resources so they have advance technology as well as developed operations support. Such bold actions require equally bold leaders to implement them.

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Success in the new century requires the transformational mindset, one found in our new leadership DNA. Use action learning. All of our programs feature action learning3.

In ford, the employees work in team and individually on project, there is special training given before going through new project so that it helps them in expanding their creativity and refine critical thinking by executive proper skills to improve the overall performance of company.

When the project is complete necessary feedback are given to employees so this helps them to refine their abilities and improve the leadership skills in them. The program helps employee to create more learning environment, so leadership skills capabilities can easily improved.

It's also a critical feature of our strategy to "spread the word."Action learning creates business impact. The projects employees choose must have a business benefit in terms of customer satisfaction, cost reduction, or enhanced revenue. One of the most notable examples is the QIP--the Quantum Idea Project. It's the key to our New Business Leader program for firsttime supervisors of salaried employees. The QIP, intended to drive revolutionary change at Ford, stretches an individual's capacity to think critically, innovate daringly, evaluate choices strategically, and support business objectives wisely. In the process, a manager begins to develop leadership skills that he or she can use every day4.

Part b

Implementation and dealing the change

The strategic leadership strategies are effective application which will help to overview the problems of organizational change. It is important to see the critical analysis first by going through what is issues and is change in management is likely to occur before implementation of leadership change strategy. Good leaders will lead to successful path, the quality of good leaders is to convince its employees or followers to reach up to targets by bring new change
3

http://www.scribd.com/doc/34797726/Leadership-the-Ford-Motor
http://changingminds.org/disciplines/leadership/theories/leadership_theories.htm

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in organization. For increasing business and achieving vision of company the strategic leadership change model is heavily used in organization. Looking towards Ford the reason of success was there strategic leadership change model. In which the organizational change had come up by introduce new leaders in top management of Ford.

Organizational change
The organizational change means change occurs in any functioning or working of firm in order to achieve its vision and targets. There are different changes that happens on going, but some changes will uplift management and new cultural is developed such as leadership change. The author Fincham and Rhodes (2005: 525) offer the following definition of change management: The leadership and direction of the process of organisational transformation especially with regard to human aspects and overcoming resistance to change5.

It is critical task for managing organization while going through the organizational change expressed by Fred Lunenberg 2010. The huge pressures are faced by leaders at time of change. Different aspects needs to take care such as delivery clear vision, distribution activities and developing cultural etc. leaders holds pressure in handling their position and image in company. The organizational change can be management by different models or framework. It is believed that the result of transformational change strategies is not fruitful as desired that will result in to ineffective change management. The design of transformational change should clear so it will successfully implement the change in organization which gives outcomes that are expected. There should be organizational theory of change needs to over view, for successful change the organization. Pettigrew (1990: 269) has effectively articulated this position: Explanations of change are bound to be holistic and multifaceted. Beware of the myth of the singular theory of social or organisational change. The need for pluralist approaches to understanding change management is evident elsewhere in the change literature: There can never be a universal theory of organisational change, as change involves a movement to some
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future state that comprises a context and time that remain unknown. (Dawson, 2003: 11) In the studied by John Kotter 1995, is was also known that effective change will give favorable outcome. In the study it was display that much big companies have fail in managing organizational change, as change can in any process or activities, such as technological change, change in leadership, operational change etc. there are eight steps design by John Kotter 1995 which helps in managing change effective in any firm. They are: 1. Conception of Urgency It is essential for firm to show its requirement of change to its employees and process so that either through increasing technology, globalization or growth of business are modified or changed. The employees are needed to motivate to accept change and support change for achieve the organization vision. In case of Ford, to go in global markets their needs to done various partnership with foreign partners in many product lines. Using the organizational change strategies new leaders in top management came in, so their production line had shifted to other companies for cost cutting and marketing strategies where refine. The human resources in ford had come up diversified cultural so more ideas , innovation and creativity is shown in functioning of Ford operation. 2. Convincing people Change management is about people management. When managing change you manage people. (Paton and McCalaman, 2000: 267). The views from John Kotter 1995, is said that manager, leaders and motivate to achieve the organisational change by developing cultural and working patterns in the firm. In case of Ford, the employees were highly motivated to work in diversified cultural and trained for adapting new changes.

3. Vision for the change required The new visions with clear objectives are share accurately among the employees in order to achieve the pre determined targets of companies. The vision of Ford was very clear, to excel in markets by highly satisfying its customer.

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4. Communication The communication process should be more effective and clear to all level of management. The communication should be in proper flow from top to bottom and bottom to top, so the mis-understanding and false information is not created in units. In case of Ford the flow of communication is well maintained the instruction are given from top level to bottom level and accountability and feedback goes from bottom to top level. 5. Eliminate the barriers There are various barriers and limitation which is faced by company which hinders the growth of company. These barriers needs to eliminated in from the units, because once the strategies are planned out and then at time of implemented it will make and problem for strategies to work effectively and give successful result. There be proper team of maintenance present in organization which overlooks such issues as their task. In ford, the teams are

develop which look towards such barriers and take quick action in removing the obstacle faced by company. The employees reward system is so winning that much of obstacle coming on way of their task does not bother their vision and goals. 6. Short term victory The victory is creating boost power in employees, as its motivating to reach up to targets. Short term victory is helpful in achieving the long term vision. The ford works on project, so when the project is successful they had achieved short term victory. There are many project which ford is undergoing a similar time, there is 80% of successful implementation of project in Ford. 7. Continue the change T h e v i e w f r o m ( Rieley and Clarkson, 2001) shows important to have continuous change because this will help management to improve its

performance. The (Burnes, 2004) , had expressed that people of organization should undergo for the constant change. In case of ford the change in people and their techniques remains on constant, they adapt new changes and new techniques to cover the market share. 8 . Secure the change in the organization culture

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The organizational cultural change is must when the change comes in the working pattern of people and in people behavior. The cultural change will bring more new ideas, concept and creativity in organization. The performance of employees in organization will improved in large, as the competition in the organization will increased due to diversified cultural. There are some changes come up in working of firm as some principle factors affects the cultural of organization 1) The founders basic assumptions 2) The national culture 3) The task in hand (Gargan D., 2005)

In case of ford, the cultural change come up when the new leadership came in management, the operation had shifted in different markets all over the globe so the diversified work force was developed by Ford which result into cultural change in organization Part c

Game theory and simulation

The important strategic decisions are design from applying game theory in business. The game theory is implication which is used for taking strategic business decision in firm. It is process which results to take the best fit decision in business so that growth and development of firms is not affected adversely through obstacles coming on the way. Game theory is also known as test which is result decision either based on rational thinking or hypothetical thinking. From the game theory the idea of participant in the game can be aware. In case of organization change in business, it is know that which component is playing vital role in change. Through game theory is known that whether the employees are willing for organizational change are they motivate for adapting new changes in environment and their working pattern. The result is aware using the application of game theory in firm organization change situation. To gain better performances in future its is necessary for leaders to decide on the basis of employee that whether they have expected the change or not and probable chance of success change in organization

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There different issues in which the game theory is implemented that economic, psychology or political issues. When the complexity in the decision is faced by manager or leaders then they implemented the game theory. The game theory is mathematical tools which show instance result based on calculation the zero sum game is the main based of game theory. The game theory has matrix structure where the whole calculation of game is set up. Pay off is the value that is depicted in the matrix it is also called as utility in the economics. In this variable are valued and this value re open towards the values. The result is calculated based in variable effectiveness and its density. The theory helps in describing the human nature and behavior towards the other variables. The complex decision of human can deal by utilization of game theory as tool in organization. In the game theory it is analyzed that whether implementation of new leader is top management is worthwhile, this is hypothetic in case of ford:

2 NO

2 YES

1 NO 1 YES 1,1 4,6 6,4 -2,-2

There are two variable which plays vital role in affecting the business, seeing the valuation and giving value to those attributes the results are declare. In this color is shown the green one is first variable and red is for second variable. The first variable is organizational change and second one is static operations working. Looking towards the matrix is know that values of first block increase as show while implementation of strategic leadership in Ford, it would result of bring organizational change, as no of the factors that is favor Ford for taking organizational change. The huge chances of success are notice in the matrix. The stability of the calculation is always maintained as sometimes due to changes in at huge level the strategies of company differs because their decision changes. There are other arguments had
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come up that sometimes the decision shown up by the game theory always fails so it result into failure of decision. Many companies use alteration model of game theory. The limitation of game theory is mostly change the value of decision. As there only variables it is predicts that other variables remain constant in it. Another testing technique is stimulation, the stimulation is also a process of various steps all the steps are mandatory to follow and one can reach up into the targets. Accordingly, at the beginning of the simulation, all the targeted adopters of the proposed change are still unaware, and it is the task of the player(s) to help them reaching what Rogers calls the Awareness stage. In the awareness stage "the individual is exposed to the innovation but lacks complete information about it". Once awareness is reached, the Interest stage is entered. At the interest or information stage "the individual becomes interested in the new idea and seeks additional information about it". The next stage is Appraisal/Trial, a phase corresponding to Rogers two stages of Evaluation and Trial. At the evaluation stage the "individual mentally applies the innovation to his present and anticipated future situation, and then decides whether or not to try it". During the trial stage "the individual makes full use of the innovation". The last stage is Adoption. At the adoption stage "the individual decides to continue the full use of the innovation6". In this case of ford the stimulation theory is not used because when the leadership change in top level management and new leader had come up till that no one was aware for changing. The vision remains the same only the structure is changed so the stimulation model could not be appropriately implied in Ford motors

Conclusion
In this paper the different aspects of models, theories and application are studied in order to increase the business of company by giving more organizational change climate. The new strategy of ford is develop which will help in bring the change in organization through cultural change and operational or structural change. There are many research conducted as one such research look up to McKinsey & Co (2006), Shaffer & Thomson (1998), and Corporate Leadership Council (CLC, 2001) site studies of hundreds of companies that entered significant change programs. Their research indicates that

http://www.calt.insead.edu/eis/documents/EISSimulationUnderlyingModels.pdf

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60% -70% of significant and complex change management programs grind to a halt because of their failure to produce the hoped-for results7. In case of ford, the strategic leadership had brought the organizational change as it was successful because the leaders put huge efforts and manage the change. Different theory and model of organizational change were used in order to know the chance of success in changing organization. The ford company uses the transformational leadership style, through this style the working pattern in ford structural operation had change, new implementation of operation plant in different region had made the workforce of ford more diversified and cross cultural. There was change reform seen in structure of ford, operation of ford and cultural of ford. With the implementation of strategic leadership in company the vision of company is remain focus the objectives are achieved and it had seen vast growth and development in their business.

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