P a g e|1 Introduction/ Summary In the 21stcentury, competition arising in businesses have made the global economy more challenging, complex and inclusive of various opportunities as well as threats. Under such circumstances, I believe that effective leadership practice is the only way which can assist organizations and enhance performance metrics while competing amidst unpredictable and turbulent business atmosphere. According to Ireland & Hitt (2005), although contemporary organizations may face difficulties in making future predictions accurately, they can examine events which have taken place already. This can help them in getting prepared for the future along with recognising what influence their business the most. Contrastingly,Hitt, Haynes, & Serpa (2010)claims that globalization has made organizations fall into a complex network of the relationship while operating across international borders. Now, companies require focussing more upon enhancing interdependencies between organizations situated worldwide. I found that such changes not only amplify challenges faced by top management and leaders but also enhance opportunities for organizational growth and development. The global landscape that is expected in future years includes disequilibrium conditions along with discontinuations. Industries might face blurring boundaries, become price-oriented, hypercompetitive. Customer satisfaction, continuous growth and innovation, although will become the primary objective of many firms, employees career aspirations and requirements, might also get changed (Hitt, Haynes, & Serpa, 2010). Similarly, Ireland & Hitt (2005) finds that by examining innovative and appropriate strategic leadership skills used by visionary organizations, it is probable that practices required by organizations in future years can also be predicted. Analysing such predictions is significant as strategic leadership
P a g e|2 approach might prove to be an essential issue facing future organizations. Organizations without having effective strategic leadership strategies might face challenges or difficulty in achieving satisfactory performance. I found that both the author give stress on revolutionary changes of upcoming years which might occur swiftly, continuously and affect every virtual part of the organizations concurrently. The discontinuity, ambiguity and uncertainty taking place because of revolutionary changes will challenge firms and the strategic leadership approach to foster the decision-making processes. Self-interest can be desired from future organization's leaders including capabilities through which they can motivate individuals and competencies to serve the firm as well as the society as a whole. However, it can also be noted that excessive self-interest can prove ineffective as leaders might undertake actions that serve their self-interest only. This self- interest might change into greed and executive benefits might get increased much more than returns provided to the company shareholders and the society(Hitt, Haynes, & Serpa, 2010). Alternatively, Ireland & Hitt (2005) claims that future organizations will make strategic leaders undertake competitive mindset with mental capabilities, innovation, firm flexibility and global strategic intention will be made priority to exploit emerging new opportunities. The opportunities faced by leaders can occur majorly because of a disequilibrium created by global economic changes such as technological advancements in a competitive business environment. More specifically, the global economy is considered primarily by the authors which have given rise to irrevocable events and influence of it can already be seen in current strategic leadership practices.
P a g e|3 Comparative discussions A study made by Hitt, Haynes, & Serpa (2010) finds that entrepreneurship is the prime driver of economic growth. Indeed, with the innovative approach taken by firms such as Apple and IBM, we can expect that large resource firms upcoming in future generations like White Rock Pearl Co. will continue to be an important part of economic development. It can be agreed that good strategic leaders can manage enterprise resources. For instance, they can develop the resource portfolio which means, they will acquire useful resources and develop them as per global business needs alongside deleting the ones that become useless. However, Ireland & Hitt (2005) argues that even though operational functions of strategic leadership continue to evolve as the global economic condition does, CEO's remain accountable for a firm's performance. Company Board of Directors empowers CEO to guide the organization in the best possible manner and serve the shareholders and stakeholders need effectively. Nevertheless, both the articles pinpoint that either firm's leaders or the CEO can undertake responsibilities for managing and leading the business, share ideas and information wisely and seek mutual influence with the ones who accept taking responsibility to assist the organization towards success. One strong assumption made by Hitt, Haynes, & Serpa (2010) is that although many organizations have failed in the past due to leadership deficiencies, future provides a great opportunity. For the same, strategic leaders will need to be more strategically flexible. To avoid failure and avail future opportunities, strategic leaders must manage their resources carefully and build effective social and human capital to create a flexible organization capable to make prompt decisions and stay ahead of their competitors. Contrastingly, Ireland & Hitt (2005) assumes that to ensure competitive advantages are exploited in the global economy, firms will have to make significant investments to derive competitive benefits form
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P a g e|4 its assets such as human capital. Economists though argue that investments made by the firms are "essential to robust long- term growth in modern economies that depend on knowledge, skills, and information." (p.70). This means, the systematic growth of knowledgeable workers will automatically develop the firm's profitability. One biggest strength that I found in the article written by Hitt, Haynes, & Serpa (2010) is that the author gives more stress on innovation, particularly the creation of new firms and entrepreneurial activities. This will require leaders to integrate or bundle all the available resources so that a valuable capability is created which in turn become organizational competencies. However, the article fails to discuss the role of the company Board of Directors or other important shareholders who constitute together as the backbone of any organization. Comparatively, Ireland & Hitt (2005) have discussed them and claims that organizations which involve equal contribution made by the organizational community, including CEO and shareholders will become more competitive and can design tasks to exploit marketplace. But then, one drawback can also be seen in the article as the authors neglect defining significance behind the healthy organizational culture. According to Hitt, Haynes, & Serpa (2010), a healthy organizational culture developed by firm’s strategic leaders not only develops core values related to innovation but also helps human capital and teams learn new ways of value creation. Self-reflection After reading and analysing both the articles, I came to know that strategic leaders need developing and communicating the firm's vision and mission along with assisting in the processes related to implementation and formation of organizational strategies to gain competitive goals. Such guidance can prove highly beneficial to me in my future career while establishing or giving directions to my firm for its growth and product development. I learnt
P a g e|5 from Ireland & Hitt (2005) that capabilities needed by 21st-century leaders include a new competitive landscape. In the global economy, top management can effectively exercise a strategic leadership role in organizations. This is because the author documents need of external business environment which requires a collective vision. From Hitt, Haynes, & Serpa (2010) I came to know that strategic leaders play a significant part in establishing core competencies, healthy organizational culture and ethical business practices. Effective leadership strategies not only help firms in emphasising trust, honesty and integrity while making decisions but also assist in strategy implementation. According to the authors, core values of trust, integrity and honesty act as moral filters that helps in evaluating the potential course of action. The arguments and assumptions made in both the articles can provide its readers with strategies required to achieve desired targets and how to sustain in the global economy. With the key arguments presented in the articles, I will be able to provide my organization with a vision that can meet future economic challenges and promote innovation. While Hitt, Haynes, & Serpa (2010) explains about roles and responsibilities of strategic leaders and how they help firms in developing broad vision, Ireland & Hitt (2005) clarifies how great group or top management teams formed by company CEO or Board of directors proves effective. Top management is defined as a team with a small executive group who combinedly provide strategic leadership to achieve desirable goals. In summary, now I am aware that to become a successful leader in future I will have to develop certain capabilities for achieving success. Capabilities include developing and communicating strong vision, emphasise more upon appropriate use of human capital, engage in the valuable strategies, develop ethical practices, build dynamic core competencies, and make investments in new technology and innovation.
P a g e|6 Conclusion Certainly, "We are on the precipice of an epoch” (Hitt, Haynes, & Serpa, 2010, p. 439) where future organizations are expected to face more challenging, exciting yet distinctive experiences. Both the articlesstress more on twenty-first-century firms and characteristics required by leaders to achieve long term success and survival. It can be noted that strategic leadership approach has changed considerably in between 20thand 21stcentury. Leaders and CEO’s who practice with strategic leadership approach suitable for 21st-century firms can create resources required for competitive gains. These competitive gains developed by CEO's and leaders working under global economic development along with great groups or organizational members allow the firms gain global competitiveness. In short, strategic leaders and CEO's must utilise their time and resources to predict future opportunities and challenges. After analysing both the articles, I can say that future strategic leaders will have to operate under uncertain business conditions. Therefore, it is required that strategic leaders must predict a volatile and challenging business environment to employ an entrepreneurial mindset and leadership for exploiting the opportunities.
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P a g e|7 References Hitt, M. . A., Haynes, K. T. & Serpa, R., 2010. Strategic leadership for the 21st century. Business Horizons,Volume 53, pp. 437-444. Ireland, R. D. & Hitt, M. A., 2005. Achieving and Maintaining Strategic Competitiveness in the 21st Century: The Role of Strategic Leadership.The Academy of Management Executive, 19(4), pp. 63-77.