Strategic Leadership of Ceo
The new CEO’s characteristics influence the strategic actions and strategic changes initiated by the new CEO can often be constrained or encouraged by the environmental context within which the changes are implemented (Datta, Rajagopalan & Zhang, 2003, p.101-102). For this reason, the success of the new CEO depend on its leadership style. There are many leadership styles. According to Rowe (2001, pg. 82), there are three types of leadership; strategic leadership, visionary leadership, and managerial leadership. While strategic and managerial leadership focus on preserving or improving the status quo, visionary leadership is more fitting form of leadership for a company in need or in process of change.
Strategic leadership is the ability to influence others to voluntarily make day-to-day decisions that enhance the long-term viability of the organization, while at the same time maintaining its short-term financial stability (Rowe, 2001, pg. 81-82).
Managerial leadership involves stability and order, and the preservation of the existing order. Managerial leaders are more comfortable handling day-to-day activities, and are short-term oriented (Rowe, 2001, pg.82).
Visionary leadership is future oriented, concerned with risk-taking, and visionary leaders are not dependent on their organizations for their sense of who they are. Under visionary leaders, organizational control is maintained through socialization and the sharing of, and compliance with, a commonly held set of norms, values, and shared beliefs (Rowe, 2001, pg.82).
Unfortunately, visionary leaders are not readily embraced by organizations, and, unless they are supported by managerial leaders, may not be appropriate for most organizations (Rowe, 2001, pg.85).
A better solution is to have an individual who can exercise both visionary and managerial leadership. But Zaleznik argues that leaders and managers are different, and that no one person can exercise both types