However strategic plans are arrived at, only one person, the CEO, can ensure that energies and efforts throughout the organization are orchestrated to attain desired objectives. What the Chinese general and philosopher Sun-tzu said in 514 B.C. is still true today: “Weak leadership can wreck the soundest strategy; forceful execution of even a poor plan can often bring victory.” This section examines the key role of the CEO in shaping the organization for strategy implementation. Also discussed is the role of the strategic planner, whose activities also have a major impact on the organization and its attitude toward strategic change.

Role of the CEO

The CEO of a company is the chief strategist. He or she communicates the importance of strategic planning to the organization. Personal commitment on the part of the CEO to the significance of planning must not only be highly visible it must also be consistent with all other decisions that the CEO makes to influence the work of the organization. To be accepted within the organization, the strategic planning process needs the CEO’s support. People accustomed to a short-term orientation may resist the strategic planning process, which requires different methods. But the CEO can set an example for them by adhering to the planning process. Essentially, the CEO is responsible for creating a corporate climate conducive to strategic planning. The CEO can also set a future perspective for the organization. One CEO remarked: My people cannot plan or work beyond the distance of my own vision. If I focus on next year, I’ll force them to become preoccupied with next year. If I can try to look five to ten years ahead, at least I’ll make it possible for the rest of the organization to raise their eyes off the ground immediately in front of them. The CEO should focus attention on the corporate purpose and approve strategic decisions accordingly. To perform these tasks well, the CEO should support the staff work and analysis upon which his or her decisions are based. Along the same lines, the CEO should ensure the establishment of a noise-free communications network in the organization.

Communications should flow downward from the CEO with respect to organizational goals and aspirations and the values of top management. Similarly, information about risks, results, plans, concepts, capabilities, competition, and the environment should flow upward. The CEO should avoid seeking false uniformity, trying to eliminate risk, trusting tradition, dominating discussion, and delegating strategy development. ACEO who does these things could inadvertently discourage strategy implementation. Concern for the future may require a change in organizational perspectives, as discussed above. The CEO should not only perceive the need for a change but should also be instrumental in making it happen. Change is not easy, however, because past success provides a strong motive for preserving the status quo. As long as the environment and competitive behavior do not change, past perspectives are fine. However, as the environment shifts, changes in policies and attitudes become essential. The CEO must rise to the occasion and not only initiate change but encourage others to accept it and adapt to it. The timing of a change may be more important than the change itself. The need for change must be realized before the optimum time for it has passed so that competitive advantage and flexibility are not lost.

Zaleznink makes a distinction between the CEO who is a manager and the CEO who is a leader. Managers keep things running smoothly; leaders provide longer-term direction and thrust. Successful strategic planning requires that the CEO be a good leader. In this capacity, the CEO should

1. Gain complete and willing acceptance of his or her leadership.

2. Determine those business goals, objectives, and standards of behavior that are as ambitious as the potential abilities of the organization will permit.

3. Introduce these objectives and motivate the organization to accept them as their own. The rate of introduction should be the maximum that is consistent with continued acceptance of the CEO’s leadership. Because of this need for acceptance, the new manager must always go slowly, except in emergencies. In emergencies, the boss must not go slowly if he or she is to maintain leadership.

4. Change the organizational relationships internally as necessary to facilitate both the acceptance and attainment of the new objectives.

Acoordinated program of change in pursuit of a sound and relevant strategy under the active direction of the chief executive and the chief planner can lead to significant progress. Although this may only begin a long-term program, it should yield benefits far beyond the time and effort invested. Although pace and effectiveness of strategic change cannot be judged in quantitative terms, there are useful criteria by which they m

ay be assessed. Some of the more important hallmarks of progress are listed here: • Strategies are principally developed by line managers, with direct, constructive support by the staff.

• Real strategic alternatives are openly discussed at all levels within the corporation.

• Corporate priorities are relatively clear to senior management, but they permit flexible response to new opportunities and threats.

• Corporate resources are allocated based on these priorities and in view of future potential as well as historical performance.

• The strategic roles of business units are clearly differentiated as are the performance measures applied to their managers.

• Realistic responses to likely future events are worked out well in advance.

• The corporate staff adds real value to the consideration of strategic issues and receives cooperation from most divisions.