Creating wealth in organizations

Creating wealth in organizations





Strategic leadership involves relying on the managers and employees in an organization to come up decisions that will be beneficial to the entire organization. In this leadership strategy, the managers and employees have to be well aware of the strategic direction of the organization so that they make decisions that do not damage the organization. It requires a lot of effort on controlling and monitoring and very little effort on what is to be done on long and short-term viability. In many organizations, it is true that strategic leadership influencing employees to come up with decisions that enhance the organization (Adair, 2002). The decisions which are made voluntarily and the actions which employees and managers take voluntarily daily is what determine the strategy that emerges. In many organizations, the employees and managers are only guided on what is expected from them by strategic leaders and hence they end up making decisions on their own. This is through emphasis on making decisions based on ethics and based on value (Adair, 2002). The leaders often have strong and positive expectations from their subordinates, superiors and also themselves.

Strategic leadership normally presumes visionary leadership when it comes to the willingness to take risks. It involves believing in strategic choices in that their choices have a big difference in the entire organization and environment. Visionary leadership in an organization can provide a solution to the many problems faced by the organization. However, it is difficult to find an organization that has embraced visionary leadership unless there is support from managerial leadership. This leadership style is quite risky and hence many organizations fear to embrace it. It is future-oriented and entails risk taking since these leaders do not depend on the organization for any decision they make. Organizations still require visionary leaders to make sure that the organization has a long-term viability.

Working for visionary, strategic and managerial leaders have their positive sides and areas which need improvement. Strategic leadership involves the emphasis of strategic goals of the organization hence it is easy to for manager and employees to achieve these. It also involves having positive expectations from self and others which leads to better decisions and improved performance. There can be managers and employees who do not know the strategic direction of the organization and hence end up inadvertently making decisions that can damage the organization (Kippenberger, 2002). There are also some managers and employees who are well aware of the strategic direction but they just want to damage organization. They end up voluntarily making decisions that affect the organization. This calls for an improvement in terms of controlling and monitoring of the managers and employees when they make decisions.

Visionary leaders are quite proactive and bring changes in how people think in terms of what the organization requires. They work hard to make sure that they come up with choices, new approaches to problems and work from positions that present high risks. This helps making decisions that are effective and provide solutions to problems within the organization. They come up with strategic choices which positively impact the organization. A negative side of visionary leadership is that these leaders might end up investing more on their own visions than what is warranted by returns (Kippenberger, 2002). If there is no constraining influence from managerial leaders there could be a destruction of wealth in the organization. This can be improved through combining managerial and visionary leadership in the organization.

Managerial leaders are reactive and have positive attitudes towards the goals that are set in the organization. This makes it possible for these leaders to create goals from what is necessary but not what they desire or the dreams they have. It leads to setting of better goals and hence better performance in the organization. They also influence the decisions and actions of the people they work with. This leads to making better decisions since the decision making process is guided by managerial leaders. They believe in determinism in that the choices they make are influenced by both the external and internal environment. The negative side of this leadership style is that these leaders do not create wealth for the organization. They only work towards maintaining already created wealth and they might end up destroying the wealth in the long-term. There is need to improve managerial leadership when it comes to creation of wealth for the organization (Kippenberger, 2002).

The most effective leader for the Capsim Company would be a strategic leader. Strategic leaders are different from managerial and visionary leaders in that they dream and do something about the dreams they have. Strategic leaders create more wealth compared to managerial and visionary leaders combined. Managerial leaders mainly concentrate on short-term financial stability. Visionary leaders mainly concentrate on the long-term viability of an organization. Strategic leaders have the potential of creating wealth for an organization due to the various qualities of the organization. Their leadership involves the emphasis of ethical behavior and strategic responsibilities (Adair, 2002). They also come up with strategies useful for the immediate impact as well as preservation of long term goals in the organization for growth, viability and survival. They also use financial and strategic controls to emphasize on stability and growth of the organization.


Adair, J. (2002). Effective strategic leadership. London: Macmillan.

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Kippenberger, T. (2002). Leadership styles. Oxford, U.K.: Capstone Pub.