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The relationship between strategic leadership and strategic alignment in
high-performing companies in South Africa
by
LORRAINE WENDY LEAR
submitted in accordance with the requirements
for the degree of
DOCTOR OF BUSINESS LEADERSHIP
at the
UNIVERSITY OF SOUTH AFRICA
GRADUATE SCHOOL OF BUSINESS LEADERSHIP
PROMOTER
PROFESSOR ERNST NEULAND
FEBRUARY 2012
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Declarations
Student number: 638-969-4
I declare that ”THE RELATIONSHIP BETWEEN STRATEGIC LEADERSHIP
AND STRATEGIC ALIGNMENT IN HIGH-PERFORMING COMPANIES IN
SOUTH AFRICA” is my own work and that all sources that I have quoted have
been indicated and acknowledged by means of complete references.
________________________ _______________________
Signature Date
(Ms L.W. Lear)
ii
Abstract
In the global economy of the 21st century, competition is complex, challenging
and fraught with competitive opportunities and threats. Strategic leadership is
increasingly becoming the main focus for business and academics alike and is
the key issue facing contemporary organisations. Without effective strategic
leadership, the capability of a company to achieve or sustain a competitive
advantage is greatly constrained.
More than 30 years of Harvard Business School research have shown that
aligned and integrated companies outperform their nearest competitors by
every major financial measure. The organisational effectiveness emanating
from alignment is a significant competitive advantage. Alignment is that optimal
state in which strategy, employees, customers and key processes work in
concert to propel growth and profits. Aligned organisations enjoy greater
customer and employee satisfaction and produce superior results.
Can leadership make a difference? Some leaders do, some do not - and many
more could.
Effective strategic leadership can thus help organisations enhance performance
while competing in turbulent and unpredictable environments. However, there
has been little empirical evidence of the effects of strategic level leadership on
organisational processes that have distinctive strategic significance.
A greater understanding of the criteria that influence success in organisations
will enable organisations to take positive action to become more successful.
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This study examines the importance of critical leadership criteria and the degree
of alignment in high-performing organisations. A quantitative research design
was used in this study to assess the impact of strategic leadership on strategic
alignment of business organisations in South Africa. The research instruments
to test the research questions comprised two questionnaires. The first was
used to establish the value top leadership place on selected critical leadership
criteria, and the second to establish the level of alignment in the organisations
under investigation. The population selected for this study consisted of the
companies included in the 200 top-performing organisations which appeared in
the 2007 Financial Mail. Six companies participated in the research.
The data was electronically collated into a database and the results were then
analysed using the statistical inferential techniques of correlation and linear
regression analysis.
The study proposes that strategic leadership will positively influence strategic
alignment which, in turn, will have a beneficial effect on organisational
performance.
Keywords: strategic leadership, strategic alignment, critical criteria,
organisational performance, strategic direction, core competencies, human
capital, corporate culture, ethical practices
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