The Impact of Leadership on Systematic Organizational Change

The leader must also consider making strategic investment decisions that include committing resources to new facilities, locations and equipment as needed to help accomplish the vision. The leader must also verify that there is a sufficient capital base to implement the vision. Physical capital is the most obvious: the sum total of the cash, facilities, equipment and tools, and other hard assets that will be needed in the implementation of the vision.

Building the organization’s human capital is the last major strategy the leader must consider strategically to accomplish the vision. Human capital consists of all of the skills, experience, technical ‘know-how’, and capabilities of the employees in the organization. The leader has the ability to build on the human capital through decisions based on hiring, staffing and training. Establishing strategic alliances, clear goals and objectives, and allocating both physical
and human capital, the visionary leader will have built the necessary framework to host the organizational changes needed to accomplish the vision. To be successful at visionary leadership, each element or variable (Shared Purpose,
Empowered People, Appropriate Organizational Changes, and Strategic Thinking) must be optimized according to each organizations competencies or capabilities.