The Twin Pillars of Effective Leadership SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Twin Pillars of Effective Leadership
During periods of crisis or disenchantment, charismatic leaders emerge because they offer an alternative to the uncertainty of the times. Such was the case in the 1980s with Ronald Reagan, whose clear message and emotional style held across-the-board appeal and provided a sense of certainty after years of political and social turbulence. Using case studies of prominent leaders of the past 50 years, the authors explore the keys of effective leadership. In business as in politics, managers can use the challenges of the current uncertain times to inspire others and lead change. To do this, they need two important tools: the magnet and the hammer. Magnet actions include vision, storytelling, charismatic speaking and role modeling, which create a pull toward a destination. Hammer actions include direct orders, threats, control systems, hiring and promotions, job definition and financial incentives that drive change directly. Four practices that will help leaders develop skill with these tools are: developing a personal vision; articulating that vision in a way that connects powerfully with your audience; following through on your promises; and then making sure everyone else fulfills their part of the bargain. The authors offer practical tips to help managers go further, and urge them to put their magnet and hammer into practice in various non-work settings, too. By following the examples of yesterday's leaders, you can become a visionary leader of tomorrow.
Swot Analysis of "The Twin Pillars of Effective Leadership" written by Brian Leggett, Conor Neill includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hammer Magnet facing as an external strategic factors. Some of the topics covered in The Twin Pillars of Effective Leadership case study are - Strategic Management Strategies, Motivating people, Organizational culture, Psychology, Strategy and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the The Twin Pillars of Effective Leadership casestudy better are - – technology disruption, supply chains are disrupted by pandemic , there is backlash against globalization, central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings,
there is increasing trade war between United States & China, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of The Twin Pillars of Effective Leadership
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Twin Pillars of Effective Leadership case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hammer Magnet, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hammer Magnet operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of The Twin Pillars of Effective Leadership can be done for the following purposes –
1. Strategic planning using facts provided in The Twin Pillars of Effective Leadership case study
2. Improving business portfolio management of Hammer Magnet
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Hammer Magnet
Strengths The Twin Pillars of Effective Leadership | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hammer Magnet in The Twin Pillars of Effective Leadership Harvard Business Review case study are -
Effective Research and Development (R&D)
– Hammer Magnet has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study The Twin Pillars of Effective Leadership - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High brand equity
– Hammer Magnet has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hammer Magnet to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Operational resilience
– The operational resilience strategy in the The Twin Pillars of Effective Leadership Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Sustainable margins compare to other players in Leadership & Managing People industry
– The Twin Pillars of Effective Leadership firm has clearly differentiated products in the market place. This has enabled Hammer Magnet to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Hammer Magnet to invest into research and development (R&D) and innovation.
High switching costs
– The high switching costs that Hammer Magnet has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Training and development
– Hammer Magnet has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Twin Pillars of Effective Leadership Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Low bargaining power of suppliers
– Suppliers of Hammer Magnet in the sector have low bargaining power. The Twin Pillars of Effective Leadership has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hammer Magnet to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Hammer Magnet is one of the most innovative firm in sector. Manager in The Twin Pillars of Effective Leadership Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Hammer Magnet has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Hammer Magnet has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Ability to recruit top talent
– Hammer Magnet is one of the leading recruiters in the industry. Managers in the The Twin Pillars of Effective Leadership are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Hammer Magnet digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hammer Magnet has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Cross disciplinary teams
– Horizontal connected teams at the Hammer Magnet are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Weaknesses The Twin Pillars of Effective Leadership | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Twin Pillars of Effective Leadership are -
Low market penetration in new markets
– Outside its home market of Hammer Magnet, firm in the HBR case study The Twin Pillars of Effective Leadership needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Hammer Magnet products
– To increase the profitability and margins on the products, Hammer Magnet needs to provide more differentiated products than what it is currently offering in the marketplace.
Workers concerns about automation
– As automation is fast increasing in the segment, Hammer Magnet needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High operating costs
– Compare to the competitors, firm in the HBR case study The Twin Pillars of Effective Leadership has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Hammer Magnet 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the The Twin Pillars of Effective Leadership HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Hammer Magnet has relatively successful track record of launching new products.
Need for greater diversity
– Hammer Magnet has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Hammer Magnet is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The Twin Pillars of Effective Leadership can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study The Twin Pillars of Effective Leadership that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case The Twin Pillars of Effective Leadership can leverage the sales team experience to cultivate customer relationships as Hammer Magnet is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Twin Pillars of Effective Leadership, in the dynamic environment Hammer Magnet has struggled to respond to the nimble upstart competition. Hammer Magnet has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Increasing silos among functional specialists
– The organizational structure of Hammer Magnet is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Hammer Magnet needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Hammer Magnet to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Hammer Magnet has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Opportunities The Twin Pillars of Effective Leadership | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study The Twin Pillars of Effective Leadership are -
Learning at scale
– Online learning technologies has now opened space for Hammer Magnet to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Hammer Magnet is facing challenges because of the dominance of functional experts in the organization. The Twin Pillars of Effective Leadership case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Building a culture of innovation
– managers at Hammer Magnet can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Leadership & Managing People segment.
Using analytics as competitive advantage
– Hammer Magnet has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study The Twin Pillars of Effective Leadership - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hammer Magnet to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Hammer Magnet can use these opportunities to build new business models that can help the communities that Hammer Magnet operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Better consumer reach
– The expansion of the 5G network will help Hammer Magnet to increase its market reach. Hammer Magnet will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Hammer Magnet can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Hammer Magnet can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Hammer Magnet to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Hammer Magnet to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Hammer Magnet has opened avenues for new revenue streams for the organization in the industry. This can help Hammer Magnet to build a more holistic ecosystem as suggested in the The Twin Pillars of Effective Leadership case study. Hammer Magnet can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Hammer Magnet can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Hammer Magnet can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Manufacturing automation
– Hammer Magnet can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Low interest rates
– Even though inflation is raising its head in most developed economies, Hammer Magnet can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Threats The Twin Pillars of Effective Leadership External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Twin Pillars of Effective Leadership are -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study The Twin Pillars of Effective Leadership, Hammer Magnet may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Technology acceleration in Forth Industrial Revolution
– Hammer Magnet has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Hammer Magnet needs to keep up with the evolution of technology in the Leadership & Managing People sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Hammer Magnet with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Hammer Magnet in the Leadership & Managing People industry. The Leadership & Managing People industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Hammer Magnet in the Leadership & Managing People sector and impact the bottomline of the organization.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Hammer Magnet will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Shortening product life cycle
– it is one of the major threat that Hammer Magnet is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Hammer Magnet can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Hammer Magnet needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
Regulatory challenges
– Hammer Magnet needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Leadership & Managing People industry regulations.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Hammer Magnet.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Hammer Magnet can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study The Twin Pillars of Effective Leadership .
High dependence on third party suppliers
– Hammer Magnet high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Weighted SWOT Analysis of The Twin Pillars of Effective Leadership Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study The Twin Pillars of Effective Leadership needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study The Twin Pillars of Effective Leadership is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study The Twin Pillars of Effective Leadership is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of The Twin Pillars of Effective Leadership is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Hammer Magnet needs to make to build a sustainable competitive advantage.
