ACCA SBL Leadership Notes

Syllabus Recap: Qualities of Leadership

1a. Role of Effective Leadership and Key Leadership Traits

• Role: Effective leadership drives strategy formulation, implementation, and change management by setting vision, aligning resources, and motivating teams.
• Key Traits: Visionary thinking, emotional intelligence, adaptability, communication, and decisiveness inspire trust and ensure strategic success.
• Application: Leaders use these traits to unite stakeholders and navigate change effectively.

1b. Entrepreneurship and Intrapreneurship

• Concepts: Entrepreneurship involves exploiting new opportunities through innovation. Intrapreneurship encourages employees to innovate within the organisation.
• Application: Creativity and risk-taking drive innovation in products or processes, enhancing competitiveness.

1c. Ethical and Professional Values in Governance and Leadership

• Key Values: Integrity, transparency, accountability, and fairness underpin governance and leadership.
• Application: Ethical leadership builds trust, ensures regulatory compliance, and supports sustainable stakeholder relationships.

Application to Dearn Shoes Ltd

1a. Role of Effective Leadership and Key Leadership Traits

• Context: Dearn Shoes Ltd, Lucland’s fourth-largest shoe manufacturer, faces declining customer satisfaction (7.0/10 in 20X4 vs. 8.7/10 in 20X0), quality issues with Totland’s X Co, and a weak online presence (12% of sales). The risk-averse board operates a hierarchical structure.
• Application: The Executive Chair needs visionary thinking to reverse market share decline (9.4% in 20X4). The CEO requires adaptability to boost online sales and counter Flamingo’s speed-to-market. Emotional intelligence is vital for maintaining staff satisfaction (8.2/10) and resolving X Co issues. The board’s risk aversion may delay decisive action, necessitating stronger leadership to drive change.

1b. Entrepreneurship and Intrapreneurship

• Context: Dearn struggles with casual shoes for 18- to 30-year-olds, where Rigo leads. Industry trends include 3D printing and ethical shoes by Kind Shoes Co. Dearn’s R&D is Lucland-based, but its e-commerce platform lacks functionality.
• Application: The Chief Commercial Officer could act as an intrapreneur, using R&D to develop sustainable casual shoes to attract younger customers. Entrepreneurial thinking could leverage virtual reality for online sales. Encouraging intrapreneurship in the hierarchical structure could involve empowering R&D to prototype customisable shoes, aligning with trends.

1c. Ethical and Professional Values in Governance and Leadership

• Context: Dearn’s governance is robust but lacks audit committees. Environmental risks arise from X Co’s Totland operations, where labour and environmental standards are poor. Customers prefer Lucland-made shoes, and Dearn’s formal shoes carry the ‘Made in Lucland’ mark.
• Application: The board must uphold integrity by addressing X Co’s ethical issues, possibly reshoring production to align with customer values. The Chief Human Resources Officer should ensure fair labour practices to sustain staff loyalty. Ethical leadership is crucial to balance costs with sustainability, reinforcing Dearn’s quality focus and rebuilding customer trust.