Leadership and strategic change†

Abstract

This article reports on a study of the development and diffision of a new corporate philosophy in three corporate divisions of the Scandinavian Airlines System (SAS). The corporate philosophy, representing strongly held assumptions, beliefs, and values guide the strategic change. Its development and diffusion is found to be directly influenced by the formation of a strategic role constellation in each division. The division managers have personally recruited a constellation which is consistent with their own beliefs and values. Implications of the findings for selection, recruitment, and development of key managers are pinpointed.