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Saturday
Mar062010

Leadership Versus Management In Business

There is a big difference between leadership and management in the business context and I think it's important to point out what separates these two very important disciplines. When I first exited the military I was a bit idealistic in thinking that leadership was a valued discipline in business. What I found was that more often the focus in both large and small businesses was on management. Over the years since then I have consistently experienced management as a more valued and more applied discipline than leadership. I think that leadership skills are not valued as much as management skills because of confusion about the definitions of management and leadership.

Many managers think that they are also leaders due to their title within an organization and the fact that they have one or more people who report to them. I learned that this is not the case very early on in my career when I had a job as an operations manager for a shipping company. In that position I had a hard time figuring out why I couldn't rally my team members to achieve noticeable improvements in productivity. The reason was that I was managing and not leading. I learned this lesson later as a new Tank Platoon Leader in the Army. Between my Officer Candidate School experience and the wisdom of an experienced Sergeant I realized what I had done wrong then and was able to begin doing things differently.

Many people mistakenly believe that soldiers in the Army follow and do what officers tell them to do because of their rank. I actually had one executive tell me something like, "Military experience doesn't count as real leadership because your soldiers have to do what you tell them to do." That sentiment couldn't be further from the truth. Technically soldiers must obey lawful orders, but I saw many instances where soldiers would either not do things or do things poorly as a direct result of a failure of leadership. And when a soldier fails to do something you can't just cry court martial or seek punitive action. You have to lead and do it right.

So where is the line between management and leadership drawn? It's really very simple. You lead people and you manage everything else. Budget, projects, expectations and relationships are all examples of things that you manage. These are things that don't respond to leadership. Have you ever tried leading an Excel spreadsheet? It doesn't work too well. People need to be lead. Before expanding on that thought I think it's important to say that both leadership and management skills are very important in a business. The leader who can't manage and the manager who can't lead are equally handicapped. I must say though that I do prefer the good leader / average manager over the average leader / good manager.

Here are some of the key differences between leaders and managers of people.

  • Managers are in charge. Leaders take responsibility.
  • Managers focus on getting things done right. Leaders focus on doing things better.
  • Managers talk more than they listen. Leaders listen more than they talk.
  • Managers evaluate personnel. Leaders develop personnel.
  • Managers expect to be served by subordinates. Leaders serve subordinates.

Those are just a few key differences. Many of the differences between leaders and managers are intangible. If you've been managed (let's face it everyone has) then you know the feeling you get when that's happening. You get a different feeling when you're working with a good leader. That's why leading people instead of managing them is so important. You get more out of people when you lead them. Managing is like man handling or manipulating something. It may be good for you as the manager and it may be good for the business in the short run, but it's not good in the long run. Why? Because the managed aren't getting what they need (things like professional development) out of the deal.

Imagine the difference in approach and results if someone tended a garden with the approach of a manager versus a leader. The garden manager probably seeks to make sure that things stay in the same state as much as possible. When they see a sick plant they choose to lightly prune it instead of ripping it out and replacing it with something new and fresh. They would probably think of the most efficient timing and amounts of water and light for all the plants rather than in individual plant plan. In short, managers are great for maintaining the status quo when it comes to people (...and plants.) A plant leader would treat each plant as an individual with individual needs and benefits for the garden. And if one plant flourishes they may uproot it and plant it alone or start another patch of garden. This is a more time consuming and overall more beneficial approach.

You'll also notice that leaders are very passionate learners and teachers. I'm sure that you've heard the phrase, "Leaders are born. not made." Yeah, well that's a load of bull$h%t. It's always said by someone who thinks they were born a leader. You probably weren't born a leader according to them. And they don't have the time or the skill to help you along. If you can learn (we all can) and you can teach (we all can) then you can be a leader. We often confuse leadership with charisma. There are certainly true charismatic leaders. These are people who exhibit many great leadership qualities and also have a flair for public speaking and motivation. Many charismatic types can't follow through with true leadership qualities. So while they may get a crowd excited for a little while, the thrill soon begins to wear off. After the pep rally is over the person who is committed to developing people and staying on the cutting edge of learning (so they can teach some more) is the more important leader within a business.

What does all of this mean? What it means depends on who you are and what your situation is. I use this knowledge to help me decide who I want to work with and how I conduct myself when a leadership opportunity arises. I prefer a good leader over a good manager because I work better with good leaders and feel better about my future. These thoughts also serve to give me pause and think, "Am I leading or managing people?" You will probably want to ask that question. You'll also want to know, "Is my boss a leader or a manager?" If your boss is a manager then you need to consider the impact that may have on your future development.

If you own a business and/or are responsible for people you want to lead them and manage everything else. Management of people generates benefits that are short-term and costs more in the long run. Leadership develops intangible assets that are difficult to duplicate by competitors. My hope is that others who read this will at least ponder the leadership versus management question and make positive changes as necessary in their own business environment.

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