Management and Leadership are not the same

Sidebar: Entrepreneur (somebody who initiates enhances new business enterprises)

If you have been in the management world long, you know that the father of business management as a career was Peter Drucker. Mr. Drucker was able to succinctly tell us that “Management is doing things right. Leadership is doing the right things.”

In a small business, a leader is someone who provides guidance and direction while showing the way to a specific goal. At the same time, a manager is someone who has more of a hands-on or direct approach to accomplishing the goal. To manage implies more direct involvement and active control than leadership. Rather than focusing on high-level goals, a manager helps people successfully fulfill responsibilities to attain the goal.

As an entrepreneur with a small business you usually are not in a position to have separate people fill both roles of Leader and Manager … it’s normally up to you, as the boss, to wear both hats. To some this is exciting and to others it is downright scary. The former will be engaged and involved in an inspiring manner with all areas until the company grows too big to do it alone; the latter will most likely be involved in those areas of interest to them and not give the proper attention to areas that are uncomfortable for them to address. This is usually the reason for success or failure of a small company in the early stages assuming finances are adequate.

In reality a small business needs both. Ideally, a small-business owner or entrepreneur should be able to move back and forth between the two roles intuitively … although such a person is rare.

Unfortunately, a formal education normally does not teach these characteristics in tandem with one another so it is important that you know the key elements or functions for both Leadership and Management so that you can consciously strive to integrate these traits into your management style.

The Leader:

• Sees the Big Picture
• Has a Vision of high-level goals and a strategy
• Believes in core values; establishes clear standards
• Inspires through a positive attitude, motivation and optimism
• Provides a sense of teamwork and encourages input on strategies
• Recognizes the opportunities and the threats for all areas of the company
• Outlines and monitors accountabilities for financial and company success
• Involves others and empowers them to take action (thus building self-confidence)
• MBWA – manages by wandering around to ensure things go right

The Manager:

• Lets employees know what needs to be done
• Teaches employees or provides training on how to do their jobs
• Encourages input from employees on procedures and processes
• Outlines opportunities and problems on a day-to-day level (dots the i’s and crosses the t’s)
• Observes, monitors and measures progress and success of each individual
• Anticipates problems to prevent things from going wrong

The above recap of traits and functions seem simple and obvious, but being able to be the Leader AND the Manager can be difficult and needs to be handled skillfully.

As a Manager, your focus will probably be too shortsighted. You will not provide the farsightedness needed for the company to grow and survive long-term. Most likely will be unable to adroitly handle changing conditions, bring new business, and stay up with competition … plus the employees may not be motivated and/or properly engaged.

On the other hand, if you are only a Leader your Big Picture perspective may be too broadminded. You probably won’t be able to handle the day-to-day details and oversight with the guidance needed to be sure things are functioning efficiently in a timely manner within budget … plus your attention to customer service will most likely wane … and profits constrict.

Most entrepreneurs tend to lean toward one trait or the other – Leader or Manager. My experience has been that leaders need to put into effect procedures that ensure accountability from the employees that are clear and comprehensive. What you don’t want is for your employees to feel they are being micromanaged or that they are not trusted.

So, what have I learned from my experiences as a leader?

To put procedures in place to ensure employees are more accountable.

Do not want to be the kind of employer who micromanages employees nor do you want to have a workplace where workers feel mistrusted.

Be involved, engaged, and in attendance every day with a positive and forward looking attitude. Inspire, motivate and get your team involved with you in their areas of interest and expertise.

What are your thoughts on Leading and Managing?

© Phil Hoffman 2013. All rights reserved

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Tags: Entrepreneur, Leadership, Management, Manager, Small business

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