Are you a leader or a manager? The question may surprise you, but there’s a reason for asking it. Start-up founders wear multiple hats, including those of leaders and managers. The need to balance both roles emerges strongly in the early stages of business growth when teams are small and hiring costs must be kept in control. As businesses grow, founder-CEOs may find themselves in a more comfortable position to lead more and manage less.
What does it mean to lead? How is it different from managing a business? This leadership vs. management post breaks it down for you.
Defining leadership and management
Leaders create a vision for their company, set strategic goals that align with the vision, and create a shared direction for everyone to follow. They inspire people around them and play an influential role in getting things done and achieving collective success.
Managers focus on executing functions, controlling resources, and ensuring that day-to-day operations continue efficiently. They are more concerned with running teams rather than developing strategy. They’re responsible for the organization’s activities and achieving its goals through planning, organizing, leading, and controlling.
Leaders and managers both contribute to achieving organizational goals. Managers look to leaders for the shared mission, values, and vision they must shape. Leaders depend on managers to control, manage, and make the most of people, processes, and tools.
Let’s now examine the differences between leaders and managers more closely, focusing on each role’s functions and skills and understanding how they overlap in some areas.
Key differences between leadership and management
A successful organization is led by visionary leaders and competent managers. Here’s how both roles differ and what they need to succeed in their respective roles.
Leadership vs. management
Vision vs. Execution
Leaders create a clear and aspirational vision of what the organization seeks to achieve in the mid to long term. For example, a leader who encourages employees to make great products that create a better everyday life for people.
Managers execute plans to achieve that vision. In practice, this can be seen in how a manager supports and encourages teams to perform tasks and monitor outcomes.
Inspiration vs. control
Leaders inspire and motivate those around them to achieve organizational goals and practice organizational values. They are responsible for ensuring employee engagement and well-being. Good leaders actively support employees and inspire trust—for example, a leader who encourages different perspectives by allowing questions and open dialogue.
Managers organize, direct, and control resources to achieve organizational goals. They monitor progress, compare it to established goals, and make necessary adjustments. They are responsible for ensuring that activities align with the overall strategy and that performance standards are maintained.
Change vs. stability
Leaders drive change and innovation. They provide direction even in conditions of fast change and ambiguity. Leaders are active listeners and keen observers who adapt their leadership styles and the organization to meet the evolving demands of the business landscape. They’re responsible for building a culture of innovation, collaboration, and experimentation.
Managers are more concerned with maintaining operations’ stability and predictability. Ensuring consistency enhances accountability, customer relations, and organizational cohesion.
Picture a situation in which a contagious disease suddenly increases absenteeism in a team, affecting project deliveries. Managers should plan for unforeseen situations and know what to do to prevent delays and overburdening of healthy staff. For example, they may train people outside of the core team who can act as a buffer until the sick employees are ready to report to work. Or they can have employees work from home for a few hours and offer compensatory off to make up for the missed time.
People vs. processes
Leadership vs. management is also a matter of managing people versus processes. Leaders emphasize people and relationships. They invest time in getting to know managers and key stakeholders personally, celebrating their successes, and supporting them during challenging times. A leader who is attuned to those around him is aware of the professional and personal aspects of their lives.
All business operations are essentially a set of processes. Managers focus on processes and systems to achieve operational excellence, such as using technology to automate manual work and streamline inefficient processes.
Functions of leaders
- Create new visions and aims
- Make new rules and policies
- Identify the organization’s financial targets
- Determine structures, hierarchies, and workgroups
- Persuade people to make the necessary changes to achieve goals
- Develop an inspiring mission/vision and gain buy-in from people
- Communicate effectively with internal and external stakeholders
- Recognize personal weaknesses and delegate those tasks to others
- Develop the organization
- Visualize the big picture
- Anticipate problems and drive actions/change
- Create new job roles
- Perform succession planning
- Identify new opportunities
Functions of managers
- Implement tactical actions
- Create budgets
- Apply rules and policies
- Recruit people
- Measure and report performance
- Coordinate departments
- Get the most from people
- Maintain the ethical code of conduct
- Develop people
- Delegate and promote
- Solve problems
- Plan new processes, tasks, and activities
- Motivate teams
- Improve productivity and efficiency
Leadership vs. management: Skills for each role
Leaders are chosen for their track record, ability, and influence. Their goal is to mobilize and influence people.
Important leadership skills:
- Relationship building
- Decision making
- Emotional intelligence
- Persuasion
- Negotiation
- Authenticity
- Strategic thinking
- Effective communication
- Delegation
- Learning agility
Managers have proven skills in creating processes, allocating resources, and coordinating tasks and people. Their goal is to get work done.
Important managerial skills:
- Decision-making
- People management
- Problem-solving
- Technical skills
- Conceptual skills
- Negotiation skills
- Strategic planning
- Interpersonal and communication skills
- Project management
- Conflict resolution
Overlapping areas and complementary roles
Leaders and managers have distinct roles in an organization. But they’re also similar in some respects. Leaders and managers both focus on improving the organization and unlocking employees’ full potential. They both act as role models. As managers give employees direct access to them, their influence is more palpable than leaders’, who are not easily accessible to employees.
Managers and leaders are both involved in their organizations’ day-to-day activities. While managers are hands-on with running teams and departments, leaders maintain oversight and are ultimately accountable for the outcomes of functions in their organizations.
Effective leadership and management require excellent communication and coaching skills. While leaders leverage their communication skills to motivate and influence internal and external stakeholders, managers use theirs to direct and control teams.
Leaders and managers control people to different degrees. Managers have direct control over those they lead and are responsible for ensuring that activities align with overall strategy, addressing any deviations, and maintaining performance standards. Leaders monitor progress, compare it to established goals, and make necessary adjustments.
Importance of both roles in organizational success
Leadership and management complement each other. Both are needed for an organization to thrive and frequently overlap in practice. Balancing the two is key, as it helps maintain stability and adaptability, combining strong foundations with the flexibility to innovate.
Leaders and managers agree on a shared superordinate goal. A strong leader can inspire and motivate the team, while an effective manager ensures that tasks are delegated, deadlines are met, and resources are allocated properly. Ultimately, the combination of leadership and management drives an organization toward its desired objectives.
Organizations that focus solely on leadership without effective management may struggle with operational inefficiencies and poor resource allocation. On the other hand, those who emphasize management without strong leadership may become stagnant and fail to keep up with market changes and industry trends. The ideal mix of leadership and management ensures a smooth synergy between vision and execution, fostering a positive work culture that empowers employees and drives growth.
Developing leadership and management skills
Improving leadership and managerial skills is a continuous process. In today’s dynamic business landscape, people in both roles must be highly adaptable and open to learning new ways of working and running the organization. Agile leaders and managers have the edge over their slower peers.
Ways in which leaders can enhance their abilities and influence:
- Learn from proven leaders
- Have a mentor
- Nurture creativity and innovation
- Build relationships across the organization and with external stakeholders
- Hone strategic thinking skills
- Establish regular check-ins
- Invest in continuous personal development
- Read books and journals
Tips for managers to develop their ability to lead and manage people:
- Invest in continuous professional development
- Hold quarterly individual meetings
- Build emotional intelligence
- Have two-way performance reviews
- Self-reflect and adopt
- Continuously develop technical skills
- Embrace networking opportunities
- Read books and journals
Leadership vs. management – A topic worth delving into
A discussion of leadership versus management is insightful and beneficial for understanding their distinct roles in an organization. Leadership and management are distinct but interdependent and crucial for organizational success.Â
Finding a balance between leadership and management is important to create a harmonious and effective organizational environment. Ongoing skill development is essential for leaders and managers to become more effective in their respective roles and adapt to changing demands.
Insights from industry leaders shared on LinkedIn Pulse offer valuable lessons on navigating the complexities of modern leadership and management.