Business Leadership: Manager vs. CEO

Business leadership is not a one-size-fits-all role. Different approaches are suitable for different business scenarios, and successful business leadership requires understanding, applying, and refining a broad range of business strategies. Whether it involves inspirational people management and creating a positive vision for the future or making tough decisions in challenging economic conditions, business leaders must have the skills to recognize which approach is needed in any given situation.

As business leaders progress in their careers, the leadership skills required of them will inevitably change. For many business executives, this means that the same leadership skills which may have sufficed as a manager are no longer suitable when transitioning to the role of CEO.

The responsibility of a CEO is significantly greater than that of a manager. In addition to business strategies and operations, CEOs must also factor in external obligations such as interacting with investors and legal concerns. Thus, succeeding as a business leader requires developing more comprehensive and advanced management skills than those acquired earlier in one's career.

Push vs. Pull

Managers often push their teams to complete certain tasks, meet deadlines, and complete objectives. It's about consistently delivering results. The business leadership of a manager involves setting clear expectations for yourself and your staff to ensure that you are all working towards the same goal.

Establishing goals and milestones helps guide the team in the right direction and keeps everyone focused on achieving them. It's important to stay mindful of team dynamics and adjust strategies as needed to maximize performance success. Ultimately, if you manage a business, then it's your job to bring those results home.

The business leadership of a CEO is a more holistic approach: they create a company culture, establish a vision for what the company is doing and where it's going, and set an example of how they want their employees to act to achieve success.

This business leadership energy is more of a pulling energy. The CEO is out ahead of the pack, determining what the right direction is and helping the team understand why that direction is important. This requires a different kind of communication, making people feel like they're part of a bigger mission or cause.

Business Leadership Requires Inspiration

Managers or entrepreneurs can get by on that pushing energy mentioned earlier for some time. However, there will come a point where if you want to take things to the next level, you must start being a leader, not just a manager or boss.

One way effective managers motivate their team is by setting challenging yet achievable goals that align with the team's overall mission. By ensuring the entire group understands its collective purpose, managers can foster an environment of collaboration and collective effort.

Effective managers must manage the delicate balancing act between challenging employees and providing them with adequate support. Challenging employees spurs newfound motivation and encourages teamwork while providing them with supportive feedback to enable growth and the development of problem-solving capabilities. Effective managers understand that these elements must combine perfectly to promote an environment where employees are inspired to pursue and reach their goals.

The CEO is responsible for creating an environment where people are inspired to do their best work because they understand the vision of where the organization is headed and why it matters to them personally. The bottleneck is always at the top, meaning it's up to the CEO to recognize whether or not the right kind of business leadership is happening at all levels.

The CEO must provide clarity for everyone else. When the organization is clear on the greater vision and why they're doing it, they can lean into the process and produce better results. Some CEOs don't evolve from their former roles as managers. They remain too focused on trying to manage their people when that really isn't their job anymore. In this case, the CEO actually becomes the bottleneck.

Business Leadership Requires Taking Risks

Managers tend to play it safe by sticking with processes that have been tested before; leaders take calculated risks to move the organization forward by pushing boundaries to find new opportunities for growth or innovation.

A leader must be able to evaluate a risk objectively, looking at the potential consequences of success or failure and weighing them in terms of meeting business goals and objectives. The CEO should understand not only the business but also their particular organizational context, accounting for external factors such as competition and regulatory oversight that could impact decisions. Ultimately, these skills help the business make informed risk-taking decisions to drive business growth in an increasingly competitive environment.

Knowing whether you are a manager or leader can give insight into your strengths as an entrepreneur—and weaknesses too! Both roles have unique skill sets that are necessary for businesses of all sizes; however, if you feel like you’re stuck in one role without being able to move up the ranks, then now might be the time to start honing your leadership skills so you can take your business (and career) further! At the end of the day, understanding which type of role fits your personality best will help ensure long-term success in whatever venture you pursue next.

Overall, succeeding as a business leader requires developing more comprehensive and advanced management skills than those acquired earlier in one's career. It is important to recognize the differences between managing and leading and strive to hone both sets of skills for maximum success.

If you're ready to learn more about what it takes to grow your business, grab a copy of our free guide, "How to Navigate the Four Stages of Growth All Successful Businesses Go Through." Learn what stage your company is at and how to get it to the next level.