Letting Go of Management and Embracing Leadership

Introduction

The terms "management" and "leadership" are often used interchangeably, yet they encompass distinct approaches and mindsets within an organization. Management typically refers to the process of controlling or directing people and resources according to established principles or values. Leadership, on the other hand, is about setting a new direction or vision for a group to follow. It’s about inspiring and motivating individuals to achieve their full potential and fostering a culture of innovation and trust. In our companies today, we need both management and leadership, but I would argue that we need leadership more than ever. Unfortunately, this is not something I am seeing.

As businesses struggle with the demands placed upon them, leaders are expected to do more with less. It's a tough business climate out there and certainly not one for the faint-hearted. I see a lot of operationally focused work, firefighting, and just trying to maintain business as usual, while reducing costs, increasing profitability, and improving the EBIT margin. None of this says leadership; it's very much about management.

Could it be that our familiarity with managing our systems and processes, our inherent need to manage, is holding us back? Is it stopping us from actually leading the way forward and adapting to this new era of work, which requires us to lead more and manage less?

Why We Are Focusing on Management

Efficiency Over Innovation

Management tends to prioritize efficiency and productivity over innovation. As managers ensure that processes are followed correctly, this inadvertently leads to maintaining the status quo. Take, for example, the procurement team where a new team leader questioned a process she found duplicated in the system, costing time and money. When she raised this to her manager, she was told, "We don't have time to fix this; we just need to do our jobs."

When it comes to innovation, is there ever a right time? An EVP said, "We planned to start innovating in Q1, but it's now postponed to Q3." She and her team just had to focus on "sorting a few more things out" before they could be innovative. Yet, today we need to be able to fly the plane as we build it; we cannot wait. By managing the day-to-day, we are stifling creativity and hindering the development of new ideas.

Risk Aversion

Managers typically operate within a framework of minimizing risks and avoiding failure. While this can protect the organization in the short term, it can also prevent the organization from pursuing bold initiatives and exploring new opportunities. I was speaking to a VP recently who clearly practices leadership, and he shared his frustrations with me. He had recently been part of an internal leadership conference with guest speakers from leading universities.

The event was high-profile, with key clients invited, so it was important to get it right. A few days before the conference, the leader was told that one of the high-profile speakers (the main attraction) wouldn't be attending. When he asked why, legal had intervened and refused to proceed without a disclaimer signature from the speaker. Instead of trying to find a solution, they opted to find another speaker last minute! The VP investigated this and found a way to make both parties happy, so the speaker could attend - he succeeded.

This isn't about breaking the rules, but questioning the rules and finding an alternative path. This is how startups grow at speed because they do not have rules that have dominated their business for years and just become the normal way of operating, only being questioned when a new person comes in.

"In theory, companies create value for stakeholders by making risky investments. In practice, however, managers in large corporations routinely quash risky ideas in favour of marginal improvements, cost-cutting, and “safe” investments." HBR

Task-Oriented Approach

Management often involves a task-oriented approach where the emphasis is on completing tasks and meeting deadlines. This can lead to a narrow focus on short-term goals rather than fostering long-term vision and strategic thinking. Have you seen this? Hours upon hours perfecting PowerPoint presentations for the senior team or completing endless spreadsheets to justify different metrics.

I often think that we focus on the tangible because it's easier to see than the intangible, obviously! Take the performance management system. I have seen many managers focus on the system: how to use it, when to use it, how many goals to set, etc., instead of focusing the time on having dialogues with team members, coaching, and giving feedback.

We still focus too much on the process rather than the person in many companies today. However, some organizations like Siemens are leading the way by abandoning the performance management system and focusing on growth dialogues instead.

Control and Compliance

Managers often rely on control and compliance to ensure that their teams follow prescribed methods and meet specific standards. This approach can create an environment where employees feel micromanaged and unempowered, leading to lower morale and reduced engagement . This control can come in many different ways, one that I've seen often is; "The CEO" said, or "It's the executive team's decision". In other words; "Just do it"!

"The key to successful leadership today is influence, not authority." Ken Blanchard

If you're unsure about how you influence your team or your boss, consider taking a test. Do you rely more on a push style (reward and punishment), logical reasoning, or perhaps a pull style (inspiring and motivating)? Overusing any single style can have negative consequences. If you feel stuck or find conversations going in circles, try a different approach.

I encountered this with a leader I was coaching. Both he and his boss used logic to influence each other, often leading to stalemates where the boss would ultimately prevail due to hierarchical power. My client shifted to a pull approach, asking questions and showing curiosity, which prompted his boss to think more deeply. This not only reduced his frustration but also led to more successful outcomes and even a pay raise!

Why We Need to Embrace Leadership

Inspiration and Motivation

Leaders inspire and motivate their teams by communicating a compelling vision and purpose. They foster a sense of ownership and passion in their employees, driving higher levels of engagement and productivity. Unfortunately, in many companies, the vision is unclear, and the purpose is merely a slogan on the wall behind reception.

When CFOs and CEOs just reported their Q2 results, how many mentioned purpose when communicating with their employees? If we claim to be purpose-driven but focus solely on profit margins and EBIT levels, we risk disengaging our people. Organizations with purpose embedded in their DNA inspire their employees around that purpose every day. If your purpose is saving lives or protecting the planet, how does Edna in accounts connect her work to that? Help her find that connection. Inspire her.

Purpose-driven companies outperformed the S&P 500 by an impressive 10 times. — Firms of Endearment

Encouraging Innovation

Leaders encourage innovation by creating a safe environment for risk-taking and experimentation. They understand that failure is a part of the learning process and support their teams in exploring new ideas and approaches. When we are managing, we might not take the risk and continue to do things as they have always been done.

When I hear, "We have always done it this way" or "We can't do that," it always sparks me to understand why. When a company I was working with found out that a patent for their product they'd spent years developing was just about to be released by a competitor, their reaction was one of disbelief. All those years wasted? No—reframe the situation! The VP of Product gathered the team and inspired them to focus on developing an alternative product that would not infringe on the patent. They did it and it only took two months! Never say never!

Long-Term Vision

Leadership involves setting a long-term vision and guiding the organization toward achieving it. Leaders are forward-thinking and strategic, focusing on sustainable growth and development rather than just immediate results. A common problem in many companies is moving from strategy to execution. Just like purpose or vision, it's essential to ask: How am I working towards the strategy?

Breaking the strategy down into clear, actionable steps that make sense for everyone is key. Often, strategy gets lost in middle management. Lack of alignment and too many priorities are significant barriers to strategy execution. When the top team is not aligned, and the 8 or 10 EVPs communicate different priorities to their organizations, it creates uncertainty and confusion. Alignment needs to be constant and reinforced regularly, not just mentioned once.

Empowerment and Trust

Leaders empower their teams by trusting them to take ownership of their work and make decisions. This approach fosters a culture of accountability, creativity, and collaboration, leading to higher employee satisfaction and retention. Some leaders micromanage, while others leave their people to just get on with their work. The latter is not empowerment; it's an abdication of responsibility.

The job of leading is to support your team to be their best. How can you help them do this? They might need assistance influencing another team, additional knowledge, or clarity on expectations. I coached the Head of Gardens at a well-known heritage organization, and he was frustrated because the Queen was about to visit. He had asked the team to "tidy the garden up." When he surveyed the results, he wasn't happy—there were leaves in the hedgerow, and some trees had not been pruned. He quickly realized that the gardeners didn't know what was expected of them. In this case many were fairly new on the job but even experienced employees can be misaligned with your views, so don't assume, they can read your mind!

Habits you can start doing now:

1. Have meaningful 15-minute conversations with your team members weekly. Yes, weekly!
2. Take a coaching approach to one-to-ones; make them less operationally focused.
3. Ensure you spend time aligning on priorities, setting clear expectations, giving feedback, and coaching your team.
4. Always consider the why. You might ask people what you need them to do, but why? Help people connect what they do to the vision and purpose.
5. Question the status quo weekly and make a change. Don't complain about it. Take action.
6. Try to step back and question why we do things the way we do. What one thing could you change today to improve efficiency? Do it.
7. Build feedback loops into your work. Ask: How could this be better next time?
8. Schedule time to think. Innovation doesn't magically happen. Reflect on your day/week. Encourage your team to do the same.
9. Empower your team. Don't micromanage them and don't be absent. Support them.
10. Talk less and listen more. Abandon the process if it isn't working.
11. Be brave. Don't end your day thinking, "I wish I had said..."

Conclusion

As we navigate the complexities of the modern business landscape, it’s essential to recognize the limitations of traditional management and the transformative potential of leadership. By shifting our focus from managing to leading, we can unlock the full potential of our teams, foster a culture of innovation, and drive sustainable success. Embracing leadership means inspiring our people, encouraging creativity, focusing on long-term goals, and building a trusting and empowering environment.

Book 30 minutes with me and we can talk leadership.

Liz Rider is an Organizational Psychologist, LinkedIn Top Voice on Leadership and Former Global Head of Leadership. Her expertise lies in executive coaching, leadership development, and delivering impactful speaking events for large multinationals globally. She believes that work is becoming unsustainable and through human centric leadership, we can change this.