What’s the Difference Between Leadership and Management?

Leading a business is entirely different from managing one! Here are some thoughts as to why.

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There is a vast difference between managing business and leading it. In the first case you make the business work in the latter you work to make a difference to the business.

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So while a manager may back off if there are problems, a leader will find solutions to them. And while a manager may concentrate on today's sales a leader will also be looking ahead to identify potential customers and markets to exploit in the future. Managers may produce detailed business plans but leaders also create a vision.

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But how do you make this work in practise, particularly if you seem to spend all your time just running the business.

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Well making time is one of the six things leaders need to do more of. Rather than letting today's rush overwhelm your attention you need time to at potential problems to create a vision and to lead from the top. For example, if you have a busy and thriving business what impact might competition or changes in technology make?

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Don't be frightened of change. You need to look at ways to improve the business and move it forward by creating a vision and a culture.

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Making complex things simple is another golden rule. People try harder and make fewer mistakes when everyone understands what is going on. Systemise the routine, humanise the exceptions.

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Investing time and effort in networking is the fourth rule of good leadership time spent doing anything that brings you into contact with other people's thinking and experiences may spark new ideas. Networking can also enable you to build alliances by cooperating with other organisations and gives you the chance to promote your business - something you should do tirelessly and enthusiastically wherever you go.

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Be systematic. That way things will not fall through the cracks and as the adage goes you can lead by example. Your example will encourage other people to work in a methodical way.

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Finally, add value yourself every day. The best leaders cell, negotiate, plan and administer every day and get through a mountain of work, partly through managing their time effectively. The great business guru Sir John Harvey-Jones used to say “I'm out there marketing ICI every day and I still have to find time to run it as well."

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So what does leadership involve? Setting goals is a must. Then you need to make the best use of resources including people's potential.

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Remember, leaders have to earn their authority. In a new role you should usually start by asking questions. You need a sound knowledge base before you start making decisions. People need to be convinced of a leader's expertise.

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There is a train of thought which suggests that a CEO’s/MD’s maximum tenure should be five years. One year to understand what's going on. One year to implement changes. Two years to see the benefits and one year to prepare your successor.

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Leading a team means developing and motivating both individuals and groups. This includes helping people find meaning and purpose in what they are doing.

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Leadership skill is a mixture of natural talents and learned technique. “What makes a good leader is taking the overview, being a trustworthy person in terms of your subordinates and taking account of your weaknesses as well as your strengths" said Craigie McPhee, former managing consultant and senior executive mentor at Coutts Career Consultancy. You need to remember that your strengths can also be your weaknesses. Margaret Thatcher was a strong leader, but her weakness was that she did not listen to criticism. The leadership skills required can also change. For example, Winston Churchill was a great wartime leader but was not seen as a peacetime leader. Adaptability is another key skill of great leaders.

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In summary, the way to lead:

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·???????? Understand clearly the changes that must happen!

·???????? Turn ideas into action points and motivate others to act on them!

·???????? Win commitment based on honest, realistic, two-way discussion!

·???????? Persist so the best ideas come to something!

·???????? Learn from experience!

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Hope you find this useful and of interest.