LEADERSHIP VS MANAGEMENT

WHICH ONE ARE YOU BEING TODAY?

Let’s talk about leadership! No, wait, let’s talk about management! No, wait, how about we talk about leadership and management and the differences between the two? A very important topic for everybody listening, and for several reasons. Whether you’re a business owner, or somebody who works for somebody else, in essence, you work for the business owner, it’s important to know the difference between leadership and management. So, lets first clarify what I mean when I use the word management. Management can be an act, a skill, and it can also be a group of people or a level within an organization. Sometimes I’ll refer to the management of an organization as a way to speak about the collective group of people tasked with making decisions, creating policy, and managing people within the organization. They are, collectively, the management. We can also use the word management to refer to an act, a title, a role, or a set of skills somebody uses to get things done and meet some performance standards. 

If you’re unhappy with something at a restaurant you might say, “I’d like to speak with your manager, or the management about this.” In that case, you’re referring to a person with a title and a specific role within the organization. You wouldn’t say, “I want to speak with your leader about this”, that would just be weird. Like, “take me to your leader!” The reason I bring it up is because I find myself in lots of discussions and coaching conversations where I can tell the person I’m talking to, or working with, is mistaking management for leadership, or leadership for management. To be clear, they are different things! You can manage things, you have to lead people. You can be in management and also be a great leader. But you might also be a good leader, but a terrible manager. I would put myself in the last category. I like to think I’m a fairly decent leader in some ways, but pretty awful at managing some things. What does a decent leader do in that situation? A good leader hires good managers to manage the things they’re not good at. Does the hired manager need to be a good leader? Of course, it depends on the role, the requirements, the tasks, and the KPIs the manager needs to report on, but management of tasks, systems, and outcomes doesn’t necessarily require good leadership, and I’ll tell you why. It comes down primarily to two words: authority and responsibility. Management needs authority to get things done, leadership requires the taking of responsibility, having vision, and seeing further than those who might be following. 

Responsibility and authority are two vastly different things. Management of things and people require the authority to get those things accomplished, and usually through fear. By that I mean that management requires only the amount of fear required to sufficiently motivate somebody to follow the system and get a result. The fear I’m referring to is the fear of the loss of your job, your income, your lifestyle, your perks, and your position or title. Get it done or else. I’m not saying, of course, that all managers and management positions manage that way, I’ve had some really great managers over the decades that were also great leaders and didn’t have to manage using fear, but the role of management comes with the inherent and unspoken threat of ‘do this or else’, with the ‘or else’ being the implication that something bad will follow if we don’t hit our goals. That’s why management requires authority. The authority to fire, to reprimand, to admonish, and also to praise, to go to bat for, and to lift up those under their management. Leadership, on the other had, requires no authority, but instead the respect, communication skills, a vision for a better future than the present, and a willingness to be wrong over and over again, and taking responsibility every time. Again, you can be a good leader while being bad at a management, and you can be a good at management while having no leadership capabilities whatsoever. You might be a good leader who is also good at management, and you might be a good manager who also happens to be a good leader. But its very important to know the difference, know what each requires, and know when one is required over the other.

So lets dig a little deeper into those differences so that you know how and when to identify those different skill sets within yourself, but also within others. Management involves focusing on executing functions, making the system work as its supposed to, following the system and the orders, and getting others to execute on the plan and follow the system as well. Management is getting things accomplished. Management is having the game plan in your hands and making sure its followed so as to accomplish what the plan entails. Managements job is not to deviate and get creative with the plan. When you ask a manager to make decisions on the fly, or get creative with the plan, you’re asking them to exercise leadership while in a management role. This isn’t a bad thing, as long as you understand that they’re two vastly different skill sets and emotional requirements. Management is not about making a bunch of random decisions on the fly, although poor leaders often puts management in that position. Which is why its so important to understand the difference between the two roles, skill sets, and what is required of each. 

If you play sports, you’ll understand this analogy. If you watch sports, you’ll understand this analogy. If you do neither, I’m still quite sure you’ll understand this analogy. When I started playing hockey about 25 years ago, I gravitated to the role of a defensive player. I don’t know why, its just where I ended up. I learned the role, the areas of the playing surface that I needed to focus on, the skating techniques required to play that role effectively, what to do with your body, how to read plays unfolding, and so on. I took the role very seriously and like to think I was a pretty good defenseman. I took pride in not having goals scored on my shift, but tried to always take responsibility when we did get scored on while I was on the ice. I was always the first to say, ‘sorry boys, my fault!’, even if wasn’t my side of the ice. I figured if I took responsibility for the mistakes I would be more valuable to the team and I could grow from it. Fast forward about 10 or 12 years and, all of the sudden, the team captain said, ‘Blaine, play up.’ This means he’s moving me from defense to offense. My job is now not necessarily to stop goals from going into our net, but instead help set up plays and put the puck in the other teams net. Something I had never done before and was not good at.

 Never being one to question whatever the team needed, I said, ‘you got it coach!’ I love just being a contributor on the team so put me anywhere and I’ll do what I can. I remember telling him, ‘hey, just so you know, it may take me a bit to learn what I need to know to play forward well’, to which he said, ‘do what you gotta do, bro!’ It’s been about 10 years or so that I’ve been playing on a forward line and I’m still learning. It was a new role, a new set of skills required, a different kind of vision and understanding of puck movement, a different view of setting up plays, and a different leadership requirement in that role. It made me start watching the other forwards while I was sitting on the bench waiting for my shift. I watched YouTube videos and perused websites to learn the art and skills required for that position. The same thing happened when I went from doing martial arts to teaching martial arts. 

When you go from doing one thing to doing something else, there are often a whole bunch of new skills, new mindsets, and a new vision that is required. What I’ve learned from those different experiences is that we often oscillate in and out of both a management role and a leadership role throughout the day. Knowing the difference is where the rubber meets the road and the money is made, in my opinion. As entrepreneurs, we all have certain things we just have to do that fall into the management category. They are firmly rooted in the system side of things. The rules are there, the system is built, the processes are documented, and its our job to follow them just as we ask our people to follow them. “Don’t deviate from the plan”, we say. That’s management. Managers tell people what to do, maybe even teach them how to do it. Leadership, on the other hand, may also include telling somebody what to do, how to do it, but leadership commands us to also explain the ‘why’ behind the task and how it benefits the person doing it, how it helps fulfill the greater mission and vision of the organization, how it benefits our clients and customers, and how we’re all better as a result. Managers tell, leaders sell the vision. Leaders use inspiration, vision, and strength of mission, where managements job is to follow the plan. Again, that doesn’t mean you can’t be managing and leading at the same time. It doesn’t mean you can’t be a manager within an organization and also be applying leadership principles. It also doesn’t mean that you can’t be in a leadership position and also have to slip into a management role every now and then to get stuff done. One can be both, or neither, at any give time. The important part that I want to get across with this episode is that they’re different things, and knowing what they are, what they each require of a person, and how to spot them is a very important aspect of running a business. 

Managers have subordinates, underlings, trainees, and direct reports. Leaders have followers, fans, mentees, protégés, and adherents. Managers need authority to get their subordinates to do something, leaders need the respect of those following. Again, don’t get hung up on the titles, managers can have the respect of their subordinates, but they don’t necessarily need it to get things accomplished. If they have authority they can fire somebody, reprimand them, write them up, take away privileges, move them to the basement office, take their stapler. Respect helps in a management role, but its not required. Authority is required to give orders and get people to follow the system. Of course, good leaders find and hire good managers who will likely also be respected by their subordinates. That’s just good business and things tend to get done more efficiently when those under management also respect their managers. Just know the difference. Leaders, on the other hand, cannot demand respect, it must be commanded based on their actions, their vision, their charisma, their results, and their willingness to take risks. Remember, its not the managers job to necessarily take risks. If it is their job to do that, they’ve been given a management job with leadership requirements. The leaders job is to want, and get the best from her people. Leaders are people focused, managers are task, numbers, and systems focused. Managers need authority and power, leaders need respect and influence. Leadership is about creating value, management is about counting that value and making sure the system works so that value is the end result. Management is appealing to the head, leadership is appealing to the heart. Leadership sets the direction and the path, management follows it. Leadership is proactive, management is reactive. “But Blaine, I’m a manager and I’m super proactive in my job!” Awesome, then you’re exhibiting leadership qualities in your role as a manager. 

Let me make this point as clear as I possibly can. Management does not equal evil, while leadership equals benevolence. There are millions of stories throughout history where the leader, at least the one who had the title of leadership, was a bad leader and a bad manager, while the subordinates were far better leaders as managers. You don’t need a title to be a leader. You don’t need a title to have respect. You don’t need a title or a designated role to have people who will follow you. If you’re in a subordinate role to somebody else, there is no reason you can’t also have a leadership mindset.  There are thousands of roles in companies around the world that don’t need leaders. In fact, in many of those roles, they simply need people who follow the rules, keep their mouths shut, do the work, follow the plan, don’t deviate, don’t mess up or you’re out. Factories, Amazon warehouse, UPS, Fed Ex warehouse, manufacturing plants, production lines, etc. But that doesn’t mean some of those people aren’t also exhibiting some kind of leadership in the lunchroom, the production floor by motivating and inspiring their co-workers, lifting people up, helping the company when they see better ways of doing things, and so on. That’s leadership while in a management role. By that, of course, I don’t mean to say all of those people are in a management role, I mean they are managers in that their job is to manage their task, manage the system, follow the plan, and manage themselves to the degree that they can accomplish the task without going postal or shutting down the system due to incompetence. 

Management and leadership don’t have to be people or roles. They can simply be mindsets and emotional intelligence levels. Leadership does not mean being the boss and making all the decisions. Leadership is about identifying key talent and then supporting the process, the direction, and the vision. Many times, leadership means getting the hell out of the way so your talent can do what they do best. Leadership is about clearing the obstacles for your talent so that they can be their best and do their jobs the best. Management is watching the pennies and making sure the numbers come in, leadership is wanting all of your people to be rich and showing them the path to get there. Management is on the lookout for potential breakdowns in the system, leaders are on the lookout for future opportunities. Management, sad to say, will always operate out of fear, to some degree. Its just the nature of that role. They fear losing their job, losing their people, losing their income, losing their business. Leadership is recognizing the fear, using it to inspire and motivate themselves, and having the courage to move through fear and into transformation. Leadership is equal parts courage, integrity, curiosity, and a transformational focus. On any given day, you’re probably a little of both manager and leader, but without knowing or recognizing when you’re being either or, more importantly, when you need to be one more than the other. 

Just as we, as entrepreneurs, slip in and out of the technician role, the marketer role, the networker role, the accounting role, and so on; we also slip in and out of the leadership role throughout the day. Try to identify those times when one is more important than the other. You may have to develop a mantra for yourself to make it easier to move between the two with ease. You may find yourself saying, “Ok Susan, this one is going to require some leadership here. What would a good leader do in this situation?”  Get good at taking off the management hat when some leadership is required, and vice versa. Know the skill sets, the mind sets, and the emotional intelligence requirements of both roles and attitudes so that you can identify them when you see or feel them. Its also very helpful in knowing where you need to grow a bit more and what new skills need to be acquired to be better at one or the other. What I also challenge and recommend you do as an exercise is to start to write down every single task and process within your business and put a label next to them: manager or leader. Ask, does this role require a manager mindset or a leadership mindset? Sometimes you might write down both, manager and leader. Typically, what I have found from doing this exercise is that when it’s something to do with a process, it’s a management function and role that is required. When it has to do with people, it’s typically a leadership function, mindset, and role. Where it sometimes gets fuzzy is when those two worlds collide. When people are required to manage the process. Which is it? A management role or a leadership role? Most likely a manager showing some leadership. But you judge for yourself how that plays out in your organization. Are you being a manager when, in fact, what the company and your people need is a leader? Are you doing too much leading and not enough managing? Make this an area of education for you as it can only lead to greater understanding and growth. 

Thank you my friends for investing your most valuable currency into this show each week! I sincerely hope I’ve been able to provide some value and a return on your investment. We’ll be talking a lot about leadership and management, as well as a much of other things next week at the Valuation Expo in Las Vegas. If you’re planning on going and would like to attend my free business building workshop and mastermind from 11-3 on Wednesday the 8th, just reach out to me at [email protected] and say, ‘save me a seat’! We have limited spaces in the room we’ll be in and I want to make sure you’ll have a seat. If you were thinking about going to the expo but not sure if its going to be worth the cost of the ticket, I want to do everything in my power to make the value of your ticket be worth at least 5 or 10 times what it costs you and I am quite confident that, if you attend my sessions, they will. I cant guarantee anybody else’s sessions, but I’m sure they’ll all be decent. What I can guarantee is that if you show up, open your mind, get ready to learn and grow, and take good notes, your life and business will be better by next weekend. By the end of this year you will have gained at least 10 times the cost of the expo ticket from the information, the networking, and the mindset shifts that will occur. So, until I see you next week at the Expo, or until we meet up again here for another show, I’m out…