Harry Welby-Cooke
Similarly, the concept of management has also been around for thousands of years, management approaches dating as far back as 3000BC, a time in which records of business dealings were first recorded.
But what is the difference between ‘leadership’ and ‘management’? How have these two concepts evolved, and is there still a place for both?
Most would say yes!
In the 90s, a line was drawn between leadership and management. And, increasingly, leading people and processes versus managing people and processes have become strongly differentiated.
The characteristics and traits of what constitutes a good leader have also changed over time. In 2000, leadership followed more of an autocratic style with little input from employees. It was also very task-oriented, with instructions on everything from what to do and how to do it. This gave teams little room for innovation. Fast forward to 2024 where strong leadership is seen as ‘collaborative’. Work is powered from within teams and innovation is constantly necessary as change becomes the norm.
There is also an increasing focus on ‘servant leadership’, a philosophy in which the goal of the leader is to ‘serve’. It differs slightly from traditional leadership which sees a leader’s focus on the growth of the company or organisation. A servant leader places the needs of the employees first and is more focused on helping his team to develop, grow and perform as highly as possible.
What makes a leader
Some believe that one is born a leader, with all the characteristics that people choose to follow, whilst others believe that leaders can be developed through experience and skill development. In 2024, the pandemic, popular opinion seems to be that leaders must be learning agile, able to flex influence, communicate and live the company vision whilst showing gratitude, high emotional IQ and the ability to collaborate.
In my opinion, good and effective leaders are those who attract and develop exceptional people. In the same way that customers are drawn to services, products, and brands that present the very quality that they desire – skilled, innovative, and accomplished people are drawn to skilled, innovative, and accomplished leaders.
Strong leaders create a vision and mission that motivates the people around them. They are able to strategise and plan on how to reach the business goals that they set and know how to propel teams to work together to reach those goals.
Strong leaders avoid overworking their managers and teams. They motivate people, through the examples they set thereby inspiring others to act in a similar way. Their vision is that of a healthy workplace and a work-life balance that enables everyone around them to thrive.
It takes experience to be a good leader. That, and learning from other business leaders.
In my opinion, if what I have shared above resonates with you, you probably do have leadership abilities – whether you were born with them or are in the process of developing them.
The difference between a leader and a manager
A 2004 article published in Business Review states, “Managers and leaders are two very different types of people. Managers’ goals arise out of necessities rather than desires; they excel at defusing conflicts between individuals or departments, placating all sides while ensuring that an organisation’s day-to-day business gets done.
Leaders, on the other hand, adopt personal and active attitudes toward goals. They look for the opportunities and rewards that lie around the corner, inspiring subordinates and firing up the creative process with their own energy. Their relationships with employees and coworkers are intense, and their working environment is often chaotic.”
In reading above, it becomes evident how much the perspective of leadership has changed. The pandemic was an excellent illustration of why a good leader cannot be chaotic – either personally or in their workplace. Chaos inspires anxiety. Today, a good leader is one who can steer the ship through rough waters without having anyone either jumping or being thrown overboard.
At ActionCoach SA, we believe that the recurring debate surrounding management versus leadership or management and leadership warrants further consideration. It is not a matter of simply selecting one at the expense of the other. Rather, it is about recognising the essential synergy between these two concepts.
Whether you aim to be an exceptional CEO, a visionary leader, a proficient manager, or steer a thriving business – both leadership and management play indispensable roles. It is essential to emphasize though that these two roles need not be vested within the same individual.
Management guides individuals to rise above the point, while leadership elevates them to a level of ownership, where their commitment transcends mere actions and resides in their minds and hearts.
To be a leader, you must inspire respect and inspiration. To do this, you must be worthy of respect and inspirational yourself. To be a manager, you must be able to effectively allocate resources, monitor progress, and make informed decisions, whilst promoting accountability and teamwork.
You can be both, or you can separate the roles and work synergistically to steer your company to success. However, both are required to create the magic that is needed for a business to thrive and to enable us to continue our goal of building and growing sustainable generational businesses.
