Why Leadership and Management are Not the Same.

“Most corporations today are overmanaged and underled. They need to develop their capacity to exercise leadership.”

– John P. Kotter.

Sometime in 2013, John P. Kotter, founder of Kotter International, was invited to an interview with the British Broadcasting Network (BBC) to talk about effective leadership. China had just elevated a new Communist Party leader; the CIA’s general had stepped down from his post a few days earlier, and the BBC itself was wading through its leadership struggles. To analyze and provide strategic insight into these recent events, they needed his expertise.

However, when they asked him how individuals can keep large, complex, unwieldy organizations operating reliably and efficiently, he gave a reply that shocked everyone and adjusted the trajectory of the conversation.

“That’s not leadership. That’s management,” is what he said.
“And the two are radically different.”

John was on point with that statement.

In the time we’ve spent consulting businesses and organizations, we’ve heard people use the terms “leadership” and “management” interchangeably, usually about their “ogas at the top” where they work, or even themselves. And with these interchanges, we see redefined roles and descriptions. But what if we told you that you were getting it all wrong?

The Common Mistakes.

The confusion around these two terms, leadership and management, is common. So common that their functions are often misunderstood. John said it drove him crazy every time he heard these terms misused. He identified three common mistakes people make about this:

Mistake 1:

The terms “management” and “leadership” are often used interchangeably. This shows that the crucial difference between the two and the vital functions that each role plays aren’t seen.

Mistake 2:

The term “leadership” is used to refer to the people at the very top of hierarchies. Then the people in the layers below them in the organization are called “management.” And then all the rest are workers, specialists, and individual contributors. 

Mistake 3:

People often think of “leadership” in terms of personality characteristics, usually as something they call charisma. Since few people have great charisma, this leads logically to the conclusion that few people can provide leadership, which gets us into increasing trouble.

These misunderstandings get in the way of any reasonable discussion about how to build a company, position it for success, and win in a rapidly changing business landscape.

The Denominator.

So, what makes management different from leadership?

The common denominator that distinguishes management from leadership, is its primary focus on people.

Management primarily focuses on tasks, processes, and resources. If you’re a manager, your work involves ensuring that work is done efficiently and effectively, adhering to established plans and procedures. 

Management is the backbone of an organization, responsible for the intricate processes that ensure consistent, predictable performance. It encompasses planning, budgeting, job design, staffing, performance management and evaluation, and problem-solving.

The complexity of management is often underestimated, especially by those outside of senior roles. It’s a demanding task that requires a deep understanding of organizational dynamics and a commitment to efficiency and effectiveness.

While management is essential for maintaining operations and delivering products and services as promised, it’s distinct from leadership. 

Leadership is primarily focused on inspiring, motivating, and guiding people. Leaders create a vision, communicate effectively, and foster a positive work environment.

Where management is the backbone of an organization, leadership is its catalyst.

It involves anticipating future trends, identifying emerging opportunities, and seizing them with strategic agility. Leadership is more than just vision; it’s about inspiring others to embrace that vision, empowering them to contribute, and driving meaningful change. Leadership isn’t about personal qualities but about actions that create a positive impact.

And here’s the thing: leadership is increasingly essential at all levels of your organization. It’s one of the soft skills people are constantly searching for. Effective leadership can drive innovation, foster a positive culture, and ensure that your organization stays ahead of the curve.

But can a Manager be a Leader?

Yes, a manager can be a leader. While the two roles are distinct, they can often overlap. Effective leaders are often also effective managers, as they possess the ability to inspire and motivate their teams while also ensuring that tasks are completed efficiently and effectively.

However, it’s important to note that not all managers are leaders. Some managers may excel at administrative tasks but lack the ability to inspire and motivate others. Similarly, some leaders may be highly charismatic and visionary but may struggle with day-to-day management responsibilities.

In essence, leadership is a subset of management. A good manager can be a leader, but not all managers are necessarily leaders.

Final Thoughts…

“We need superb management. And we need more superb leadership. We need to be able to make our complex organizations reliable and efficient. We need them to jump into the future—the right future—at an accelerated pace, no matter the size of the changes required to make that happen.”

Leadership is a scarce commodity in today’s organizations. Until we acknowledge this deficiency and understand its root causes, we cannot address it effectively.

Confusing leadership with management is a common mistake. While management is essential for efficient operations, it does not equate to leadership. When we prioritize management over leadership, we risk creating over-managed and under-led organizations, which are ill-equipped to navigate the complexities of a rapidly changing world.

Want to learn more about the processes involved with both leadership and management? You can do so with our tailored training programs. Discover and build the skills you need to steer your organization in the right direction, when you click here.