LEADERS AND MANAGERS: THEY ARE NOT THE SAME

Definition of a leader:

Ensures that staff does the right things (principles)

Tells people how to do things
Makes decisions
Takes ultimate responsibility for performance
Represents the “face” of the organization
Defines company policies
Establishes company procedures
Creates a medium and long term vision for the organization
Serves as the role model for the company
Establishes direction for the staff
Visionary, creative, innovative

Definition of a manager:

Ensures that staff does the right things (practices)

Supervises people and shows them how to do by example
Makes decisions and implements decisions
Takes line responsibility for the organization
May represent the “face” of the organization or may go unnoticed
Carries out company policies
Ensures procedures are working well
Sets goals and tactics to achieve results
Serves as the role model for direct reports
Makes sure that staff is achieving goals
Achiever, performance-oriented, people person

A good leader and a good manager often have different skill sets. They also may have different types of
personalities.

The common fallacy in corporate advancement is that often a good manager is promoted into the
position of a leader. Good managers are not automatically destined to become good leaders.

Lesson to think about: Know your strengths and weaknesses. Know your capabilities and decide
whether you are a leader or a manager. It is better to be a good manager than a poor leader.
THE CEO AS A LEADER: OLD MODEL VS. NEW MODEL

Old: Absolute authority that is rarely questioned

New: Authority is subject to question by the Board, shareholders, the public, and employees

Old: Makes decisions based on own experiences and background

New: Uses collaborative management style to solicit perspectives from others

Old: Reporting chain of command is distinct and no sharing of duties

New: Chain of command is more horizontal and duties sometimes shared

Old: Maintains an image of being unavailable except to direct reports

New: Maintains a collegial style and is more of a coach than a commander

Old: Communicates to staff through written memos

New: Visible with staff and uses direct in-person communication when possible

Old: Does not socially mix or professionally mix with rank and file. (“Life is lonely at the top.”)
New: Joins rank and file in company social outings and gets to know senior staff on social level

Old: Exclusive corporate status symbols: luxury car, unlimited expense account, country club
memberships, first class air travel, zero interest rate loans, executive dining room etc.
New: Corporate status symbols are minimized or given low profile

Old: Very independent and decisive in viewpoints

New: Flexibility in decision making and willing to reverse decisions

Old: Dominates meetings and conferences and given due respect

New: Uses meetings for team-building and consensus decision making

Old: Has broad and in-depth knowledge of the business and industry
New: Often has industry specialty knowledge with varied experiences rather than generalist knowledge