Is there a difference between leadership and management, and if so – what is it?
Loaded question isn’t it? As a business advisor I am often asked my opinion on this matter, but as I endeavored to write this, I struggled with a bit of writer’s block. For the life of me I couldn’t figure out why. I have my opinion well thought out on this matter as I have enjoyed many a discussion on the topic. So why the struggle to put pen to paper? When I took a step back I realized my intended audience was speaking to me. The small business owner asking, “So what?”.
You have to love the small business owner – always direct and to the bottom line! And the thing is they’re right. Their time is much too valuable to read an academic discourse on leadership versus management. So the intention here then is not to debate the differences between leadership and management – but to address how the two affect the small business’s bottom line. In effect – answering the “So what?” question.
It has been my experience that most small business owners, whether they realize it or not, are actually very effective leaders. In that they took a concept, a dream, and turned it into a reality. Along the way the business owner convinced others such as creditors, customers, and employees that the dream was indeed viable and worthy of their investment. If that’s not leadership, well then I would have to say I am not sure what is!
Sure there are different styles of leadership; some better than others, but that mostly depends on the situation and people involved. At times consensus building is the best way to go, but at others (such as a turnaround situation) a directive approach is required. The small business owner that can distinguish the difference and adapt accordingly will go far. But only so far – as described in the following scenario.
I once had a middle-manager proudly tell me that his reports would follow him into battle. When I asked why this was, he credited his willingness to get his hands dirty and help them out with personal issues. While admirable, I noticed a glaring omission from his answer; he did not mention how he made their jobs easier and better. This was actually not a surprise since we were having the conversation due to inefficiency and productivity concerns in his department.
To continue with the manager’s battle analogy, I asked what he thought might happen once in battle, with bullets flying and the enemy breaking through the front line due to his lack of preparation – would his troops continue to follow him? Would the memory of him getting his hands dirty, and helping with personal issues motivate them onward? Sure that might inspire loyalty in some – but you can’t win a battle with only some of your troops!
As a small business owner you must always keep in mind that 80% of your employees work for you to obtain a paycheck in a manner that most conveniences them. For example an employee might take a job with low pay in return for a flexible schedule, a short commute, or advancement opportunity. Or conversely, they may accept long hours and poor conditions if the pay is high. The key here is – what’s good for the employee is what motivates the employee.
Expecting great results from an employee dealing with angry customers, long hours, disorganization, lack of communication, a failing company, etc. is a losing proposition. The employee can’t find anything good for them about the job and so therefore lack motivation.
Even the best of leaders would be extremely challenged to inspire positive results in negative conditions (as interpreted by the employee). And what small business has not gone through negative conditions? So what’s a leader to do?
The answer lies in exercising those other less sexy aspects of management such as planning, organizing, and controlling. By planning the work that needs to be done, organizing your resources to do the work, leading (read: influencing) your people through the work, and finally controlling the work to ensure the desired result – you will have accomplished the ultimate small business win-win scenario.
Your employees will have what they want – a secure paycheck while being productive and efficient. And productive and efficient employees mean better results for you. So the bottom line? If you want a better bottom line, remember that leading is only one element of the management process. Ignore planning, organizing, and controlling and get ready to watch the bullets fly!
Mark A. Sandate is the Managing Director of MASSolutions, LLC – a small business advisory firm, and an accredited Executive Associate of the Institute for Independent Business (IIB). For more information and to inquire about a free, IIB sponsored, 4 hour consultation please email mas@mas-solutions.biz.
