Monday, June 18, 2012

Leader vs Manager - what's the difference ?


Leadership in the 21st Century, Week 11, 6/18/12

What is the difference between management and leadership and how do they function in an organizational setting ?

Fundamentally, leadership deals with change while management deals with complexity. Role of a leader is to provide a compelling vision for the organization and set a direction. A good leader thinks of big ideas, develops a strategy, anticipates changes in the marketplace and prepares his or her organization to adapt quickly and cope with change. 

Jack Welch highlights eight specific responsibilities for a leader:

(1) Build great teams - The team with the best players wins and so relentlessly upgrade the team. Never be satisfied with the quality of a team. At every opportunity evaluate, coach and build self-confidence.
(2) Values - Ensure that people not only see the values but live and breathe it. Values must support a mission and must specify expectations for employees’ behaviors. Leaders define the culture and set a high bar for ethical action. Leaders cultivate emotional intelligence (EI).
(3) Optimism - Leaders get under the skin of their employees, exuding positive energy and optimism.
(4) Trust – Leaders build trust with candor, transparency and credit. With emphasis on candor, leaders engage every brain in the game, unclutter bureaucracy and drive up the speed of decision making.
(5) Courage – Leaders have the courage to make unpopular decisions through gut calls.
(6) Question – Leaders question and probe with curiosity, bordering on skepticism, making sure their questions are answered with actions.
(7) Inspire – Leaders inspire risk taking and learning by setting an example.
(8) Celebrate – Leaders celebrate accomplishments and never skip the fun part.

The role of a manager is to support the leader’s vision by taking care of details in complexity and execution. Specifically, Jack Welch points out that a manager has four major responsibilities:

(1) Planning & Budgeting – Managers are responsible for delivering results in a predictable manner, always on time and within budget
(2) People – Pick the right people for the right job. Set performance goals and measure behavior. Motivate, encourage, guide and counsel employees. Create individual development plans. Differentiate performance and decide on fair rewards. Create an environment where employees can excel and innovate. Encourage diversity, celebrate differences and play to people’s strengths.
(3) Performance – Track performance versus target and problem-solve by removing obstacles.
(4) Policies – Articulate clearly the business conduct guidelines, management policies & protocols.


crystal clear insights from Jack Welch
Dr DP

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