Leadership and management are both vital roles in any organization. Leaders provide a strategic vision for success and managers guide day-to-day operations to bring the vision to life. The most successful teams in the global marketplace have a combination of inspiring leadership and effective management. Professionals in each role contribute to the success of an organization in unique ways. 

Learning the difference between leadership and management can help you navigate your career goals more effectively. While different skill sets are required for success in each role, it is important to understand that leadership and management are not mutually exclusive. Most leaders manage organizations in some form, but not every manager becomes an effective leader. 

Ahead, we share the characteristics necessary to become successful leaders versus managers. We also explore three key differences between them and conclude by answering a frequently asked question — why is leadership better than management? 

Characteristics of Leaders vs. Managers

Identifying the characteristics of leaders versus managers can help you figure out the skills you need to develop to be successful in each role. Although there are some similarities between the two, it is important to learn when to approach a situation as a manager and when leadership is required.

Characteristics of Managers

In hierarchical management structures, managers are the backbone of the organization. Managers are vital for ensuring that operations and teams are delivering on the goals set by leadership. Management is also responsible for ensuring that the organization delivers on the promises made to consumers. People management is another essential area of an organization, where managers ensure employees are both protected and abide by company-wide policies.

Given the vital importance of management in helping an organization reach its goals, a good manager should possess skills that span business and social arenas, like:

1. Providing meaningful feedback
2. Organizational focus
3. Project management
4. Time management
5. Performance management

These characteristics focus on getting things done, but they differ in scope and focus from those necessary for effective leadership.

Characteristics of Leaders

There are many different leadership philosophies, and each one possesses unique qualities that distinguish leadership from management. Managers approach their work from a tactical perspective, focusing on what their teams can accomplish. Leaders set goals for their teams and provide strategic direction. Similarly, managers focus on the workplace while leaders generally focus on the marketplace. 

Leaders provide key performance indicators (KPIs) and budgets based on market conditions. However, their daily focus is on other tasks, like providing creative direction, consumer targets, brand identity information and mission-oriented goals to their teams.

Based on these responsibilities, being an effective leader requires characteristics and skills like:

1. Empathy and the ability to motivate
2. Customer-centric focus
3. Strategic vision
4. Creative problem-solving
5. High-performance mindset

3 Key Differences Between Leaders vs. Managers

Leaders and managers are both important roles in the workplace. They often work hand-in-hand, with leaders providing guidance and managers executing their vision. However, as we previously noted, their contributions satisfy different needs that are unique to each.

Here are three key differences between leadership skills and management skills that can help you figure out when each skill set is necessary:

Leaders Motivate, Managers Delegate

Organizational management is all about productivity. That is why knowing how to delegate work to produce results is a key characteristic of a good manager. Leaders, by contrast, motivate people to action using less authoritative measures. For example, team-building exercises are designed to motivate team members by allowing them to get to know one another on a deeper level. These personal connections can become a powerful source of motivation that would be difficult to form without leadership.

The key to effective leadership is understanding when inspiration should replace authority in the workplace. With the unpredictability of different industries, being able to pivot, react to changing circumstances and communicate effectively makes for an inspirational leader. Leaders are also better able to identify strengths and weaknesses in others, which improves cooperation among team members.

Leaders Have Vision, Managers Have Goals

Managing projects successfully helps you reach your goals. However, without strategic vision, an organization can fall short due to nearsighted decision-making. That is why one of the key benefits of good leadership is that it helps an organization align on values.

Vision helps leaders identify opportunities in the marketplace. It also helps them connect to consumers with similar values. According to 2021 research from the World Economic Forum, 70% of consumers prefer to support brands that align with their own values. This underscores the need for leaders to ensure their organizations align with the core values of their consumers.

Managers Focus on Work, Leaders Focus on People

There are times when staying on task is critical to success. But sometimes leadership requires prioritizing people and values over other, smaller priorities. This will lead to long-term success because a team that is aligned on values is more committed, increasing employee retention. 

Over time, employee retention ensures that the organization can attract and retain top talent as a desirable place to work. A business that does not prioritize people and values will find it harder to compete for consumers. That is why focusing on people is a key component of successful leadership styles.

When Is Leadership Better Than Management?

Leadership is better than management in some cases because it can help you succeed beyond your short-term goals. It allows you to achieve more than what you could by only focusing on management. Leadership includes the core values of a person, which also has the added benefit of helping them achieve a sense of purpose.

Purpose-driven leadership is a growing leadership philosophy that connects people to a common purpose before deciding to work toward a common goal. Purpose-driven leaders are mission-oriented rather than result-focused. They can tell the difference between a short-term gain and a long-lasting legacy. In diverse work environments, guiding people with purpose can be a great way to align teams.

However, it should be noted that relying on leadership is not the only way to succeed as an organization. Flat management structures are an alternative to traditional hierarchical management structures. These types of organizations rely on self-management and give employees the power to pitch projects. While they typically rely less on traditional leadership roles, leadership positions are usually required to manage larger teams and specific tasks required for organizational growth.

Regardless of the size and structure of the organization, knowing the key differences between leadership versus management can help you figure out which is better suited to your talents. Whether you are an educator, professional, entrepreneur or advocate, knowing what skills are necessary in each role will help you navigate your career effectively.

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