Every business needs strong leaders and managers. While effective leadership and management are vital for an organisation’s success, these roles are not always understood. The terms ‘leadership’ and ‘management’ are often seen as synonymous, but leaders and managers have different roles.
Are you keen to pursue a leadership or management career? Then, you’ll need to understand the differences between the two.
Taryn Pontifex, Chief Operating Officer at MOVE Bank, has more than 25 years of experience in finance and has worked her way into leadership roles. In this article, she helps us answer the questions: what is leadership, and what is management? We explore the differences between leadership and management, their similarities and how to discover which role is most suitable for you.
“Leadership and management are often used interchangeably, but they have distinct roles and functions in an organisation,” says Pontifex. “Leadership is more aligned to setting a vision, inspiring and motivating people to achieve it, and providing direction. It involves guiding others towards a common goal.
“Management is primarily concerned with implementing that vision, organising resources, delegating tasks and ensuring that day-to-day operations run smoothly. It involves planning, coordinating and controlling processes to achieve specific goals efficiently.”
Here are some key differences between leadership and management:
Vision and execution
Leaders: Focus on setting a vision, inspiring others and driving change. They are often strategic thinkers who anticipate trends and guide the organisation towards long-term goals.
Managers: Are concerned with executing plans and organising resources. They are more operationally focused, ensuring tasks are completed efficiently and effectively.
Innovation and stability
Leaders: Embrace innovation, take calculated risks and encourage creative thinking. They seek opportunities for growth and improvement.
Managers: Maintain stability and consistency in operations. They are concerned with risk management and adherence to policies and procedures.
Focus
Leaders: Value building relationships, developing talent and fostering a positive culture. They empower and motivate employees.
Managers: Concentrate on assigning tasks, monitoring performance and ensuring deadlines are met. They provide direction and feedback.
Long-term versus short-term
Leaders: Take a long-term view, considering the organisation’s future sustainability, growth and competitive advantage. They adapt to changing environments.
Managers: Operate with a short-term perspective, focusing on immediate goals, deadlines and operational efficiency.
Communication style
Leaders: Communicate a compelling vision, values and strategic direction. They inspire and persuade through tools such as storytelling.
Managers: Communicate operational plans, expectations and performance metrics. They focus on clarity and accuracy and on ensuring tasks are understood and executed efficiently.
While there are key differences, leaders and managers share many similarities. “Leadership and management roles are similar in that they both involve guiding and/or directing individuals and teams towards specific goals and objectives,” says Pontifex.
Let’s explore some of those similarities:
Pontifex says both roles are incredibly important to the success of an organisation. “Managers require skills that focus on planning, organising and coordinating, while leaders require skills that focus on influencing, motivating and the ability to develop long term strategies.”
Let’s take a deeper look at the skills required for each role.
An effective leader must be able to envision the future, set a compelling vision and then help develop a strategic plan to achieve those goals. As mentioned, these professionals are skilled communicators who can inspire and motivate others. Empathy and strong interpersonal skills are also essential for leaders.
Navigating change is inevitable in any business setting, so leaders must be able to make strong decisions and adapt to change. Flexibility and resilience in the face of uncertainty are also key. Coaching and mentoring others to support their professional development is also an important skill for business leaders.
Managers must be organised and efficient with their time, and be able to execute their plans to achieve operational goals. An effective manager will be skilled at identifying, refining and optimising processes to increase efficiency and be able to manage budgets, people and other resources.
Communication is key for managers, who are responsible for delegating tasks and ensuring they hold themselves and others accountable for the outcomes. As skilled problem-solvers, managers identify and solve operational challenges, manage conflict and provide feedback to staff.
Are you a future leader? Or is management your calling? Your suitability for either leadership or management depends on your strengths, preferences and aspirations.
Leaders thrive in environments that call for visionary thinking, strategic planning and the ability to inspire and motivate others towards an organisation’s shared vision. Leaders love to be involved in innovation and creativity. Their change management skills are sought after to help lead a new product development team or drive organisational transformation.
On the other hand, managers excel in operational roles where their skills in planning, organisation and executing tasks are essential. They thrive in environments where strong processes exist. They love performance management and resource allocation, such as managing a project team or overseeing daily operations in a department.
Understanding your natural talents, communication style, problem-solving approach, and career goals is a good idea to determine whether you are better suited to a leadership or management role.
Whether you aspire to be an inspiring leader or a highly competent manager, an MBA will give you the skills and expertise to lead an organisation or a team and help you achieve your career goals.
MBA Discovery’s university partners offer MBAs designed to create future leaders and managers.
James Cook University’s MBA offers a Management and Leadership Skills unit that dives into the core skills leaders and managers need in today’s dynamic business world.
As part of RMIT’s course, students will self-reflect to create their own personal brand and become authentic leaders while learning and applying different leadership styles.
Offering a range of units, including Management Communication and The Positive Leader, Southern Cross University’s MBA is designed to create future leaders and offers students the option to specialise in Managing and Leading People.
Through units such as Strategic Management and Business Policy and Art and Practice of Leadership, Victoria University’s MBA students graduate well-equipped for contemporary management and leadership roles.
Studying for an MBA can equip professionals with the skills and knowledge to become high-performing leaders and managers. Ready to take the next step in your career? Speak to a Student Enrolment Advisor today about how an MBA can take your career to the next level.
Whether you’re ready to enrol, or just have a quick question, simply fill out the enquiry form below to speak directly to the university’s enrolment team. They will be able to guide you through:
