~by Haley Lynn Gray~
The question of how management differs from leadership comes up constantly. It once started a long discussion in my Duke Fuqua alumni group, prompted by a Wall Street Journal piece on exactly that.
The two are closely linked, and trying to separate them completely can be almost futile. But the distinction is still worth understanding — especially if you run a small business.
The classic distinction
One of the best-known versions comes from Warren Bennis’s 1989 book On Becoming a Leader. Among his contrasts:
- The manager administers; the leader innovates.
- The manager maintains; the leader develops.
- The manager focuses on systems and structure; the leader focuses on people.
- The manager relies on control; the leader inspires trust.
- The manager has a short-range view; the leader has a long-range perspective.
- The manager asks how and when; the leader asks what and why.
Bennis also put it more simply: managers do things right, and leaders do the right thing.
A year later, John Kotter of Harvard Business School offered another useful framing in the Harvard Business Review. Management, he argued, is about coping with complexity — planning, budgeting, organising, keeping things running. Leadership is about coping with change — setting direction, aligning people, and motivating them through it.
For a small business owner, you have to be both
In a large organisation, these can be different jobs held by different people. In a small business, they’re both you.
On the same afternoon, you might set the direction for the next year and then chase an overdue invoice. You’re deciding what the business should become, and also making sure payroll goes out on Friday.
And that’s genuinely hard, because the two pull in different directions.
Management pulls you towards the urgent: the thing due today, the problem in front of you, the system that needs fixing. Leadership asks you to step back from all of that and think about direction, people and the future. The urgent almost always wins, which is why so many owners are excellent managers and struggling leaders.
How to do both
Protect time for leading. Leadership rarely has a deadline, so it gets crowded out. Put it in the calendar — time to think about direction, people and what’s next.
Build systems so managing takes less of you. Automate what you can and delegate what you can’t. Every system that runs without you frees time for leadership.
Notice which hat you’re wearing. Just asking “am I managing or leading right now?” helps. Some problems need a process fixed. Others need a conversation about direction.
Don’t dismiss management. It’s often treated as the lesser skill. It isn’t. Most of what makes a business work is unglamorous maintenance. A visionary who can’t run anything doesn’t have a business for long.
The short version
Managers keep things running. Leaders decide where they’re running to.
If you own a small business, you don’t get to choose. You need to be both — and learning to move between the two is one of the most important skills you’ll build.
