The Business Leader versus the Manager

published in: Leader 19 Oct 2009

What is the difference between business leader and manager? Which is preferable: manager or business leader? Lets look into the definition of a business leader and into the definition of a manager.

Definition of a manager The manager is a man with legal power in the official organizational structure, who has been employed to plan, organize, direct, measure and control the work of a group of individuals towards a pre-defined goal. Managers deal predominantly with nonbehavioral issues. The semantic of manager is directing, commanding people.

Definition of a leader The leader is a person with a clear vision and successors. Originally leader emerged as a term defining the head of a political party. Leaders personality, his value system and personal example determine the uniqueness of the leader. May be that uniqueness is the reason for the limited number of definitions of the term leader. Even in Longman Dictionary of Business English, second revised edition 1989, you will find no definition about leader and business leader.
Issues

DIFFERENCE BETWEEN MANAGER AND LEADER Business Leader Yes Yes Yes Yes Yes ? Yes Yes ? Manager Yes Yes Yes Yes Yes Yes ? ? ?

Planning Organizing Directing Measuring Controlling Legal power Charisma Ethics power Praise power

Legend: ? not mandatory The combination of the four, marked in blue traits, determine the great leader, who is able to lead the people both to good and to bad.

Definition of a business leader

The business leader has the responsibilities of a manager, but also possesses the skills to create challenging goals and to inspire his team members to achieve them. As a leader, you should be involved with visioning, inspiring, coaching, energizing, and empowering. Business leaders should deal predominantly with behavioral issues. Leaders emerge within the context of the informal organization that underlies the formal structure.

Business leader vs manager two examples A manager would set the task to his department approximately:our target for the next quarter is turnover of usd 500 000. A business leader would approach his team:there are 6 competitors on our marketour goal for the next quarter is to be No.1 or No.2 on the turnover criteria. Do you think we can handle this challenge and how?. But it is also very important how he will do it with passion, confidence(lets not forget that every leader is unique and so is his team inspiration style). But even more important is what actions he will undertake towards reaching the goal, what personal example he will set on this concrete occasion.

Business leaders vs managers conclusion Often the press uses the two terms as synonyms. That is probably because many managers has some leadership skills and duties and many business leaders execute merely managers functions. But we have found significant differences between manager and business leader. Many would like only business leaders, or at least potential business leaders, to work in the company. However, leaders create successors. Therefore, the business leaders will always be a minority in each organization. Most of the followers do not have the potential to grow. Their power and value is in being capable, reliable successors. Everyone has his high value, but on the right place and in the right time. The manager without leadership skills, for instance, is irreplaceable in situations of closing or downsizing the business and reducing the human resources. Put a business leader in such situation and he will fade as leaders are born to create, to inspire, to grow the business

Both, the business leader and the manager have their important role in the contemporary business life. Manager and business leaders are different. Between business leader and manager, however, a fruitful cooperation must be established for the sake of companys success.

MANAGERS Focus on systems Accept status-quo Secure resources Do things right Coordinate Reduce risk Maintain

GAIN - SYNERGY Top organization Improvement Empowerment Effectiveness Teamwork High results Growth

LEADERS Focus on people Challenge status quo Create vision Do the right things Inspire Seize opportunities Develop

Table: Differences and synergy of managers and business leaders

With the evolution of the business relationships, nowadays, being good manager is no longer sufficient for great success. You need to integrate both - managers role and business leaders role - to achieve organizational success. As a manager you have to get the job done, and as a business leader you must focus on the people who are doing the job. Pick one of the two manager or business leader who suits best your personality. Confucius said 2500 years ago: Choose a job you love and you will never have to work a day in your life!