What is the Difference Between Leadership and Management?

---

Last Updated on October 7, 2024 by Bill Truby

Is there a difference between leadership and management? Some would say, “no.” Bill says, “yes” and clearly describes the simple difference between the two, AND shows how important it is to have both!

---

Video Transcript

I’ve been asked the question what is the difference between leadership and management?

It’s actually not complicated. It’s really quite simple. The difference is leaders lead people. Managers manage process.

So, when you think about any situation in a business or in a team, there’s things that need to get done. There’s processes that need to be completed. There’s things that need to be achieved. Those are management issues.

But people drive process. So we need to pay attention to the people. Equip them. Motivate them. Take away obstacles so that they can manage the process of getting something done.

And this is true in all aspects of life. When you’re dealing with somebody, there’s something that needs to be done in your life with a neighbor, with a child, there’s two aspects to it. There’s the thing that needs to be done, and there’s the person that’s going to be doing it.

As we relate in leadership to the person, we can equip and motivate and give that person a sense of meaning, and value, and purpose so that they will have the ability to do the process.

And then, of course, in the management aspect of the process, we need to give them the appropriate tools and systems and resources to be able to achieve.

This comes to play in decision-making in a team or a business. Let’s say that there’s a crisis at work. There’s something that’s got to be done, and today is the day. And yet, the person that was the most important to this project process has a 30-year anniversary event that they need to attend with their spouse today.

What do you do?

Well, if you have the management mindset on you, focus on the process, and you say, I’m sorry, but you got to be here. If you have the leadership mindset on, then you figure out, is there another way? You think about the person you give attention to, what’s going on, and you give honor to the event? And obviously, if there is no other way you speak to this person, you get purpose and context and you ask them to help. And then you somehow make it up to them. But if there’s another way which leaders tend to find because, they have creative flexibility, then you can get it done and still honor the person.

So this, in simplicity, is what the difference is between leaders and managers.

Leaders lead and pay attention to and focus on the people component. The human being aspect of achieving the process, which is a management focus. There’s a man that we know of that is a fantastic leader, and he has a management mindset as well. In fact, that is what all teams and businesses need, either in a person or in the team, there needs to be a leadership mindset and practices as well as management mindset and practices.

You will not be successful unless you have both. But the leader piece must drive the management piece. So this man, his name is Tony. He ran a rather large business and they had things that needed to get done. And this was a marine construction company. And one of men who worked for the company was also in the reserves. And he got deployed overseas.

He was a young man with a wife and a small child. Winter was coming on, and he was going to be overseas. And the family didn’t have a lot of money. So what did Tony do? He and one of his partners went to this woman’s house, not only brought her gifts, gave her a bit of a bonus so she could make it through the winter, and told her that he would take care of anything that needed to be done. He and the team would take care of her and all of her needs for fuel, wood, etc., and would be there for her if she needed anything and her husband would have a job when he got back.

That story infiltrated the company. It made a huge difference in how people respected Tony and his partners. And when that happens, the people piece is just amplified. The relationship is built. It’s bonded. It’s deep. And that’s a leader act. That wasn’t a management act. The Management Act was getting things done while this man was away.

Leadership and management are both absolutely critical for a team and a business, but leaders and leadership mindset drives managers and management mindset. Never forget that.

Leaders lead people. Managers manage process. However, people drive process. So leader mindset needs to drive management mindset.

That’s the difference between leadership and management.

---