Do you know the difference between business management and leadership? In fact, is there any difference at all?

Everybody knows that having a good leader is crucial for any business. A leader is there to guide, set an example, and ensure the success of the company. But, in most companies, there are several layers of management who are all leaders in their own way. The difference can be blurred as the two often overlap. But, let’s take a closer look:

What is management?

Management usually involves overseeing the day-to-day functions of a business and the people who make up the team. A manager is usually chosen for the specific qualities they have, such as great organisational or interpersonal skills that make them qualified for the job. Often, there are even different layers of management within one business, depending on its needs, the amount of people it employs, and the number of different teams requiring management. 

In their daily roles, managers are usually expected to keep tabs on what their team is doing, help to motivate them to perform well, plan for the future, and keep track of what goals they are achieving. Management looks different for every business and so, it is evident to begin to see the difference between business management and leadership.

What is leadership?

On the surface, it may seem as though leadership is a very similar concept to management. Of course, it is the job of a strong leader to guide and oversee their team. However, the best leaders also have a different function. They should also aim to inspire and motivate the team to do the best they can, therefore helping the business to reach their goals. 

The business owner is the natural choice for an organisation’s prime leader, but managers can also fulfill this function. On the whole, though, managers tend to follow the vision and goals that leaders set, instructing employees on how to follow them too. So, they work in conjunction in this way.

So what? Does an organisation need both leaders and managers? Why?

Understanding the difference between business management and leadership is not the only thing you need to do. If a business wants to achieve the highest levels of success, it could probably benefit from having both leadership and management roles fulfilled. While they often overlap, they do perform very different functions, with managers performing the more ‘everyday’ duties, and leadership roles providing more oversight and inspiration. Often, confusion can arise for everyone in an organisation when the difference between management and leadership roles are not clear. The result of this can be missed opportunities, goals and targets not hit, and the business not performing at its best!

The difference between business management and leadership: How I can help you

So, if you’re wondering about the difference between management and leadership in your organisation and where it can be improved, it’s a good time to take a deep look into your business. Are the different team roles clear? Which people are in positions of leadership or management, and is there any overlap? How can things be improved to the benefit of the whole team? All of these questions are good starting points if you’re looking to improve your organisation’s structure and reach your goals.

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