Business Operations

Unlocking the Potential of Your Team: The Role of a Leader vs. Manager

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<p>We can all agree that not every manager is a good leader, and not every leader is a good manager. But what, exactly, is the difference between the two? And does that difference matter in the big picture?</p>
<p>We’re here to tell you that understanding the difference between a leader and a manager is essential—they play very different but equally crucial roles in any business.</p>
<p>In this article, we’ll provide an overview of the roles of leaders and managers in building effective teams—both are essential to unlocking the potential of a team. Moreover, we will highlight the importance of striking a balance between the two roles to achieve measurable results.</p>
<h2>What is a Leader?</h2>
<p>A leader is a person who inspires and motivates others to achieve a common goal and instills a clear sense of direction and purpose. A leader not only focuses on mentoring employees and guiding their team to success but also on creating a positive workplace culture that leverages the team&#8217;s strengths. People look up to—and want to emulate—great leaders. So, what makes a leader a good one?</p>
<p>Let’s go over seven important leadership qualities.</p>
<ul>
<li><strong>Motivates:</strong> A leader should inspire and motivate their team by setting clear goals and recognizing their team members&#8217; strengths and accomplishments. This skill is crucial to keeping the team engaged and committed to the company&#8217;s mission.</li>
<li><strong>Gives feedback:</strong> A leader should provide consistent feedback to improve their team members&#8217; performance and help them grow as professionals. While constructive feedback can be a sensitive subject, a good leader delivers it in a helpful, non-threatening way.</li>
<li><strong>Defines the team’s purpose:</strong> A good leader effectively communicates their team&#8217;s purpose and explains how it aligns with the company mission. This clarity of purpose helps team members focus on their goals, understand how their role contributes to the team&#8217;s success, and stay motivated.</li>
<li><strong>Builds relationships:</strong> Successfully leading a team requires solid relationships with team members and other stakeholders. This ability to connect with people and understand their needs helps leaders foster trust, collaboration, and respect.</li>
<li><strong>Delegates tasks fairly and appropriately:</strong> A leader must effectively delegate tasks to their team members, recognizing each member&#8217;s strengths, and delegating tasks that align with their skills. This skill helps ensure a balanced workload, which leads to better efficiency and less burnout.</li>
<li><strong>Makes difficult decisions:</strong> A leader is responsible for critical decision-making that impacts the team and the company. This skill requires a decisive, objective approach and an ability to view the big picture.</li>
<li><strong>Leads by example:</strong> Perhaps the most obvious leadership skill is the ability to—you guessed it—lead. A leader should lead by example, modeling the company&#8217;s values, and behaving with integrity. This allows them to foster a culture of trust and inspires team members to follow in the leader&#8217;s footsteps.</li>
</ul>
<p>Effective leadership is crucial—it helps motivate and guide employees toward success, which means higher productivity, <a href="https://www.podium.com/article/happy-employees/">improved employee satisfaction</a>, and increased revenue. You can measure effective leadership by running employee surveys (to assess team members&#8217; satisfaction with their leader&#8217;s performance), analyzing performance metrics (such as productivity and employee retention rates), and collecting feedback from customers and other stakeholders.</p>
<h2>What is a Manager?</h2>
<p>A manager’s job description is a bit different. A manager is responsible for overseeing and coordinating the work of a group of people toward a specific goal or objective. They focus on organizational goals like streamlining processes and keeping the internal machine running. There are different types of managers, including project managers, frontline managers, middle managers, and senior managers, each with their specific roles and responsibilities.</p>
<p>What skills does a manager need to succeed? Here is a list of six key management skills and traits.</p>
<ul>
<li><strong>Effective communication skills:</strong> Communication is key in management. A great manager must be able to communicate clearly and efficiently with their team, clients, and stakeholders. Effective communication skills are crucial in avoiding misunderstandings, conflicts, and ensuring that everyone is on the same page.</li>
<li><strong>Organizational skills:</strong> To achieve success, a manager must have relevant organizational skills, such as the ability to prioritize tasks, manage time and resources, and coordinate workflows. These skills help the manager create a productive environment where everyone knows their roles and responsibilities.</li>
<li><strong>Adaptability:</strong> A manager requires adaptability and flexibility to deal with unexpected changes. Being able to pivot and adapt quickly to new circumstances while keeping the team motivated and engaged is crucial for success.</li>
<li><strong>Decisiveness:</strong> Managers make important decisions every day. As such, they must be able to analyze information, weigh alternatives, and make sound decisions quickly. Great managers are confident in their decisions and take responsibility for their actions.</li>
<li><strong>Empathy:</strong> A manager must have not only self-awareness but also empathy and the ability to put themselves in their team&#8217;s shoes to make informed decisions. It is essential to understand the team&#8217;s concerns, problems, and perspectives to <a href="https://www.podium.com/article/creating-a-positive-work-environment/">create a supportive and productive work environment</a>.</li>
<li><strong>Problem-solving skills:</strong> A good manager needs to think critically, analyze problems, and develop solutions. The ability to evaluate issues and provide solutions leads to a more efficient and effective workplace.</li>
</ul>
<p>Effective management can be measured by various metrics such as employee engagement, productivity, <a href="https://www.podium.com/article/customer-success-manager/">customer satisfaction</a>, and revenue growth. These metrics can show how well the manager is leading their team towards their goals and if their management style is effective. It’s also important to note that some management styles just won’t work well for certain teams—and that’s okay. It’s important to figure out what kind of manager jives best with your employees and fits in best with your company culture.</p>
<p><img loading="lazy" decoding="async" class="alignnone size-large wp-image-27660" src="https://cms.podium.com/wp-content/uploads/2023/06/small-business-management-team-1024x597.png" alt="" width="640" height="373" srcset="https://cms.podium.com/wp-content/uploads/2023/06/small-business-management-team-1024x597.png 1024w, https://cms.podium.com/wp-content/uploads/2023/06/small-business-management-team-300x175.png 300w, https://cms.podium.com/wp-content/uploads/2023/06/small-business-management-team-768x448.png 768w, https://cms.podium.com/wp-content/uploads/2023/06/small-business-management-team-600x350.png 600w, https://cms.podium.com/wp-content/uploads/2023/06/small-business-management-team-360x210.png 360w, https://cms.podium.com/wp-content/uploads/2023/06/small-business-management-team-160x93.png 160w, https://cms.podium.com/wp-content/uploads/2023/06/small-business-management-team-350x204.png 350w, https://cms.podium.com/wp-content/uploads/2023/06/small-business-management-team-100x58.png 100w, https://cms.podium.com/wp-content/uploads/2023/06/small-business-management-team-588x343.png 588w, https://cms.podium.com/wp-content/uploads/2023/06/small-business-management-team.png 1200w" sizes="(max-width: 640px) 100vw, 640px" /></p>
<h2>Leadership vs. Management: What’s the Difference?</h2>
<p>In the rapidly changing business environment, leadership and management are two essential components of any successful company. While they may seem interchangeable, a leader’s role and a manager’s role have distinct differences.</p>
<h3>Focus</h3>
<p>Leadership primarily focuses on inspiring and motivating people, while management focuses on organizing and controlling resources. Leaders focus on building relationships, inspiring employees to work towards a common goal, while managers focus on managing structures and processes to ensure that work is completed on time and on budget.</p>
<h3>Vision</h3>
<p>Leaders focus on the long-term, big-picture future, while managers focus more on the present—think short-term goals and daily tasks. Strong leaders have a clear vision of where they want to take their organization and the strategies required to get them there. Managers focus on the present and are accountable for meeting short-term targets and deadlines.</p>
<h3>Approach</h3>
<p>Generally speaking, leaders take a creative and innovative approach, while managers take a structured and methodical approach. Leaders are creative thinkers who continuously search for innovative solutions that help them stand out from the competition. Managers, on the other hand, focus on optimizing existing processes, looking for ways to streamline operations and reduce costs. Neither approach is right or wrong—both are necessary for a functioning, growing business.</p>
<h3>Risk-taking</h3>
<p>Leaders are often driven by their vision and goal-oriented mindset, which enables them to take calculated risks confidently. They have a long-term strategy in mind, which allows them to make important decisions with a sense of perspective and purpose. Managers, on the other hand, are more focused on the short-term success of their business. They tend to be risk-averse, preferring to stick to tried and tested methods rather than embracing change.</p>
<h3>People vs. process</h3>
<p>Leaders are more likely to prioritize people over process, recognizing that the success of their business ultimately depends on the talents, skills, and motivation of their employees. Leaders are skilled in building relationships with employees, understanding their strengths and weaknesses, and empowering them to take ownership of their work. Managers are more focused on ensuring that processes are followed and tasks are completed efficiently. While they still value their employees, managers may prioritize process over people when it comes to achieving goals.</p>
<h3>Creativity</h3>
<p>Leaders typically think outside the box, challenge the status quo, and come up with creative solutions to problems. They are the ones who identify trends and opportunities before anyone else and are willing to take risks. Managers prefer to follow established practices. They are more comfortable with the familiar and are often risk-averse. They prefer to maintain the status quo rather than shake things up and try something new.</p>
<h3>Strategy</h3>
<p>In the same vein, leaders tend to take a more holistic approach to strategy than managers. They consider the big picture and long-term goals of the business and take a proactive approach to solving problems. Leaders also tend to be more innovative in their thinking, constantly seeking new and more effective ways to achieve their goals. Managers tend to take a more tactical approach to strategy. They focus more on day-to-day operations and the implementation of specific initiatives.</p>
<h3>Emotion</h3>
<p>Leaders use empathy and emotional intelligence to understand and connect with team members on a deeper level. They are aware of the emotional state of their team and use effective communication to convey their vision and inspire them toward the common goal. Managers take a more task-focused approach to emotions. They are responsible for maintaining a positive work environment and handling conflicts. They typically use conflict resolution strategies to resolve issues between employees.</p>
<p><img loading="lazy" decoding="async" class="alignnone size-large wp-image-27661" src="https://cms.podium.com/wp-content/uploads/2023/06/leader-high-fiving-small-business-employees-1024x597.png" alt="" width="640" height="373" srcset="https://cms.podium.com/wp-content/uploads/2023/06/leader-high-fiving-small-business-employees-1024x597.png 1024w, https://cms.podium.com/wp-content/uploads/2023/06/leader-high-fiving-small-business-employees-300x175.png 300w, https://cms.podium.com/wp-content/uploads/2023/06/leader-high-fiving-small-business-employees-768x448.png 768w, https://cms.podium.com/wp-content/uploads/2023/06/leader-high-fiving-small-business-employees-600x350.png 600w, https://cms.podium.com/wp-content/uploads/2023/06/leader-high-fiving-small-business-employees-360x210.png 360w, https://cms.podium.com/wp-content/uploads/2023/06/leader-high-fiving-small-business-employees-160x93.png 160w, https://cms.podium.com/wp-content/uploads/2023/06/leader-high-fiving-small-business-employees-350x204.png 350w, https://cms.podium.com/wp-content/uploads/2023/06/leader-high-fiving-small-business-employees-100x58.png 100w, https://cms.podium.com/wp-content/uploads/2023/06/leader-high-fiving-small-business-employees-588x343.png 588w, https://cms.podium.com/wp-content/uploads/2023/06/leader-high-fiving-small-business-employees.png 1200w" sizes="(max-width: 640px) 100vw, 640px" /></p>
<h2>The Importance of Balancing Leadership and Management</h2>
<p>To summarize, leadership and management are two essential components that work together to help a business achieve success.</p>
<p>Leadership is about setting a direction, creating a vision, and inspiring others to follow you toward that vision. On the other hand, management is about planning, organizing, and controlling resources to accomplish specific goals. Leadership and management complement each other because leaders produce a vision while managers make it a reality. A leader establishes a goal, while a manager defines how the goal will be achieved.</p>
<p>When it comes to <a href="https://www.podium.com/article/how-to-manage-people/">knowing when to lead or manage your team</a>, it&#8217;s important to understand the role of each. As a leader, you should inspire and motivate your team to achieve the business&#8217;s goals. You should define the vision and guide as your team works to execute it. Then, you can start to build a management team that will implement efficient processes and lead your team to success.</p>
<p>As you work to understand, embrace, and encourage the differences between managers and leaders, you can come up with a more effective way to run and grow your business.</p>


Unlocking the Potential of Your Team: The Role of a Leader vs. Manager

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