Which Are More Important to Your Business?
Effective Leaders or Effective Managers?

The answer is both are equally important. Effective leaders are necessary to envision the future and the direction of the business. Effective managers are needed to manage the day-to-day operation of the business.

Traditional management theory includes the following functions of management: planning, decision making, directing (also known as controlling), and measuring (includes reporting). Effective managers often use a business plan outline to help them organize their plan. They develop easy to work with decision making tips to make decisions quickly and with a high degree of success. They build a span of control structure that is manageable. And they build a reporting structure that helps them measure business performance, and then they act on those results.

I'm not sure who first coined the phrase (it's been around for a long time), but "management is about getting things done through people". I think that definition has expanded, or perhaps contracted, to "management is about getting things done". In other words, you don’t necessarily have to manage people - you can manage projects or assignments or systems, etc. to get things done.

But for those managers who do manage people, they need to understand what motivates employees; how to build employee productivity, and employee satisfaction (since the two most often are co-dependent); how to plan, organize, and direct employees and work; how to make decisions; how to create reporting systems; how to organize for managing change; and how to achieve organizational goals and strategies.

These are big responsibilities. In a small business environment, the manager is usually also the business owner. So, in addition to being a manager, the business owner needs to be able to lead the company and manage the business.

However, not all managers can be effective leaders and not all leaders can be effective managers: as a small business owner you will likely need to learn how to be good at both.

So what makes a good leader or a good manager?

Some of the Qualities of a Leader?

1. Visionary, solutions-focused (as opposed to problems-focused), risk-takers.
2. Creative and passionate about their vision. Able to communicate that passion and lead others in the direction they want to go. Skilled at active listening, which is really about listening for meaning, and then effectively using what they hear.
3. Pro-active and results-oriented.
4. Open to discussion, to varied perspectives, and committed to engagement of stakeholders.
5. Focused on the future (not the past, and sometimes not even focused on the present).
6. Leaders can be so far ‘ahead of the pack’ that they are challenged in working with others who don’t share their vision or passion.
7. Enjoy change: see change as a way of moving forward.
8. Can be self-centered: they see the world around them from their own perspective, not the perspective of others. This can sound like a negative but we need some people with this perspective.

Some of the Qualities of a Manager?

1. Good planners. Good organizers. Good at building strong problem solving techniques and good at making decisions.
2. People-oriented: they like working with people and build strong business relationships.
3. Work more in the present than in the future: they are trying to deal with today and tomorrow, not next year.
4. Time sensitive: focused on getting the work done on
   time to meet the customer’s expectations.
5. Invested in managing conflict in the workplace and getting resolution to issues.
6. Don’t like constant and/or frequent change: it interferes with their ability to plan and organize. But often have learned to do well at managing change (by necessity).
7. They like the ability to say the job (act) is done: they like closure.

In most businesses, it would be good to have a mix of effective leaders and managers (and of course staff who would be led and managed). In a small business with staff, of your leader/manager cohort, you probably need about 20% leadership talent and the rest in management skills. You likely do not want too many leaders … and not enough managers and followers.

Small business owners need to exhibit both good leadership qualities and management qualities. You will need to be a visionary to start a new business, or develop a new product or service. You will also need to be a good manager of people and of processes and events: planning, organizing, problem solving, directing and measuring the effectiveness of your actions and your business results.

To develop strength as a leader or as a manager, first complete a full assessment of your strengths and weaknesses. This is very much like a performance assessment - of yourself! Conduct a 360 degree assessment (asking all those around you for honest, detailed, and likely anonymous, input into how they see you. Use that feedback (the good, the bad and the ugly), to work on an improvement plan.

Effective leaders often work with business mentors or with a small business advisor. An advisor can help you to minimize your weaknesses. To learn how to be a leader, attend leadership workshops. To learn how to be a better manager, go to management workshops.

If you don’t feel you can improve in certain areas, or if you feel the constraint of time, see what areas of your work can be re-assigned or contracted out.

Recognize that once you start the personal development process, you are not necessarily changed forever (behaviors are hard to change). Often you will revert to your old, unwanted but comfortable behaviors during times of stress. It is important that you become self-aware. Remember that a characteristic of effective leaders is being self-centered, that does go hand-in-hand with self-awareness.

Recognize what causes you to revert to unwanted behaviors. Then develop tactics to help divert you from reversion: script your most wanted behavior, then practice it, visualize it – think of yourself as an athlete in-training.

Changing your behavior will feel awkward initially, but just like rehearsing a part in a play takes practice and many rehearsals, becoming a good leader AND a good manager takes effort and practice. Leading and managing your business requires this amount of commitment.

Effective leaders and managers run successful businesses.

Return From Effective Leaders to Managing.

Or Return From Effective Leaders to More-For-Small-Business.