Understanding people will help you make the shift from managing to leading a business.
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NOVEMBER 18, 2002
Q: I started my own business this year, making the transition from sales manager to business owner. What's the difference between leading and managing employees? And what does my role as a leader now encompass?
A: Leaders are the heart of a business. The essence of leadership means inspiring a group to come together for a common goal. Leaders motivate, console and work with people to keep them bonded and eager to move forward. That means setting a direction, communicating it to everyone who will listen (and probably many who won't) and keeping people psyched when times get tough.
Managers are the brains of a business. They establish systems, create rules and operating procedures, and put into place incentive programs and the like. Management, however, is about the business, not the people; the people are important as a way of getting the job done.
Most business executives and owners have a mix of management and leadership skills. Both skill sets are necessary to run a successful business (unless it's a very small business with people who naturally