In order for an organization to operate successfully, there are certain rules to be followed. The most important one is that everybody who is engaged in an organization has a certain role for its development. In this connection it’s questionable whether the terms management and leadership have the same meaning just because they are often used interchangeably.
There is no doubt that these terms describe completely different concepts, although according to dictionary definitions they both refer to guiding people in the aim of achieving a specific goal. Whereas a leader studies and develops ideas, inspires trust among stakeholders, understands the big picture, asks why and what can be improved and looks for opportunities in order to develop strengths, a manager administrates, focuses on control, structure and systems, asks a limited set of questions – just how or when and minimizes weaknesses. Consequently, the terms leadership and management are not only different, but also are completely opposite.
However, what really makes people magnificent in the business world nowadays is the symbiosis between both leadership and management qualities, for both functions are a necessity in the right places and of course in the right times. If one only focuses on management, one risks the organization becoming a status quo or being exceeded by competitors. Leadership is therefore necessary so that the organization is kept in forward motion. However, in order to develop a sustainable business model, the CEO has to ensure that the management skills are put in place. It seems that the trick is to know which hat to wear for any situation.
While the terms leadership and management have different meanings, it is essential for a CEO to understand that they are complementary.