As the saying goes, “With great power comes great responsibility,” so it is understandable that business leaders have a lot of responsibility on their shoulders.
In honest self-appraisal, how many people have you worked with who would say you bring out the worst or the best in them? Often, it is not difficult to name the person(s) who brought out your best; at times, it is even easier to call out who has brought out the worst. All these memories are noteworthy because of how your managers made you feel. Unfortunately, most people leave companies or are willing to shift workplaces because of poor relationships with their managers.
This leads to the debate of whether an organization requires a leader or manager. Most people do not understand the differences, as explored below.
Define Success
Any business owner’s primary objective behind running a business is growth. When you ask them to define growth, they will explain it the same way, but each answer will be justified in its own way.
Some might say profitability is growth, while others will tell you that a simple revenue increase is growing. You will find people who tell you that an increased market share means change, and you will also find those who say a lower fixed cost per unit is growth. Each business owner will point to an increase in some factor to indicate change, but there will be a new definition for every new entrepreneur you ask.
How do you go about determining the meaning of growth, then? How can you measure the success of a business? What is it that you need to do to grow your business? And most importantly, does a manager or leader help a business grow? You first need to define success for your business and need both a manager and a leader to reach your goals.
Lead with Emotional Intelligence
Your emotions are woven into your interactions with others, whether at work or home. Your feelings will influence how you react to opportunities and challenges, determine if you collaborate to resolve conflict, and prompt your willingness to forgive yourself and others. As you move further with your day, your emotions play a role in the effort you demonstrate, your moods, and your psychological health.
As the leader of an organization with subordinates, it is essential to understand what role emotional intelligence plays in their lives. Emotional Intelligence (EI) can be defined as your capacity to be aware of, express emotions, and control them. EI allows us to handle interpersonal relationships empathetically and judiciously.
The four main key components of Emotional Intelligence are:
- Self-Management
- Self-Awareness
- Relationship Management
- Social Awareness
A leader who has higher emotional intelligence is more effective because they can build stronger relationships with others. This enables such a leader to empower and encourage team members to perform optimally. From a managerial-only perspective, you would focus on completing the task without considering these four factors.
As a leader, the need to strengthen relationships remains the same or increases because relationships enhance your company’s collaboration, culture, and engagement levels.
Great Leaders Improve their Organizations
When we talk about the workplace, the bottom line is critical. Executives and managers are usually held responsible for success and failure. According to Dr. Joseph Folkman and Dr. Jack Zenger, there are nine essential traits that successful leaders possess. Some of those traits are:
- Working to inspire and motivate people around them.
- Building relationships and communicating that every organization member is valued and their opinions and concerns are essential and will be investigated.
- They “walk the talk” and act with honesty and integrity with each member.
- Leaders develop and support what others have to say.
- They celebrate the success of their employees and encourage them to learn more.
Goals
When you are in a position of authority and management, your subordinates can often feel intimated. If you are more than just a manager, you would want your team to share ideas and encourage them to work harder. At the same time, a manager cares about numbers, which is necessary but not penultimate.
You must strive to inspire, lead, and allow people to make mistakes.
The chief difference between a leader and a manager is that a leader has people who follow him, while a manager has people who work for him. If you wish to become a successful business owner, you must be both but careful not to confuse yourself. You must equally be a strong leader who aligns team goals and interactions with business objectives and a manager who pushes production and standards toward the vision of success.
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