The answer is both. Have you ever heard the expression “too many generals and not enough soldiers. Well it works both ways. Too many soldiers without a strong general will surely find themselves fighting the wrong battles.
Experience has shown us that businesses with too many leaders fail from their inability to manage and implement day-to-day business issues. Likewise companies with excellent managers fail because they did not innovate, motivate change nor watch for strategic threats.
It's important to develop managers that can lead and leaders that can manage. What's the difference?
Think of it like this: you want to manage things and lead people. For example businesses manage costs, inventory, cash flow, processes, information systems, facilities and operations. Now when it comes to leadership, great businesses lead their people, drive the company vision, guide their employee and customer perceptions and ultimately generate a positive and productive corporate mindset and culture. As the business owner you are responsible for leading your business to success and getting your people excited about your vision.
Too often leadership is seen as defining a step-by-step business strategy and expecting people to follow the steps or suffer the consequences. Coming up with a strategy and relying on your position as business owner is not enough. This model fails you, your employees and your business. People will learn to do just what they have to so that they can meet expectations and not lose their job. True leadership is the art of understanding and rewarding your employees and customers needs so that they are motivated to make your business a success.
Imagine if Bill Gates workday looked like this. Arrive at 8am,walk into Microsoft and answer phone in lobby, interview every candidate for every position available, write the copy for website, answer all customer calls, develop code for Windows, design product packaging, write product documentation and empty all the trash cans. By noon, he would be exhausted and in six months there would be no Microsoft.
Too often small business owners take it upon themselves to do all of this and their business suffers as a result.
Your role as the business owner is to keep your eyes constantly toward the direction you want your business to go. You are the leader. To make your vision a reality you have to win your employees and customers over so they can make it happen.
Too often small businesses suffer from leaders who are too overly tied up in the day-to-day running of the business.
Owners have their eyes toofocused on accounts receivables, purchase orders and time cards and become blinded to impending competition, threats to their businesses and the potential for growth.
It's important to seek out qualified and competent people who can manage the day-to-day tasks and operations so that you can look up, set your sight on what you want and move your organization in that direction.
If you would like to discuss your company's leadership style further or would like help with implementing any of the ideas in this article, please contact Paul Gillon or Con Andreolas on 02 9525 0766.
Source: Principa
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