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11.20.06

Management & Leadership

Ken Lewis
Kenneth D. Lewis, Chairman and Chief Executive Officer at Bank of America made this distinction between management and leadership to the graduates at Chapel Hill, North Carolina earlier this year:
The distinction between management and leadership is, in my view, crucial. Leadership is about how you use the influence and trust that people grant you to define necessary change and chart the future direction of the organization. Management is about how you earn that influence and trust in the first place.

Management is how we demonstrate our competence, business acumen and organizational ability. Management is how we show that we will be fair, inclusive and trustworthy in the way we use power. Most important, the way we manage establishes the standards of ethical conduct to which we hold ourselves and our teammates.

In day-to-day operations, people will do what a manager tells them to do because he controls their paycheck. But that doesn’t mean they’ll go above and beyond to accomplish a shared goal. Without trust and loyalty, they won’t put in the long hours. They won’t take career risk. They won’t follow where the manager wants to lead.

Ultimately, people grant a manager the opportunity to lead because they have found that person to be effective and trustworthy. Over time, by managing effectively, the manager begins to earn what we sometimes call “followership.” And that’s when you begin to have the opportunity to lead. Leadership is not granted by virtue of a title. It’s granted by the people who have agreed to follow you. And it can be taken away by those same people very quickly if their trust is violated.

Posted by Michael McKinney at 08:41 AM
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The famous Covey/Benis description is that "managers do things right, leaders do the right things." While useful, I would simply add that leaders create opportunity while managers can improve existing opportunities. Leadership is an Art and Management is Technique. A leader is a person whose actions create a positive influence with positive outcomes. A manager gets things done and makes things better.

It is critical to understand the difference between Leadership and Management.
Management is about (quality, design, charts, lists, deadlines, human resouces, education, performance evaluations, meeetings, ethics, directions, processes, six sigma, change, innovation, entrepeneurship, MBA's, finance, options, all business functions, customer service, human relations, government relations, industry standards, performance measurements, profits, execution etc. Management is everything done to make improvements)
Leadership is that critical moment where courage meets opportunity. The courage to speak truth, the courage to assume responsibility, the courage to trust people. Leadership opportunities arrive every moment and you know them when you see them. Leadership is doing what is right not what is expected. Examples: A parent who hugs their kid when they tell them they just spilt milk on the floor again(concern not criticism), a employer who helps an employee whose car won't start and misses work(maybe we need to pay them more or do we owe them mileage), a manufacturer whose product has failed and their first concern is the welfare of their clients not their bottom line (maybe we need to revisit our design process), a bank who wants customers better off so finds a way to help their institution reach out to potential customers instead of the payday lenders who prey on them(maybe we can make money helping people and not rationalizing that they are better off with payday lenders prices). Leadership is everything.
There is an old saying that life on earth is what we make of it; it can be a heaven or a hell. Leadership is making it heaven for everyone.
Every managerial moment has a leadership opportunity. You can lead to manage but can't manage to lead.(I may have heard that somewhere)

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