Diamond Author
Leadership is a question of motivation, inspiration, guidance, vision and the overall supervision of the strategies of the business. Managerial skills are used to bring vision into everyday procedure, moving from motivation and inspiration into practical decisions such as hiring or firing - and many other routine tasks.
Let's first take a look at leadership. Leadership is action you do towards personnel, whereas management is taking care of all back office tasks. Leadership involves deciding how to advertise, how to decorate the company, what to announce on Twitter - how to profile the business.
Management is steering the business in accordance with the ideas issued by leadership. In rare cases, some people can handle both. But mostly we have only one talent - and need others to supply the other skill.
A practical example. Someone, let's call him John, shoots in an investment of a million dollars. He wants to get a business up and running in the real estate business. He hires a brilliant accountant who has been office manager in a big company.
What would be the idea behind hiring someone else to be the business manager in the startup process?
Well, John knows that he isn't the kind of guy who can keep track of individual meetings, booking of cars for service, sending papers to lawyers etc. Therefore he outsources those tasks by hiring a business manager.
John has all the ideas for profiling the business already. He creates a Facebook fan page, a Twitter account, starts up contact with local newspapers and sets up a website with a fellow programmer he used before in another business venture. He likes to start things up.
Keeping businesses alive isn't his strong side. Therefore the business manager can handle all the tasks that John isn't that good at handling.
If John had to hire people according to his standards he would end up with creative and ambitious people who might not stay all that long in his business. By letting his business manager match the people for the right assignments he gets his business off to a really good start with people qualified as they need to be - for the right tasks.
So leadership can motivate and inspire, whereas management is bringing all the good ideas to practical use in everyday tasks that need to be taken care of. Getting a good business manager is realizing you are not the kind of person to handle these things, just as business managers should realize they are not creative directors. By communicating with people with different skills you learn more about other lines of business. But you probably won't get good across these two very special skills - it's usually one or the other.
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