The Managing Director
Leader or Manager?
In a growing business, the Managing Director should be both a leader and a manager. Leaders create and change things, while managers control and keep track of things. Both roles are important, but too many Managing Directors get dragged into doing too much management and too little leadership.
Is a Managing Director a leader or a manager?
Should the Managing Director of a growing business be a manager or a leader?
My view is both… but that too many get dragged (by the pressures of day to day life) into doing too much management and too little leadership. And what is the difference between management and leadership anyway? I found the following summary from my friend and former colleague Mike Meldrum useful:
Leaders
Create things Change things Find resources Get the mission defined Shake things up Set the direction and tone Use imagination Interact with outsiders, inspire people Are responsible for overall outcome Create mandates, take risks Use influence, convince, show direction Monitor outside the culture.
Ask strategic questions
Generate answers to those questions by involving others
Initiate organizational changes to realise the strategy
Work through relationships and inspiring others
Managers
Control things Keep track of things Budget, make ends meet Plan and organise Solve problems Cope with complexity Use rules and systems Interact internally, keep people in line Are responsible for performance levels Create structures, risk averse Use authority, power, give direction Monitor organisational culture.
Solve operational problems
Generate detailed plans to achieve operational stability (staffing / budgeting)
Maintain systems and control mechanisms
Work through hierarchies and formal authority