What is the difference between leadership and management?

Leadership is about inspiring and motivating people to achieve a vision. Leaders focus on creating change and setting a direction for the future.

Management is about organising and coordinating resources to achieve specific goals. Managers focus on maintaining stability and ensuring that day-to-day operations run smoothly.

Leaders rely on personal influence and inspiration to motivate their followers.

Managers rely on formal authority and control to ensure tasks are completed.

Both roles are essential for the success of an organisation, and effective leaders often need to have good management skills, and vice versa.

Strategy vs Tactics

Leadership requires a longer-term strategic perspective, focusing on where the organisation needs to go and how to achieve specific goals and objectives. Strategy, or strategic planning, involves making decisions about how to allocate resources, such as finances, staff, and technology, to support business activities and ensure the organisation can adapt to change and challenges.

Strategic planning includes conducting internal and external audits to understand the organisation’s Strengths, Weaknesses, Opportunities, and Threats (SWOT analysis) and the external factors Political, Economic, Social, Technological, Legal, and Environmental factors that can impact an organisation (PESTLE analysis).

Key aspects of organisational strategy include Vision, Mission, and Values (VMV):

• Vision: Defines what the organisation aspires to achieve in the long term.
• Mission: Describes the organization’s purpose and primary objectives.
• Values: Outline the ethical principles and standards that guide the Learn more

Tactics are specific actions or steps taken to implement the strategy, focusing on the details and the immediate actions needed to achieve short-term objectives.

Tactics are developed by middle-managers, and have a shorter time span, such as months or a year.

Well-defined, clear and achievable goals are defined using a framework such as SMART to track progress:

• Specific: Goals should be clear and specific, answering the questions: What do I want to accomplish? Why is this goal important? Who is involved? Where is it located? Which resources or limits are involved?
• Measurable: Goals should include criteria to track progress and measure outcomes. This helps to stay focused and motivated. Ask questions like: How much? How many? How will I know when it is accomplished?
• Achievable: Goals should be realistic and attainable, considering available resources and constraints. This ensures the goal is challenging yet possible. Ask: How can I accomplish this goal? How realistic is the goal based on other constraints?
• Relevant: Goals should matter to you and align with other relevant goals. This ensures that the goal is worthwhile and matches your other efforts and needs. Ask: Does this seem worthwhile? Is this the right time? Does this match our other efforts/needs?
• Time-bound: Goals should have a clear timeline, including a start and end date. This creates a sense of urgency and helps to prioritize tasks. Ask: When? What can I do six months from now? What can I do six weeks from now? What can I do today?

Alternatives to SMART include:

• OKR (Objectives and Key Results)
• BHAG (Big Hairy Audacious Goals)
• Stretch Goals
• PACT Goals (Purposeful, Actionable, Continuous, Trackable)
• HARD Goals (Heartfelt, Animated, Required, Difficult)
• FAST Goals: (Frequently discussed, Ambitious, Specific, Transparent)

What, Why vs How, When

Leaders often focus on the “what” and “why”. They are concerned with setting a vision and understanding the purpose behind actions. They ask:

• What are we trying to achieve?
• Why is this important?

Managers typically focus on the “how” and “when”. They are responsible for implementing plans and ensuring that tasks are completed efficiently and resources used effectively. They ask:

• How will we achieve this?
• When will it be done?

This distinction highlights how leaders and managers complement each other in an organisation - leaders provide direction and inspiration, while managers ensure that the vision is executed effectively.

Goals focused vs people focused

Leaders are often seen as visionaries who encourage innovation and guide their teams through change. They build relationships and influence others to follow their lead.

Managers are responsible for planning, budgeting, staffing, and problem-solving. They are focused on goals and outcomes to ensure that organisational processes are efficient and effective.

However, the distinction between leadership and management is more about the focus and approach rather than a strict separation of roles - leaders also take on managerial roles, and effective leaders often possess strong management skills.

Combining leadership and management skills allows individuals to not only set a direction but also ensure that the organisation moves towards that direction effectively.

Can managers become leaders?

Whilst the roles of managers and leaders are distinct, many of the skills and qualities required for effective leadership can be developed by managers.

For example:

• Thinking beyond day-to-day operations and setting a clear vision for the future and inspiring others to work towards.
• Improving their communication skills to ensure they can convey their vision clearly and motivate their teams.
• Empowering their team members by providing autonomy and encouraging innovation.

• Shift from micromanaging to trusting their team and fostering a collaborative environment.
• Cultivating emotional intelligence to build stronger relationships.
• Undertaking Continuous Learning and Development.

The Institute of Leadership is a vibrant international community of over 50,000 leaders, managers, coaches, and mentors. More than a professional membership body, we are your partner in unlocking leadership potential through world-class tools, award-winning e-learning, and practical research.

The Institute can help this transition from management to leadership by:

• Connecting Institute Members with an international network of leadership professionals.
• Participation in events International Leadership Week, Annual Leadership Live Conference, and the IoL Awards.
• Unlimited access to Institute publications, research papers, podcasts, webinars, and training sessions. 
• Access to the Institute’s award-winning online MyLeadership resources.
• Professional growth through workshops and certifications.
• Post-nominals to recognise commitment to enhancing leadership capability. 
• Access to free Mentoring from Institute Fellows to support developing leadership skills.
• CPD and on-demand support utilising the Institute’s MyLeadership framework.
• Short e-learning courses in leadership and management skills.
• E-learning Pathways with online assessments to enhance leadership and management skills.
• Enhanced professional reputation and credibility in your industry through demonstrable commitment to continuous learning and engagement
• Participation in a global community of like-minded individuals to advance leadership development.
• Access to networking opportunities with the Institute.
• Ensuring your organisation has a voice and representation in various leadership forums.
• Access to the Institute’s MyCareers resources to help Members develop their career.