Management and Leadership, and Why Both Are Important For Your Business

Home » News » Articles » Management and Leadership, and Why Both Are Important For Your Business

One very common mistake that many business owners make, is to think that good management and good leadership are the same thing. The truth is, they are far from being two peas from the same pod. It’s possible that you’re a good manager but not a good leader, and you can also be a good leader with zero management skills.

Before going further, it’s crucial that you know the difference between being a manager, and being a leader.

Managers & Leaders. Both are CRUCIAL in a successful business.

Essentially, management is about carrying out processes, and making sure they run smoothly. Things like planning and budgeting, as well as performance measures and dealing with hired hands – these are things that any well-oiled business should be able to do well. This is management.

Leadership is less about what gets done, and more about the attitudes of the people who are doing what needs to be done. It’s about thinking ahead and envisioning a future for the business, and guiding the team towards the same goals. Things like taking calculated risks and grabbing opportunities – these are things that a growing business with great potential should be looking at. This is leadership.

You need to fully understand the difference between management and leadership before moving on to the next step. As a business owner, you must be able to identify what you do best, what you’re doing now, and what you want to be doing in the future.

Are you a leader? Or a manager?

There is no set rule as to whether you should be a leader or a manager for your business. I personally believe that some business owners have to be able to manage their businesses first, while others need to learn how to lead. But do you know whether you’re a leader, or a manager, for your business right now? Ask yourself these few questions:

• Are your employees constantly contacting you, even when you’re away on a break?
• Are you the go-to person whenever a problem arises, no matter how big or small it is?
• Are you telling your employees what to do, every step of the way?
• Are you working way past office hours, and even throughout the weekends?
• Are you making action plans to achieve goals that have previously already been set, without making new goals to achieve?

If you’ve answered yes to any of the questions above, you’re managing your business, not leading it. That’s not necessarily a bad thing, but it is important that you have identified this issue and you know you’re not yet a leader in your business.

Good management

Any business that isn’t managed well is in for a rocky road ahead. Running a business is not easy, and it’s even harder when plans are not in order, and everything is a mess. Having good management skills means putting all the processes in place, and making sure that plans are followed, necessary steps are taken, and goals are achieved.

As a business owner, you should be able to manage your business well on your own. Take charge of setting up proper systems for every aspect of the business. Know what you expect from your team members, and make sure that all of them are clear about what they should each be doing, and what they should set out to achieve.

Not all business owners are good managers. That’s okay, this doesn’t spell the end for you. All you have to do now is get a good manager for your team.

Good leadership

Shifting from being a manager to becoming a leader requires a change in mindset. While management is all about structure and systems, as a leader, you should focus more on the people. Who are the people who make up your team? Are they motivated to give their all? Are they pro-active in seeking to improve themselves, and bring the whole team to greater heights?

I’ve always believed that a leader is only as good as their team – people are assets. If you can lead a team that’s geared to achieve a common goal, and ever ready to do more than is expected of them, it’s a reflection of how good your leadership skills are. Measuring how well the team is doing, both in terms of results and morale, is akin to measuring your own performance as a leader.

Once you’ve become a leader to a capable team, your business will be in the prime position to grow into what you’ve envisioned it to be.

And that’s worth thinking about…

-Maresa Ng-

Maresa Ng, CEO and Certified Business Coach of ActionCOACH Spark Activators

Maresa Ng, CEO and Certified Business Coach of ActionCOACH Spark Activators

Originally posted on

Like this article? Get regular updates on articles like this by subscribing to our newsletter!


Leave a Comment