Leading and/or Managing

Thriving in the present and shaping the future, by creating value for all the stakeholders (Family/Friend/Community, Government/Regulator, Creditor/Financer, Shareholder/Management, Peer/Colleague/Reportee, Customer/Client, Supplier/Vendor/Partner), are the only two primary objectives, be it managing or leading. While some may argue that managing is more important for thriving in the present, and leading more important for shaping the future, I believe both leading and managing are inseparable, equally important to both the present and the future, and are two sides of the same coin, which I call success. However, we find people who are either leaders or managers, who are leading managers, who are managing leaders, or who are both leaders and managers. I encourage you to start thinking about the group you belong, as you continue reading.

Leading is all about effectiveness, creativity, and people – creating a shared purpose, inspiring people, building trust, kindling the spark, being there for the people, etc. Managing is all about efficiency, discipline and systems – SMART goals, cascading them, planning with attention to detail, describing processes, meticulously executing, reporting, and reviewing regularly, monitoring and controlling, etc. I believe all entrepreneurs are great leaders and the successful entrepreneurs and CEOs are both great leaders and managers. The most successful people between the shopfloor and top floor are great managers. My belief originates from my experience of almost 40 years in India, Brazil and Germany with close working relationship with people France, Austria, Italy, Czechia, Türkiye, USA, and Japan.

Leadership comes naturally to us, human beings, with our unique ability to imagine. We can dream, we can imagine, we can envision, and we can strategise. On the other hand, management, is a competency that we must acquire and keep practicing, since it is difficult to be regularly disciplined and to continually choose a better path for execution excellence. When we look around, management is weak in developing societies and strong in developed societies. I keep seeing with almost every struggling company I visit, that their biggest challenge is execution – clear roles, clear targets, regular reporting, regular audit, daily/weekly focused reviews, etc. On the other hand, many comfortable ones, mostly multinational companies, have relatively far lesser problems with execution. They just need creative out of the box solutions to their challenges – common understanding, inclusive strategy, employee engagement, inspiring proactivity in people, etc.

The two German words fördern (encourage) and fordern (demand) describes the leading and managing very well. A good leader delegates by encouraging and a good manager demands accountability. In one of my earlier articles, I have described the five levels of delegation. Even accountability follows the same levels. Let me add on the accountability levels to that of delegation.

Delegation Level 1: This level is often referred to as “task-based delegation.” At this stage, you delegate specific tasks to individuals, providing clear instructions and expecting them to follow your directions closely. It’s a straightforward form of delegation where you retain control over decisions and micromanage to some extent.

Accountability Level 1: Thorough proactive completion of tasks after seeking help, if needed.

Delegation Level 2: At this level, you not only delegate tasks but also explain the context, reasoning, and benefits behind them. You seek buy-in from the team member, aiming to inspire their commitment to the task. However, the decision-making still primarily rests with you.

Accountability Level 2: Thorough proactive completion of tasks by overcoming challenges.

Delegation Level 3: Here, you delegate tasks and involve team members in the decision-making process. You encourage them to provide input, suggestions, and even alternatives. While the ultimate decision remains yours, you value their perspectives and consider their input seriously.

Accountability Level 3: Thorough proactive completion of tasks after recommending and seeking approval for improvements/changes.

Level 4: In this level, you delegate tasks and empower team members to make decisions within predefined boundaries. You seek their agreement on objectives, and they have the authority to execute the task as they see fit within those boundaries.

Accountability Level 4: Thorough proactive completion of tasks after seeking understanding the scope and decision boundaries.

Level 5: This is the highest level of delegation, characterized by entrusting entire projects or areas of responsibility to individuals or teams. Team members have autonomy and authority to make decisions, manage resources, and be accountable for outcomes. Your role is more like that of a mentor or guide.

Accountability Level 5: Thorough proactive completion of tasks and realisation of the outcome to the satisfaction of all the stakeholders.

People who are just leaders or managers either just delegate by encouraging or just demand accountability. Imagine leaders who just inspire, especially to attend a training program (DL2), while the leader is also not sure of the outcome or imagine managers demanding an answer for not delivering (AL5), while the raw material purchase orders are stuck for the manager’s approval.

People who are leading managers delegate at a higher level, while demanding at a lower level. Imagine leading managers who authorise the subordinates to take decisions (DL4), while eagerly being behind them following up on overcoming challenges (AL2).

People who are managing leaders delegate at a lower level, while demanding at a higher level. Imagine managing leaders who hold their subordinates accountable for the outcomes (AL5), while just delegating specific tasks to them (DL1).

People who are both leaders and managers delegate and demand at the same level. Imagine a leader-manager who delegates the scope and decision boundaries (DL4) to their subordinates and demands thorough proactive completion of tasks after understanding the scope and decision boundaries (AL4). Both the superior and subordinate work supporting each other with synergy required to achieve the team result.

I needed my leadership and management competencies most when thriving in the present and shaping the future were my aspirations. Driving against the inertia, or initiating and implementing a transformation, becomes mandatory for thriving in the present and shaping the future, and in many cases even for surviving in the present. In my understanding, we need both leadership and management competencies especially for initiating and implementing transformations.

Are you a leader, manager, leading manager, managing leader or leader-manager?

Happy Reading!