The 7 Key Differences Between Managers and Leaders, Explained
As the owner of Reframed Coaching and Consulting, I’ve had the privilege of working closely with a wide range of professionals in the workplace. And from budding entrepreneurs and repeat founders to startup managers and seasoned enterprise executives, one of the most critical insights I’ve gained is that management and leadership are fundamentally different roles.
As Gallup puts it, great managers have certain talents that set them apart:
They motivate every single employee to take action and engage them with a compelling mission and vision.
They exhibit assertiveness to drive outcomes and possess the ability to overcome adversity and resistance.
They excel at creating a culture of clear accountability and building relationships founded on trust, open dialogue, and full transparency.
They make decisions based on productivity, not politics.
While true, it’s important to recognize that the qualities that make an outstanding leader differ significantly from those that define a great manager, and each role is indispensable in its own right.
In this blog post, I explore the seven key differences between managers and leaders, highlighting how each role uniquely contributes to an organization’s success.
1. A focus on goals vs. a focus on vision
As a certified coach, I’ve seen how managers really shine when it comes to setting, measuring, and achieving goals. They dive into the nitty-gritty details of day-to-day operations to make sure everything runs like a well-oiled machine. Because they are measured on the success of their function, they must be focused on departmental goals, OKRs, and metrics.
Leaders, however, are all about the big picture! They craft and communicate an inspiring vision for the future, motivating their teams to chase long-term dreams and shared visions.
Think about the Futuristic strength, as an example. A leader with Futuristic talent might lean on Futuristic or other Strategic Thinking talents to think about where the company could and should be in the not-so-distant future. This helps them build the vision.
Having both of these roles at work is like living in the best of both worlds – managers keep things on track, while leaders ensure we’re all moving towards something greater.
2. Authority vs. influence
When it comes to authority and influence, managers typically rely on their formal authority to steer the team, using their organizational clout to enforce rules and policies to team members to ensure work gets done.
Leaders, on the other hand, guide their team using influence and inspiration! In short, they earn their team’s respect and trust by leading by example and fostering a collaborative atmosphere.
Obviously, there’s a lot of crossover here! But the important thing is this:
Together, managerial authority and leadership influence create a balanced environment where work can be efficiently executed, and team members can feel motivated and engaged to bring their best every single day.
3. Risk management vs. risk taking
Managers are often perceived as the guardians of stability. They’re always minimizing risks and ensuring everyone in their team stays as solid as a rock! Leaders, on the other hand, are the adventurers of the business world. They’re often known to embrace risks and encourage innovation, and they’re not afraid to shake things up to achieve their vision.
A successful organization needs both roles! Managers maintain stability, while leaders drive innovation. This is how most organizations outmaneuver the competition and keep their team members happy, healthy and resilient to change.
4. Short-term vs. long-term perspective
It’s a manager's job to focus on the here and now! Immediate tasks, deadlines, and day-to-day efficiency improvement must be a primary focus for most managers, especially at startups where priorities aren’t always clear, and workloads are often bordering unmanageable.
Leaders, though, are dreamers (trust me!). Most leaders focus on strategic planning, growth, and the overall direction of the organization, which lends itself to thinking longer term. Balance between these two paradigms is what creates success! Long-term planning is vital to survival for any company, but short-term execution is how stuff gets done. To put it simply, it’s all about meeting today’s demands while gearing up for tomorrow’s challenges (and opportunities!).
5. Control vs. empowerment
Managers maintain control over their teams and processes. Any good manager keeps an eye on team performance and provides individuals with the direction they need to learn and grow. Leaders, however, empower. They empower teams to work autonomously and to make decisions. They empower teams to take ownership over their work and remain accountable to business goals. And they (should!) encourage personal growth, not just professional development.
When managers provide control and leaders offer empowerment, we get an environment where accountability and personal development thrive.
6. Problem solving vs. opportunity seeking
Managers are problem-solving pros! They spot issues, analyze data, and implement solutions to keep the metaphorical “business ship” running smoothly. Leaders on the contrary, seek opportunity. It’s the job of any good leader to constantly remain open to new possibilities and growth opportunities.
7. Directive vs. coaching
Managers are typically directive in nature. They tend to give clear instructions and expect their team to follow this direction so that “work gets done”. This approach ensures clarity and direction – it gives everyone a clear roadmap ahead into the immediate future.
Leaders are a lot like coaches! They coach management and individual contributors, and they typically offer up support, feedback, and guidance to help everyone grow and succeed.
The power of balanced leadership and management at work
According to Gallup, leaders and managers must “rethink their approach to people management” in 2024. Their research shows that how employees are managed has about four times as much influence on employee engagement and wellbeing compared to where these employees choose to work (i.e. from home vs in-office).
Setting both leaders and managers up in a way that ensures they bring their best to work, then, can create a ripple effect across the rest of the organization. Quite simply, if these team members can effectively manage and lead employees, everyone at work succeeds!
So, how can you set your risk managers and risk takers up for success? Coach them. According to one study, participants undergoing leadership training improved their performance by 20 percent. And ultimately, if your leaders are bringing an extra 20 percent, the rest of your employees will follow suit.
To learn more about how to get the most out of your leadership and management teams, contact us today.