We're going to talk a little bit here now about the difference between leaders and managers, okay? And draw that distinction because, again, I think a lot of times people think those terms are synonymous, and they really aren't. There can be a huge difference between a manager and a leader. Again, sometimes they could be the same, but I'd say more often than not, they aren't.
The primary difference between leaders and managers—this was a question asked by the late Jack Welch from GE by Harvard Business Review—and he responded with this crucial clarification. He says, "I prefer the term 'business leader.' Okay, good. Business leaders create a vision. They articulate the vision. They passionately own the vision, and they relentlessly drive it to completion." Both roles are important, right? But they're fundamentally different, as Hyatt points out. And they require different dispositions and skillsets. And I would say to that a hearty "Amen." It's so true, guys.
Leaders create vision, while managers execute vision. Leaders inspire and motivate, while managers maintain and administer. The manager is the classic "good soldier," you know. The pioneering leadership studies of Warren Bennis said, whereas the leader is his or her own person. Okay? And interesting note: in today's organizations, it requires an average of, like, 5.4 managers reaching consensus to make a decision. Which is kind of interesting, right?
Let's jump to the next screen share here. This isn't the chart from his book, but I think it's helpful in delineating. Let's talk a little—I want to share here—what's the difference between management and leadership? Well, leadership—Sheryl Sandberg said (she's Facebook's COO, chief operating officer)—she says, "Leadership is about accomplishing more than the science of management teaches you is possible." Right? Leaders see things that managers can't necessarily or don't see. And that, she says, requires a mission. They can take you from where you are to where you want to be in the foreseeable future. And that's what we're trying to do.
Okay, so let's look at this real quick. Managers—kind of what do they do? Well, they tend to manage activities. We've all had managers in my lifetime. They manage things such as money, time, paperwork, materials, equipment, etc. Managers manage; leaders lead. Managers focus more maybe on the planning side of things—organizing, controlling, telling you what to do, coordinating, directing, budgeting, maybe some strategy, decision-making, profits, problem-solving.
So what do leaders do? Well, leaders lead. They tend toward influencing people. Remember, John Maxwell said that leadership is influence—nothing more, nothing less. So leaders influence people. And leaders focus more on—guess what—number one point here: vision. He says vision, as I see it, is a clear, inspiring, practical, and attractive picture of your organization's future. So again, where are you? You know, again, my example: getting from Seattle here to Portland. If you've got a vision, you're gonna get on I-5 and head south. You see the Portland signs. If you don't, you could end up in Eastern Washington or Idaho over somewhere—maybe Canada. You've gotta know where you're going.
But leaders have vision. They inspire. Leaders inspire people. They use persuasion—not telling people what to do or being a boss. How do I persuade someone to do something that's hopefully in their best interest? They're into motivation. How do you motivate people? Relationships—leaders should be very relationship-oriented. They should have people skills. How do you relate and deal with people effectively? They're into teamwork. You've heard, "Teamwork makes the dream work." Well, it's not just a cute saying—it's true. And then also the skill of listening. I've talked about this in servant leadership—that leaders know how to listen, guys.
So here's it now. I hope that distinction helps out, guys, in understanding it. Hyatt says, "If, however, you find the status quo unacceptable—that means where you're at right now—and you want to focus your efforts, energize your team (which hopefully we want to do), and scale your business, you must be a vision-driven leader." Right? You've got to have vision, guys.
Last one here to make my point: Are you a leader or a manager? There are places where both are very special. We're talking for certain, I'm in the entrepreneurial realm. I think, you know, you have to have leadership. Managers aren't so much critical. But are you a manager or a leader? Hopefully, a leader. Guys, leaders lead. Leaders influence. And as Maxwell says, "Everything rises or falls on leadership." And I believe that.
Have an awesome day, guys!