Leadership & Management

What’s the difference?

Chris Santy – Patriot CapitalBrad Harmon, CLP – First Star Capital

A successful business needs effective management and inspiring leadership in order to get the most from its

team.

Leadership & Management – what’s the difference?

Definitions from Dictionary.com

Leadership -oA person who guides or directs a group.oAn act or instance of leading; guidance; direction.oAbility to lead: authoritativeness, influence, command, effectiveness, sway, clout.

Management - oThe act or manner of managing; handling, direction, or control.oExecutive ability.oThe person controlling and directing the affairs of a business, institution, etc.

What is #1 characteristic of our most effective leaders?Harvard study found that connection and warmth is most important characteristic of a good leader. When we judge others, especially leaders, we look first at 2 characteristics, Strength and how loveable and warm they are. In a study of 51,836 leaders, only 27 of them were rated in the bottom quartile in terms of likability and in the top quartile in terms of overall leadership effectiveness—in other words, the chances that a manager who is strongly disliked will be considered a good leader are only about one in 2,000.

Our greatest source of impact is through connecting with others. Transformational leaders impact through personal influence of who they are rather than their positional power.  There can only be limited impact in leadership if we have no way to connect with others beyond our transactional hierarchical positions.

“The art of leadership is deciding what to do, and then getting the people to Want to do it.”- Dwight Eisenhower, 1956

“Never forget that the entire object… is to increase action at the point where the tool comes into contact with the material.”

The question that management must answer…“What is the best strategy that will cause my blacksmith to take

his / her hammer to the metal accurately the maximum amount of times in a given time period?”

- James McKinsey, 1938 (American Technical Society, Vol. 4)

Practical definitions for our industry todayLeadership -oLeadership is a series of behaviors that inspire others to follow you on a mutually beneficial path.oHow you lead is how you get people to follow – motivate a group to move in a positive direction toward positive results.oWe must lead from our Interests & our Values in order to uphold both.Management - oManagement is about productivity – making people as efficient as possible.oPeople have to WANT to do something. If they HAVE to do it they’ll be less productive. WANT creates greater focus & higher energy.

The 4 C’s of Quality LeadershipQuality diamonds are measured by 4 C’s as well -oCut, Clarity, Color, & CaratoThe 4 C’s are organized in a specific sequence – similar to pre-requisites.oCarat & Color are irrelevant if the stone is poorly Cut or lacking Clarity.

The 4 C’s of LeadershipoCharacter – must be admired for ethics, honesty, etc.oCommitment – to principles and the company / organization.oCompetence – strong on fundamentals & good at what you do.oConfidence – real Confidence is quiet.

How does Leadership set the tone?

o Team must have a Mission – not a Mission Statement per se.

o A goal or set of goals beyond individual personal goals.

o A unified direction appealing toward what’s right.

o Who’s right vs. what’s right – who’s right is irrelevant.

o Focus on creating / adding value by enabling others.

Credible Communication

o Credible communication is Believable communication.

o Must be clear, direct, & concise / brief.

o Title doesn’t necessarily confer creditability – it confers power but the two aren’t synonyms.

o Above the line vs. Below the line – credible communication is always Above the line.

The search for a scapegoat is the easiest of all hunting expeditions.

ATL – Above The Line:oCooperative responses – solution oriented & forward looking.

oIntentionally choosing to have a positive impact on the team.

BTL – Below The Line:oOpinion expressed as fact.

oBlame, Fault, Shame, Animosity, etc.

Above The Line

We do not have control over much of what happens on a day to day basis, but the most important thing we do have the power to control is our responses to whatever is thrown our way.

A good guide for making choices that will have a positive impact on the team and subsequently ourselves are those that are above the line.

We can usually feel a sense of calm in our body when we choose these responses, and science is starting to emerge showing how these cooperative responses are better for our stress levels and our overall health. These responses lead us to stronger sense of connection, purpose, joy and satisfaction.

Above The Line – Associated Wordso Trusto Cooperationo Respecto Accountableo Responsibleo Honesto Kindo Compassionateo Directo Forgivingo Patiento Awareo Authentic

Below The Line

We usually respond in a below the line way because of ingrained thoughts or behavioral patterns that we repeat without even realizing it.

Often these ingrained thoughts are misguided, taught from an early age and become self fulfilling. An example is “I can’t count on anyone” or “all women are emotional.”

These thoughts and beliefs are limiting and reflect a scarcity perspective (there is not enough to go around.) It makes it hard to form a sense of cohesion when these contagious thoughts and beliefs are accepted.

Below The Line – Associated Wordso Fear basedo Scarcityo Divisiono Disconnectiono Blamingo Shameo Publicly criticalo Passive aggressiveo Self-centeredo Denialo Complainingo Resentment

Acknowledge The Different Mindsets

Bridge Building Mindset

oYou are OKoLets work togetheroI want us both to winoYour needs are importantoWe have a mutual problem to be solvedoI want power with youoBridge Building words include: us, we, can, our, lets talk, appreciate.

Acknowledge The Different Mindsets

Barrier Mindset

•I am right•You should change•You are the problem•I want power over you•I want to prove that you are wrong•I am indifferent to your needs, my needs are more important than yours.•Barrier Mind Set Words: me, you should, waste of time, your problem, won’t work, out of the question, this is non-negotiable.

The emergence of the “Knowledge Worker”

Peter Drucker was one of the first to recognize that there would be an emergence of the “knowledge worker” and predicted that there would be profound differences in the way businesses were organized as a result.

“With the rise of the knowledge worker, one will not ‘manage’ people. The task is to lead people. And the goal is to make productive the specific strengths and knowledge of every individual.”- Peter Drucker

Determine The Strengths Of Your Team

Take a short online test to find out what you and your teams strengths are by visiting:

http://freestrengthsfinder.workuno.com/1-free-strengthsfinder-test.html