VITAL Differences Between A Leader and Manager
What’s the Difference Between a Leader and a Manager?
While many use the terms interchangeably, a leader and a manager play very different roles within a business.
A Leader Leads.
A leader is the visionary, decision-maker, and change agent who sets the pace and direction for others to follow. Leaders are focused on innovation, driving change, and leading by example—especially in a startup environment. They’re involved in the groundwork, setting policies, and leading the charge.
This is essentially another word for the entrepreneur, where you're the decision-maker in change who sets the pace that others follow. It's based largely on vision and spearheading new innovations, as well as leading by example (especially as a startup) and thus doing the work yourself and setting the policies for how others do that too.
A Manager Manages.
Management, on the other hand, is about maintaining order and stability. Managers focus on overseeing tasks, maintaining routines, and refining systems to ensure they operate efficiently.
Why Both Roles Matter for Founders:
As a founder, you need to wear both hats, especially in the early stages of your business. You'll need to be a leader with a vision for the future while also managing the daily operations to keep everything running smoothly.
Here are some key differences between leaders and managers that you need to understand to excel in both roles:
7 Key Differences Between a Leader and a Manager
Leaders are Agents of Change; Managers Maintain the Status Quo.
Leaders are disruptors. They focus on innovation and embrace change, knowing that improvement is always possible—even if it means challenging the existing way of doing things.
Managers focus on refining what already works, optimizing systems, and maintaining stability, which can sometimes leave little room for disruptive innovation.
Leaders Create the Vision; Managers Set the Goals.
Leaders articulate a compelling vision of what’s possible and inspire others to work towards turning that vision into reality. They push people to think beyond themselves and foster a sense of purpose.
Managers focus on setting specific, measurable goals that serve as milestones toward achieving the vision. They ensure tasks are completed to reach these goals but can sometimes lose sight of the broader vision by focusing too closely on each objective.
Leaders Take Risks; Managers Control Risks.
Leaders are willing to take calculated risks and try new things, understanding that failure is often part of the journey to success. They embrace uncertainty as a path to growth.
Managers aim to minimize risk and avoid problems. They focus on creating processes that reduce uncertainty. However, leaders and managers can work together to manage risks effectively and recover quickly if something goes wrong.
Leaders Build Relationships; Managers Build Systems.
Leaders focus on people, particularly stakeholders like customers, partners, and employees. They build trust, loyalty, and strong relationships to help realize their vision.
Managers concentrate on building and maintaining the systems and processes that ensure goals are met. Their interactions are often geared toward achieving specific objectives.
Leaders Coach; Managers Direct.
Leaders believe in empowering their team, encouraging them to find their own solutions. They resist the urge to micromanage and instead foster an environment of trust and personal growth.
Managers provide specific guidance on tasks and ensure those tasks are completed according to plan. Their role is more about directing and instructing to achieve desired outcomes.
Leaders Grow Personally; Managers Rely on Existing Growth.
Leaders are always looking for new ways to grow and learn, understanding that continuous self-improvement is crucial in a rapidly changing world.
Managers often focus on honing their existing skills and refining their approach to maintaining and optimizing the systems they oversee.
Leaders Think Long-Term; Managers Think Short-Term.
Leaders are focused on long-term goals and the big picture. They remain motivated by their vision, even when immediate benefits aren’t visible.
Managers prioritize short-term goals and achievements to ensure the day-to-day operations align with the overall strategy and vision.
An Important Note: You Need to Be Both
As a founder, please remember, you must embody both roles. Your first job is to lead with a clear vision, but you also need to manage effectively. You’ll need to create and maintain systems, set and monitor goals, and work closely with your team to ensure everything runs smoothly.
Building a business requires providing value to your customers consistently. This involves doing the work and managing the operations to keep delivering that value over time. As your business grows, your roles will evolve, but in the beginning, balancing both is crucial.
The Conclusion?
An entrepreneur is just another word for a leader.
The primary difference between an entrepreneur and a manager lies in their roles and responsibilities within the company.
Entrepreneurs are visionaries who turn ideas into businesses. They bear the risk and focus on creating and expanding the business.
Managers are employees who work to ensure the smooth functioning of the business daily.
PLEASE remember, that as a founder, you will need to be both of these things. Play both roles.
So, the main difference between an entrepreneur and a manager is their standing in the company - the entrepreneur is a visionary that converts an idea into the business itself. They own the business, and so bear all the risks. The manager, on the other hand, is an employee who works for a salary.
Yes, your first job is the be the leader with a clear vision, but you also need to be aware of the systems that let you achieve your milestones and being on top of anyone you work with to get things done. You'll need to pivot to being able to do all this, as well as the work of getting the main output of the business done too. This is what it means to build a business that serves customers: provide the value, and the business that can keep providing the value.
This evolves as your business grows, but for now, this is plenty to get you started! If you want even more, you can grab my free e-book that diagnoses different aspects of great leaders, practically, to massively build on the kinds of principles you’ve learned today. Find that here.
—
About Seven
Hey friends! I’m Seven - I write about challenges and opportunities affecting leaders across business. I release a weekly newsletter and a podcast, helping folks understand the leadership journeys and challenges out there, so we can better understand our purpose, place, and potential. The goal: to learn about what it means to be a leader, to support leaders, to find leaders, and to discover the leader within.
I’m delighted to have received so many kind words about my newsletter, other writings, and content - so if you’d like to join the ride for free, please keep up to date by subscribing to my newsletter. Weekly thought pieces and updates, and no selling 😜
Lots of love, and here’s to your success!