Managers and Leaders
Organizations exist in complex and rapidly changing environments; they face uncertainty and an open future. Their actions depend on other players, and therefore they have to change continuously in order to grow and prosper. In this process, organizations face internal and external challenges. They have a purpose that can be found in the organization's mission statement. In order to pursue their goal, organizations have to solve problems. The task to define strategy rests with the leadership. In a typical company structure, the leadership is the "Board of Directors," while the management executes the defined strategy. When we contemplate an organization's structure, it is useful to distinguish between leaders and managers. These functions represent different forms of authority.
Management
Resolves problems according to rules
relies on standard operating procedures (SOP)
has a scope of responsibility and work
acts within the regulatory framework of the organisation.
Produces certainty: the actions can be right or wrong.
Leadership
Looks at the organization as a whole in relation to its environment.
Stretches over longer time periods,
Develops a strategic perspective
Detects and addresses new and more fundamental types of problems, therefore needs to suggest innovative responses.
Produces fundamental change.