Leadership vs. Management: What Entrepreneurs Need to Know

Leadership vs. management—start a business, and that’s a dichotomy you’ll need to understand. 

They may be two distinct roles requiring different ways of thinking. But yet, they are also intertwined, two sides of the same coin.  

Consider, as an example, how leaders and managers handle fine details. Good leaders let go of the smaller stuff. They’re not wasting time debating the type of coffeemaker to buy for the breakroom. “People think they need to do everything,” says Joseph Weintraub, a professor of organizational behavior at Babson. “They can’t.” 

Managers, meanwhile, must concern themselves with the smaller stuff, but only to a point. They should focus on day-to-day responsibilities but also rise above them. “The manager has to get out of the mindset that my job is day to day,” Weintraub says. “Day to day isn’t good enough anymore.” 

Comparing leadership vs. management, Weintraub offers his thoughts on what entrepreneurs need to know. 

In a small startup where staff and resources are limited, entrepreneurs may find themselves acting as both a leader and manager, though that’s not necessarily an ideal situation. Both leaders and managers, however, have one big thing in common: They need to build trust in others.  

“The core ingredient is integrity and trust,” Weintraub says. “If they don’t fundamentally trust you, people will not want to follow you.” 

Leadership Skills for Entrepreneurs 

When examining what leadership for entrepreneurs requires, start with self-awareness. Entrepreneurial leadership may involve the hard, risky work of launching a venture, but as it grows, founders must be frank with themselves. What are their deficiencies? Do they have the skills necessary to keep their growing organizations humming along? 

“I was able to start the business and get it going, but I realize the business needs more than that. That’s where managers enter into it,” Weintraub says. “Instead of hiring people in your image, you may need to hire people with complementary skills.” 

The late entrepreneur Tony Hsieh, when he was leading the shoe company Zappos, had just such a revelation. He knew he needed help with management. “He knew enough about himself,” Weintraub says. “He knew he was a visionary. He also knew he lacked some capabilities on the management side.” 

Alignment Is Essential 

When managers are hired, they can be encouraged to speak openly and independently, assuming that leaders create a safe environment that allows for such honest feedback. “Are you OK with having employees who can speak truth to power?” Weintraub says. “If that is important to you, you have to be open.” 

Leaders also must make sure that managers, along with the entire organization, are aligned on where the venture is headed. “It is one of the fundamental things people need to do,” Weintraub says. “Leaders are articulating the vision constantly, and the managers need to make sure they understand.”  

Through the years when working with organizations, Weintraub has tested their alignment, asking employees to name the three main tasks their job entails. Their supervisors also are asked the same question, and their answers typically align on only one out of three answers. “In baseball, that’s pretty good. In business, that’s not so good,” Weintraub says. “They need to be in sync.” 

Management Skills for Entrepreneurs 

Now to the other side of the coin: management. When looking at management skills for entrepreneurs, begin with communication.  

This may sound like an obvious thing to say, but managers should take a moment to check in with employees. Ask how a meeting went. Ask how their day is going. “It doesn’t take a lot of time to do that,” Weintraub says, “but it acknowledges my manager cares about me, knows what I’m doing, and is interested in what I have to say in how the job can be done better.” 

“Have ideas not just from the top. As a manager, I want to show my boss that I am a visionary. I am thinking about the future.”
Joseph Weintraub, professor of organizational behavior at Babson

Is the employee marking a significant work anniversary? Go to the celebration. “Is that important? Yeah,” Weintraub says. “Even if you don’t make a speech, just show up to show that you care. And, if appropriate, express your gratitude for the work that the employee does.” 

To help with that often-inconsistent alignment of goals across an organization, managers and employees should have in-depth conversations about the purpose of the work they do. “These conversations don’t happen,” Weintraub says. “If it wasn’t for mandatory performance reviews, you wouldn’t have a lot of conversations like this.” 

The Weight of Words 

Conversations matter. Weintraub once spoke with a woman who still remembered an interaction she had with her manager 20 years earlier. The woman had asked for guidance, so the pair were talking when the manager’s phone rang with a ring tone that indicated that a vice president was calling. Instead of picking it up, though, the manager continued to talk to the employee, which left an impression on her. “It was something symbolic,” Weintraub says. “It showed the employee was important.” 

Later, the manager called the VP, explained why he didn’t pick up earlier, and the VP agreed that was the right thing to do. Not all leaders are so understanding. Managers can be stuck with a leader who is tough to deal with, and so they’ll have the difficult task of shielding their staff from that negativity. “If you are getting beaten up, it’s hard to come back with a smile on your face,” Weintraub says.  

If a leader has unwelcome news, managers may want to tell their staff in their own words. “I know employees better than my bosses do,” Weintraub says. “How do I frame this?” 

So much of what a manager does is interacting with employees on a daily basis, but managers, like leaders, should be thinking bigger. They should be looking ahead and asking their staff for ideas on how the organization can be set up for long-term success. “Have ideas not just from the top,” Weintraub says. “As a manager, I want to show my boss that I am a visionary. I am thinking about the future.”

Posted in Entrepreneurial Leadership, Insights

Tagged Advice, Faculty, Leadership, Startups, Entrepreneurial Leadership

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