Plus: A dozen deep thoughts on leadership vs. management in accounting firms.
by Marc Rosenberg, CPA
Author of “CPA Firm Management and Governance”
While the differentiation of management from governance is really an issue of professional jargon, a discussion of “management vs. leadership” is a more substantive matter. During my 30-plus year career in the business world, I have read many books and articles and heard many speeches on these two subjects that are near and dear to my heart.
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When reading on management and leadership, it seems we are being told that the two traits are almost mutually exclusive, like black and white. Yes, it’s true that many inspiring, innovative leaders are lousy managers because they don’t have the focus and discipline required to manage. And some managers make terrible leaders because either they lack the necessary interpersonal skills or over-rely on titles, authority and intimidation to get people to follow.
But in every walk of life, there are a lot of managers who are also good leaders and vice versa. I have had the good fortune to work with many of them. It can be done.
Many CPA firm partners confuse charisma with leadership. Jim Collins, in his book Good To Great, clarified this nicely: “Good-to-great leaders… are often self-effacing, quiet, reserved, even shy, a paradoxical blend of personal humility and professional will. They act with quiet, calm determination, relying principally on inspired standards, not inspiring charisma, to motivate.”
Darwin Smith, former CEO of Kimberly-Clark said: “I never stopped trying to become qualified for the job.”
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Here is a very short list of my favorite definitions of management and leadership.
Management’s job is to:
- Decide what you want to be (plan) and make it happen (implement).
- Hold others accountable for their performance.
- Create an environment in which firm personnel can be successful and achieve their goals.
“While leadership decides what “first things” are, it is management that puts them first – day by day, moment by moment. Management is discipline; carrying it out.” — Stephen Covey.
Management is getting results through other people.
Seven important management functions:
- Hit the firm’s top and bottom line targets.
- Carry out the firm’s business plan.
- Ensure that people meet personal goals that are linked to the firm’s overall goals.
- Establish systems of accountability.
- Solve problems swiftly as they arise.
- Be a cheerleader to the troops.
- Remove obstacles for co-workers.
“Leadership identifies challenges and focuses people’s attention on those challenges.” — Ronald Heifetz.
Leadership is coping with change. Management is coping with complexity.
Leadership controls people by pushing them in the right direction; leadership motivates them by satisfying basic human needs.
Leadership is visionary. Leaders are constantly finding new things that the firm needs to be doing, stretching the abilities and imaginations of everyone.
Real leaders possess real convictions – strong feelings that build up over time. If those convictions match the requirements of a group of followers, then great leadership emerges.
Leadership is crucial for facilitating change in organizations because people need help in overcoming their natural resistance to change.
Leadership is the ability to establish a powerful relationship with a subordinate or a peer that will motivate and inspire that person to commit wholeheartedly and passionately and with dedication to the challenges the leader needs to solve which will, in turn, solve the problem of the follower.
“Management is a people job. If you’re not up to the task of working with people – helping them, listening to them, encouraging them and guiding them – then you shouldn’t be a manager.” — Bob Nelson and Peter Economy.
