| Leadership is a question of motivation, inspiration, | | | | lawyers etc. Therefore he outsources those |
| guidance, vision and the overall supervision of the | | | | tasks by hiring a business manager. |
| strategies of the business. Managerial skills are | | | | John has all the ideas for profiling the business |
| used to bring vision into everyday procedure, | | | | already. He creates a Facebook fan page, a |
| moving from motivation and inspiration into | | | | Twitter account, starts up contact with local |
| practical decisions such as hiring or firing - and | | | | newspapers and sets up a website with a fellow |
| many other routine tasks. | | | | programmer he used before in another business |
| Let's first take a look at leadership. Leadership is | | | | venture. He likes to start things up. |
| action you do towards personnel, whereas | | | | Keeping businesses alive isn't his strong side. |
| management is taking care of all back office | | | | Therefore the business manager can handle all the |
| tasks. Leadership involves deciding how to | | | | tasks that John isn't that good at handling. |
| advertise, how to decorate the company, what | | | | If John had to hire people according to his |
| to announce on Twitter - how to profile the | | | | standards he would end up with creative and |
| business. | | | | ambitious people who might not stay all that long |
| Management is steering the business in | | | | in his business. By letting his business manager |
| accordance with the ideas issued by leadership. In | | | | match the people for the right assignments he |
| rare cases, some people can handle both. But | | | | gets his business off to a really good start with |
| mostly we have only one talent - and need | | | | people qualified as they need to be - for the right |
| others to supply the other skill. | | | | tasks. |
| A practical example. Someone, let's call him John, | | | | So leadership can motivate and inspire, whereas |
| shoots in an investment of a million dollars. He | | | | management is bringing all the good ideas to |
| wants to get a business up and running in the real | | | | practical use in everyday tasks that need to be |
| estate business. He hires a brilliant accountant who | | | | taken care of. Getting a good business manager is |
| has been office manager in a big company. | | | | realizing you are not the kind of person to handle |
| What would be the idea behind hiring someone | | | | these things, just as business managers should |
| else to be the business manager in the startup | | | | realize they are not creative directors. By |
| process? | | | | communicating with people with different skills you |
| Well, John knows that he isn't the kind of guy | | | | learn more about other lines of business. But you |
| who can keep track of individual meetings, | | | | probably won't get good across these two very |
| booking of cars for service, sending papers to | | | | special skills - it's usually one or the other. |