Leadership or Management? Why today’s workplaces need both and can’t afford to confuse them!
- Dr Martin Boult
- May 21
- 6 min read
Misunderstanding the difference costs more than you think. Discover how the right mindset at the right moment drives performance, engagement and resilience.
When I ask participants in leadership programs how they learnt to manage and lead, many say by working with or observing others, who were either excellent, or terrible at leading and managing. Others mention undertaking formal training, but very few report being clearly taught the difference between leadership and management or when to apply each effectively.
Then I ask, “How do you distinguish between the two?” The most common responses are “Are they not the same thing?” or “Leaders focus on people, while managers focus on tasks.”
These answers reveal a partial truth but also highlight a common confusion. In today’s dynamic and complex work environments, that confusion can reduce performance, staff engagement, wellbeing and client outcomes.
In this article, from the Leadership Reimagined series, we clarify the distinct mindsets and behaviours defining leadership and management, based on research and decades of consulting experience. We explore, using real examples, when each approach matters most, and how they contribute to effective, resilient and fit-for-purpose workplace cultures. I also share how to self-assess your current approach to management and leadership.
Leadership and Management: Different mindsets, complementary strengths
Leadership and management are not simply job titles. They are ways of thinking and acting that shape how people influence outcomes. Building on the timeless research of Abraham Zaleznik (1977) and John Kotter (1990), the following table summarises the key differences:
Mindset and Behaviours | Managers | Leaders |
Focus | “Doing things right” | “Doing the right things” |
Approach to goals | Reactive, shaped by existing structures | Proactive, shaped by purpose and values |
What the view as a priority | Order, control and consistency | Innovation, change and future direction |
How they relate to co-workers | Role based focus, objective maintaining emotional distance
Motivates through structured collaboration | Builds trust through empathy and connection
Motivates through meaning and inspiration |
Although there are differences, leadership and management are not opposites. In fact, they are complementary and often overlap. Effective professionals know how to apply both depending on the situation.
Real examples of when to lead and when to manage
Anyone responsible for people and performance needs to intentionally navigate between leadership and management. The following examples illustrate how different organisations used both to achieve results:
Technology company: A software startup struggled to launch products despite having two visionary founders who inspired staff to be creative. However, deadlines were missed and budgets exceeded. Through coaching and leadership development, the founders introduced structure, delegated operations and matched their leadership with sound management. The business successfully launched its products locally and expanded into international markets.
Finance company: After a fraud incident, a finance company introduced strict compliance measures and changes to staff roles. Managers handled the technical requirements and processes well, but staff morale fell, and frustration increased as changes were rolled. Leadership development helped the senior team rebuild trust and foster a culture of accountability. Within two years, staff engagement and client trust improved significantly.
Education institute: A vocational education institute introduced a new curriculum with administrative precision but failed to connect the change to its broader educational purpose. Staff felt excluded, disengaged and several key teachers resigned. After undertaking coaching and leadership development, the senior team worked more collaboratively with teaching staff to align the curriculum with the institute’s vision and purpose. Staff commitment and retention improved as a result.
These cases show how leadership supports transformation and meaning, while management ensures stability and execution. Both are essential for success.
Rebalancing the management-leadership ratio
Although today’s organisations need both ethical leadership and responsible management, research continues to show that many are still “over-managed and under-led”. This is increasingly problematic on modern workplaces that demand collaboration, adaptability and human centred cultures.
To remain competitive and sustainable, organisations need to:
Encourage leadership at all levels: Leadership is not limited to executives or those with a manager title. I have seen staff motivate others, introduce ideas or foster collaboration by demonstrating inspirational leadership.
Balance structure and inspiration: Managers who focus solely on tasks and structure miss the opportunity to inspire their teams. Leaders who neglect planning and process often fail to deliver.
Cultures built for purpose: Organisations are most effective when people understand both the purpose (why the work matters) and what is expected (how we achieve it). This alignment increases clarity, engagement and resilience and requires both leadership and management.
Evidence for leadership’s impact
Multiple studies show the tangible effects of developing leadership for organisational outcomes:
Engagement and performance: Leaders influence 70 percent of the variation in employee engagement. Engaged teams are more productive, more loyal and deliver better client outcomes.
Innovation and adaptability: Leadership development builds innovative thinking and enables organisations to adapt in times of uncertainty.
Team performance and wellbeing: Leaders who support and empower their teams create cultures of trust, mutual accountability and collaboration.
Business results: Investing in developing leadership is linked to stronger financial performance, higher retention and improved stakeholder and client outcomes.
Reflection point: Are you leading or managing?
To better understand your own approach, consider the following questions:
How do I respond to goals? Do I create goals based on values and vision, or prefer following existing ones?
What do I prioritise? Am I more focused on creating stability, or am I more open to challenging the norm in pursuit of purpose and better outcomes?
How do I relate to others? Are my interactions task and outcome focused, or do I focus on building aligned motivational relationships?
You can deepen this reflection by inviting feedback from team members. Their perspective can reveal strengths or blind spots in your current approach.
Building a leader manager culture
Across the public and private sectors, I see a never-ending demand for people who can confidently lead and competently manage. This requires:
Helping managers go beyond administration and connect meaningfully with people.
Supporting leaders to build operational discipline and execution skills.
Creating cultures that recognise leadership behaviours, regardless of title or hierarchy.
These outcomes can be achieved through evidence-based leadership development that is curated for the organisation and its leaders. When leadership and management mindsets and behaviours are aligned, organisations become more resilient, more human and more effective.
What’s next?
This article is part of the Leadership Reimagined series. To explore how your organisation can strengthen leadership and management capability at all levels, contact mboult@boultpsychology.com and visit https://www.boultpsychology.com/
Stay tuned for the upcoming articles on the critical skills and behaviours for the next generation of leaders.
References and further reading
Kotter, J.P. (1990). What Leaders Really Do. Harvard Business Review, 68(3), 103-111 – Leadership and management are distinct but complementary; management deals with complexity, leadership with change.
Drucker, P. & Bennis, W. (as cited in Covey, 1989). The 7 Habits of Highly Effective People – “Management is doing things right; leadership is doing the right things.” This highlights the execution vs. vision mindset.
Shestopalov, S. (2024). Leadership vs. management: is there an actual difference? – Describes leadership as a mindset/role (vision, influence, innovation) and management as a job/skillset (planning, directing).
PDC/BWC Center for Vital Leadership (2023). Differences between managers and leaders – Emphasizes need for both: managers focus on process and doing things right, leaders on vision and doing right things; without leadership, organisations don’t innovate.
Chandler Macleod (2024). Evolution of Leadership Styles in the Australian Workplace – Observes shift in Australia from top-down management to inclusive leadership, improving culture and success.
Centre for Workplace Leadership, Univ. of Melbourne (2016). Study of Australian Leadership (SAL) – Found capable leadership is linked to better performance and innovation; investing in leadership development yields more effective leaders and higher innovation. Also noted many Australian firms need to improve basic management (goal-setting, KPIs) while strengthening leadership for future challenges.
Gallup (2024). Science of High-Performing Teams – Meta-analysis showing engaged teams (fostered by good leadership) are 23% more profitable, 18% more productive. The manager’s leadership quality accounts for 70% of team engagement variance.
Wang et al. (2022). Impact of Transformational Leadership on Commitment and Performance: Mediating Role of Engagement (Frontiers in Psychology, 13:831060) – Study of hotel employees showing transformational leadership significantly boosts employee engagement, which in turn increases organisational commitment and job performance.
Bush, T. (2007). Educational leadership and management: theory, policy, and practice – Argues that leadership quality significantly affects student and school outcomes, and that schools (and by extension organisations) need both effective leaders and managers for best results. Also warns against “managerialism” – focusing on procedures over purpose.
Additional Reading:
Gahan, P. et al. (2016). Survey of Australian Leadership – Detailed report on leadership in Australian workplaces; highlights gaps between managers’ self-assessments and employee perceptions, and the need to boost both leadership skills and management basics in organisations.
Leadership vs Management. What’s the difference? (2019) Harvard Business Online. https://online.hbs.edu/blog/post/leadership-vs-management
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