The document discusses the key differences between management and leadership. It provides examples showing that management focuses on efficiency and tasks, while leadership focuses on motivating and inspiring people. Effective leadership requires developing character through values, gaining knowledge and skills, and then taking action to achieve goals and drive change. Leaders focus on the future and empowering others, while managers focus on maintaining current processes and stability.

1. TO LEAD OR TO MANAGE PRADEEP KHARVI – MBA I (6146) Department of Management Sciences, University of Pune ( PUMBA )

2. Leadership Story… A group of workers and their leaders are set a task of clearing a road through a dense jungle on a remote island to get to the coast where an estuary provides a perfect site for a port. The leaders organise the labour into efficient units and monitor the distribution and use of capital assets – progress is excellent. The leaders continue to monitor and evaluate progress, making adjustments along the way to ensure the progress is maintained and efficiency increased wherever possible. Then, one day amidst all the hustle and bustle and activity, one person climbs up a nearby tree. The person surveys the scene from the top of the tree.

3. Leadership Story… And shouts down to the assembled group below… “ Wrong Way!” (Story adapted from Stephen Covey (2004) “The Seven Habits of Highly Effective People”) “ Management is doing things right, Leadership is doing the right things” (Warren Bennis and Peter Drucker)

4. Contents Management is a Career, Leadership is a Calling You Manage Things, while You Lead People Management is about Arms and Hands, Leadership is about Heads and Hearts Management is about the Present, Leadership is about the Future Learn Leadership From the Army Army Leadership Defining Mission Providing Direction Understanding People Motivating People Delegating Authority Being Adaptable DIAMONDS and LEADERS are FOREVER BE KNOW DO

5. Management is a Career, Leadership is a Calling Leaders have clearly-defined convictions of their own and more importantly the courage to see them through. In case of Managers , the courage is about somebody else’s convictions. - Leslie Kossoff, a leading organisational thinker Management is all about believing in somebody else, while Leadership is about believing in yourself. Leadership is about assimilating, learning and understanding your role based on your own most deeply held truths.

6. CASE I – Marvin Bower (McKinsey & Company) Marvin Bower had a stable career after graduating from the Harvard Business School when he felt the calling to take leap of faith . He accepted the leadership mantle by responding to his convictions and setting up McKinsey & Company. He strived to establish management consultancy as expert practice, till then unheard of and thought of as an unviable proposition. For Marvin, growth of his client’s business was his business and was above all personal interests. Once he stood up boldly during a client meeting and pointed out that the biggest risk that company faced was the narrow minded opinions of its president. He ended up losing the client, but not his convictions, something that helped build McKinsey into a revered management consultancy.

7. CASE II – Walt Disney Walt Disney had one of the roughest childhoods one could ever imagine. His father was abusive and they had hardly anything to eat. At the age of 16, Disney left home to join the Red Cross. As he worked on the war front, he realized that his calling was not just helping the injured, but putting a smile on their faces . He turned his whole life around to fit his mission, even as he endured hard times. For him ‘bringing happiness to the millions’ was not just somebody’s mission statement on the wall, it was his Life.

8. You Manage Things, While You Lead People Jim Clemmer writes that one key distinctions between management and leadership is that we manage things and lead people. Things include physical assets , processes and systems , while People comprise employees , teammates and followers . When dealing with things , we mean a way of doing, while in the people realm, we’re talking about a way of being. “ While Management focuses on work and efficiency, Leadership focuses on people and their growth.”

9. CASE III – Steve Ballmer & Bill Gates When Steve Ballmer, the current CEO of Microsoft, met Bill Gates for the first time, he was looking forward to a bright career after his stint at P&G and education at Harvard and Stanford. A start-up, in the still nowhere computer field, was the last thing on his mind. Bill Gates looked into Steve’s eyes and declared that together they can chase his dream of putting a computer on every desk. That sounded impossible, but the ring of confidence in Bill’s voice enamored Steve. He knew for sure that he would never gain such satisfaction anywhere else. He decided to work under Bill Gates’ leadership and gave up everything else to be as accountant in an unknown garage company.

10. Management is about Arms and Hands, Leadership is about Heads and Hearts Warren Bennis says that most companies are over managed and under-led, which is not a good sign since leaders are much more successful than managers in harnessing people power. While leadership captures the constituents’ heads and hearts – appealing to their conscience – management buys their arms and hands, through hierarchies. Management gets people to do what needs to be done. Leadership gets them to want to do them. Managers get things done through control, by lighting a fire under people; leaders get things done through commitment, by stoking a fire within people.

11. CASE IV – Dhirubhai Ambani - Refinery When Reliance Industries’ Patalganga refinery was completely submerged in the flash flood of 1989, the DuPont managers declared that it was virtually impossible to get the project back on track in under four months. But Dhirubhai Ambani knew something more – that nothing was impossible if his employees were motivated. And, as the foreign consultant looked on, every single employee worked round the clock, sweeping the floor, dismantling the machines and cleaning them, restoring the refinery back to shape in less than 3 weeks.

12. Management is about the Present, Leadership is about the Future The fundamental purpose of management is to keep the current system functioning, while that of leadership is to produce useful change. - John Kotter Management tries to deal with complexities that arise in the current system, while leadership tries to cope with change. Zaleznik sees managers as fairly passive work-centred operators intending on keeping the present show on the road, where as leaders are seen as people-centric, proactive, intuitive and attracted to situations of high risk where the rewards for success are great.

13. CASE V – Varghese Kurien & GCMMF Varghese Kurien landed in Gujarat completely against his wishes. He was in a pathetic state. But that did not stop him from noticing the harsh living conditions of the individual milk producers. The market was poor, since Indian milk was branded as more contaminated than sewage water by the western world. He started getting involved –slowly but steadily – with the milk producers. The shadow of the present did not hold him back from seeing the future. Eventually, he established the Gujarat Cooperative Milk Marketing Federation , a model institution

14. Leaders and Managers: Distinguishing their roles Establish organizational mission Formulate Strategy for implementing mission Implement organizational strategy Leader’s Job Manager’s Job

15. Leaders and Managers: Comparison Creates change, often radical change Maintains Stability Outcomes: Emotional Connection (Heart) Open Mind (Mindfulness) Listening (Communication) Nonconformity (Courage) Insight into self (Integrity) Emotional Distance Expert Mind Talking Conformity Insight into organization Personal Qualities: Focusing on people - inspiring and motivating followers Based on personal power Acting as coach, facilitator, servant Focusing on objects - Producing/Selling goods and services Based on position power Acting as Boss Relationships: Creating shared culture and values Helping Others Grow Reduce Boundaries Organizing and Staffing Directing and Controlling Create Boundaries Alignment: Creating Vision and Strategy Keeping eye on horizon Planning and Budgeting Keeping eye on bottom line Direction: Leadership Management

16. Learn Leadership From the Army The concept of leadership is intricately connected with army. Alexander/Napoleon “ a leader is a dealer in hope” a man would never have so much faithfulness to have himself killed in the army for half-pence without an able leader to lead him. In the army, leadership is a matter of life and death. There is much that a business leader can learn from army leadership…

17. Learn Leadership From the Army Defining Mission – purpose gives people a reason to do things Providing Direction – people want direction, they want to be given challenging tasks, training in how to accomplish them, and the resources necessary to do them well, then they want to be left alone to do the job. Understanding People – Leadership is understanding people and involving them to help you do a job. Motivating People – motivation gives subordinates the will to do everything they can to accomplish a mission. Delegating Authority Being Adaptable – you should be prepared to be flexible with your approach to overcome abstacles DIAMONDS and LEADERS are FOREVER BE KNOW DO

18. Diamonds and Leaders are Forever Just as the diamond requires three properties for its formation: Carbon, Heat and Pressure successful leaders require the interaction of three properties: Character, Knowledge and Application But just as carbon alone does not create a diamond, even character alone cannot create a leader. The diamond needs heat. Man needs knowledge, study and preparation. The third property, pressure – acting in conjunction with carbon and heat – forms the diamond. Similarly one’s character, attended by knowledge, blooms through application to produce a leader. ‘ BE, KNOW, DO’. These three simple words encapsulate in them the fundamentals guidelines needed to create organizations where leadership thrives.

19. BE Leadership begins with what the leader must BE, the values and attributes that shapes a leader’s character. The first step is to yourself understand your values and principles, priorities and imbibe qualities that you admire and consider valuable from people around you.

20. KNOW A leader must have a certain level of knowledge to be competent. You must develop interpersonal skills – knowledge of your people and how to work with them You must have conceptual skills – the ability to understand and apply ideas required to do your job You must learn technical skills – know how to use tools and methods to improve productivity Finally, leader must master tactical skills, the ability to make right decisions

21. DO Character and Knowledge are not enough You cannot be effective leader until you apply what you know, until you act and DO what you must Actions are the essence of leadership – it helps communicate and motivate, accomplish your organization's immediate mission, increase the organization's capabilities to accomplish current or future mission

22. So… Being a leader is not easy There are no shortcuts to success However tools are available to every leader It is up to you to master and use them BE the leader of character: embrace values and demonstrate leader attributes. Study and practice, so that you have skills to KNOW your job. Then act, DO what’s right to achieve excellence.

23. Finally… “ People don’t want to be managed. They want to be led. Whoever heard of a ‘ world manager ’? But a ‘ world leader ’, yes. We know of educational leaders , political leaders , religious leaders , scout leaders , community leaders , labor leaders and business leaders . They Lead. They don’t Manage. The leader’s carrot always wins over the manager’s stick. You can lead a horse to water, but you can’t make him drink. If you want to manage somebody, manage yourself. Do that well and you’ll be ready to stop managing , and start leading .”

24. Thank You!! any questions…