21 Differences Between Managers & Leaders

Summary

The video script emphasizes the distinction between a manager and a leader, highlighting 21 key differences. It suggests that while both roles are essential, effective leadership often involves selling the 'why' behind tasks, showing rather than telling, and focusing on people over numbers. Leaders are portrayed as emotionally driven, mission-focused, and willing to take risks for exponential growth. They are decisive, give credit to their team, and know when to relax to foster a better working environment. The script challenges viewers to assess their own tendencies and consider whether they lean more towards management or leadership, and what adjustments they might need to make to achieve their future goals, ultimately aiming to help individuals enhance their business and personal growth.

Takeaways

• 📚 **Learning and Leadership**: Recognizing the importance of both learning and leading in business, where learning leads to the realization of the need for leadership.
• 🛡️🏈 **Defensive and Offensive Strategies**: Understanding the balance between defensive strategies (like insurance and bonds) and offensive strategies (like stocks and mutual funds) in wealth management and business growth.
• 🗣️ **Telling vs. Selling**: Managers tend to tell people what to do, while leaders sell the 'why' behind the action, inspiring their teams.
• 👟 **Training vs. Showing**: Managers train by explaining how to do tasks, whereas leaders demonstrate by example, showing how tasks are done.
• ❤️ **Logic vs. Emotion**: Managers often rely on logic and risk assessment, while leaders appeal to emotion and inspire action towards a vision.
• 🎯 **System vs. Mission**: Managers are system-driven, focusing on processes, whereas leaders are mission and vision-oriented, keeping the company's purpose at the forefront.
• 📈 **Tracking vs. Driving**: Managers track numbers, but leaders understand how to drive those numbers, using data to make strategic decisions.
• ⏯️ **Avoiding vs. Addressing Conflict**: Managers may avoid conflict, while leaders address it head-on to maintain a healthy and productive environment.
• 👥 **People-Focused**: Leaders are more people-focused, looking at individual strengths and potential, whereas managers are more numbers-focused.
• 🔗 **Accountability by Force vs. Choice**: Managers enforce accountability with the threat of consequences, while leaders inspire it through choice and commitment.
• 🌳 **Managing Work vs. Leading People**: Managers are focused on managing tasks and work, while leaders are focused on developing and inspiring people.
• 🌟 **Oak Tree vs. Willow Tree**: Leaders understand the need to be firm (like an oak tree) and flexible (like a willow tree), adapting to different situations and people.
• 🔧 **Complicating vs. Simplifying**: Managers sometimes overcomplicate tasks, whereas leaders simplify them, making them more achievable.
• 🕒 **Working Expected Hours vs. Sacrificing**: Leaders often work beyond expectations, making sacrifices to gain the respect and credibility of their team.
• 🏆 **Achievers vs. Overachievers**: Managers may be content with achieving set goals, while leaders are never satisfied and always strive for more.
• 🤔 **Overthinking vs. Decisiveness**: Managers may overthink decisions, while leaders are decisive, making choices and moving forward.
• 💡 **Seeking vs. Giving Credit**: Managers might seek credit for their work, but leaders give credit to their team, fostering a collaborative environment.
• 🚫 **Risk Aversion vs. Risk-Taking**: Managers tend to avoid risks to ensure safety and stability, while leaders embrace risks for potential bigger rewards.
• 📊 **Linear vs. Exponential Growth**: Managers often lead to linear growth, while leaders aim for exponential growth, thinking beyond immediate gains.
• 🤝 **Authority vs. Charisma**: Managers may rely on authority to lead, but leaders often use charisma to inspire and motivate.
• 🎉 **Knowing When to Let Loose**: Leaders understand the importance of letting loose and relaxing, which can enhance team performance and morale.
• 💵 **Short-Term Profit vs. Long-Term Value**: Managers focus on short-term profits to satisfy stakeholders, while leaders focus on creating long-term value.
• ⚖️ **Control vs. Influence**: Managers attempt to control all aspects, while leaders influence others to take action and contribute to the business's growth.

Q & A

What is the main challenge a small business owner faces when it comes to management and leadership?

The main challenge is the struggle between being a manager, which involves handling tasks and processes, and being a leader, which requires vision, motivation, and selling the 'why' behind actions.

How do managers and leaders differ in their approach to communication?

Managers tend to tell people what to do, focusing on the tasks at hand, while leaders sell the 'why' behind the actions, inspiring and motivating their team.

What is the difference between training and showing in the context of management and leadership?

Managers train by explaining how to do things, while leaders show by demonstrating the process themselves, allowing team members to observe and learn.

How do the approaches of managers and leaders differ when it comes to logic and emotion?

Managers often rely on logic and data to make decisions, whereas leaders use emotion to inspire and motivate, creating a vision that resonates with the team.

What is the key difference between a manager's and a leader's focus on systems and missions?

Managers are typically driven by systems and processes, while leaders are focused on the mission and vision of the company, constantly reminding the team of the bigger picture.

How does a leader approach the issue of conflict in comparison to a manager?

Leaders are more proactive in addressing conflicts, preferring to tackle issues head-on to resolve them quickly. Managers may avoid conflict to prevent disruption.

What is the primary focus of managers and leaders when it comes to numbers and people?

Managers are more focused on numbers, tracking and analyzing data, while leaders are people-focused, looking at individual strengths and how to best utilize them.

How do managers enforce accountability, and how does this differ from a leader's approach?

Managers enforce accountability by force, with consequences such as job loss for non-compliance. Leaders inspire accountability by choice, motivating team members to take pride in their work and meet goals.

What is the difference between a manager's and a leader's approach to handling work and people?

Managers focus on managing work and ensuring tasks are completed, while leaders focus on leading people, understanding their needs, and helping them grow.

How do managers and leaders differ in their approach to complexity and simplicity?

Managers sometimes complicate tasks, making them more difficult to handle. Leaders, on the other hand, simplify tasks, breaking them down into manageable steps to streamline processes.

What is the key difference between a manager's and a leader's perspective on risk?

Managers tend to avoid risk, focusing on safety and security. Leaders are more willing to take risks, calculating the potential for reward and making informed decisions to drive growth.

How do managers and leaders differ in their approach to authority and charisma?

Managers may rely on authority to command respect, while leaders often use charisma to inspire and motivate, creating a connection that encourages team members to follow their lead.

Outlines

00:00

😀 The Role of Managers and Leaders in Business

This paragraph discusses the challenges faced by small business owners who are constantly learning and evolving their roles. It emphasizes the importance of having both a defensive and offensive strategy in life and business. The speaker outlines the differences between managers and leaders, highlighting that managers are more focused on telling and training, while leaders sell the 'why' behind actions, show by example, and are driven by emotion and vision. The paragraph also touches on the balance needed between logic and emotion, systems versus missions, tracking versus driving outcomes, and avoiding versus addressing conflicts.

05:00

😌 The Dynamics of Accountability and People Focus

The second paragraph delves into the contrasting approaches of managers and leaders regarding accountability, work management, and personal interactions. Managers are portrayed as enforcing accountability through force, focusing on numbers and systems, while leaders inspire accountability by choice, are people-focused, and prioritize the long-term development of individuals. Leaders are also described as adaptable, sometimes behaving like an oak tree with firmness and at other times like a willow tree with flexibility. The paragraph further contrasts managers who seek credit with leaders who give credit, and managers who avoid risks with leaders who embrace them.

10:00

🚀 Growth Mindset and the Influence of Leadership

The final paragraph of the script focuses on the growth mindset and the influence leaders have over their teams and organizations. It contrasts the linear growth expected from managers with the exponential growth driven by leaders. The importance of having both managers and leaders in an organization is highlighted, as managers can stabilize the rapid growth initiated by leaders. The paragraph also discusses the different approaches to authority, charisma, and risk-taking between managers and leaders. It concludes with an invitation for viewers to reflect on their own tendencies and to share their thoughts on whether they lean more towards management or leadership.

Keywords

💡Leadership

Leadership refers to the ability to guide, inspire, and influence others towards achieving a common goal. In the video, it is contrasted with management, emphasizing the importance of vision, emotional intelligence, and the ability to motivate and inspire a team. An example from the script is the distinction between managers who 'tell' and leaders who 'sell' their vision, indicating that leaders are more focused on inspiring action through a shared purpose.

💡Management

Management involves the process of coordinating and organizing people and resources efficiently to achieve specific goals. The video script discusses management in the context of maintaining systems, focusing on logic, and tracking numbers. It is often associated with a more directive style, as illustrated by the phrase 'managers have a tendency of telling you things', highlighting a top-down approach to achieving objectives.

💡Defensive Strategy

A defensive strategy in the context of the video refers to the protective measures one takes to safeguard their business or investments. It is mentioned in the beginning to draw a parallel with sports, where defense is as crucial as offense. In business, this could mean insurance, annuities, or bonds that serve as a safety net. The script uses this concept to introduce the importance of having both defensive and offensive strategies in business for stability and growth.

💡Offensive Strategy

An offensive strategy, as described in the video, is about taking proactive measures to grow and expand, much like in sports where the offense aims to score. In business, this could involve investing in stocks, mutual funds, or ETFs. The script emphasizes the need for an offensive strategy to drive the business to the next level, as opposed to just maintaining the status quo with a defensive strategy.

💡Emotional Intelligence

Emotional intelligence is the ability to understand and manage one's own emotions and the emotions of others. The video highlights leaders as individuals who are more in tune with emotions, using phrases like 'leaders sell on why' and 'leaders emotion' to illustrate how leaders leverage emotional intelligence to inspire and motivate their teams.

💡Risk Management

Risk management is the process of identifying, assessing, and mitigating risks. In the video, it is discussed in the context of decision-making, where leaders are portrayed as taking calculated risks to drive growth, as opposed to managers who may be more risk-averse. An example from the script is the leader's willingness to take a '20% risk for an 80% victory', showcasing a strategic approach to risk-taking.

💡Accountability

Accountability is the expectation of being responsible and being held responsible for one's actions. The video differentiates between 'accountability by force', which is often associated with managers, and 'accountability by choice', which is a trait of leaders. The script suggests that leaders inspire accountability through choice, creating a culture where team members are motivated to take responsibility for their tasks.

💡Sacrifice

Sacrifice in the video refers to the willingness to forgo personal benefits for the sake of the team or organization. Leaders are described as individuals who 'always sacrifice a little bit more than everybody else', which earns them respect and credibility. The concept is used to illustrate the selflessness often required of leaders to motivate and lead by example.

💡Conflict Resolution

Conflict resolution is the process of addressing and resolving disagreements or disputes. The video contrasts managers, who may avoid conflict, with leaders who actively 'address conflicts'. Leaders are portrayed as problem solvers who do not shy away from difficult conversations, which is crucial for maintaining a healthy and productive work environment.

💡Vision

Vision in the context of the video is the ability to envisage and articulate a future goal or direction for the organization. Leaders are characterized by their focus on mission and vision, constantly reminding everyone about the company's mission statement and long-term objectives. The script uses the term to highlight the importance of having a clear and compelling vision to guide the actions and decisions of the team.

💡Influence

Influence is the capacity to have an effect on the character, development, or behavior of someone or something. The video emphasizes that leaders 'influence' rather than 'control'. This is demonstrated through the script's discussion on how leaders motivate and inspire action, as opposed to managers who may attempt to control every aspect of the business process.

Highlights

The importance of having both a defensive and offensive strategy in business, with examples from sports and wealth management.

The distinction between managers and leaders, with 21 differences highlighted.

Managers tend to tell, while leaders sell the 'why' behind tasks and decisions.

Leaders demonstrate tasks and encourage observation, whereas managers focus on training through instructions.

Leaders are driven by emotion and inspiration, contrasting with the logical approach of managers.

The necessity of both systems and missions, with managers adhering to systems and leaders focusing on vision.

Leaders know how to drive numbers, while managers are adept at tracking them.

The tendency of managers to avoid conflict, in contrast to leaders who address conflicts head-on.

Leaders are people-focused, looking to maximize potential, while managers are numbers-focused.

The difference in accountability approaches: managers enforce by force, whereas leaders inspire by choice.

Leaders often display flexibility, adapting their approach to individuals' needs like an oak or willow tree.

Managers may complicate processes, while leaders simplify them for better execution.

Leaders often work beyond expectations, sacrificing for the greater good and earning respect.

The contrast between managers who aim for achievement and leaders who are never satisfied, always striving for more.

Leaders are decisive, unlike managers who may overthink and hesitate.

Leaders give credit to their team, amplifying the victory and fostering a collective sense of achievement.

The willingness of leaders to take risks, as opposed to managers who prefer to play it safe.

Leaders aim for exponential growth, while managers are comfortable with linear growth.

The combination of authority and charisma in leadership, which can lead to higher levels of success.

Leaders know when to let loose and relieve tension, enhancing team performance.

Leaders focus on long-term value creation, as opposed to managers who may prioritize short-term profits.

Leaders influence through inspiration and example, while managers rely on control.

Transcripts

many times when you run a small business

one of the challenges you face is you

start reading and learning and you say

man after all this learning I did

management sucks I should be a leader

because all these authors say you got to

be a leader leader leader and I'm here

to tell you that everything in life is

about having a defensive strategy and an

offensive strategy let me explain sports

defense offense wealth management

defensive strategy insurance annuities

bonds gold offensive strategy stocks

mutual funds ETFs defense office

everything you're doing you need defense

in office and in building your business

to the next level on the defense side

you have managers on the often side you

have a leader so today I'm not gonna

make a video bashing managers some of

the points I make it's gonna highlight

what managers get in their own way but

I'm mainly gonna tell you the difference

there's 21 differences between a manager

and a leader so let's get right into it

number one managers have a tendency of

telling you things here's what I need

you to do here's what this telling you

here's what you got to do it tell tell

tell tell tell leaders sell why you

ought to do it look I want you to do

this because if you do dot dot dot

here's what we need to do because if we

do we could dot dot dot they're selling

all their points they're telling all

their points right

managers tell leaders sell on why we

ought to come together why we ought to

think bigger why we ought to come

earlier why we ought to stay later why

we ought to be doing this better why we

ought to you this whole thing is about

selling basic cell culture they'll say

there's everything's about selling to

them next train show managers train

leaders show here's how you do this

manager said leader says here come watch

how I do it here coming to this

appointment with me coming to this

meeting with me watch me work on this

watch it I call this watch how you

handle conflict watch how you deal with

customer complaint I want you to see how

I'm handling this I want you to see I'm

talking to an associate and this is out

of a manual by the way watch this you

need the manual you do need the manual

but you also need the leader if there's

only the show without it being in a

manual then you don't have a way to

duplicate because you do need the manual

but managers trained leaders show

managers logic leaders emotion let me

explain many times in a family you'll

say here's what I want to do in life

maybe your mother is gonna go to the

logical side honey it's the risk what if

this happens I don't know I think it's

this I think it's and maybe your father

is gonna say yeah go do it you know it's

justice it's complete or maybe it the

other way around mother's gonna say yeah

you ought to go to the demoscene oh

let's be a little bit more careful

because one always thinks logical one

thing's emotional logic is here's what

it's gonna take to get there I think

it's gonna be very difficult man if we

got to do all this other stuff no leader

is gonna say man what if we pull it off

what if we go out there and get a minute

I'm excited about it guys we can pull

this off let's go get this emotion logic

by the way both are needed you need

logic and you need emotion okay number

four

system versus mission vision a manager

typically is driven based on trusting

the system you need a system a leader is

typically sold to constantly reminding

everybody about what the mission

statement of the company is and what the

vision is here's what we're going to be

doing here's what the mission is this is

what we do on a daily basis

manager but listen the system first you

got to do this second you got to do this

three you got to do this for you got to

do this both are needed number five

tracking versus driving a manager tracks

all the numbers need it but a leader

knows how to drive the numbers one is

last month we did this this this this

this this this report report report

report report but the manager doesn't

know what to do next with the report the

leader comes in and says these are the

reports us and guys here's what I think

we can do as I look at the numbers here

the last 90 days you did Papa Papa Papa

here's what I forced you doing next man

I think if we do this we can take this

to a whole different level and what do

you think about this what's your

commitment what are you gonna do with

this what are you gonna do with that

they drive versus managers collect

reports and give them numbers six avoid

conflict 7 address conflicts let me

explain you ever have somebody where

whenever prom hem maybe it could be

yourself a prom comes up and you wait a

day two days three days 5 days 6 days 7

days 10 days 2 weeks 3 weeks 4 weeks

you don't want to bring it up because

you're afraid of the conflict you're

gonna face the leaders gonna say give me

the follows column right now hey what

are you upset with okay this lags a

little bit managers can improve in this

leaders want to address it right off the

bat and get

done right number seven numbers focused

leaders people focused here's the

numbers that we did they look at

everything as a number here's the

numbers by the way again you need that

but the leaders gonna look at and say

but I think this guy can do this

this guy strength I don't think we have

them in the right position this person I

don't think we have them in the right

place I think this person is going to be

much better being in this position here

okay maybe we ought to be able to do

this to pull this out of them because

it's people centric it's a number

centric number eight its accountability

by force accountability by choice if you

don't do this you're fired in a

corporate environment everybody's got to

pull their own weight everybody there's

a lot of these books or projects or all

this stuff that you hear about where

people say oh in our company we pay

everybody seventy thousand dollars a

year the CEO that did that that story

was good for two months you know what

happened year later he lost his best

people cuz that philosophy didn't work

he wanted to make sure everybody was

happy so you need somebody in an office

that accountability by four if we got to

get this thing done this has got to get

done but the leaders got to come in and

say listen guys we have a choice we can

either not hit our deadline and have to

go against the investors and tell them

we didn't hit this or we can get this

done and let them know that we have a

group here that gets things done which

one do we want to be that's choice

versus force a if you don't do this

you're fired your jobs on the line okay

little bit of both is needed in a

football team in a sports team in a

business if a person doesn't deliver

they may lose their job this is not like

a emote this is what has happened you're

running a real business a lot of people

are counting on at nine managing work

versus leading people that part's

obvious number ten oak tree willow tree

let me explain I used to be always very

firm with everybody always very firm

with everybody my expectation was always

high from everybody all the time until I

realized that some people are dealing

with a lot of different things in their

life so I would have a conversation and

dance with them a little bit and be a

willow tree with the wind and just kind

of listen to them and see what they're

seeing and what's their thoughts and

what's their language and then challenge

them a little bit in a way that they

would take it

kind of hear him out and I started

realizing this part here works very well

long-term because that allows you to get

the best out of your people but it kind

of works if there's also an oak tree

that's working with you by the way if I

have an oak tree and a willow tree

working too yeah that's a very very very

good comment as you can call a good cop

bad cop whatever you want to call it

this makes for a great combination if

they're working together they make a

very good forest together in business

number eleven sometimes managers tend to

complicate really sometimes managers

tend to complicate and they'll take a

simple thing that we need to do it makes

everybody so complicated oh my gosh this

is so difficult we can't really pull it

off a leader will come in and simplify

guys all we need to do is do this do

this make this call make this thing

contact this person we can get it done

that's what a leader does leaders

simplify simplifies managers sometimes

because they're overthinking they

complicate certain things 12

we got let me see what 12 is okay I've

done what's expected of me sometimes

it's just I've done what you expected on

me into my job description I've met

these requirements a leader comes and

works on days that he doesn't need to

because he has to sacrifice that's why

he gains the credibility and the respect

of being called the leader and the

manager still has respect but never at

the level that a leader does because a

leader always sacrifices a little bit

more than everybody else that's why they

call him a leader okay number thirteen

achiever overachievers sometimes a

manager just wants to hit that level I

have achieved I'm doing good we're doing

okay a leader is rarely satisfied a

leader you could be in a setting you're

like oh my gosh we just had the greatest

month why are you like this

why are we doing that we just crushed it

last month he or she's an overachiever

they don't know what it is to stay at

the status quo they always want to do

more and take it to the next level

that's why a few who know how to run

with a leader who's an overachiever

eventually have big victories themselves

as well most people can't handle working

with an overachiever because at times

it's a little too much for everybody

14 overthinking on a management side

leaders decisive overthink you know what

if this happens

consequence there's too much of all

consequences a leader says here's what

we're doing this is what we're going

this is what's gonna happen we're gonna

be okay let's make the move next 15

managers seek credit at times you know I

came up with this sometimes I'm not

saying all of them but sometime manners

see credit a leader gives credit and

eventually when the leader gives credit

guess what happens the victory becomes

so much bigger and and the leaders get

big massive credit together as a team

because they were able to lead an

organization to get this massive victory

so everybody gets the credit sixteen

managers avoid risk safe don't want to

put the money here what if this doesn't

work what if that doesn't work a leader

takes takes risk they don't know any

other thing than taking risk they sit

there in the mind they process watch a

leader will typically come and talk to

manager because it's logical thinking

versus emotional and a leader would say

hey what do you think about this party

if I do this this this this is what

happened with the company if we do this

this is well you know this person could

do this and what if we get sued and what

if we get this and what if we get that

how much would this cost how much would

that come with this lawsuit car how much

would let's do it here's what we're

gonna be doing let's take that risk I'm

okay with it because 20% risk here you

know 80% is victory let's take that risk

versus the matter is gonna see I don't

know if we should do that or not Pat I

don't know if we should do that or not

Mary I don't know if we should do that

or not

leader takes that risk number 17 linear

growth exponential growth managers will

get linear growth steadily they're gonna

get that growth you will rarely would

managers create an exponential explosive

growth okay you need the leader to have

exponential growth by the way let me

give you a contradiction here on what I

just said on my own message to you a

leader without a manager that's behind

the scenes doing their part can't

steadily maintain exponential growth

because this is needed behind closed

doors this is why be very careful every

time you bash managers because behind

closed doors great leaders always have

phenomenal managers behind closed doors

that know how to stabilize the

exponential growth that takes place

because all they do is grow the knobs we

need a little bit more here we need a

little bit more here boom we just got

17,000 people that visited our website

and place orders today nope

the managers ready for that their leader

is driving it exponentially 18 Authority

charisma sometimes you need Authority

military someone's gotta have authority

someone's got a lead right and a

football team someone's gotta have

authority someone's got a lead with

charisma hey we can do this guys look at

some of the coaches that their charisma

it's a different kind of a charisma they

got you know John Wooden had charisma he

was witty right some some of the riley

was charismatic he knew how to get and

he was a little bit authoritative but

people have charisma who get other same

man I'm just willing to buy into this

message on what we're gonna do together

Authority by itself typically won't go

to the highest level authority would a

charismatic leader they're combined

together they can go to a higher level

number 19 managers typically don't know

how to let loose they're always serious

very serious stuff we got going on here

leaders know when it's time to let loose

because when we play loose everyone's

and nerves just kind of calms down and

we play better we danced better we

perform better we have more fun together

so leaders sometimes know how to take

the tension off and the pressure off of

people next number 20 profit value short

term long term leader creates a lot of

value managers sometimes wants to profit

- Priya

- to make the investors happy make the

shareholders happy because we got to get

some profits right now leader saying

we're increasing value long term 21 last

but not least managers control leaders

influence leaders influence others to

take action is what they do our managers

are trying to control everything all the

time and if you try to control

everything all the time you are not

letting the Tasmanian devil have the

life of its own to exponentially go out

and grow your business so there's my

challenge to you after watching this

video I want you to go back and watch

your video again ask yourself this

question under 21 different points which

one of them do you yourself lean towards

being a manager versus being a leader

once you're done doing that let me know

if you think you are more of a manager

or a leader and what your goals are in

the future do you want to be on the

leadership side what are some

adjustments you need to make anyways if

you have any other comments thoughts or

questions comment below and by the way

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[Music]