Professional December 2021 - January 2022

REWARD

Leaders vs. managers (and why being paid is not enough)

John Cronin, chief executive officer at Subio, explores the concepts of both managers and leaders, and how they can aid each other in the world of work

I t’s the heavyweight battle of the century which has divided the population…no, we’re not talking about a televised fight, we are talking about leaders vs. managers. Our battle takes place in the real world of work and has become the subject of much scrutiny over recent years. Let’s look at why managers are increasingly being vilified in contemporary business thinking. There are several reasons for why work has evolved very little over the last few centuries which I don’t have the copy space to explore now. The concept of a manager has suffered a similar journey, shackled to the remnants of a factory mentality which still heavily influences business thinking. What is a manager? Whilst we will all have different ideas of what a manager is, the literal meaning of the word ‘manager’ clearly sets us off on the wrong foot: ‘A person responsible for controlling or administering an organisation or group of staff’. The key word here is ‘controlling’. How appealing is the prospect of being ‘controlled’ to anyone? When we are controlled, we have little autonomy and without autonomy, we are less engaged. When we are not engaged, we view our work as a job, and we then tend to do that job mostly for the pay if offers. Whilst the output here supports Adam Smith’s view that pay is the only motivator for people to work, we can argue that it is, in fact, a self-fulfilling prophecy. By setting out with this understanding of management, we create environments which condition people to work only for pay, which in turn encourages selfish behaviour and leaves little room for loyalty. It’s why the expression ‘people leave managers, not companies’ is so widely used today and it’s also why many people switch jobs purely for monetary purposes. Needless to say, none of this is good for business. With a culture based purely on financial reward, people will often overlook doing the right thing in favour of doing what they deem to be ‘worth’ their time.

What is a leader? Enter stage right – the leader. The leader is increasingly represented as the antithesis of a manager, the people’s champion. Someone who will put the needs of the people first and can inspire them to greatness. Whilst we now see more ‘leadership teams’ clearly labelled as such in business, the true essence of a leader is more of a posture than a formal position. Leaders transcend positions of authority and can be present anywhere in an organisation. Leaders, when fully empowered by an organisation, help create environments that transforms a job into a calling. We are emotionally and socially engaged when being influenced by a leader and as a consequence, we are more motivated and we all live happily ever after...

called the ‘cuddle hormone’). Not only does this chemical make us feel good about ourselves, but it also encourages us to pass that feeling onto others. That’s why upon witnessing an act of generosity or kindness, we feel inspired to do something similar for someone else. It’s also why we hit the share button when we see something inspirational on our social media channels. So, where do these warm and fuzzy feelings leave managers? Well, the truth is leaders rarely do it all on their own. Managers, or great managers to be precise, play a vital role in the achievements of any leader. They are often the unsung heroes in business who support leaders and enable them to realise their visions and goals. Great managers still do this by adding structure. Not too much, not too little, but just the right amount. Structure that is fit for purpose, rather than bought off the shelf. The passion and vision of leaders and supporting structure that managers apply need to be carefully aligned, otherwise the business falters. This danger is what Simon Sinek calls ‘the split’. History is littered with examples of this occurring when businesses are scaling. When management overpowers leadership, motivation flat lines and unsurprisingly, so does performance. So, business owners and entrepreneurs need to carefully consider the roles they are creating when recruiting managers to strengthen and scale their businesses. We need to look beyond off the shelf solutions which add unnecessary layers of complexity. Instead, we need to establish which structures can enable the people we already have to be more effective, without sacrificing their autonomy, and build the roles and the environments we want to see in the world. Everything in business must be purpose driven, and rules are no exception, so we cannot be afraid to change them. There will always be excuses not to – from being too busy, to the current state of the recovering economy. It’s time to give managers a better name... n

We romanticize regularly about leaders, how they achieve the impossible, overcome great adversity and create high- performing businesses to aspire to

Notice the change in language used to describe a leader when compared to the assessment of a manager earlier? We romanticize regularly about leaders, how they achieve the impossible, overcome great adversity and create high-performing businesses to aspire to. The truth is, we crave inspiration – it makes us feel good. We look for it everywhere, in friends, family, colleagues and even strangers. We are drawn to it because of the chemical released when we experience it – oxytocin (often

| Professional in Payroll, Pensions and Reward | December 2021 – January 2022 | Issue 76 32

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