"Leadership and management are often used as synonyms. In other words they will use one word, then the other in the same sentence – thinking they are the same thing, whatever that is," says Dr John Kotter, Chief Innovation Officer at Kotter International, professor at Harvard Business School. Kotter argues that mixing the two words is both wrong and dangerous.
Kotter explains that management allows organizations to make something function through a series of processes allowing for complicated tasks to get done -- even in multiple locations involving many people. The key components of management are planning, budgeting, organizing people, measurements and controls.
Important as these things are, this is not leadership.
Leadership is the ability to get people to buy into a vision, to become energized and inspired, often in the area of change. In fact the only way to get the same group of people to behave in a new and different way is through leadership.
By understanding the difference between leadership and management, you can identify key areas of need in your own professional development or in your business. A Certified Professional Accountant (CPA) has the skills and training to guide you and provide practical, real-world advice and consultation in the management process. With strong management in place, you are free to lead the way!