Imagine that you are the CEO working with your CHRO on a succession plan. Both the CFO and COO are natural candidates, and both are, on paper, equally qualified and effective.
The CFO distinguishes herself by consistently working with colleagues to find creative solutions to business issues, even if it isn’t the optimal solution financially, and inspiring them with her vision of the future. She attracts top talent and builds strong relationships with investors who trust her strategic judgment. However, she sometimes struggles with day-to-day details and can be inconsistent in her communication with direct reports.
The COO inspires deep loyalty from his team through consistent execution and reliability. People turn down better offers to stay because they trust his systematic approach, flawless delivery, and deep commitment to developing people. However, his vision rarely extends beyond “do things better,” rigidly adhering to established processes and shutting down difficult conversations with peers when change is needed.
Who so you choose?
The COO feels like the safer bet, especially in uncertain times, given his track record of proven execution, loyal teams, and predictable results. While the CFO feels riskier because she’s brilliant but inconsistent, visionary but scattered.
It’s not an easy question to answer.
Most people default to “It depends.”
It doesn’t depend.
It doesn’t “depend,” because being CEO is a leadership role and only the CFO demonstrates leadership behaviors. The COO, on the other hand, is a fantastic manager, exactly the kind of person you want and need in the COO role. But he’s not the leader a company needs, no matter how stable or uncertain the environment.
Yet we all struggle with this choice because we’ve made “leadership” and “management” synonyms. Companies no longer have “senior management teams,” they have “senior/executive leadership teams.” People moving from independent contributor roles to oversee teams are trained in “people leadership,” not “team management” (even though the curriculum is still largely the same).
But leadership and management are two fundamentally different things.
Leader OR Manager?
There are lots of definitions of both leaders and managers, so let’s go back to the “original” distinction as defined by Warren Bennis in his 1987 classic On Becoming a Leader
| Leaders | Managers |
| · Do the right things
· Challenge the status quo · Innovate · Develops · Focuses on people · Relies on trust · Has a long-range perspective · Asks what and why · Has an eye on the horizon |
· Do things right
· Accept the status quo · Administers · Maintains · Focuses on systems and structures · Relies on control · Has a short-range view · Asks how and when · Has an eye on the bottom line |
In a nutshell: leaders inspire people to create change and pursue a vision while managers control systems to maintain operations and deliver results.
Leaders AND Managers!
Although the roles of leaders and managers are different, it doesn’t mean that the person who fills those roles is capable of only one or the other. I’ve worked with dozens of people who are phenomenal managers AND leaders and they are as inspiring as they are effective.
But not everyone can play both roles and it can be painful, even toxic, when we ask managers to take on leadership roles and vice versa. This is the problem with labeling everything outside of individual contributor roles as “leadership.”
When we designate something as a “people leadership” role and someone does an outstanding job of managing his team, we believe he’s a leader and promote him to a true leadership role (which rarely ends well). Conversely, when we see someone displaying leadership qualities and promote her into “people leadership,” we may be shocked and disappointed when she struggles to manage as effortlessly as she inspires.
The Bottom Line
Leadership and Management aren’t the same thing, but they are both essential to an organization’s success. They key is putting the right people in the right roles and celebrating their unique capabilities and contributions.