[SOUND] Hello. My name is Marla Knoll. And welcome to Module two of the essentials of management and strategic planning. Welcome to module to. We're going to be talking about the difference between management and leadership. Like we talked about module one as well as what are some of the essentials of leadership? What does that mean? What type of leadership styles are there and what is the best leadership style for you? Like I talked about in module when management is not the same as leadership. You can read Peter Drucker's book about management. He is the father of management, so he describes management as identifying the purpose and mission of the institution. And then what are the work product? So, he is really talking about the same thing as I talked about. Module one is basically setting objectives, organizing and then measuring and then managing social impacts and responsibilities. We'll talk about that a little bit later, so the purpose and mission of a business need to be clear. Needs to be clear for the person running the business. You'd be surprised it how often this isn't exactly clear on the purpose needs to be clear. For the staff of the people that are involved in helping to run the business and then work in the business. So we're going to look for economic results. So our decisions in a for profit business might be different than our decisions in a non profit business. So in a for profit business, we need to earn money. So the bottom line is the bottom line. We need to make money in a non profit business we don't actually look for necessarily earning lot in the bottom line. But the nonprofit should be sustainable. And so this is one of the struggles that many nonprofit managers, or CEOs, struggle with. We need to make sure that the nonprofit is sustainable. In other words, there has to be something at the bottom to make sure that we can continue our nonprofit. So the decisions we make, whether it's in a for profit or nonprofit, will impact our business today and may have some pretty significant long term implications. One example that I give you is I in running a business. I had a product or service, actually, that was pretty low price and was actually not going to make any money, but it was to gain market share. So I made a decision to gain market share to offset my competitors and help get the ones that weren't that serious out of my business. So the difference between management and leadership really involves, what exactly you're doing? So management. It's usually a title, and you're responsible for getting things done. So it's really task oriented. Management is focusing on the tasks that need to be done. Leadership is more about the people. So if you're a leader, you're working with people, so you're guiding them. You're coaching them to improve and how they're doing things, your training and your motivating. So you can be a manager, but not necessarily a leader. And you can be a leader, but not necessarily a manager. But the people in the organization, if you are a leader, will probably respect you as an important member of the organization. So you can be a leader but not a manager. You could be a manager, not a leader. So again, the management is focused on task. Leadership is focused on the people portion guiding, coaching, training and, most importantly, motivating. So there are a few ways to manage. And when I say management means getting the tasks done, I may be very hands on and wanting to know every single step as we go along. Or I may be all the way to the opposite end and lays a fairer so I might not pay attention to the details and only follow up when the job is done. So if you look at this slide management, according to Wikipedia, is like we said, really planning, prioritizing, organizing work and looking at accomplishing the business objectives. And so Wikipedia describes management styles as the way that we go about accomplishing these objectives. But we're then going to look more on the different leadership styles because I think that that's going to be important to your decision as far as how you want to lead. Now I have on here a link to predictive index. You can go to this link and trying determine what your management style is, so predictive indexes, the behavioral assessment and used by businesses to hire and to inspire put together teams in a way to help accomplish the business goals. It's a very effective tool. If you'd like to know more about that, please let me know. But what we're looking at now are going forward are the leadership styles and what that means to you. In Brian Tracy's description of leadership styles, he talks about five different basic styles. Now there are a number of different styles talked about from a number of different management and leadership gurus. So I'm using Brian Tracy. I think a lot of his work. So the first style that he talks about is structural. So structural is when everybody knows what needs to be done, really effective in a professional firm where we know what to do were already motivated and they're experts in the business. And so there's not a lot of creativity or inventing that needs to happen. With whatever function we're doing with whatever job we're doing, then the leadership style number two is participative, and so that's when we're friends with everybody. Do we let them know that we care about them, and so we treat everybody the same, with good patience and understanding, like we would treat a family member. Now this is good in some ways because it's very motivating to most people, however, not necessarily good when we have disciplinary issues or when we really need to act fast. So the participative method would usually take a little bit more time when we're going for getting something done on bits. Not really good for somebody who's not trained or experience. SThis is participative can be good depending upon the type of team that you have. So let's look at the other leadership styles. So the third leadership style is the servant leader, and this is where it's the old saying that, You're going to treat others the way that you would want to be treated. And so you need to make sure everybody understands their job. But you pitch in and facilitate whatever needs to get done so it helps to motivate your employees because they'll feel that their ideas will be important. They matter, and it's good with a diverse team because there's more personalization. You're working with each individual member as they need to be worked with, so it will be helpful in building a strong culture. But it might take longer time to get things done and accomplished, so again, this works much better with an executive group of people, some well trained individuals, but not necessarily with people that don't really have the job skills quite yet. So leadership number four is a freedom linking thinking, sorry, the freedom thinking leader. So you assign the task and then you let your team come up with a way of resolving the task. So you're looking at providing a vision or, a big picture and letting people come up with solutions. So this encourages the entrepreneurial spirit as long as people have a clear goal and that they are again possibly a trained group of people, then you can accomplish a lot this way. So, not necessarily again good for an inexperienced group of people. So if somebody needs more supervision, this is not a good way of providing leadership. And then the leadership number five is a transformational leader, the transformational leader. So this is Brian Tracy's favorite. So we're working with emotions, and this is really good in certain types of businesses. So hospitals, caregiving, to have people understand that there's a vision, there's a big picture and they can participate in making something big, something great and serving. So, you can get your team excited about a particular project and they have to accept the ownership of it so and then you need to be involved in that process. So this is also this is a really good methodology for cultural building, and this helps for people to be confident in themselves as well as the company so you need to be a proficient in working with a team and different types of behaviors, but this is what I participated in running a business, and it is a lot of fun. So transformational leadership is we give, get a vision, we share the vision, and we help to motivate people by getting excited about that big picture. To give you another article that's written about leadership styles, it's called management styles, but we're really referring to leadership styles, I selected an article written by Clifford Chi @BigRedDawg16. So this talks about management styles to strive for and management styles to avoid. So the first are the four management styles to strive for visionary, democratic, transformational and coaching, visionary, democratic, transformational and coaching. So one thing I want to say about all of these leadership styles is that when you're running an organization, it doesn't mean that you have to stick to one specific leadership style. You may have to switch from one leadership style to another, depending upon the situation. So if you have long range strategies that you're working on, then visionary might be a good leadership style for that. So I give the business a purpose, something that the employees can believe in and then help them to get motivated for doing whatever job or function they're doing so they can do some things on their own and create some things on their own. And I will provide feedback to the employees but I'm not going to give them a step by step necessarily on how to accomplish something. And again, the visionary is good if you've got people that know what they're doing, but not necessarily something you want to follow if you have employees that have not yet been trained. So the Democratic is where we vote on things and so the employees participate in decision making. So this is more a collaborative, sharing of ideas, making sure that we talk about the overall success of the team, but I will tell you, this takes more time, so not necessarily a good way to lead if you've got urgent things that need to happen right now, and if there is any favoritism that can show through, of course, that's bad in any leadership style, but this is one thing where if the team votes one particular way and you do not agree with it and don't do it, then it may have very negative impacts to the employees. So transformational is good for some organizations and some teams, great if you can provide the vision and help people to know that they need to change even if the business is doing great things, you can still use transformational to just even push people past what they're already doing, that's great. So we're constantly challenging them to do something new and learning something. We're going to be innovative. We might move too fast for some people in transformational because we're constantly challenging. So transformational is good for some people that like change and new things and are agile, but not necessarily good for those people that are doing the same old, same old every single day. So I would have to say transformational is good for our creative environment. I wouldn't say transformational is good and like a CPA firm where the employees are doing pretty much the same thing every day. So transformational is really great and fun in certain circumstances, but it's limiting. And if your employees are not good at being innovative, they're not going to like this methodology of leadership. So we use coaching and the coaching style of leadership. And like I said, you can use different styles of leadership as you're running a business or running a division. So you might be using transformational on one situation but coaching in another. So say I have some people and their experience. They know what they're doing. I might use transformational. But if I have a new group of people that I'm bringing into the business, I would want to use coaching. And in this case, I'm in coaching. I'm looking for professional development and this is for a leader who likes to teach and help people grow at their particular jobs. So, we're constantly working with helping employees learn by their mistakes. So in this situation you have to be able to let your employees make those mistakes in the first place. And hopefully they won't make those mistakes too many times but mistake's help people learn so and this is good for employees that want to learn. No, not everybody wants to learn. So you have to make sure you have the right people in this environment. And if you have a group of people learning together, this will help build the bond with individuals. But you want to make sure that everybody stays united and supportive and something like this. Otherwise, you do not want that cutthroat environment and competitive situation where somebody is trying to walk out all over our improved at the failure of somebody else. So we're going to talk about the four styles of four leadership styles that she calls and management styles, but leadership styles that you want to avoid. Autocratic, Servant, Laissez-faire and Transactional. These are four leadership styles that you may want to avoid. Now just be aware that you may need to use one of these management or leadership styles in emergency situations. But for every day, this is how you're running your business or running your division. Not necessarily good way to work with people. So, autocratic, this may be familiar to you because unfortunately, people without any leadership training resort to this because they don't know of any other way to be. So in autocratic, I am telling people what to do, I'm going to make all the decisions and not let people at any other level make decisions. And if people don't follow exactly what I tell them to do then they'll get punished. So, this is keeping your thumb on the employees and I'm not going to encourage feedback. This is not a healthy environment for employees and it is good when it's an emergency situation and things need to happen fast. And like I said, you may need to use this when there is an emergency situation and you need to get something done like the next minute or two. But as a regular way of operating a business not so good. So again, autocratic is not necessarily a way to run a business and so she mentions that it's most businesses that operate this way can't keep employees right, because there's a lot of turnover. We're not going to be successful, we're not going to innovate, so not a good long term methodology. And quite frankly, we don't care if people don't know the why. So it works when we have to do things quickly and make fast decisions, but not good for a long term, keeping employees and growing a business. So like Brian Tracy's description of the servant leader, we'll put people first and instead of the tasks, so I'm going to be pitching in. And I'm concerned about my employees and how they feel versus getting the task done. And sometimes this is good for team building and keeping people up and motivated. If I do have people that are motivated in the first place, however, I'm not going to be putting pressure on them because that would make them unhappy, right? So, if an employee is not motivated, this is not necessarily a good way to lead. So I might be working too much on team building and the people that are the drivers are not going to be happy with this methodology. Laissez-faire, boy I'm sure some of you can think about managers who are using the Laissez-faire leadership style, they expect the team to perform, but and they tell people what needs to be done. But they don't check in with people, and they don't really intervene until the end, when maybe something goes wrong. So this makes the employees confused because there's no guidance on priority and the ways that things might be done. So, Laissez-faire hands off my employees, they're going to feel like they're really not that important. And the only thing that's important is the company and the job or maybe the bottom line. So Laissez-faire, this is one of those that you might be familiar with because I'm sure this is used quite frequently. And again, if somebody hasn't had leadership training, they might use the autocratic or the Laissez-faire method. Just because they don't know of any other way to lead. The fourth leadership methods that you'll want to avoid is transactional and so in transactional. I'm not motivating by a vision or the bigger picture, I'm just using incentive and incentives and rewards for getting the job done. And so if I start with rewards and that's the only way to motivate people, I will be constantly in the loop of rewarding people. And if I don't, then I'm going to experience a negative attitude by my team. So, it is a way of getting something done initially, but not necessarily a good long term method of leading and growing the business and working with employees. It's got the motivation for the short term just for that reward, and not for just the satisfaction of doing a great job. There are a lot of different assessment options out there that your company can use. I would encourage every business when you're hiring to use something. So as I was running my business, I tested the last three people so that the finalists, we would test those people to see how they came out as far as their behaviors, and that was assessed by a psychologist. But there are so many assessments out there now, I now use Predictive Index because that identifies the types of work that people really do prefer. And so that helps us to understand our people as far as how their team would work and does that fit with the strategies of my business. But again, I encourage every business to use some sort of hiring assessment tool for determining who they should hire. And when I say I use predictive Index, that helps me to know the behavioral preference of the individual. I want to make sure I hire the right people for the right type of work. And I'll give you an example of this, a CPA would probably not want to be out there selling their services. That's very hard for a CPA, where they're more interested in doing financial statements. And helping a client with their profitability and looking at the revenue items in the expense items. But they're not going to want to necessarily look at the different marketing strategies, and get out there and sell, and do public speaking. That would be probably the last thing they want to do. Where somebody who is aggressive and greater sales, there maybe not going to want to do the detail work. They're not going to like to make sure that things were perfect and accurate. If you are doing the type of work that needs to be perfect and accurate, you're not going to want to hire the person that wants to innovate and be creative. Because chances are they're not going to be interested in accuracy. So the assessments can help us to match the people with the work that's going to be performed. And, usually when you have an assessment, there's no good or bad type of behavior. But there are types of behavioral preferences or assessments that will match the type of work that you are looking for. So, I know I hired a wrong sales manager, and if I had used these assessments, I would have been better able to hire the right person instead of making hiring mistakes. So what we learned from this module is a number of things about the differences between management and leadership. Again, management is task oriented, and leadership is more people related. So, when I talk about leadership, I talk about guiding the employees, coaching. They do something wrong, help them to know what that is, and what would the right thing to be in a caring way. Training, I want to make sure the employees know how to do their jobs. And then motivating, what can help them to really enjoy their work and get some personal satisfaction out of the work. And so, that is leadership. And I hope you have learned some different leadership styles, so you can select what is the best for you. Or assess your current leadership style and see how you may want to change the way that you're leading. So, leadership, guiding, coaching, training and motivating. And again, these are things that you would do in leadership, I hope you had an idea about what leadership style might work best for you. [SOUND]
