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The difference between directing and leading

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There are 10 departments in every business, no matter how small. These are:

  1. Shareholder

  2. Director

  3. Leadership

  4. Product / Service Development

  5. Operations

  6. Marketing

  7. Sales

  8. Finance

  9. Admin / IT

  10. HR

Imagine each department has a hat - worn by the single leader of each department. Many business owners wear multiple hats as their business grows. The secret to the success of your organisational structure is to understand the key differences between the departments (and their responsibilities), to understand which hats you’re wearing, and most importantly, to make sure none of your hats are being neglected.

So, what’s the difference between wearing the Director hat and the Leadership hat? In a nutshell, Director is a strategic role and Leadership is an operational role.

Eight key differences between Directors and Leaders:

  1. Directors maximise shareholder value; the Leader maximises business efficiency.

  2. Directors set the plan; the Leader implements the plan.

  3. Directors have governance responsibilities; the Leader has leadership and management responsibilities.

  4. Directors work ON the business; the Leader works IN the business.

  5. Directors mitigate risks and set policy; the Leader implements the policy.

  6. Directors have a strategic focus (big picture); the Leader has an operational focus (makes it happen).

  7. Directors establish the business model and structure; the Leader implements the model and manages performance.

  8. Directors have no accountability line to the team, except to the Leader; the Leader holds the team to account.

Getting your structure right and developing your strategy are critical foundations for achieving business success.

Understanding the difference between the Director hat and the Leadership hat is fundamental. The Directors set the plan and the Leader engages and empowers the team to deliver on that plan. After all, it’s your team who must be engaged in your plan for it to become a reality.

How well you are living into the Director hat? And, what three things could you do better as a Leader? Finally, what support do you need to lift your business performance to the next level?

If you need help in building a sustainable, scalable, and ultimately, saleable business, book a call with the team at Thrive CA to discuss how we can help you.

"If there’s a way to do it better… find it." – Thomas A. Edison