Business Management vs. Leadership
Managing is not the same as leading. Leaders are more prone to create business models and grow businesses. A manager is more apt to oversee the created model and maintain the business’ growth. Effective management is key for maintaining future growth. Managers are the ones who keep the company running smoothly on a daily basis, as the leaders of the company are trying to take the business to a new level. Managers keep the company flowing to keep the cash flow, and in a lot of small business organizations, the leader and the manager are one in the same (autocratic). But as a business expands, in most cases, the leader must appoint a manager to keep all the other main important areas in compliance. It is the job of the leader to “lead” his manager and have an effective method in place for that manager to take and run with.
Business Management Methods
Each company possesses a certain type of style in regards to how they run their day to day operations. There are 5 well known business management methods. Today we will talk about the first of the 5 methods, Autocratic Management.
Of all the methods we will discuss, Autocratic Management is, by far, the most common methods for small businesses. With Autocratic Management, the business owner is not only the leader and the one that is responsible for the company, but also the President or CEO of the company; maintaining the role as manager. The business owner makes most, if not all, of the decisions and is ultimately the one driving and sustaining the business.
My Advice to Autocratic Managers: Autocratic business management should not be a long term type of method that you have in place. Autocratic methods can stunt growth if they stay in place too long. For increased growth, it’s key to find the best transitional type of management style that meets your businesses culture. But before transitioning to one of the methods we will be discussing in the weeks to come, make sure you have properly mastered Leadership Skills #4 & #5 (if you want to learn more about these leadership skills, visit my blog). Without the ability to duplicate yourself and delegate roles successfully, transitioning to a new type of business management method may lead your company towards failure.