Why Harvard Business Review Thinks Leadership Trumps Management Every Time

The Importance of Leadership Over Management: Harvard Business Review’s Perspective

The terms “leadership” and “management” are often used interchangeably, but they actually represent distinct approaches to achieving organizational goals. In an article published by the Harvard Business Review, the authors argued that leadership is more crucial than management in driving success. Let’s delve deeper into their reasoning.

Introduction

Leadership and management are both important aspects of businesses and organizations. However, there are fundamental differences between the two that influence how they operate. While both leadership and management are necessary, leadership is crucial in driving success. In fact, the Harvard Business Review explains why leadership should always take precedence over management.

Leadership and Management: Two Different Approaches

Management involves organizing, controlling, and planning the activities and resources of an organization. In contrast, leadership is the process of inspiring, motivating, and guiding others towards a specific goal. Managers are focused on executing processes to accomplish set goals. Leaders, on the other hand, focus on inspiring and motivating employees to achieve these goals even if it means changing the processes. In essence, leaders serve as visionaries, coaches, and innovators while managers are the ones who ensure day-to-day operations run smoothly.

Why Leadership Is More Crucial Than Management

The Harvard Business Review explains that while management is important, it only guarantees consistency and predictability. It is leadership that drives innovation, transformation, and change. The world is rapidly evolving, and organizations need to adapt to survive. Leaders, then, play a vital role in driving the transformation necessary for organizations to remain competitive.

Moreover, the authors also highlight that leadership enables organizations to create a learning culture. Leaders who are passionate about continuous improvement foster a mindset that encourages creativity, risk-taking, and experimentation. These qualities drive learning and innovation within organizations, resulting in long-term success.

Examples of Leadership Over Management

A well-known example of leadership over management is Howard Schultz’s tenure at Starbucks. When he returned as CEO in 2008, Schultz recognized that Starbucks had lost its way. To bring it back to its former glory, he focused on delivering a unique customer experience that prioritized the company’s values, such as sustainability and social responsibility. He also invested in employee training and development programs, which helped create a strong corporate culture of respect and teamwork. Schultz’s leadership helped transform Starbucks from a stagnant company to one that is thriving today.

Another example of leadership can be seen in Microsoft’s shift towards cloud computing. Satya Nadella became CEO of the company in 2014, and he recognized that the tech industry was changing. He understood that cloud computing was becoming more important than traditional PC software development. Nadella led the company on a transformational journey towards cloud computing, which allowed Microsoft to remain competitive in the industry.

Key Takeaways

Leadership is critical for the success and sustainability of an organization. While management is necessary, it can’t drive innovation, transformation, and change in the way that leadership does. Leaders prioritize motivating and inspiring employees to achieve goals in a way that management can’t. They also foster a continuous learning culture that ensures long-term success. Examples of successful organizations that prioritize leadership over management include Starbucks and Microsoft.