Starting a debate that may change the face of South African business

I am sure we are all aware of the classic cartoon, which depicts the difference between a boss and a leader. The cartoon depicts workers pulling on a rope to move a large stone, not unlike those used to build the pyramids in Egypt or Mesoamerica.

In the boss version of the cartoon, a man sits on the top of the stone, bellowing fiercely at the workers, probably deriding them for doing something wrong. In the leader version of the cartoon, we see a person taller than the other workers (distinguishing him as the leader) pulling at the front of the rope, setting the tone for workers to follow.

Why is this important? BRPs often come across similar scenarios in companies that are mismanaged. In these cases, senior executives have taken too far in their leadership positions and have lost the true essence of leadership. I wrote an editorial at the end of 2023 where I pointed out that CEOs are not the ultimate decision-makers in a company. Inclusive leadership from the coalface will revitalise the South African economy. I recently read an article on the Harvard Business Review (HBR) website that reinforces this viewpoint.

Counting value versus creating value

The HBR article points out that only managers count value; some even reduce value by disabling those who add value. If a diamond cutter is asked to report every 15 minutes how many stones he has cut, by distracting him, his boss is subtracting value.

By contrast, leaders focus on creating value, saying: “I’d like you to handle A while I deal with B.” He or she generates value over and above that which the team creates and is as much a value creator as his or her followers are. Leading by example and leading by enabling people are the hallmarks of action-based leadership.

Circles of influence versus circles of power

The HBR article adds that just as managers have subordinates and leaders have followers, managers create circles of power, whereas leaders create circles of influence.

The quickest way to figure out which of the two you’re doing is to count the number of people outside your reporting hierarchy who come to you for advice. The more who do, the more likely it is that you are perceived to be a leader.

Leading people versus managing work

The HBR article Management consists of controlling a group or a set of entities to accomplish a goal. Leadership refers to an individual’s ability to influence, motivate, and enable others to contribute toward organisational success. Influence and inspiration separate leaders from managers, not power and control.

In India, Mohandas (Mahatma) Gandhi inspired millions of people to fight for their rights and walked shoulder to shoulder with them so that India could achieve independence in 1947. His vision became everyone’s dream and ensured that the country’s push for independence was unstoppable. The world needs leaders like him who can think beyond problems, have a vision, and inspire people to convert challenges into opportunities, a step at a time.

I encouraged my colleague to put this theory to the test by inviting his teammates for chats. When your teammates stop discussing the tasks at hand — and talk about vision, purpose, and aspirations instead — that’s when you will know you have become a leader.

A different perspective

The HBR insights were reinforced in an article by Forbes.

• Leaders create a vision, and managers create goals. Leaders paint a picture of what they see as possible and inspire and engage their people in turning that vision into reality. They think beyond what individuals do. They activate people to be part of something bigger. They know that high-functioning teams can accomplish a lot more working together than individuals working autonomously. Managers focus on setting, measuring and achieving goals. They control situations to reach or exceed their objectives;
• Leaders are change agents, and managers maintain the status quo. Leaders are proud disrupters. Innovation is their mantra. They embrace change and know that even if things are working, there could be a better way forward. And they understand and accept the fact that changes to the system often create waves. Managers stick with what works, refining systems, structures and processes to make them better;
• Leaders are unique, managers copy. Leaders are willing to be themselves. They are self-aware and work actively to build their unique and differentiated personal brand. They are comfortable in their own shoes and willing to stand out. They’re authentic and transparent. Managers mimic the competencies and behaviours they learn from others and adopt their leadership style rather than defining it;
• Leaders take risks, managers control risk. Leaders are willing to try new things even if they may fail miserably. They know that failure is often a step on the path to success. Managers work to minimise risk. They seek to avoid or control problems rather than embrace them;
• Leaders are in it for the long haul, managers think short-term. Leaders have intentionality. They do what they say they are going to do and stay motivated toward a big, often very distant goal. They remain motivated without receiving regular rewards. Managers work on shorter-term goals, seeking more regular acknowledgment or accolades;
• Leaders grow personally, and managers rely on existing, proven skills. Leaders know if they aren’t learning something new every day, they aren’t standing still, they’re falling behind. They remain curious and seek to remain relevant in an ever-changing world of work. They seek out people and information that will expand their thinking. Managers often double down on what made them successful, perfecting existing skills and adopting proven behaviours;
• Leaders build relationships, managers build systems and processes. Leaders focus on people – all the stakeholders they need to influence in order to realise their vision. They know who their stakeholders are and spend most of their time with them. They build loyalty and trust by consistently delivering on their promise. Managers focus on the structures necessary to set and achieve goals. They focus on the analytical and ensure systems are in place to attain desired outcomes. They work with individuals and their goals and objectives;
• Leaders coach, managers direct. Leaders know that people who work for them have the answers or are able to find them. They see their people as competent and are optimistic about their potential. They resist the temptation to tell their people what to do and how to do it. Managers assign tasks and provide guidance on how to accomplish them; and
• Leaders create fans, and managers have employees. Leaders have people who go beyond following them; their followers become their raving fans and fervent promoters – helping them build their brand and achieve their goals. Their fans help them increase their visibility and credibility. Managers have staff who follow directions and seek to please the boss.

Resolving South Africa’s distress

There are plenty of fears that South Africa is distressed and desperately needs a renewed vision to address our economic challenges.

These fears are not unfounded. However, we need to reframe the challenge differently. Plenty of expectations were placed on the government in the past to address this problem on its own. However, this challenge is far too extensive for one party to handle. Business needs to step up and be more inclusive in addressing South Africa’s challenges. This can only be accomplished if we have leaders as opposed to bosses. Inclusive leadership needs to trump management.

The differences between leadership and management and my perspective on inclusive leadership will be discussed extensively this year.