John Kotter: Leading vs Managing
Managing
Management → Deals with complexity
Leading
Leadership → Deals with change
Plans and budgets
 Creates plans, schedules, and budgets
 Focuses on short-term goals
e.g A manager prepares a monthly budget and
work timetable
Organizes and staffs
 Organizes tasks
 Assigns roles and responsibilities
e.g A manager decides who works in sales, HR,
or finance.
Sets vision and direction
 Creates a vision for the future
 Sets long-term direction
e.g A leader says: “In 5 years, we will become
a global digital company.”
Aligns and inspires people
 Aligns people with the vision
 Inspires cooperation
e.g A leader explains the vision so everyone
works toward the same goal willingly.
Controlling & Problem-Solving
Managing:
 Monitors performance
 Solves daily problems
A manager checks reports and corrects errors.
Maintains stability
 Maintains order and consistency
 Reduces risk
e.g Following existing rules and procedures.
Motivating & Inspiring
 Motivates people emotionally
 Encourages commitment
e.g A leader motivates employees by
recognizing effort and giving purpose
Creates change
 Drives innovation and change
 Challenges the status quo
e.g Introducing new technology or new ways
of working
Focuses on people
 Focuses on people, values, and
culture
e.g Buiding trust and teamwork.
Uses influence
 Uses influence and inspiration
 Gains voluntary support
e.g “Let’s work together to achieve this
goal.”
Focuses on systems
 Focuses on policies, processes, and
systems
e.g Ensuring rules are followed correctly.
Uses authority
 Uses formal authority
 Gives instructions
e.g “Complete this task by 5 PM.”
Hospital Example
 Manager: Creates duty schedules, checks attendance, manages supplies
 Leader: Inspires staff to improve patient care and adopt new technologies
Both roles are necessary for success.