Originally published on startupfortune.com
Management and leadership – what’s the difference? The two terms are often misused and even interchanged for the same meaning. These two terms are, in fact, not interchangeable and have two different meanings.
Ferrari Energy, a prominent mineral acquisitions company, has distinct roles in the company that fall under either management or leadership. There are distinct and separate responsibilities for each position, and Ferrari Energy outlines the essential differences below.
What is management?
Management is the type of position that works with other people to ensure that a company’s goals are communicated and executed. Managers hold specific responsibilities as members of an organization. Certain traits managers possess include the ability to achieve a vision, direct, process management, and look after and cater to the people they manage. Great managers can develop strategic ideas and break them down to a level that their team can clearly understand. Managers also have the capability within a company to establish work protocols, standards, rules, and processes.
What is leadership?
Leadership focuses more on being the architect for what goals should exist, generating value, and driving change. Practicing leadership pushes individuals to learn how to let go, trust others will do what is right and ethical, and embody working at all levels of an organization to empower others. Leaders do not exactly occupy any type of management position. The specific traits that a leader carries include the skill of creating a vision, living out characteristics of honesty and integrity, inspiring and helping others to understand their purpose, and practicing effective communication skills.
In a parallel comparison, what are the main differences between managers and leaders?
There are multiple differences between managers and leaders that make their roles specific to their parts in an organization. A manager tends to tell others what to do to reach a goal, while a leader comes up with innovative ideas and sells the idea, so others want to be a part of bringing that idea to life. When moving a team in a specific direction, managers plan the details through strategies such as memos and set meeting times. On the other hand, a leader will set the tone and team towards a specific direction by gathering a team to share some exciting information.
Managers are held accountable for ensuring that organizational goals are being met, so minimizing risks means better outcomes. Risks are intended to be taken for a leader because the payoff will make up for the thin stretch. A manager uses objectives to make a plan and work a plan as quickly and time-efficient as possible. A leader has a vision and bases his operation off of a vision while incorporating a team’s new ideas along the way. When you picture a manager, they are more of a giver of instructions than a leader who is a giver of encouragement. Management is more of a job description that pays an individual to oversee a group of people. In contrast, leadership exemplifies through an ability to positively push others as a group in the direction of success.
About Ferrari Energy
Ferrari Energy was founded in February of 2014 in Denver, Colorado, and completely bootstrapped by Adam Ferrari. Since then, Ferrari Energy has grown and conducted business across the United States, in Colorado, Wyoming, Utah, and North Dakota. Its portfolio includes more than 2,500 unique acquisitions that accounted for over $150 million of deployed capital. The acquisitions included minerals on non-operated leasehold, and all the company’s clients consistently received premium value for their transactions.