7218CE00-05C5-4C4A-9644-BEAC2B76D45A.pngIf you’re managing a business then keeping track of expenses is probably high on your list of priorities. One of your biggest expenditures is likely to be compensation for your employees. I’m sure you know what you’re paying your people but do you know what they are costing you?

I can’t be sure who your most expensive employee is but I do know it’s likely one of the types of individuals I describe below.

The first is a “manager” of people. That in itself is a problem because people will not be managed. People resist being managed because they are people, they expect leadership, not management.

A manager was explaining to me the challenges of managing a particular new employee. When I suggested that they try leading this particular individual instead of managing them I was more than a little surprised and disappointed by their response. 

The manager said employees must be managed before they can be led. They must have the “spirit” managed out of them because people with “spirit” won’t follow anyone. Apparently only people with their “spirit” broken can be “tamed” enough to follow. 

I found it almost impossible to believe that anyone could think that way. It was medieval leadership at it’s worst. 

It’s also incredibly expensive these days. Disengaged employees cost organizations a ton of money and one of the fastest ways to cause them to disengage is to break their spirit. Make them feel unimportant and they quickly become unproductive too.

No organization that intends to last can afford medieval leadership or management.

The second type of very expensive employee is the know it all manager. They know everything they need to know and they have nothing left to learn. 

I talked to a manager a while back who had just lost a very talented team member. When I asked if they had learned anything in the exit interview about why the employee left I was again surprised and disappointed by the answer. 

They said that they had nothing to learn from a quitter. They weren’t even interested in looking at the exit interview because “people come and go” and “there is nothing that a manager can do about it.” 

The second part might be right… there is nothing a manger can do about it. 

But a leader can! 

The odds are pretty high that if the employee had felt led they may not have left in the first place. But even if they had decided to go a leader would want to understand why and what they as a leader could have done differently to help the employee want to stay. 

Organizations invest a small fortune in recruiting and training their talent. Then they turn them over to a manager who treats them like a piece of equipment; the same as the copy machine.

If you intend for your organization to stand the test of time then you need to invest as much in developing your leaders as you do in developing the people they lead.

Do not allow your leaders to manage people, teach them to lead and they will be a bargain, no matter how much you pay them. 

Your Most Expensive Employee

Managing and Leading are Different AND Essential

Managers create a map to the water and leaders inspire people to be thirsty. – Steve Keating

I’ve written about this before but recently saw yet another post that claims management and leadership are one in the same. They are not!

The skill sets required to manage are vastly different than those required to lead. The mindset of managing is even more different than the mindset of leading. In a perfect world one person can possess both skill sets and mindsets but great managers can be poor leaders and great leaders can be poor managers. They are simply two completely different things.

An organization thrives when it has both good management and good leadership. Whether it requires two people to provide those or whether the organization is blessed with an individual or individuals who can provide both doesn’t really matter. The key is that BOTH leadership and management must coexist within the organization. Management and leadership do not compete in successful organizations, they complete.

As has been written countless times, people will not be managed, they must be led. We manage stuff, processes, workflows, buildings, contracts, inventories, etc. We should not and cannot manage people.

We need, yes need, management practices and policies in place that guide what people can do, that is a part of management. Good management can save us from ourselves by applying “rules” to the workplace that take into account a bigger picture than most of us can see by ourselves.

However, people who are surrounded by ONLY management feel restricted, constrained and in many cases, untrusted. Their productivity and potential are incredibly limited.

Rules and policies are limiting. If they are in place to control “things” that is fine. But both managers and leaders need to know this simply truth: You cannot really control productive people; you can only control unproductive people. When “management” attempts to exert too much control over people they turn productive people into unproductive people.

Leaders balance out management by influencing people to work within the management guidelines in a positive way. They “lead” people to see and reach their potential while working within a system that benefits everyone.

People need someone or something to follow. They need to feel as if they are part of something bigger, they need to know that they matter. They need to know that their efforts, their work, makes a difference. When they know that what they do is important then their potential is truly limitless. None of that can come as a result of being managed, no matter how good the management may be. It can only come from leadership.

Organizations that mistake leadership for management do not grow, they wither. Managers hold a ship steady, leaders set the course and the people get it to it’s destination.

If you’re unsure if what you’re doing is managing or leading think of it like this: if you’re doing it for the business it’s likely managing. If you’re doing for people it’s almost certainly leadership. There’s the real difference between managing and leading.

So… do you know why you do what you do?