The answer is both.
Have you ever heard the expression “Too many generals and not enough soldiers?” Well it works both ways. Too many soldiers without a strong general will surely find themselves fighting the wrong battles.
Businesses with too many leaders fail from their inability to manage and implement day-to-day business issues. Likewise companies with excellent managers fail because they did not innovate, motivate, change nor watch for strategic threats.
It’s important to develop managers who can lead and leaders who can manage. So what is the difference?
Think of it like this: you need to manage things and lead people.
For example great managers manage costs, inventory, cash flow, processes, information systems, facilities and operations. When it comes to leadership, great businesses lead their people, drive the company vision, guide their employee and customer perceptions, and ultimately generate a positive and productive corporate mindset and culture.
As the business owner, you are responsible for leading your business to success and getting your people excited about your vision for the business.
Too often leadership is seen as defining a step-by-step business strategy and expecting people to follow the steps or suffer the consequences. Coming up with a strategy and relying on your position as business owner is not enough.
That model fails you, your employees and your business. People will learn to do just what they have to so that they can meet expectations and not lose their job. True leadership is the art of understanding and rewarding your employees’ and customers’ needs so that they are motivated to make your business a success. It’s important to recruit competent people who can manage the day-to-day tasks and operations so that you can lead your organisation forward.