Blog
 

Are you ready for leadership?

Are you ready for leadership?
Enterprise Nation
Enterprise Nation
Enterprise Nation
 

Posted: Mon 15th Jul 2013

As your business grows, you may find yourself torn between 'doing' and 'delegating' or 'managing' and 'leading'. It's a natural part of the growth process, says Bob Bradley, executive chairman of MD2MD, and it's important to understand how your role will change if you are to keep your business moving.

Small business leadership | Bob Bradley of MD2MD

Should the managing director of a growing business be a 'manager' or a 'leader'? asks Bob (left). The answer to this question is far from straightforward. Many would argue that managing directors should strive to be both but this is often not the reality, as business owners get dragged down by the pressures of the day-to-day running of the business. Consequently, they end up doing too much management and too little leadership.

There are substantial differences between leaders and managers: Leaders

  • Ask strategic questions

  • Generate answers to those questions (involve others / make choices)

  • Initiate organisational changes to realise the strategy

  • Work through relationships and inspiring others

Managers

  • Solve operational problems

  • Generate detailed plans to achieve operational stability (staffing / budgeting)

  • Maintain systems and control mechanisms

  • Work through hierarchies and formal authority

The differences between leaders and managers are fundamental: managers make sure that everything is controlled properly; leaders create the vision, the enthusiasm and the passion. The best leaders are those who inspire and create followers.

"The very characteristics that allow a start-up business to thrive can be detrimental when the business starts to achieve scale."

Small business leadership | King Kong climbing Lego tower

Leadership challenges for growing businesses

One of the biggest challenges facing growth businesses is how to mature from a small owner-managed business, where the owner is at the hub of everything, into a medium-sized business run by a board and a team led by a leader rather than managed by a manager. The very characteristics that allow a start-up business to thrive can be detrimental when the business starts to achieve scale.  An entrepreneur starting a business is usually a very driven and determined individual. You need drive to get a business off the ground and you need to be incredibly focused. Many entrepreneurs ignore rational, risk-based arguments as they pursue something they believe in, which means that ultimately the business thrives because of that sheer drive. Business owners therefore tend not to be easily swayed, and as the people funding the business they are often very tight with financial control - which is fine when the business is small. However as a business grows, at some stage the business leader must begin to delegate, even some financial matters.

"As the business grows it is important that the leader's vision does not get drowned by their desire to control all aspects of the business."

Small business leadership | Puppeteer

Learning to let go

Likewise, small businesses leaders usually make all the decisions. But as a business grows to be 20-100 people strong, depending upon the type of business it is, then this responsibility must also be shared to create space for the leader to 'lead' rather than 'do'. And as the business grows it is important that the leader's vision does not get drowned by their desire to control all aspects of the business. One fundamental area that is key to business success is communication. For small businesses, communication is not a problem - the boss just says what they want done!  In a larger business it can't work like that.  The leader can't communicate directly with everyone individually; there must be communication processes in place. So at some stage internal newsletters, management meetings, department meeting and workshops become necessary, often to the great frustration of the entrepreneurial business owner who just wants to get on with doing 'real work', not realising that for a medium-sized business and larger, the real work for the leader is largely communication! Entrepreneurs that started a business and grew it through its early stages themselves often see such management meetings and internal communication processes as unnecessary overheads - everyone should just know what they need to do.  And the lack of such co-ordinating activity is what causes many businesses to plateau and stay small.  By contrast, the leader that successfully grows a business of scale understands that management processes, communication and leadership are critical to successful growth. Every small business of course has big dreams but business leaders with a desire to grow must ensure that as they grow, they adapt their style of leadership to suits the stage of growth. Bob Bradley is executive chairman of MD2MD, which provides leadership development peer groups for managing directors of small and medium-sized businesses and other business leaders across the country.

Share your knowledge with the modern small business community

Coffee Club | Group shot

As a member of the Enterprise Nation Club, you'll get the chance to network and share knowledge with likeminded business-owners at our networking events. You'll also get discounts on Enterprise Nation advice guides and training workshops, as well as great offers from leading brands. Membership is just £20 per year. Join the Club!

Photo credits: Pedro Simoes (ducks), Loozrboy (Lego King Kong),  DirkJan Ranzijn (puppeteer) via Compfight cc

 
Enterprise Nation
Enterprise Nation
Enterprise Nation
 
Enterprise Nation has helped thousands of people start and grow their businesses. Led by founder, Emma Jones CBE, Enterprise Nation connects you to the resources and expertise to help you succeed.
 

You might also like…

Start your business journey today

Take the first step to successfully starting and growing your business.