The difference between directing and leading your business
So, what’s the difference between wearing the Director hat and the Leadership hat? In a nutshell, Director is a strategic role and Leadership is an operational role. At Albert O’Connor & Co Accountants we have refined our leadership and directorial structure. Has your company defined its leadership structure?
The Albert O’Connor & Co Accountants team has put together eight key differences between Directors and Leaders:
- Directors maximise shareholder value; the Leader maximises business efficiency.
- Directors set the plan; the Leader implements the plan.
- Directors have governance responsibilities; the Leader has leadership and management responsibilities.
- Directors work ON the business; the Leader works IN the business.
- Directors mitigate risks and set policy; the Leader implements the policy.
- Directors have a strategic focus (big picture); the Leader has an operational focus (makes it happen).
- Directors establish the business model and structure; the Leader implements the model and manages performance.
- Directors have no accountability line to the team, except to the Leader; the Leader holds the team to account.
Getting your structure right and developing your strategy are critical foundations for achieving business success.
Understanding the difference between the Director hat and the Leadership hat is fundamental. The Directors set the plan and the Leader engages and empowers the team to deliver on that plan. After all, it’s your team who must be engaged in your plan for it to become a reality.
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