The Measure of a Leader

25 January 2018

As the leader in your business, you have probably spent some time defining your team’s key performance indicators. Have you ever considered what your own KPIs should be?

I believe that there are 3 key KPIs that every business leader needs to measure for themselves – and these are very different from a manager’s KPIs.

If you would like to hear more about this please feel free to get in touch below.

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Leadership is about aligning people to the big picture. Management is about the details of the mechanics and efficiency in the business.

It is only by measuring and tracking your own KPIs for each of these roles that you can truly take your business to the next level.

Prefer to read rather than watch and listen? No problem – here’s everything I said in the video as text:

What I want to talk about today is the difference between leadership and management. We’ve seen, very often, leadership and management, they are used very closely and in a very intertwined way. But they have some very distinct features.

The 3 Key Performance Indicators of the Heads of the Business

Now before we talk about that, let me ask you a very simple question which I asked my clients: if you are the head of the company, what are your key performance indicators? How would you know that you’re doing a good job as the head of the company, as the business owner?

And at this point I really want you to pay attention to three simple key performance indicators that you have as the head of the business and in fact, jot them down.

  • The first one is setting the direction of the company – being very clear as to where this company is heading.
  • The second is actually ensuring that there is a network of people who are there to deliver on the tasks and products and services.
  • The third one is actually ensuring that people are doing what they have to do.

So set the direction. Ensure you’ve hired people or outsourced people or gotten the right suppliers to produce a network of resources to deliver the products/services. Then ensure those people do what they need to do. However, there are distinctions as far as the leaders concerned and the managers concerned.

How the KPIs relate to The Leader vs The Manager

It’s possible that you’re lucky and you have a co-partner or a co-director who’s actually the complement to your style of working in the business. Or, it’s possible that it’s you who has to wear the hat of both the leader and the manager in the business.

Let’s try to understand as far as setting the direction for the business is concerned. The leader sets the goal, right? Sets the bigger picture, the vision that this is where we are heading to. Whereas when you are the manager, you’re supposed to be planning and budgeting – the small steps. How are we going to actually get to that end goal?

As far as the creation of the networks of people is concerned, the role of you as a leader is to keep aligning the people to that direction. Whereas, you as a manager you’re supposed to be organizing the talent, hiring the talent and managing the performance of that talent. This requires a lot of details and a lot of day-to-day management of the activities of people.

Then ensuring that people are doing what they have to do. You as the leader are supposed to be motivating people whether it’s on a monthly basis, quarterly basis, fortnightly, or weekly basis. Whereas you as a manager, on a day-to-day basis, your role is to actually make sure that you’re controlling the problems, you’re preempting the problems, and you are systematizing the solution.

The Profile of a Leader vs The Profile of a Manager

Now if you have been listening to me you will realize that leadership is more about the motivation. It’s about the big picture. It’s about aligning people to that big picture. Wherein the management is more granular, it’s more detailedIt’s controlling the problem, systemizing the solutions. It’s about hiring people and making sure that they are actually getting inducted properly. About planning, budgeting the details.

When you are a leader your orientation should be “why” and “what”. When you are in your managerial role, at that time, your orientation is “how” – the details of how we’re going to do that.

What I have seen working with different businesses across different sectors, generally speaking, business owners are clear as to what they want to achieve. But in terms of how to go about achieving that what in the most efficient manner, I see a lot of mistakes happen. I’m fine with mistakes, but the things which can be avoided should be avoided.

At the end of the day, if you want to find a critical success path – as in the shortest and the most sustainable path from Point A to Point B, from where you are to where you can be – then I would highly recommend that you please get in touch with us.

We can sit down and we can identify that what is the best path from where you are to where you can be. Which can help you save time, which can help you save money and, most importantly, which can help you become the best that you can be and achieve the best that you totally deserve and desire.

If you would like to hear more about this please feel free to get in touch below.

Get in touch

We are looking to invest in good businesses.

If you would like to have an obligation free discussion about selling your business, please email shweta@growthidea.co.uk. You can find more about our investment criterion on https://growthidea.co.uk/private-equity.

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