A common misconception in business is that management and leadership are the same. They are not. The impact and roles of leadership and management are quite different. Leadership is essential for companies who need to grow and create value beyond the levels given by the market. That is, to make things happen which were not already going to happen. If a business has all the growth and value creation it needs, then leadership commitment is not important. Of course, that describes few if any businesses today.
If you want to expand the importance of leadership in your organization, it is useful to determine what the term leadership means to people in your organization. Many do not have a good understanding of leadership and management, as well as why there is a distinction between the two. Many consider the two terms to be interchangeable, that is to be describing the same capabilities. Some will differentiate leaders from managers based on position in the organization. Senior managers are considered to be leaders since they have greater responsibilities.
Leadership is needed in order to produce the “elements of inspiration, vision and human passion which drive corporate success”. In case you think this description is from a recent work, that phase was written in 1977 in a groundbreaking article in the Harvard Business Review. Leaders create the environment which promotes others to excel.
The confusion about differences in leadership and management is harmful to organizations. It serves to diminish the importance of leaders, often in the organizations which most need powerful leaders. Further it reduces the emphasis placed on development of leadership, which only makes the matter worse.