Do you know the differences between leaders and managers?
Most business owners answer with a resounding “yes,” but reality says otherwise. Behind the success or failure of any business is the quality of leadership.
There are five tell-tale differences between leaders and managers. When you can spot the differences, you’re well on your way to unlocking your success.
Leadership is even more critical if you’re thinking about a liquidity event. Your enterprise value hinges on your team’s quality and their results.
Said in another way, does your business run without you?
The above question is a simple enough question. But please don’t confuse simple with simplicity. Most business owners’ businesses don’t run without them.
The statistics tell the story. Up to 90% of liquidity events fail. Of “successful” liquidity events, sellers leave 50% to over 100% of the deal value in the buyer’s pocket.
Who am I, and how do I know?
I said “no” to a 7-figure offer and “yes” to mastering the art and science of a liquidity event. I said “yes” to a 9-figure offer from a different buyer two years later.
I created a 9-step roadmap of preparation for my liquidity event. Today, I pay it forward. I help business owners through the 90-day Deep Wealth Experience. At the heart of the Deep Wealth Experience is the exact 9-step roadmap.
Would you like to learn and master the ability to identify leaders from managers?
Please keep reading.
Vision with action can change the world — J. A. Baker.
One of the differences between leaders and managers is that leaders play the long game. Leaders thrive on creating a vision that makes a market disruption. The long game has leaders avoid doing what is easy and instead focus on doing what’s right.
Playing the long game for leaders correlates to your enterprise value. So part of the long game is identifying the X-Factors that increase enterprise value. Of course, one downside of the long game is that it can delay growth and profits. But it’s the long game that ensures growth and profits are sustainable.
While accolades, rewards, and recognition are welcome, leaders don’t rely on them. Leaders aren’t looking for external validation. Instead, validation for leaders comes from achieving their vision.
On the flip side are managers who have short-term goals. Managers are happy to work within the system as it is today. The rocket fuel for managers is accolades and rewards.
As you look at your business, which of your team members are leaders?
Leadership transcends title. One of the traits of a successful business is that all employees exhibit leadership. From frontline employees to the CEO, leadership is a central theme.
Leaders understand that goals are essential, but they are one part of a much bigger picture. A Manager’s focus on goals may win the battle but lose the war. Achieving goals for the sake of achieving goals can be a fool’s game.
Do you know the next key difference between leaders and managers when playing the long game?
Please keep reading.
Business relationships are what separate the winners from the losers — Jeffrey Feldberg
One of the main differences between leaders and managers focuses on relationships. Leaders put relationships above everything else. When thinking about relationships, let’s look to your stakeholders.
Your stakeholders are your employees, clients, suppliers, media, and board members. So when you look at your stakeholders, they all have the same currency.
Do you know what the currency is for all your stakeholders?
In business and life, the currency is trust and not money.
Stakeholders prefer to do business with friends over strangers. The main difference between a friend compared to a stranger is trust.
Leaders understand that they are enablers to help stakeholders achieve their goals. When leaders help stakeholders achieve their goals, leaders achieve their vision.
Leaders can put in place company comprehensive initiatives. One example is that everyone in the company has a salesperson’s mindset.
Leaders understand that the world’s favorite radio station is WII.FM (What’s In In For Me). By tuning into WII.FM for stakeholders, leaders create a win-win-win.
In the process, leaders build trust by doing what they say. To help achieve the vision, leaders create cohesive teams.
Instead of focusing on relationships, managers focus on individuals and their goals. For managers, the reliance on teams is not the same level as leaders. By focusing inwards, managers often exclude stakeholders, not in the business.
As the saying goes, when the team works, the dream works, which is the essence of leadership.
When thinking about leaders and managers, do you know where leaders shine?
Please keep reading.
We are limited, not by our abilities, but by our vision — Khalil Gibran.
Behind the success of every business is a vision that inspires all stakeholders. There is a stark difference in vision between leaders and managers.
Leaders create an exciting narrative around a compelling vision. The vision talks about a bright and prosperous tomorrow. Leaders understand that people want to be on a winning team.
When leaders look at people, they don’t see what’s in front of them. Instead, leaders see and understand the potential of what each person can do.
Knowing the potential of people, leaders create potent teams. In turn, these powerful teams help achieve the vision. Focusing on the big picture through teams is where the business magic happens.
Once again, managers operate at a lower level than leaders. As a result, managers take comfort in controlling the situation. Instead of creating and focusing on a vision, managers focus on the smaller picture.
The smaller picture means focusing on the goals of individuals. Of course, individuals achieving goals is essential in any business. But individual goals pale in comparison to the vision.
Both leaders and managers have an equal amount of time at their disposal. After all, there are 1,440 minutes in a day. The game-changer between leaders and managers is the use of time.
By pursuing the vision, leaders achieve more simultaneously as managers.
End of story.
There’s another critical difference between leaders and managers. This one difference can make or break a business.
Would you like to know what this difference is all about?
Please keep reading.
Risks must be taken because the greatest hazard in life is to risk nothing — Leo Buscaglia.
The difference between leaders and managers shows itself in the area of risk. Leaders, through their narrative and vision, look at the big picture.
Effective leaders welcome calculated risks for market disruption. In chasing after a market disruption, leaders know that they will fail. But, to a leader, failure provides lessons learned and a path to success.
Managers choose to play it safe and manage problems instead of going beyond the problems. For managers, the saying “if it ain’t broke, don’t fix it” is their motto. Instead, hitting existing goals and KPIs is what managers focus on.
There are positive aspects to ensuring the team achieves milestones. Where managers hold your business back is believing that everything stays the same.
For customers, a business is only as good as it can do today. Yes, there are heroic stories of achievements in days past. But yesterday is a distant memory.
What worked yesterday for your clients stops working today. The only question is if your business is proactive enough to be ahead of the game so that you can offer the solution.
How do you find the next problem for your clients?
You ask the “magic question.” The magic question is an X-Factor which is step two of the 9-step roadmap.
The difference between leaders and managers is that leaders look for new problems. Managers choose to manage existing problems.
Speaking of problems, do you know the next difference between leaders and managers?
Please keep reading as this next area is a game-changer.
There’s a way to do it better — find it — Thomas Edison.
The differences between leaders and managers shine through for innovation.
If managers had their way, horse-drawn carriages would be our mode of transportation.
Managers focus on what works and improving it. Going back to horse-drawn carriages, managers would focus on improved carriages.
Leaders embrace change and market disruption, which go hand-in-hand. Innovation is the key that unlocks a leader’s vision. So the question is not what can we do to improve our offering for leaders?
Leaders, instead, ask how we can put ourselves out of business? We’ll put ourselves back into a bigger and more profitable business.
Both life and business are not always about the extremes. Of course, improving an existing offering is a necessity. But it’s knowing that improvement is taking place to buy time to enjoy a market disruption.
In the 9-step roadmap, leaders are in step two, X-Factors that increase the value of your business. World-class X-Factors allow a company that thrives and profit or one you sell tomorrow. Either choice is a great one.
If you want to capture the best deal over any deal, the higher your enterprise value, the better. Know that leadership, through innovation, leads to a higher valuation.
The power of the 9-step roadmap is preparing today for a prosperous tomorrow. Knowing the differences between leaders and managers helps ensure you welcome massive success.
When it comes to the differences between leaders and managers, ignorance is not bliss. Knowing the differences between leaders and managers is crucial for your liquidity event.
At the heart of the Deep Wealth Experience is the 9-step roadmap of preparation. It’s the exact roadmap that had me say “no” to a 7-figure offer and, two years later, “yes” to a 9-figure offer.
What made the difference?
In a word, preparation.
Your enterprise value is not created during your liquidity event. Instead, your enterprise value reflects your quality of preparation.
One crucial area of preparation is knowing the differences between leaders and managers. When you know the difference, you can assess your team.
In life and business, moderation is the key to sustained success. Ensure your team has a leadership framework from front-line employees to the CEO. Management tasks performed under the umbrella of leadership tactics are potent tools.
Part of the “secret” to my 9-figure liquidity event success was leadership. Implementing the leadership framework with all employees moved the dial for the company.
The power of the 9-step roadmap that you learn through the Deep Wealth Experience is time. Through preparation, you leverage time to your business advantage. Your preparation today pays a high ROI in the months and years ahead.
Where do you start, and what do you do?
Please start with the first strategy and master it before moving on to the next one. Consistent and daily action has you master all five strategies.
You can do it. I know you can.
Here’s to you and your success!
Your Biggest Raving Fan,
When it comes to your liquidity event, are you leaving millions on the deal table? Visit www.deepwealth.com/success to learn more