TO LEAD OR TO MANAGE

PRADEEP KHARVI – MBA I (6146)

Department of Management Sciences,

University of Pune (PUMBA)
Leadership Story…
• A group of workers and their leaders are set a task of
clearing a road through a dense jungle on a remote
island to get to the coast where an estuary provides a
perfect site for a port.

• The leaders organise the labour into efficient units and

monitor the distribution and use of capital assets –
progress is excellent. The leaders continue to monitor
and evaluate progress, making adjustments along the
way to ensure the progress is maintained and efficiency
increased wherever possible.

• Then, one day amidst all the hustle and bustle and
activity, one person climbs up a nearby tree. The person
surveys the scene from the top of the tree.
Leadership Story…
• And shouts down to the assembled
group below…
• “Wrong Way!”
• (Story adapted from Stephen Covey (2004) “The Seven Habits of Highly Effective People”)

• “Management is doing things right,

Leadership is doing the right things”
(Warren Bennis and Peter Drucker)
Contents
• Management is a Career, • Learn Leadership From
Leadership is a Calling the Army
• Army Leadership
• You Manage Things, • Defining Mission
while You Lead People • Providing Direction
• Understanding People
• Management is about • Motivating People
Arms and Hands, • Delegating Authority
Leadership is about • Being Adaptable
Heads and Hearts • DIAMONDS and
LEADERS are FOREVER
• Management is about • BE
the Present, Leadership • KNOW
is about the Future • DO
Management is a Career, Leadership is a
Calling
• Leaders have clearly-
defined convictions of
their own and more
importantly the courage
to see them through.
In case of Managers, the
courage is about
somebody else’s
convictions.
- Leslie Kossoff, a leading
organisational thinker

• Management is all about

believing in somebody
else, while Leadership is
about believing in
yourself.

• Leadership is about
assimilating, learning
and understanding your
role based on your own
most deeply held truths.
CASE I – Marvin Bower (McKinsey &
Company)
• Marvin Bower had a stable
career after graduating
from the Harvard Business
School when he felt the
calling to take leap of faith.
• He accepted the leadership
mantle by responding to his
convictions and setting up
McKinsey & Company.

• He strived to establish management

consultancy as expert practice, till
then unheard of and thought of as an
unviable proposition.

• For Marvin, growth of his client’s

business was his business and was
above all personal interests.

• Once he stood up boldly during a

client meeting and pointed out that
the biggest risk that company faced
was the narrow minded opinions of
its president. He ended up losing the
CASE II – Walt Disney
• Walt Disney had one of the
roughest childhoods one
could ever imagine. His
father was abusive and
they had hardly anything to
eat.
• At the age of 16, Disney left
home to join the Red Cross.
As he worked on the war
front, he realized that his
calling was not just helping
the injured, but putting a
smile on their faces.
• He turned his whole life
around to fit his mission,
even as he endured hard
times.
• For him ‘bringing happiness
to the millions’ was not just
somebody’s mission
statement on the wall, it
You Manage Things, While You Lead
People
• Jim Clemmer writes that
one key distinctions
between management and
leadership is that we
manage things and lead
people.
• Things include physical
assets, processes and
systems, while People
comprise employees,
teammates and followers.
• When dealing with things,
we mean a way of doing,
while in the people realm,
we’re talking about a way
of being.
• “While Management
focuses on work and
efficiency, Leadership
CASE III – Steve Ballmer & Bill Gates
• When Steve Ballmer, the
current CEO of Microsoft, met
Bill Gates for the first time, he
was looking forward to a bright
career after his stint at P&G
and education at Harvard and
Stanford. A start-up, in the still
nowhere computer field, was
the last thing on his mind.

• Bill Gates looked into Steve’s

eyes and declared that
together they can chase his
dream of putting a computer
on every desk.

• That sounded impossible, but

the ring of confidence in Bill’s
voice enamored Steve.

• He knew for sure that he would

never gain such satisfaction
anywhere else. He decided to
work under Bill Gates’
leadership and gave up
everything else to be as
accountant in an unknown
Management is about Arms and Hands,
Leadership is about Heads and Hearts
• Warren Bennis says that
most companies are over
managed and under-led,
which is not a good sign
since leaders are much
more successful than
managers in harnessing
people power.

• While leadership captures

the constituents’ heads and
hearts – appealing to their
conscience – management
buys their arms and hands,
through hierarchies.

• Management gets people to

do what needs to be done.
Leadership gets them to
want to do them.

• Managers get things done

through control, by lighting
a fire under people; leaders
CASE IV – Dhirubhai Ambani -
Refinery
• When Reliance Industries’
Patalganga refinery was
completely submerged in
the flash flood of 1989, the
DuPont managers declared
that it was virtually
impossible to get the
project back on track in
under four months.

• But Dhirubhai Ambani knew

something more – that
nothing was impossible if
his employees were
motivated.

• And, as the foreign

consultant looked on, every
single employee worked
round the clock, sweeping
the floor, dismantling the
machines and cleaning
them, restoring the refinery
back to shape in less than 3
Management is about the Present,
Leadership is about the Future
• The fundamental purpose of
management is to keep the
current system functioning,
while that of leadership is
to produce useful change. -
John Kotter
• Management tries to deal
with complexities that arise
in the current system, while
leadership tries to cope
with change.
• Zaleznik sees managers as
fairly passive work-centred
operators intending on
keeping the present show
on the road, where as
leaders are seen as people-
centric, proactive, intuitive
and attracted to situations
CASE V – Varghese Kurien & GCMMF
• Varghese Kurien landed in
Gujarat completely against
his wishes. He was in a
pathetic state. But that did
not stop him from noticing
the harsh living conditions
of the individual milk
producers.

• The market was poor, since

Indian milk was branded as
more contaminated than
sewage water by the
western world.

• He started getting involved

–slowly but steadily – with
the milk producers.

• The shadow of the present

did not hold him back from
seeing the future.
Eventually, he established
the Gujarat Cooperative
 Leaders and Managers: Distinguishing their roles

Establish
organizational
mission

Leader’s Job
Formulate
Strategy for
implementing
mission

Implement
Manager’s Job organizational
strategy
Leaders and Managers: Comparison
Management
Planning and Budgeting
Direction: Keeping eye on bottom line
Organizing and Staffing
Alignment: Directing and Controlling
Create Boundaries
Focusing on objects -
Relationships: Producing/Selling goods and
services
Based on position power
Acting as Boss
Emotional Distance
Personal Qualities:
Expert Mind
Talking
Conformity
Insight into organization
Maintains Stability
Outcomes:
Leadership
Creating Vision and Strategy
Keeping eye on horizon
Creating shared culture and
values
Helping Others Grow
Reduce Boundaries
Focusing on people -
inspiring and motivating
followers
Based on personal power
Acting as coach, facilitator,
servant
Emotional Connection
(Heart)
Open Mind (Mindfulness)
Listening (Communication)
Nonconformity (Courage)
Insight into self (Integrity)
Creates change, often
radical change
Learn Leadership From the Army
• The concept of
leadership is intricately
connected with army.
• Alexander/Napoleon
• “a leader is a dealer in
hope”
• a man would never have
so much faithfulness to
have himself killed in
the army for half-pence
without an able leader
to lead him.
• In the army, leadership
is a matter of life and
death.
• There is much that a
business leader can
learn from army
leadership…
Learn Leadership From the Army
• Defining Mission – purpose gives people a reason to do things
• Providing Direction – people want direction, they want to be given challenging tasks,
training in how to accomplish them, and the resources necessary to do them well, then they want to be left
alone to do the job.
• Understanding People – Leadership is understanding people and involving them to help
you do a job.
• Motivating People – motivation gives subordinates the will to do everything they can to
accomplish a mission.

• Delegating Authority
• Being Adaptable – you should be prepared to be flexible with your approach to overcome
abstacles

• DIAMONDS and LEADERS are FOREVER

• BE
• KNOW
• DO
Diamonds and Leaders are Forever
• Just as the diamond
requires three properties
for its formation:
• Carbon,
• Heat and
• Pressure
• successful leaders
require the interaction of
three properties:
• Character,
• Knowledge and
• Application
But just as carbon alone does not create a diamond, even character alone
cannot create a leader. The diamond needs heat. Man needs knowledge, study
and preparation. The third property, pressure – acting in conjunction with
carbon and heat – forms the diamond. Similarly one’s character, attended by
knowledge, blooms through application to produce a leader.

‘BE, KNOW, DO’. These three simple words encapsulate in them the
fundamentals guidelines needed to create organizations where leadership
BE
• Leadership begins with what the leader must BE, the
values and attributes that shapes a leader’s character.
• The first step is to yourself understand your values and
principles, priorities and imbibe qualities that you
admire and consider valuable from people around you.
KNOW
• A leader must have a certain level of knowledge to be
competent.
• You must develop interpersonal skills – knowledge of your
people and how to work with them
• You must have conceptual skills – the ability to understand
and apply ideas required to do your job
• You must learn technical skills – know how to use tools and
methods to improve productivity
• Finally, leader must master tactical skills, the ability to make
right decisions
DO
• Character and Knowledge are not enough
• You cannot be effective leader until you apply what you
know, until you act and DO what you must
• Actions are the essence of leadership – it helps
communicate and motivate, accomplish your
organization's immediate mission, increase the
organization's capabilities to accomplish current or
future mission
So…
• Being a leader is not easy
• There are no shortcuts to success
• However tools are available to every leader
• It is up to you to master and use them

• BE the leader of character: embrace values

and demonstrate leader attributes.
• Study and practice, so that you have skills to
KNOW your job.
• Then act, DO what’s right to achieve
excellence.
Finally…
“People don’t want to be managed. They want to be led.
Whoever heard of a ‘world manager’? But a ‘world leader’,
yes.
We know of educational leaders, political leaders, religious
leaders, scout leaders, community leaders, labor leaders and
business leaders.
They Lead. They don’t Manage.
The leader’s carrot always wins over the manager’s stick. You
can lead a horse to water, but you can’t make him drink.
If you want to manage somebody, manage yourself.
Do that well and you’ll be ready to stop managing, and start
leading.”
any questions…