Force for Change - How Leadership Differs from Management

A FORCE FOR CHANGE

HOW LEADERSHIP DIFFERS FROM MANAGEMENT

BY

JOHN P. KOTTER

COURSE: BAD 358 – LEADERSHIP

SUMMARY BOOK # 2

BY: ALINE DEMIRJIAN

DATE: JANUARY 13, 2010

PART 1

INTRODUCTION

CHAPTER 1 – MANAGEMENT & LEADERSHIP

Definition of Leadership: It is used in two different ways in our everyday conversation.

1- It refers to the process that helps direct & mobilize people and/or their ideas.

2- It refers to a group of people in formal positions where leadership, in the first sense of the word, is expected. (saying the leadership of the firm is made up of 10 people)

Leadership is an ageless topic, while management is largely the product of the last 100 years.

Table 1: Comparing management and leadership

MANAGEMENT LEADERSHIP

Planning and Budgeting: establishing detailed steps & timetables for achieving needed results, & then allocating the resources necessary to make that happen Establishing Direction: Developing a vision of the future, often the distant future, and strategies for producing the changes needed to achieve that vision

Organizing and Staffing: establishing some structure for accomplishing plan requirements, staffing that structure with individuals, delegating responsibility & authority for carrying out the plan, providing policies & procedures to help guide people, and creating methods or systems to monitor implementation Aligning People: communicating the direction by words & deeds to all those whose cooperation may be needed so as to influence the creation of teams & coalitions that understand the vision & strategies, and accept their validity

Controlling & Problem Solving: monitoring results vs. plan in some detail, identifying deviations, and then planning & organizing to solve these problems Motivating & Inspiring: energizing people to overcome major political, bureaucratic, and resource barriers to change by satisfying very basic, but often unfulfilled, human needs

Produces a degree of predictability & order, and has the potential of consistently producing key results expected by various stakeholders (e.g. – for customers: always being on time; for stockholders: being on budget) Produces change, often to a dramatic degree, and has the potential of producing extremely useful change (e.g. – new products that customers want, new