The Difference Between Leadership and Management: Why it Matters for Your Trade Business

Have you ever met someone who inspired you to be better, someone who made you believe you could achieve more than you ever imagined?

Running a successful trade business means getting more from the team than the sum of their parts. It might not be obvious, but if you want to be the Rassie Erasmus of your business to lead it to greatness, you need to do more than tell the team what to do. You need to inspire them to want to do it.

It’s not just about teaching technical skills, but also making them passionate about your trade so that they do a great job for you and your customers, perhaps even guiding them toward the possibility of running their own trade business one day.

South Africa was never meant to win the World Cup in 2023 – it took visionary leadership and effective management every step of the way.

But how?

According to research

, effective leadership can improve employee satisfaction and motivation, leading to improved productivity, positive work culture, and overall business success.

So, what exactly sets leadership apart from management, and why does it matter in the world of trade businesses?

Let's dive into these questions and explore how they shape your trade business.

What is Management?

What is Leadership?

What is the Difference Between Leadership and Management?

Leaders Create the Vision, Managers Follow It

Leaders Inspire, Managers Ensure Success

Leaders Look Forward, Managers Act Now

Where Does Management and Leadership Overlap?

How Effective Leadership can Help you Grow Your Trade Business

Management boils down to telling someone what to do. It involves coordinating tasks, allocating resources, and ensuring that operations run smoothly.

As a trade business owner, you might find yourself wearing the manager hat more often than not, focusing on the day-to-day operations and ensuring that projects are completed on scope, time and within budget.

It's about equipping your team with the knowledge and expertise they need to carry out their roles effectively and efficiently. But while management is essential for maintaining order and productivity, it's only one piece of the puzzle.

Learn more about the basics of people management for tradespeople here.

Leadership is more than just giving people instructions; it's about making them want to do their best - for themselves, each other, and your customers. Leaders inspire their team members to reach their full potential, creating a sense of purpose and motivation.

In a trade business, leadership goes beyond mastering your trade; it’s the ability to create a vision and inspire others to help you achieve it.

It’s about creating an environment where your team feels like they can take ownership of their work and contribute meaningfully to your company’s goals.

Learn more about what leadership is in

this video

.

Leaders set the vision that guides a business. You need to have a clear understanding of where you want the business to go and share this vision with your team.

Managers, on the other hand, help you to bring this vision to life. They translate these goals into actionable plans, delegate tasks and ensure that progress helps achieve these goals.

Imagine you're a small plumbing business owner in Johannesburg, inspired by the growing demand for water conservation solutions due to the recent water-shedding. You imagine offering innovative water-saving plumbing solutions to homes and businesses across the city, helping customers reduce their water consumption and environmental impact.

As a leader you might want to ask your team to explore new technologies and methods for conserving water, such as rainwater harvesting systems and greywater recycling. You’d use their inputs to refining your company’s offering - then work together towards delivering your vision.

As a result of collaborating on refining the vision into a strategy and plan, they will feel stronger ownership to deliver it.

Check out this video

to learn more about what a vision is.

Leadership is not just about giving orders; it's about inspiring your team to reach their full potential. A true leader motivates their team members by example, living the values and principles they want to encourage. They lead with empathy, understanding the unique strengths and aspirations of each team member and leveraging them to drive collective success.

Managers, on the other hand, play a key role in driving the success of the team. They provide the necessary support and resources to enable their team members to excel in their roles. From offering training and development opportunities to facilitating clear communication channels, managers lay the foundation for a cohesive and high-performing team.

For example, as a plumbing business owner, you inspire your team with a vision of exceptional customer service and innovative solutions. Your leadership motivates them to strive for excellence in every job.

Meanwhile, your managers ensure success by overseeing operations, managing schedules, and meeting customer needs promptly and efficiently. Together, your leadership and management create a culture of excellence and innovation within your plumbing business.

Learn more about how to inspire your team in

this video

.

Leadership is by nature forward-thinking, focusing on long-term goals and aspirations. Leaders anticipate market trends, identify emerging opportunities, and adapt their strategies to stay ahead of the curve.

Managers, on the other hand, operate in the present, ensuring that day-to-day operations run smoothly and efficiently. They are adept at problem-solving and decision-making, addressing immediate challenges and seizing opportunities as they arise.

For example, you might foresee the rising demand for smart plumbing systems that conserve water and reduce energy consumption. You lead your team by emphasising the importance of staying ahead of industry trends and adopting innovative technologies.

While you focus on envisioning the future of plumbing, your managers take swift action by researching the latest smart plumbing solutions, evaluating their feasibility, and implementing them in ongoing projects.

This forward-thinking approach ensures that your plumbing business remains at the forefront of innovation, meeting the changing needs of customers while ensuring maximum efficiency and sustainability.

Check out this video

to learn more about how to look to the future and adapt to changing times.

While leadership and management represent different aspects of running a trade business, there are areas where these roles overlap. Understanding and using these connections can improve both your leadership and how you manage things.

Good communication is important for both leaders and managers. It helps everyone understand the vision and goals of the business, and it makes it easier to get things done smoothly.

Leaders share their big ideas and motivate the team to work towards them. Managers keep communication open and help everyone work together well by sharing tasks and making sure everyone knows what they're responsible for.

Both leaders and managers empower the team to make decisions and take ownership of their work, which helps the team feel more involved and responsible.

In the end, how well your trade business does depends on how you balance leading and managing.

Learn more about the difference between leadership and management in

this video

.

Knowing the difference between leadership and management is critical for your trade business to do well. You need both roles to make your business succeed and last. By understanding what each role does and how they help, you can create a workplace where everyone works together and does their best.

As a trade business owner, you're not just in charge of leading or managing – you're both. By being a good leader and manager, you can motivate your team to do great things while making sure everything runs smoothly.