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Are you directing or leading…

Did you know that every business has one thing in common? There are 10 departments in every business, no matter how small. These are:

  1. Shareholder.
  2. Director.
  3. Leadership.
  4. Product / Service Development.
  5. Operations.
  6. Marketing.
  7. Sales.
  8. Finance.
  9. Admin / IT.
  10. HR.

Many business owners control multiple departments and where many if not all of them. Now imagine each department has a hat – worn by the single leader of each department. The secret to the success of your organisation structure is to understand the key differences between the departments (and their responsibilities), to understand which hats you’re wearing, and most importantly, to make sure none of your hats is being neglected.

So, what’s the difference between wearing the Director hat and the Leadership hat? In a nutshell, Director is a strategic role and Leadership is an operational role.

Eight key differences between Directors and Leaders:

  1. Directors maximise shareholder value; the Leader maximises business efficiency.
  2. Directors set the plan; the Leader implements the plan.
  3. Directors have governance responsibilities; the Leader has leadership and management responsibilities.
  4. Directors work ON the business; the Leader works IN the business.
  5. Directors mitigate risks and set policy; the Leader implements the policy.
  6. Directors have a strategic focus (big picture); the Leader has an operational focus (makes it happen).
  7. Directors establish the business model and structure; the Leader implements the model and manages performance.
  8. Directors have no accountability line to the team, except to the Leader; the Leader holds the team to account.

Getting your structure right and developing your strategy are critical foundations for achieving business success.

Understanding the difference between the Director hat and the Leadership hat is fundamental. The Directors set the plan and the Leader engages and empowers the team to deliver on that plan. After all, it’s your team who must be engaged in your plan for it to become a reality.

Now, ask yourself how well you are living into the Director hat. And, what three things could you do better as a Leader? Finally, what support do you need to lift your business performance to the next level?

We can help you build a sustainable, scalable, and ultimately, saleable business. Get in touch for more information and how we can help you unravel your businesses ideal 10 hats. This process will not only help with your next job hire but where you most need an expert, extra help or to outsource.

‘If there’s a way to do it better… find it.’ – Thomas A. Edison