Distinctions

The world of corporate oversight, profitability, and managerial leadership has been muddied for decades. Using corporate earnings as a measure, we see profits skyrocketing. At the same time, employee disengagement is proliferating. The current buzzword, mentioned recently in a blog, is Quiet Quitting, whereby workers do only as much as required to keep earning their salary.  

A few years ago Disney CEO Bob Iger retired. Mr. Iger was replaced by his handpicked successor, Bob Chapek. With earnings trending down almost 40% under Chapek, recent headlines were abuzz: Chapek was fired and replaced by Iger. 

Recently, in another realm, we heard House Majority Leader Nancy Pelosi tell House colleagues she would not run for a leadership position in the next Congress. I will avoid a partisan statement, encouraging us instead to examine some of Speaker Pelosi and Mr. Iger’s comments. They illustrate essential distinctions between management and leadership. 

First, Congress is a body of Representatives, not a corporate entity. It is, by its very nature, a Congress of elected officials each representing specific districts. Congress’ role is to come together to uphold our Constitution and work together for the betterment of the whole country as well as smaller constituencies.  

Second, ours is a two-party system in which each caucus elects one of its peers to lead the caucus. Their role is to lead and guide. They do this by engaging, persuading, influencing, and bargaining with members of their caucus. 

Speaker Pelosi was eloquent and inspiring in her remarks, providing a primer on the role of elected officials in the House. Although Congress has important work to do, this government body is not a business or corporation. There are no profits or earnings to be made while in service of the people.  

This differs dramatically from corporations, particularly large work systems, whose purpose is to provide products and services to the populus, allowing for the population and shareholders to thrive. Just think about it. Businesses are the bedrock upon which our communities are built. This is a key distinction. Management bodies, executives, business unit heads, managers, and directors are authorized to provide direction, oversight, counsel, and resources to their employees. The goal: to develop quality products and services.  

In corporate settings, this system is known as Accountable Managerial Leadership.  A company’s effectiveness is measured by the outputs of its employees. A boss’ effectiveness is, in turn, judged based on the outputs of their workers and their own personal effectiveness. 

The effectiveness of Congressional leaders and employed people with the title of leader is based upon their competency, trustworthiness, and persuasion skills. These leadership roles garner power over others.  

Leaders are not managers-they don’t have to account for the delivery of products and services to the public or worry about profitability. However, there is a component of leadership in all managerial roles. 

Words matter. Distinctions are important. Words set the tone and carry energy. What kind of tone or energy are you setting in your organization?

I’d love to know your thoughts on this. Write or call me.