There are many schools of thought on the difference between leadership and management, which can be more confusing than enlightening. To establish a common understanding of leadership, Professor Watkins defines effective leaders as those who “mobilize, focus and sustain sources of potential energy in people and organizations to achieve the desired goals.” They define and communicate the company’s business mission/vision, establish business goals and strategies, design and transform organizational systems, shape organizational decision making, negotiate and build alliances, drive flawless execution and foster organizational learning and adaptation. There are three levels of leadership: personal, people and business, each calling for different skills and capabilities. The biggest shift occurs in the transition from people to business leadership, when the need for both delegation and well-thought internal and external communication are crucial.
Research shows that there are seven seismic shifts1 that take place when leaders make the transition from leading one function to leading an enterprise, taking responsibility for profit and loss and the oversight of executives across corporate functions.
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