A number of people succinctly describe the difference between leadership and management: architects vs builders, what things mean to people vs how things get done. In an entrepreneurial venture and often in a family business in the first generation, one person is often both leader and manager.
As the business evolves, sometimes it is helpful to separate those roles. In one of my tech businesses, I appointed a CEO and stepped back into a notionally non-executive director (but still 100% owner) role. The CEO was a very effective manager (better than I was), but I remained the leader. The dynamic between us worked well because I didn’t want to manage but still wanted to lead. The manager needed to be 100%, but as leader I was able to spend time on other interests.
Family business founders can’t be both leaders and managers forever, and not just because no-one lives forever. If they want other family members to step into roles within the business, they need to create the space for them. This can be scary as founders often find it hard to let go. One way to ease back is to shift from management – an executive role – to leadership – a board/governance role. This transition needs to be a step forward – embracing a new role to mitigate the effects of leaving an established role.
Consider This: Who are the leaders, managers and elders in your family enterprise? How did their roles evolve (or not evolve)? How might your role evolve?
Further reading:
- Managing A Difficult Family Business Transition
- Moving to the ‘next up’ CEO in a family business requires trust and transparency
- Tips For Working With Family And Continuing Your Family Business,
- How Great Managers And Monarchs Lead Their Kingdoms
- Why Your Family Business Needs Family Members on the Board
- How to Honor Family Heritage While Building Generational Wealth,
- It’s Not ‘Will You Lead?’ It’s ‘How Will You Lead?’
- Collaboration, division of leadership key to preserving family business
- 10 Common Mistakes To Avoid When Exiting Your Business
- When Is It Time For A Company Founder To Step Aside?
