Key Idea

A common misconception about leadership is that it's the province of a chosen few. Some think that it's just a matter of possessing certain quasi-mystical traits — like charisma and vision — which you either have or you don't.

The fact of the matter is that leadership skills are not innate. They can be acquired and honed.

In order to understand what leaders do, it is important to understand the difference between management and leadership. They are two distinct and complementary systems of action.

Management involves coping with complexity; leadership, coping with change.

Managing requires bringing order and predictability to a situation, while leading requires adapting to changing circumstances — an increasingly important skill in today's volatile and competitive business environment. As such, the work of management is significantly different from the work of leadership.

For example, while managing requires planning and budgeting skills, leading requires the ability to set direction. Organizing and staffing are management tasks, whereas aligning people falls under the domain of leadership. Finally, while managing concerns controlling and problem solving, leading is about motivating and inspiring a team.