From managing to leading

There are three types of work* that get done in an organization:


1. Transactional work such as administrative and order taking, which benefits individuals


2. Tactical work which is solution focused and benefits employee workgroups


3. Strategic work which is long-term in nature and is


       a. Linked to one or more business goals


       b. Solution-neutral in initial stages


       c. Requires multiple solutions or tactics to be implemented


       d. Benefits  business units and perhaps the entire enterprise

 The emphasis on each type of work shifts as executives rise to become managers and then leaders. While executives are focused on the Transactional, the emphasis of activities shift to more of the Tactical when he becomes a manager. And finally, when he rises to the leadership position, his focus move strategic activities which are long-term in nature.

The activities also define the evolution of  an executive to a leader. However in reality, and more so with entrepreneurs, the nature of activities are more often than not, restricted to the first two - the Transactional and the Tactical. Why is this so? In my experience with my clients, it is because the entrepreneur/leader does not want to move away  from the activities which he likes to do, or else finds himself comfortable doing. There is the risk of failure lurking somewhere in his mind.

Leaders could take a lesson from the leadership style of Kumaramangalam Birla. He leaves all day-to-day operations to his professional managers and focuses only on Strategic thinking and activities.Except when the occasion demands - which is when he has to prove a point, or show his people that something they believe cannot be done, can be done. As happened when Birla overruled his managers  and took the risky decision to buy Novelis for $6billion. Since the decision was his, he took it upon himself to prove to his managers that it was right. 

The Economic Times has a very interesting  account of the turnaround story

*Source: Robinson, D. G., & Robinson, J. C. (2005). Strategic business partner: Aligning people strategies with business goals. San Francisco: Berrett-Koehler Publishers, Inc.