Leadership, Management, Administration—What’s the Difference?

Source: Accounting Today

The following is based on an article by L. Gary Boomer. At the end of this article is a link to the entire article, which may be critical to a complete understanding of this topic.

The roles of leader, manager, and administrator are not the same.

Leaders have vision and are involved in planning.

Managers are the people who implement plans.

Administrators do the jobs necessary to support and facilitate the implementation.

In small firms, one person may do all three jobs. In large firms, most partners are not involved in the process. Most of them are contributors to team efforts but not managers, leaders, or administrators.

Firms seem able to handle the administrator roles, but preparing people to be managers and leaders is challenging. Formal training is necessary.

Good management is crucial to staff retention.

Partners often perceive these roles as overhead. This is a dangerous attitude that will hamper performance and growth. Advice to firms on how to improve these roles includes:

• Support leaders with managers and administrators.
• Use testing such as Kolbe Index and Synergy Report.
• Use non-accountants where possible.
• Provide personal development programs for all personnel, including partners.
• Structure the firm’s plans in terms of output, not input. The billing function should be managed by a few people and should not be the responsibility of each partner.
• Performance and growth will not occur without accountability and employee recognition.

For the complete article, click here and select "The Different Levels of Leadership."

From Accounting Today, February 25, 2008, SourceMedia Inc., One State Street Plaza, 27th Floor, New York, NY 10004, 800-221-1809.

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