The difference between leader and leading personality

What it’s about

The following article deals with the difference between a traditional manager and a leading personality. While leaders derive their authority from formal power structures and their position within the organisation, leading personalities exert influence through their exceptional personality traits and skills such as charisma, vision and integrity, regardless of their formal position.

Definition of the terms

A leader is a person who holds a formal leadership position in an organisation and takes responsibility for directing and managing people and resources to achieve the organisation’s goals. Managers are often defined by their position in the organisational hierarchy and use authority and formal power structures to fulfil their tasks.

A leading personality, on the other hand, refers to a person who exerts natural authority and influence through their exceptional personality traits and abilities, regardless of their formal position. These individuals are characterised by charisma, vision, integrity and the ability to inspire and motivate people. They gain the trust and loyalty of others through their behaviour and values, not through their formal position.

The differences in the leadership approach

Formal vs. informal power

A leader bases their authority primarily on the formal power granted to them by the organisational structure. This power stems from their position and the associated authority, such as assigning tasks, evaluating performance and handing out rewards or sanctions.

A Leading Personality, on the other hand, exerts influence through informal power based on personal trust, respect and admiration. She does not need to have formal authority to lead others; her influence comes from her ability to communicate vision and win people over through personal example and inspirational leadership.

Leadership by instruction vs. leadership by inspiration

Managers use instructions and guidelines. They set clear goals and expectations and monitor progress to ensure that these goals are met. The leadership style is often transactional, using rewards and punishments as a means of motivation.

Leading Personalities lead through inspiration and motivation. You have the ability to develop and communicate a vision that inspires and mobilises others. Their leadership style is transformational, using personal conviction and passion to encourage the commitment and creativity of their followers.

Short-term vs. long-term orientation

Leaders often focus on short-term goals and the efficient implementation of plans. They are focused on achieving immediate results and optimising existing processes. Success is measured by clearly defined key performance indicators.

Leading Personalities have a long-term orientation. They are visionary thinkers who look beyond the current status quo and strive for sustainable change. They motivate their followers to look beyond necessary short-term gains and work towards a larger mission or vision.

Personal characteristics and skills

Charisma and influence

Not every leader needs to be charismatic to be effective. Their effectiveness can stem from their ability to organise, plan and control.

Charisma, on the other hand, is a key element of a Leading Personality. They have a natural ability to enthuse and inspire others. Their influence is based on their personality and their ability to communicate authentically and persuasively.

Empathy and emotional intelligence

A leader needs basic empathic skills to understand and effectively manage the needs and motivations of their employees. Emotional intelligence is advantageous, but not always decisive.

In contrast, Leading Personalities are characterised by high emotional intelligence. They are able to create deeper interpersonal connections based on trust and understanding. This skill enables them to reach and motivate others on an emotional level.

Integrity and authenticity

Integrity is also an important characteristic for leaders, as it must build trust and ensure credibility. However, a leader can be effective without being fully authentic as long as they meet the expectations and regulations of the organisation.

Integrity and authenticity are key characteristics of a Leading Personality. These individuals are perceived as genuine and credible because they act in accordance with their values and do not compromise their beliefs. This authenticity inspires others and creates a strong emotional bond.

Impact on the organisation

Employee engagement and satisfaction

Managers create a productive working environment through clear instructions and reward systems. However, employee engagement is often limited as they see themselves as merely fulfilling tasks.

Leading Personalities generate higher levels of engagement and satisfaction by appealing to the intrinsic motivation of their followers. Employees feel valued and inspired, which leads to higher productivity and loyalty.

Innovative strength and willingness to change

Leaders encourage innovation by implementing structures and processes that support creativity. Their ability to manage change depends on their competence in change management.

Leading Personalities drive innovation by fostering a culture of openness and creative thinking. They inspire their followers to be bold and pursue new ideas, which can lead to breakthrough change.

Organisational culture

Leaders influence culture by enforcing rules and expectations. While the culture may be stable and efficient, it may lack dynamic and passionate energy.

Leading Personalities shape the culture through their vision and behaviour. They create an inspiring and dynamic environment where employees strive to do their best and continuously develop.

Conclusion

While leaders and leading personalities both play important roles in organisations, they differ fundamentally in their approach, their methods and the impact they have on their environment. Managers work within formal structures and use their authority to achieve goals, while Leading Personalities make a deeper and more lasting impact through personal integrity, charisma and the ability to inspire. An effective organisation can benefit from both types of leadership, with the challenge being to put the right people in the right positions to ensure both short-term efficiency and long-term transformation.