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166 | The ABC of XYZ Leading and managing | 167
Here’s a snapshot summary of the differences between man-
agers and leaders taken from our research and reviews:
Table 8.1 Managers versus leaders
Managers Leaders
Administrative Innovate
Focus on policies &procedures
Focus on people &teams
IQ & technical skills EQ & people skil ls
Systems structured Vision dr iven
Rules based Values based
Control Trust
Short term Long term
Provide answers Ask big questions
Who & when Why & how
Bottom line Triple bottom line
Recruit Train
Positional Relational
Accept Challenge
Do things right Do the right things
The biggest difference is not one of practice but pr iorities.Leaders and managers often have the same responsibilities,
but very different starting points.
Meaning > Mission (Why)
Team > Task (What)
Relational > Positional (How)
When it comes to one’s raison d’être – the ‘why’ of the
role – the differences between the two become clear. The
manager starts with the mission: ‘Give me a mission and I
ill hi f b i b i li h ’
Ever ‘on task’, the manager achieves meaning by doing.
The leader, however, takes a few steps back from the
mission or task and asks some meaning or purpose ques-
tions: ‘Why do we as an organisation exist? Who are our
customers and our stakeholders? How can we make a dif-ference for all our stakeholders?’ In other words, the leaders
don’t jump straight in to answering questions – rst they
ask a few. Leaders focus on the big picture and the long
term, not just the immediate and the urgent. Let’s be clear:
leaders get to the mission and the task – it is just that they
don’t start there.
It is similar when it comes to the ‘what we do’. Man-
agers begin with the task – and will even recruit the team
based on the task. They are truly task-driven compared tothe leader who is people-centred. To the leader, task mat-
ters – but it is accomplished with the team rather than
through the team. Leaders talk ‘people’ and ‘teams’ rather
than ‘human resources’ and ‘talent’. With a long-term view
of their role, they train and inspire their people to achieve
and accomplish tasks rst. It is easy to spot the differences in
an outdoor ‘team-building’ task. When approaching a new
scenario, the managers look at the equipment and count
the ropes and planks, while the leaders gather the team in ahuddle to gauge morale and discover specialist skills.
And how do they do it? Leaders rely on their relational
skills, not positional ranks, as today people respond better
to emotional rather than rational appeals. Highlighting this,
scientists have been tracking climate change for the last 20
years, yet it has only been in the last 20 months that the
climate-change message has got traction in the community.
One reason for this is that while ever the message was a
i l i i l i i d li i d h i i
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168 | The ABC of XYZ Leading and managing | 169
community. However, the moment Al Gore’s documentary
An Inconvenient Truth was viewed en masse, the message was
imparted visually. Pictures of icebergs melting and sea lev-
els rising engaged the community viscerally, which no sci-
entic papers could ever do. It moved the debate from arational argument to an emotional one. Al Gore connected
with hearts and not just heads – ironically something he
could not quite do when running for president.
For any leader it is about connecting relationally and not
just cognitively. Structures are secondary to the teams and
the dynamics – people follow them because people trust
and respect them. Rank is secondary to the relationship. In
the pragmatic words of leadership expert John Maxwell: ‘If
you’re leading and no one’s following – you’re just out for
a walk.’3
The right leadership style will not only assist with effec-
tive work outcomes – it will also help with Gen Y reten-
tion. Our analysis of the causes of employee turnover showsthe central role that good leadership plays in employee
retention. Specically, 42 per cent of Gen Y-ers surveyed
reported that poor management and leadership was the
main reason for leaving their previous role.4
Gen Y-ers do not respond well to hierarchical leadership
structures. Figure 8.1 represents the traditional top-down
leadership model. The chain of command is represented by
the arrows which all point one way and the departments
are pictured as separate silos. The leader has been promotedfrom one of these departments and while the leader has the
authority, they don’t have the cross-functional experience.
Unlike older generations, the respect of Gen Y is not
gained through age or rank alone. Even in their primary
Table 8.2 Famous leaders who influenced across the
generations
Builders Boomers X-ers Y-ers
Political WinstonChurchill
John FKennedy
NelsonMandela
Barack Obama
Economic Walt Disney(children’sanimatedlms)
Lee Iacocca(Ford/Chrysler)
OprahWinfrey(televisionpersonality)
HeidiMiddleton& Sarah-JaneClark (Sass &
Bide – fashionlabel)
Infamous Joseph Stalin Fidel Castro AyatollahRuhollahKhomeini
RobertMugabe
Social MohandasGandhi
Martin Luther King Jnr
Mother Teresaof Calcutta
Paul DavidHewson(Bono)
Cultural Frank Sinatra John Lennon StephenSpielberg
Cate Blanchett
Religious DietrichBonhoeffer
Billy Graham Dalai Lama Benedict XVI
L
FINANCE OPERATIONS MARKETING
Figure 8.1 20th-century leadership – command and
control
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170 | The ABC of XYZ Leading and managing | 171
years they were given leadership opportunities and encour-
aged to challenge and independently evaluate other’s deci-
sions. In many ways they are Generation ‘Why!’ As a result,
Gen Y has brought new values to the workplace. Y-ers
expect to be treated as equals, they expect to have choicesand input into decision-making processes, expectations that
run counter to hierarchical systems of leadership. Support-
ing this is the statistic that 97 per cent of Gen Y-ers value
a leadership style that involves empowerment, consultation
and partnership, and would leave if they did not get it.5
Figure 8.2 represents this at leadership structure. The
ideal manager is one who values communication and cre-
ates an environment of transparency and respect for staff.
Their preferred leadership style is simply one that is moreconsensus than command, more participative than auto-
cratic, and more exible and organic than structured and
hierarchical.
Also, because today’s young people have received sup-
port from parents and teachers longer than any other gen-
eration, they want a supportive leader, but not in an overly
structured way. The following quote from Australian Eti-
quette , written in 1959, illustrates just how much the lead-
ership structures have changed – from the hierarchal or
positional to the atter or relational:
If an employee is summoned to the employer’s room, he
must remain standing until his chief indicates a seat. At
the conclusion of the interview he must leave as quietly as
possible, closing the door gently after him. If a junior meets
his employer in the lift or in the street he should bow but
must not enter into conversation unless rst addressed. If an
employee has a need to send a letter to his chief he should
commence it with the words ‘Dear sir’ and conclude with
the words ‘Yours obediently’.
Leadership and management stylesSo what leadership and management styles work best?
Authoritarian
Style: The positional leader relying on rank and role
Verdict: Might be acceptable in the military or in the 1950s
– but not today
Directing
Style: Leader points the way from afar and delegates thetasks
Verdict: Our young workers want guidance not gurus, men-
toring not micromanagement. In fact, when asked what
they admired most about older colleagues, X and Y partici-
pants in our survey on the generations at work selected the
following above all other options: ‘They are good mentors
and I learn much from them.’6
L
L
L
L
L
L
L
L
Figure 8.2 21st-century leadership – collaboration and
cooperation
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172 | The ABC of XYZ Leading and managing | 173
Consulting
Style: Leader asks the questions and includes the team
Verdict: A good approach. Gen Y has opinions and wants
to voice them. In the same survey, we asked Gens X and Y
participants what bothered them most about older workers.Of the ve choices g iven to them, the majority of partici-
pants selected: ‘They often stop fresh and innovative ideas
from taking effect.’ 7
Involving
Style: The participative leader – leading from within and
leading by example
Verdict: This generation loves a leader who empowers the
team. In a study of Australian Gen Y-ers, ‘being a good lis-tener’ and ‘leading by example’ were among the top ve
characteristics of effective leadership.8
Coaching
Style: Leadership that is not a positional role but more an
inuence relationship
Verdict: This style is ideal for Gen Y.
The leader as coach recognises that the positional
approach which relies on rank and role is less effective
today. Yet the other leadership extreme of an overly rela-
tional approach is equally inappropriate, in that it fails togive clear direction, frameworks and constructive feedback.
Balance is the key. In the mid-ground the leader asks the
questions and includes the team. The leader is participa-
tive – leading from within and leading by example – and so
both directs and empowers the team. This style of leader-
ship is not a positional role but more an inuence relation-
ship. It is more coach than commander.
Figure 8.4 shows the traditional employment model:
pour a lot of staff in the top in the knowledge that manywill fall away but the best will eventually emerge. When the
population structure mirrored this employment structure
Figure 8.3 The positional–relational continuum
PERSONAL RELATIONAL
FUNNEL
Figure 8.4 20th-century employment model
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174 | The ABC of XYZ Leading and managing | 175
(a large supply of emerging workers) this model worked
ne. But this is not the situation today or into the future.
If we don’t like our staff we can’t simply get rid of them
and reach into the labour market to grab another – as dis-
cussed earlier, the full-time labour market is both ageing
and shrinking.
In the 21st century it is sometimes hard to know who ispart of the organisation. The structure is uid and the doors
are open. Some are regular staff, others part-time, casual,
contracted or employed purely for a project. Figure 8.5 also
shows that, today, people may leave – but they may return
again. It employs with an expectation on function and cur-
rent task and not on seniority and longevity.
So how can employers and other leaders effectively
guide Gen Y-ers? Below are some points to remember in
• Move from ‘knowing the way’ to ‘showing the way’–
instead of ‘command and control’ leadership, Gen Y-ers
respond to ‘consensus and collaborative’ leadership.
• Adopt people-centred leadership – when asked what
qualities they value in leadership, Y-ers reportedvaluing leader honesty, reliability and loyalty. They
desired leaders who were energetic and inspir ing, who
maintained a team focus.
• Move from IQ to EQ – try to develop your emotional
intelligence (EQ) and that of your leaders, as it is the
dimension of leadership Generation Y best responds to.
From looking at leading and managing the younger genera-
tions, we now move on to marketing and selling to them.
Figure 8.5 21st-century employment model
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BOOKS
The ABC of XYZ: Understanding the Global Generations by Mark
McCrindle, with Emily Wolfinger. 238 pages. Published by UNSW
Press, 2011. RRP $30.00
From explaining the labels and quantifying the numbers to outlining
the definitive events of each generation, the best-selling The ABC of
XYZ is a comprehensive and fascinating look at the generations.
The ABC of XYZ is a rollicking journey across time, generations and values that
has been forensically dissected by one of the best social analysts i n Australia.
Bernard Salt, Demographer & columnist; Partner, KPMG
The Power of Good: True stories of great kindness from total
strangers by Mark McCrindle. 232 pages. Published by Hybrid
Publishers, 2011. RRP $24.95
Seventy short, heart-warming stories of acts of kindness by strangers
with contributions by prominent Australians, including Jean Kittson,
Peter FitzSimons, Tracey Spicer, Father Chris Riley, and many others.
This book provides many examples of the power of doing good works, the
betterment conferred in so many different ways and, on occasions, leading to
the saving of lives. Tim Fischer A.C. Former Deputy Prime Minister
Word Up: A Lexicon and Guide to Communication in the 21st
Century by Mark McCrindle. 208 pages. Published by Halstead Press,2011. RRP $30.00
A fascinating insight into how English changes, a quirky look at youth
slang today, and a window into the minds of the different generations.
Mark McCrindle deserves a medal. Mapless, he’s entered the alien t errains of
text-speak, web slang, Gen-Z dialect, among other domains, and returned with
a guidebook should we ever lose our way.
David Astle, Co-host of Letters and Numbers (SBS TV),columnist and crossword compiler
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