The Differences between a CFO and a Financial Manager

All businesses all over the world are looking for leaders. They either try to do this by acquiring new talent or by developing the talent they already have. However, to do this, they must first understand the difference between a “manager” and a “leader.” According to the best online casinos, a CFO is very different from a finance manager in a small company. But what exactly is that difference? That is a debate going on for years and does not seem to be getting closer to an answer.

Order and Chaos

Over the past 35 years, human resource professionals have accepted the theory of Abraham Zaleznik on the differences between managers and leaders. He believes that the difference lies in how these two professionals view chaos and order in the deepest realms of their psyche. He believes that a manager looks for stability, order, and control. A leader, by contrast, focuses on change, even if that means going through a period of chaos.

Managers Are Controllers and Problem Solvers

Power is what controls corporate organizations. Leaders and managers alike have to have authority, and power is what gives them authority. However, that is the last of the similarities and the starting place of problems. When managers are developed, they are expected to deliver on strategies that already exist. They organize and control their teams to create accepted results. They are reactive, hard-working, persistent, and analytical.

Leaders Are Motivators and Direction Setters

A leader also needs authority and power, but they create this very differently. They have a desire that makes them more active, and they often rely on intuition, using skills that cannot be trained. They are somewhat outside of the organization’s collective, which enables them to create strategies, thinking and act outside of the box. A leader is vital because he inspires and motivates, and uses this to align people, also by being able to communicate the organization’s vision. They take risks and drive organizations into new directions. Importantly, leaders do not manage; they coach. They give people a feeling of purpose, control, and involvement in the order of the organization.

It’s all about Balance

Every organization needs to have both leaders and managers. Managers create and control a structure that others have to follow. However, too often, there are too many managers and not enough leaders. This is partly because relinquishing control, which is needed to develop leaders, is complicated, mainly because everyone currently seems to be a manager.

What seems to be needed is to enable organizations to create opportunities for the development of leadership. This means they have to embrace instability and chaos and make room for innovation and autonomy. Some of that will fail, but if they ride it out, the successes could be tremendous.

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