Managers are given the authority to accomplish certain task and objectives but this authority does not make them leaders, it simply makes them the boss. Leadership differs in that it makes the followers want to achieve goals rather than simply bossing people around.
A leader sets the rules and parameters, and a manager manages the rules and parameters the leader set forth.
Leaders set the vision and direction for a firm, a manager implements the strategy.
E. M. Kelly's quote sums it up for me:
"The difference between a boss and a leader: a boss says, 'Go!' - a leader says, 'Let's go!'"
In other words, the manager gives orders, while the leader inspires.
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