Leader vs. Leadership: Understand the Differences

While leadership and the role of a leader are naturally intertwined,  understanding their differences is important. In this article, we look at the key differences between a leader and leadership to better understand both concepts and their importance in the business world.

A leader is someone who has the power to influence and guide a team toward their shared goals. Others often see them as visionaries with charisma, integrity, and a talent for motivating others.

But leadership is a bit different. It’s all about taking the reins, showing initiative, making decisions, and inspiring others to work together toward a common vision. It’s about helping to create a culture where everyone feels empowered to contribute their best.

By understanding the difference between these two concepts, you can assess your own leadership strengths and weaknesses and figure out what it takes to be an effective leader.

Keep reading to gain insights into what makes a successful leader and discover ways to improve your leadership skills. By the end, you’ll have a solid understanding of what leader and leadership really mean.

Differences between a leader and leadership

While “leader” and “leadership” may seem like two sides of the same coin, there are plenty of nuanced differences.

A leader is like the captain of a ship—they’re at the helm, making all the big decisions. Examples of leaders in the workplace include CEOs, managers, startup entrepreneurs, and team leaders.

But leadership is more like steering the ship—inspiring, guiding, and rallying the crew to reach a common goal.

That’s why understanding the difference is crucial for businesses. A business can run more smoothly and achieve its goals more efficiently by having leaders who have intentionally developed their leadership skills.

Some other differences between a leader and leadership include:

• A leader is a person; leadership is a process.
• A leader may have a designated position or title; anyone can demonstrate leadership regardless of their formal role or title.
• A leader may focus on maintaining the status quo; leadership involves taking risks and embracing change to achieve a desired outcome.
• Leaders may use their power to control others; leadership involves inspiring and empowering others to achieve a common goal.
• A leader may lead by command; leadership involves collaboration and negotiation.
• A leader may have a narrow focus on achieving specific goals; leadership involves a broader vision for the organization or group.
• A leader may have a singular approach to problem-solving; leadership involves adapting to new challenges and finding creative solutions.
• A leader may have a rigid approach to decision-making; leadership involves being flexible and open-minded.
• A leader may be focused on personal gain or recognition; leadership involves putting the needs of the group or organization first.

These differences highlight the dynamic nature of leadership and the importance of cultivating a leadership-focused culture within a company. By encouraging leadership from everyone in the organization, companies can be more innovative, adaptable, and successful in solving problems and making decisions.

The characteristics of a great leader

A true leader gets their team fired up and moving toward a common goal. They have a unique blend of personality traits, skills, and life experiences that sets them apart from others in the workplace.

Some traits that make a leader stand out include:

• Vision. A leader has a clear, inspiring idea of what they want the future to look like, and they’re great at sharing it with others in a way that gets them on board.
• Charisma. Leaders have magnetic personalities that motivate others to follow their lead.
• Integrity. People trust and respect leaders because they’re known for being honest and doing the right thing.
• Decision-making. Leaders have the confidence to make tough decisions and stick to them.
• Empathy. A good leader gets where others are coming from and creates a positive, inclusive work environment.
• Adaptability. Leaders can roll with the punches and devise creative solutions to challenges.
• Communication. Leaders are excellent at expressing their ideas and vision.
• Confidence. Leaders have strong self-assurance that inspires others to follow them.

An effective leader can balance these traits and skills to guide a group of people to success.

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Types of leaders

There are various types of business leaders, each with their own style and approach to leading others. Four of the most commonly recognized leadership styles are:

• Autocratic. Autocratic leaders make decisions independently without seeking input from others. They have a top-down approach to leadership and are known for their strict control and rigid decision-making, sometimes even micromanaging. Examples of autocratic leaders in business include military commanders and CEOs of traditional hierarchical organizations.
• Transformational. Transformational leaders inspire and motivate their followers to reach their full potential. They have a charismatic and energetic approach to leadership and focus on creating a positive and inclusive work environment. Examples of the transformational leadership style in business include methods used by leaders like Steve Jobs.
• Servant. Servant leaders prioritize the needs of their team and focus on empowering and supporting their followers. They have a collaborative and selfless approach to leadership and are known for their strong commitment to ethical behavior. Examples of servant leaders in business can be found in the corporate cultures at companies including Marriott and Zappos, whose core values are people-first and encourage a free-thinking atmosphere.
• Laissez-faire. Laissez-faire leaders delegate responsibility to their team and provide minimal direction or support. They have a hands-off approach to leadership and are known for relying on their followers’ autonomy and skill sets. Examples of laissez-faire leaders include consultants and project managers working day to day with highly skilled and experienced teams.

Different organizations and teams may require different leadership styles, and effective leaders can often adapt their style to meet the needs of their team. Understanding the different leadership styles can help individuals identify their strengths and weaknesses and develop the skills necessary to become even better leaders.

The practice of leadership

Business professionals demonstrate leadership in many ways, and each individual has unique ways of doing so. And just because someone doesn’t hold a formal leadership position doesn’t mean they can’t serve as a great leader.

Strong leadership often involves leading through example. This process means modeling good communication skills, decision-making, creativity, and problem-solving to guide the team toward shared goals.

Great leaders should also create an environment that encourages collaboration among team members. By building trust within their team, leaders can drive progress by aligning everyone’s efforts with a shared goal.

Professionals can develop leadership skills through practice and experience. When trying to develop as a leader, consider how you communicate and handle different situations.

Practicing leadership also involves adjusting as needed. What works for one team or project may not work for another. Successful leaders recognize this fact and adapt accordingly.‍

Leadership in action  

Leadership in action refers to the observable behaviors and actions that demonstrate effective leadership. Some examples include:

• Encouraging open communication and collaboration
• Providing clear direction and guidance
• Empowering others to take ownership and responsibility for their work
• Speaking up for something or someone that matters
• Celebrating the success and contributions of team members
• Addressing challenges in a constructive, proactive manner
• Investing in personal and professional development to continually improve

By demonstrating leadership in action, individuals can help create a positive and productive work environment—playing an instrumental role in driving the success of their organization.

The relationship between a leader and leadership

The relationship between a leader and leadership is symbiotic, where a leader embodies the qualities and behaviors of effective leadership, and leadership is demonstrated through the leader’s actions. A leader who embodies leadership is a formal authority figure and a role model who inspires and guides others.

Leadership can exist in a group even without a designated leader, as leadership is a process that anyone can exercise. This dynamic is known as distributed leadership, where group members share leadership responsibilities.

Examples of leadership in a group without a designated leader include:

• Team collaboration. A team that communicates and problem-solves collaboratively demonstrates leadership through collective efforts.
• Shared decision-making. A group that makes decisions through consensus, valuing the input of all members, demonstrates democratic leadership.
• Empowerment and delegation. A group that delegates responsibilities based on the strengths and interests of each member demonstrates leadership by empowering one another.
• Innovation and creativity. A group that supports new ideas demonstrates leadership by driving progress.

By embracing leadership and encouraging its different forms, teams can work toward shared goals and drive positive change, even without formal leadership roles.

The importance of both a leader and leadership for an organization

When a leader and leadership come together, they create a synergistic relationship where each supports the other.

A leader who inspires and guides others to take action can help make a positive impact, while a culture of leadership further drives that vision. This relationship creates a positive environment where everyone works toward a common goal.

Develop leadership within your business with help from Upwork

A leader and leadership are key elements for business success. A leader provides guidance and vision, while leadership involves influencing a group to reach its goals.

Cultivating leadership skills within an organization is important and can be done through speaking up, making wise decisions, learning from successes and failures, leading by example, and fulfilling duties.

It’s also important to work with professionals specializing in leadership development. Engaging professionals through Upwork can give businesses access to a wide pool of talented individuals who can help them improve their leadership skills.

If you’re a professional in leadership development, you can also find freelance leadership jobs on Upwork. Numerous jobs allow you to use your skills to help businesses build cultures that encourage leadership.

Whether you’re a business looking to improve your leadership skills or a professional in leadership development looking for work, Upwork is here to help!