Leadership vs. Management: What Women in Finance Need to Know
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Compared to 30 years ago, women today have far greater representation and visibility in the workplace.
Yet, men still dominate management and leadership positions in organisations, i.e. CEO, senior, and executive-level positions. According to the Central Statistics Office (CSO), women make up less than 20 per cent of CEO roles and account for fewer than one-third of senior executive team positions.
While leadership and management are often closely intertwined, they are not the same.
Are leaders always managers, or are managers necessarily leaders?
The answer is no—leadership and management are distinct, and individuals may excel in one without necessarily being effective in the other.
So, what does it take to become a good leader?
Vision comes up repeatedly in discussions of leadership: a leader is someone who inspires people and moves them toward a shared goal, aligning individuals to work together effectively. This is not necessarily someone in a senior role; for many men and women alike, it could be the colleague sitting beside them who offers support, encouragement, and guidance, it might be a family member who has empowered them through empathy, or a manager who continually challenges them to reach their potential.
Good leaders embody the foundation of their organisation and current situation, while having a clear vision and direction and with expectations of today’s leaders intensifying, this has never been more significant.
What does it take to be an effective manager?
While leadership focuses more on the vision, management focuses more on practices/processes. High-performing teams are driven by high-performing managers, with communication being one of the top requisites for a good manager. Incorporating a culture of constructive feedback, i.e. promoting a cycle of listening, learning and advising, is crucial for this. Coaching and mentoring toward clearly defined goals, whether individually within the workplace or collectively as a team aligned with the organisation’s objectives, are fundamental to effective management. Setting goals in advance, working collaboratively to achieve them, and maintaining accountability are what distinguish strong and effective managers.
Through the FFAC, we aim to actively contribute to stronger careers, stronger organisations, and a more inclusive future of leadership in the financial services sector. According to the International Labour Organisation, organisations with women in decision-making positions achieve higher levels of innovation and more resilient growth. With the creation of FFAC, our goal was to build a supportive community that empowers women to excel in their careers by providing relevant information, shared experiences, and meaningful connections. Our community brings together women currently in leadership and management roles, as well as those who are proactively preparing for the next stage of their professional journey.
To conclude, while management and leadership are not the same, both are essential and are reflected in how we and those around us embrace and put these attributes into practice to progress in our careers. These characteristics often appear in small but meaningful ways, from offering a helping hand to upholding high standards and accountability in everyday achievements. So, do not hesitate to showcase these qualities. If you have them, let them shine or if you got it – FLAUNT IT!
Join the Female Financial Advisory Circle
The FFAC is a peer-led community for professionals across financial advisory, built around real conversations, shared experience, and meaningful support at every stage of a career.
Join the community today.