Contractor's journey to self-mastery requires discipline, integrity, and respect. Welcome to Hammer and Grind. Hey, welcome back to the podcast. On this episode, we're going to be talking about leading versus managing. Understanding the differences between the two so that we can have more success in our business. So I think it's important here that we got to kind of define what the... The two differences are what's the definition of leadership and what's the definition of management. So leadership is it involves guiding, inspiring, motivating a group towards achieving a visionary goal. Leaders are often seen as visionaries and motivators. Managers is management focuses on administering and ensuring that the organizational systems and day to day operations are running efficiently. Managers are often seen as organizers and stabilizers. So obviously this is kind of like speaking in more of a corporate structure where you have all these things in place, but the general concept and definition still remains, right? Leaders are guiding, inspiring, and motivational. Managers are organizing and stability or stabilizers, right? They use systems and they are operational. Right. Even the language of those leadership involves guiding, inspiring and motivating a group towards achieving a visionary goal. Management focuses on administering, ensuring that the organizational systems and day to day operations are running efficiently. Like if you just read those sentences, the wording of it, it just it basically screams what you need to know. One is about we are trying to accomplish this goal together. The other one is we need to follow these systems to a T in order to make sure nothing is screwed up. Right? That's like, that's pretty cut and dry. A lot of us call ourselves leaders and we're actually managers. I would even go as far as to say is that a majority of business owners, specifically smaller business owners, are managers and very few are leaders. Because leadership is also a trait that has to be learned. It's a skill. It's a trait and a skill that has to be learned. So there's no better leadership training course or school in the world than the military. And I obviously would be biased to say that the Marines do the best at it, right? So in the military, my experience is the way I would define it, Brad's definition, is a leader is someone that you will follow no matter where. They go or what they do. That's leadership. You have a, you know, your platoon commander, platoon sergeant, battalion commander, company commander, whatever. Someone in a higher position than you, a leader says, follow me, we're going to charge up this hill. Right? Follow me, we're going to go into this house. We lead from the front. The term lead from the front, not from the rear, is prevalent in the military. You're looking for people who lead from the front. They're not hiding behind everyone else. That's a leader, someone you respect, someone that you don't want to disappoint. And I had plenty of leaders who, you know, when I say the word leaders too here, I'm talking about anybody who's in a higher position than me. But what I really mean is that I've had plenty of leaders that I respected that I followed. I've also had plenty of people who were in a leadership position over me that were absolutely terrible. And I would not follow. Right. So, I mean, there's even stories of, you know, in Vietnam, when young lieutenants would come out of school, thinking that because they're an officer, they know better than guys that had been in overseas for, you know, one, two, three tours already. And they would go out on patrol and the lieutenant would never come back. You know, none of these things were confirmed as far as what happened to them. It did happen. People definitely. didn't come back. Lieutenants definitely didn't come back, but you know, it was, it's all hearsay or folklore or whatever you want to call it, that it, they actually were killed by their own people because it's like, Hey, if you're going to come in here and be an idiot with no experience, we're not even going to, you know, put up with you. Right. So this, this is the definition of like, just because you're in a leadership position does not make you a leader. Okay. So In construction, most of us run our business, the owners, I'm talking about the owners. Most of us run our business like a manager. Like we're trying to manage things. We're trying to make sure our guys show up on time to work. We're trying to make sure the materials are ordered and delivered correctly. We're trying to delegate. different tasks to people. You go install the trim, you do the electrical, you do the plumbing, you do the drywall, you do the painting, you do the, you know, the flooring, you install the pavers, whatever, whatever it is that we're doing. You install the shingles, you do the tear off, whatever. It's just, it's a management position where we're delegating tasks to people. That's what managers do. Leaders inspire people and motivate people. and get them to think on their own. In other words, leaders typically elevate people to get them to come together and accomplish a mission. So a leader would go in and say, listen, guys, it's not going to be easy. We're probably going to have some hard times. We might get too hot on the roof. We may have to take breaks. But at the end of the day, we're going to accomplish this. re-roof together. We're going to get all this roof tear off. We're going to get the new roof put on. We're going to get it all today, all done today, no matter what. And if we do that, there's going to be, you know, a bonus for everybody at the end. Like that's kind of like a motivating, inspiring leader scenario, right? A manager scenario would be like, guys, we got to get this done today. Like we have a schedule we got to keep. Tomorrow we're starting another job. There's no other alternatives. We have to get this done today. So I want you to do this and I want you to do that. And we're going to get this done. And if you have any problems, come to me right away so we can solve it and not let it drag on. Same scenario, same type of work, two different leadership styles. Now, if you're a small company and you are the project manager or the foreman or even the carpenter, or maybe you have a project manager, but you're still kind of like. running the day-to-day stuff of the, you know, dealing with all that, you're going to cross over. You can't just be, you know, rah-rah motivational leader guy and not delegate anything. Like you're going to have to be a manager at some point in order to get stuff done. The difference is we try to run our business to success by managing every aspect of it. instead of being a leader, right? I did a podcast interview with Brian Gottlieb. He was a successful business owner that exited for a hundred million dollars. He exited his business, his contracting businesses for a hundred million dollars. You definitely got to go listen to this because he talks about the realization one day where he just had people lined up outside his office waiting to talk to him. like figuratively not, I'm sorry, not figuratively, literally had people lined up outside his door, you know, six, seven deep in a line waiting to talk to him so he could solve the problems. And that was kind of the turning point for him of realizing like something's got to give, right? Something's not right. And he started to make that transition into being a leader and not a manager. And so where is that? I'm still looking for it. I could just use the search option in here. It'd probably be better. There it is. Episode 136. Go listen to episode 136 if you haven't yet. Building and exiting a construction business with a conversation with Brian Gottlieb. Brian's a rock star. He's got a new book coming out in September. You're definitely going to want to get that. You can pre-order it today. Give him a little plug for his book. He was a, he's a fantastic person, human being and did a. did a good job on that podcast. So go listen to that. But I was bringing him up as an example of like, even he had success. Like he wasn't in the field. He had managers, he had project managers and different people doing different things in his business, but they still relied upon him to make all the decisions, right? A leader is going to create the vision for the company and then bring everyone alongside the him to create that. to make that a reality. He's going to bring on thinkers and people that are smarter. And he's going to build this team of people that are able to do this. So a leader relies on managers 100%. But you can't be a leader by being a manager. Does that make sense? Sometimes you have to have... Put on two different hats. You got to be a manager one day and you got to be a leader a different day. Leaders are empathetic. Leaders have compassion. I had a client. He actually reached out to me yesterday and said, listen, I got a client. I got an employee. He's a good guy. He works hard. However, he's gotten himself into some trouble and was doing some self-medication and his performance dropped off. Right. And I was like, man, that's tough. I understand. He's like, you know, I dealt with similar things. And so I can be very, you know, sympathetic to the situation. And I really want to help him. I'm like, that's great. Like, those are signs of a leader, someone who's empathetic, who has sympathy towards his employees, compassion, who wants to help his employees. That's a sign of a leader,100%. But you can't just say, oh, I'm going to help you. And that's, you know, you can still keep doing bad things. But I'm going to help you keep doing bad things. Oh, so you have to have a combination here of like the management side, right? And by the way, leadership can also be substituted for like just general human decency, like being a good human, right? Because you don't have to be in a leadership position to have compassion towards someone. You don't have to be in a leadership position to have empathy. You don't have to be in a leadership position to help someone or even have a vision about something. Right. It's just those, those characteristics carry over between the two. And so on one hand, he, he wants to help this employee of his, which is noble. And I think it's a good idea. On the other hand, he can't let them just keep doing that and coming to work. There's liabilities and other things that go on with that. So the manager side of that has to come out and say, you can't do that, right? You can't do that. You can, you know, leader, I'm going to help you get better manager. you can't come to work until you're better. You see the difference there? And that's you being the same person. The leadership involves the guiding, inspiring, and motivating, right? Come on, guys, we can do it. Here's some donuts, whatever. Here's coffee. Whatever it is you do to motivate your team, that's what leaders do. Another good podcast guest I had was Pete. Let me find him. Peter J. Harding. He was episode number 59, an old one. He owns a commercial roofing business, does about $30 million a year. And his role now is, he said, I visit every job site. And they do multiple states. So he'll literally get on a plane, fly to another state, go visit the job site, get up on the roof, bring the guys, you know, power aids, water, whatever, food, lunch, you know, give them to that, hang out with them. He'll pick up a mop, do his thing for an hour. to show that he's still with him and then, you know, then leave. But that's all he has to do. The business runs without him. But that's like, that's what leaders do. And he said, I visit every single job site, right? I visit the guys on every job site. So those are just some examples of like what leaders do. So go listen to that, that podcast episode too. That was really good. Pete's a good dude. He's a really good dude. Let's look at some functions and rules. Okay. Now I talked a little bit about functions, but the, um, you know, what, what about rules, right? So the primary function of a leader is going to be like setting the vision, like we said, in direction and then articulating a clear vision that often challenges the status quo and then communicate the vision to the organization. The perfect example of a visionary leader is Elon Musk. Right. He doesn't come in and say, Hey, we're going to just keep making more cars. You know, we're going to, it's going to do the exact same thing that Ford does and, and GMC and, you know, all the other ones out there that do, we're just going to keep doing the same thing except put different color, different wheels and different design. No, he said, we have to do this differently. We have to completely change the process. And he's done that. He's done it with SpaceX. He's done it with Starlink. You know, he created, helped create PayPal, like all of these different things. That's what a visionary leader looks like. And he's not afraid to go in there. You've heard stories of him. He like sleeps on the floor in his office with his guys. He's out there coding, doing coding. He's out there actually, you know, working with scientists, trying to figure out things like that's a, um, a visionary leader, right? Those people are there because they want to be. associated and work for him because he's such a pioneer in the industry. They want to be known as someone who worked under him, who created the things. Now, this isn't about like ego and like, oh, it's, you know, I'm going to touch the, the cloak of Elon as he walks by. It's not that we're not making him an idol. We're not making him a false God. He's creating a vision that's so far out there. That's so crazy that people want to be a part of it. They want to be able to say, I worked at SpaceX whenever we sent the first rocket into space. I was part of that team that did that. Right. People aren't like, well, I want to go work at Ford so I can design the 18th generation of the F-150. That's not what people dream of doing. Like they don't write nothing against people that do that. I'm just saying like, there's a difference there. There's a difference in like wanting to do that versus it's just a job that you doing something that you like. Right. So leaders are there to articulate and challenge things. They also motivate and inspire employees. They inspire loyalty and enthusiasm by empowering and motivating employees to commit to the to the vision. I've told a story before, but I had an I had an employee that worked for me. And he had an opportunity to go work at the school corporation, you know, full benefits. His kid was going to school there. You know, good pay that I could pay at the time, better than I could pay. Good environment. Like it was a good job. It was a good opportunity. He'd be stupid not to take it. And so Friday afternoon, we get back to the shop or they get back and everybody's unloading. I'm checking on them. You know, I'd always come out there and see how the day went and stuff. And I noticed he was moping around. had his head down, was moving slow. He's usually a pretty energetic guy. And I thought, that's odd. Something must be wrong. And so after about 10 minutes of unloading the vehicles and getting stuff put away, I was standing at my truck and he comes up. He's like, hey, I got to talk to you. Now, in that moment, I knew what was about to happen. I was like, what's up? He said, man, I really hate this, but I was offered a job and I took it. I just, I, you know, I really, Hey, I wasn't even looking for a job. I just fell on my lap and, and I kind of interrupted him. I was like, Hey man, no worries. Like he taught, he told me what the job was. And I was like, that's awesome. Like you would be stupid not to take this opportunity because I can't provide that for you right now. I can't match that or one up it. So you would be stupid not to take it, but he was depressed because he felt so, you know, um, loyal. He was loyal to the company because I did my best to try and take care of my guys that he felt bad. He felt really bad that he was leaving, that he was not, you know, that he was, he felt like he was letting me down. Now this isn't like to toot my own horn. That's not, that's not what I'm telling you this. I'm just saying that when you inspire your team to loyalty and enthusiasm, right? That's kind of what you get. You get very loyal people. When you give them a reason to be loyal, they will be loyal. When you treat them with respect, when you care about them, when they actually believe that you give a crap about them. Just like the podcast episode you heard with Dave McDonald a few episodes ago,172. He talked about that, right? Like actually caring about people. So that's more of a leadership thing than it is a manager thing. Hey, just a quick timeout from the show. If you're a frustrated contractor