There’s a way of running a business that is entirely system based. Every challenge is resolved through structure.

If you’re not making enough profit, you apply a financial framework. If you have interpersonal conflict between team members, you apply a six-step algorithm. If a team is under-performing, you apply an improvement plan.

This systematic approach to business is highly effective.

However, there’s another way of running a business where the solution to every challenge isn’t a system. It’s a way of operating where people solve some of the problems. It encourages initiative and innovation and is risk tolerant.

The first approach is management. The second is leadership.

To grow to any level of scale, management is required. To realize the highest potential of your business, leadership is required.

You don’t have to be a leader to be successful. It’s not the key ingredient. But it is the secret sauce to making things easier and having a greater impact.