What is a key factor that differentiates a leader from a manager?

A key factor that differentiates a leader from a manager is the ability to influence people. While managers often focus on organizing and coordinating tasks to achieve specific goals, leaders inspire and motivate individuals to engage with a vision or a cause. This influence is rooted in building relationships, fostering trust, and encouraging collaboration among team members.

Leaders prioritize personal connections and emotional intelligence, which empowers their teams to take initiative and share ownership of their work. This contrasts with a more transactional approach often seen in management, where the emphasis is on structure, policies, and procedures. By effectively influencing others, leaders can drive change and inspire commitment, creating a more dynamic and engaged organizational culture.

The other choices may represent important skills and attributes in both management and leadership roles, but they do not capture the essence of what fundamentally sets leaders apart. For example, while budget calculations and operational experience are important for a manager, they do not necessarily equate to leadership qualities. Similarly, authority in decision-making plays a more structural role within management than in leadership, where the focus is more on motivating rather than merely directing.