Leadership is important. However, organizational leadership is what drives an organization’s culture. It influences organizational policies and procedures, and creates a roadmap for an organization’s values, mission and vision. Hiring practices, employee benefits and community involvement – all are determined by organizational leadership.
In today’s business world, it’s no longer enough for leaders to simply manage tasks. Effective business leadership is more about creating a constructive and energizing culture that can help individuals and team members achieve their goals.
Defining Organizational Leadership vs. Management
Before we dive too deeply into organizational leadership, let’s discuss what makes leadership different from management.
Management: The “How” and “What”
Management is an unavoidable aspect of leadership positions, but it is only one aspect of a leaders’ responsibilities. It’s all about tasks, process and systems – in short, it focuses on the day-to-day operations of a team or organization, the work that “keeps the lights on.” Effective management – planning, organizing, staffing and controlling – is key to ensuring employees have what they need to get their core jobs done, to keep the engine of an organization going.
Leadership: The “Why” and “Who”
Leadership is about people. It’s about guiding a team toward a vision through motivation and empowerment, and involves building relationships and fostering growth in employees.
A good analogy that illustrates the difference between management and leadership is to think of the crew of a ship. A manager is navigator, charting the course to the destination. A leader is the ship’s captain, deciding the destination and inspiring the crew to work together to get there.
Core Principles of Organizational Leadership
Effective organizational leadership is firmly anchored to the organization’s vision and mission, where decisions are made strategically and ethically. The best organizational leaders are sources of inspiration for their team and employees. Through the strong relationships they build with their team members,they’reable to positively influence employee engagement and successful outcomes.
Organizational leaders must be ready for challenging times. Flexibility is an essential trait for successful organizational leaders, as change isconstantand challenges can arise unexpectantly. To practice flexibility, organizational leaders need to engage with stakeholders to understand employee,customerand community needs.
Understanding stakeholder needs is vital to decision-making and impactful management. Decisions made without stakeholder buy-in can quickly fail.

Skills Needed for Organizational Leadership
Anyone can become an effective organizational leader. Leadership styles can vary, but the skills you need are consistent regardless of if you’re a manager, supervisor, director or executive.
Here are the leadership skills great organizational leaders possess:
- Communication and emotional intelligence: Clearly conveying your vision and goals, while understanding how itimpactsothers
- Strategic thinking and team leadership: Always keeping your organizational goals in mind and guiding your team towards them
- Problem-solving: Clearing obstacles for your team or advocating for them when more support is needed
- Collaboration and relationship building: Creating an atmosphere of mutual trust and respect so that everyone can work together towards success
For more ways on how to grow into an effective leadership, check out these five tips.
Why Organizational Leadership Matters Today
An organization’s long-term success is dependent on its organizational leadership. And as the way we do business changes, organizational leadership also changes.
Today, there’s there is a push and pull between traditional, hierarchical leadership models and collaborative, co-leadership models. In many ways, organizational leadership is now more complex, as it includes dynamics that arise with ownership changes, differences in opinion and public image concerns.
Organizational leaders should be empathic, ready for change, engaged with their stakeholders and transparent about their values. It is impossible to go back in time, and poor decision-making can make or break an organization.
Both large corporations and local nonprofits need strategic leaders who embrace “big picture” thinking, such as participating in mentorship programs and devoting efforts to employee motivation. Strategic leadership involves being aware of current events, marketing trends and stakeholder needs, and factoring all those aspects into their decision-making.
Careers in Organizational Leadership
Every organization needs organizational leaders. Not only that, but they’re needed on every team, from the department responsible for recruiting and hiring to the department that oversees safety and protocol.
There are some industries in which the demand for organizational leaders is growing, such as cybersecurity, healthcare and technology. But in all industries, there are numerous career paths available. Here’s just a small sample of roles for organizational leaders:
- Chief of residential programs
- Chief strategy officer
- Director of operations
- Human resource director
- Learning and development director
- Manager of performance planning
- Proposal coordinator
- Vice president of operations
How to Develop Organizational Leadership Skills
The best way to develop your capacity for organizational leadership is to make intentional time for professional development or continuous learning in this area. This could look like identifying leaders within or outside of your organization that you want to emulate and asking them to mentor you. This could also look like taking courses or programs designed to hone your leadership skills.
A business degree is a great choice for those who are seeking a career path in corporate leadership. It introduces you to the diverse functions of leadership, such as executive communication, human resource management and budget planning.
There are degrees specifically in organizational leadership, such as the M.S. in Organizational Leadership program at Ƶ (ACE). It focuses on how to empower and maximize an organization’s workforce. However, an MBA can also hone your leadership and problem-solving skills. For a deep dive on the differences between these two business programs, check out our comparative guide.
Outside of taking courses, another great way to improve your leadership is through self-assessment and asking for feedback from others. Compare the strengths and weaknesses you think you have with how others perceive you. You’ll likely gain a lot of insight into where you’re doing well and where there’s room to grow.
FAQs About Organizational Leadership
No. Business management refers to the day-to-day operations of an organization and involves tasks,strategic planning, processesand systems. Organizational leadership is about the people within an organization and involves rallying employees around a common vision and mission.
No, youdon’t. But what you learnin the process of earningan organizational leadership degree can help you gain a better understanding of both leadership and your own leadership style.
For example, students in ACE’s degree program use real-life situations to analyze the types of leadership they have experienced in their careers and learn how their experiences align with various leadership theories. Through these analyses, students develop personal leadership philosophies, which they use in later courses about organizational leadership, corporate socialresponsibilityand human resources.
Explore howa fullyonline business degreefrom Ƶ can open doors to leadership for your career.
