Leadership Vs. Management | Definitions
Management – The oversight, review, and continuous improvement of processes
Senior Management – The top 1, 2, or 3 layers of management of an organization; these persons are actually “leaders”
Effective – Conditions at least remain the same, or are improving
This means that effective senior managers are individuals in the top layers of an organization who oversee processes seeking to ensure continuing or improving performance.
Leadership Vs. Management | Who Is Management
A typical organization chart for a US NPP will look similar to this example shown here; let’s use this organizational chart to discuss who is management, and who is not. “Management” is typically all personnel above 1st line supervisors. Senior management is typically “director” level and above; “ labor” is typically individual contributors and 1st line supervisors. Many US NPPs have an SLT (Senior Leadership Team).
Leadership Vs. Management | How Management & Leadership Differ
Management is overseeing processes like Operations, Maintenance, Engineering, Security, Human Resources Management, etc.
Leadership is developing people: “A leader is someone who takes others to a place they would not otherwise go”, therefore leaders can be good or bad, and still lead.
Senior Managers need to be leaders.
Leadership Vs. Management | What is Effective Leadership
Effective leadership is developing and maintaining effective processes. To do this, managers will need Key Performance Indicators (KPIs). Some examples of KPIs for NPP Maintenance include:
- Level of schedule adherence
- Number/Percentage of Preventive Maintenance Work Orders that are overdue
- The number of maintenance jobs that are “churned” back into the planning process without being performed
Understanding each organization’s KPIs, and their value, is critical. KPIs must “roll up” for senior managers. Don’t have too many KPIs (if everything is important, than nothing is important”. An Integrated Management System is needed (see separate IAEA guidance). And most importantly, managers must remember that processes are performed by people – thus managers must also deal with people.
Leadership Vs. Management | Development Paths for Senior Managers
For the newly formed NPP operating organization, senior managers will need to be hired directly into those positions from external sources. However, these individuals will eventually move out of their positions, and new senior managers should have been developed from within the organization to replace the outgoing personnel. Using The Operations Director as an example, consider the path that will be needed:
- Recruited & hired
- Trained – Operator Fundamentals, Operator, and Sr. Rx Operator
- Developed – Operator, Sr. Rx Operator, Shift Supv, Shift Mgr, Ops Dir
- Reviewed – Cyclical performance reviews and
- Promoted – Only the best candidates move up; the organization needs to define the criteria
Remember that some will succeed to the top, some to the middle, some will not rise, and some will fail/fall out/leave.
Leadership Vs. Management | The Path from New Hire to Senior Manager
Consider the path from a new hire to executive:
- Individual Contributor
- Sr. Leader
Consider the process an individual will go through:
- Retained (all the way)
- Incentives at each level (license bonuses, performance incentives, retention bonuses, “golden handcuffs”)
Leadership Vs. Management | Develop Criteria for Hiring & Promoting New Managers
- Qualification (SQEP’d)
- Job performance (Sporadic)
- Performance Evaluations (Periodic)
- Leadership Assessments
Leadership Vs. Management | How to Determine Effectiveness
Managers are individuals who oversee processes. Senior Managers are leaders. So once Senior Managers are in place, how can you tell if they are effective? The effectiveness of Senior Managers can be measured by the success of the organization (begs the question of “what is success” which often defaults to “are we meeting our KPIs?” Another mechanism for measuring the effectiveness of Senior Managers is via an assessment of the organizational culture. How does one go about assessing organizational culture?
Leadership Vs. Management | Sum It Up
Management is about processes; Leadership is about people. Effective Senior Managers must be effective leaders. Developing leaders requires a structured approach. Only a few will ultimately lead/become senior managers. Each organization needs to develop the criteria for the development of its senior management (“Leaders”). Senior Managers effectiveness can be measured by monitoring performance indicators (KPIs) AND by assessing the organizational culture.