Question

Proper management and leadership are key when dealing with finances in sports. Explain the difference between the two and how they will apply to the financial structure of your sports organization.

Answer 1

This is a very subjective question. I have put together my thoughts below. Please use the same to develop an understanding and design your own answer.

Part 1

Explain the differences between Proper management & leadership:

Sl. No.	Parameter	Leadership	Management
1	Role	Leadership is expected to lead the organisation in terms of its vision, mission and values	Management precisely deals with managing the operations to achieve short term and long term goals
2.	Bent of mind	Strategic, Directional, thought leadership, think tanks	Operational, execution, implementation
3.	Basis	New business development, expansion, reach out to new market segments, direct the organisation towards new product developments	Manage the given product mix and geography mix, implement the thought process in the existing operations, induce fiscal discipline and control, ensure no mismanagement
4.	Specialities	Proactiveness, ability to influence others, ability to bring change, develop culture and values, growth oriented, foresightedness	Mostly reactive in nature, short and medium term focus, ensure profitability and stability, induce control
5.	Guidance	Strategic vision, foresightedness, prepare organisations to withstand bad times, set principles and guidelines	Discussions, business planning, operating plans, reporting, set policies and procedures

Part (2)

Application to the financial structure of sports organisation:

Leadership:

1. They craft the strategy and thought leadership. They decide which sports to enter into. They think through the expansion plans.
2. They work to bring additional sources of revenues for the sports organisation. They direct the sports organisation to remove dependence upon one or select few sources of revenues.
3. They work towards the overall mission and vision. They represent the organisation in front of external parties such as investors, lenders, financiers, customers, service providers and auditors. They are the face of the organisation.
4. They provide solid backbone so that organisation survives through a bad economic cycle.

Proper Management

1. They execute the strategy. They implement the plans.
2. They control the operations and ensure profitability. They ensure cost control and conservation of capital.
3. They manage the team and franchise. They bring stability. The assume different roles to ensure organisation is ready to withstand any fluctuation in day to day operations.
4. They put in place do's and don'ts. They set discipline amongst the franchisee members.