What is the difference between the Director Hat and the Leader Hat?

The hats in your business are the departments.  There are 10 hats - Shareholder, Director, Leadership, Product / Service Development, Operations, Marketing, Sales, Finance, Admin/IT and H R.  Many owners of businesses wear multiple hats.  The secrets to success here is to understand what the differences are between the hats, what the responsibilities are and to make sure none of the hats is neglected.  So back to the question - what's the difference between the Director hat and the Leader hat?


Director Hat

  • Maximises shareholder value
  • Sets the plan
  • Governance responsibilities
  • Works ON the business
  • Mitigates risks and sets policy
  • Strategic focus (big picture)
  • Establish business model and structure
  • No Accountability line to team (apart from to Leader)

Leader Hat

  • Maximise business efficiency
  • Implements the plan
  • Leadership and Management responsibilities
  • Works IN the business
  • Implements policy
  • Operational focus (make it happen)
  • Implement model and manage performance
  • Holds team to account

Getting your structure right is the next most important component of business success after developing your strategy.  After all it is your people who must be engaged in your plan for it to become a reality.  Knowing the difference between the Director Hat and the Leadership Hat is also fundamental.  The Directors set the plan and the Leader engages and empowers the team to deliver on that plan.

If there's a way to do it better..... find it - Thomas A Edison

Questions to Ask yourself

  1. How well am I living into the Director Hat?
  2. What three things could I do better as a Leader?
  3. What support do I need to lift my business performance to the next level?