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ACCA Strategic Professional · Strategic Business Leader · Qualities of leadership

Hartwell Pharma is entering a period of rapid regulatory and technological change. The board is considering the claim that its senior managers should be replaced by 'leaders' rather than 'managers'. Which response best reflects the accepted view of the relationship between the two?

Both are needed in a mix that fits the circumstances. Leadership copes with change and management copes with complexity, so a regulated firm facing change still needs management control. Replacing managers wholesale would risk losing control over processes and compliance.

  1. AOrganisations need both, in a balance that depends on the degree of change and complexity, so removing management capability would risk loss of controlCorrect
  2. BLeadership should entirely replace management during change because management is only about maintaining the past
  3. CManagement is a higher-level activity than leadership and should always take priority
  4. DLeadership and management are the same activity under different titles

Explanation

Kotter argues that both are needed: leadership copes with change, management copes with complexity. The right mix varies with circumstances, and the same person may do both. Dropping management risks chaos in processes and compliance, which is especially dangerous in a regulated pharmaceutical business.

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