Yet neither can be effective without the other. Whether in the nonprofit or the for-profit world, a good executive director or chief executive officer needs to be a motivational leader, instilling a sense of energy and vision to gain cooperation from those outside the organization and commitment from those within. But vision and energy aren't the same as management, either.
Vision helps to determine what an organization needs to get done.
Management is the ability to shape an organization so that it does what is necessary in a timely, efficient, and effective way. That requires developing and adhering to a set of operating procedures, financial controls, budgets, and the like. Such work may be less fun than planning a grand strategy, but it is essential if the organization, whether charitable or commercial, is going to deliver its services with a consistent level of quality at the lowest possible cost. Foundations are beginning to pay considerable attention to helping their grantees build their management capability and increase their organizational effectiveness. Grant makers are realizing that the better managed a nonprofit group is, the more effectively their grant dollars will be used.