Download Level 5 Leadership

Good to Great
CHAPTER 2 – LEVEL 5 LEADERSHIP
Darwin Smith
• “Best example of taking a good company and
making it great”
• CEO of Kimberly-Clark 20 Years
• Stock Returns 4.1 times higher during his time
• Not a typical leader but used Level 5
Leadership
Level 5 Leadership
“Level 5” Refers to a five-level hierarchy of
executive capabilities with Level 5 at the top.
Humility + Will = Level 5
“Level 5 Leaders are ambitious… first and
foremost for the company, not themselves”
Research
“Leadership is the answer to everything” is like
saying “God is the answer to everything”
- Where did Level 5 Come From?
- Collins ignored executives
- Team Disagreed
- Found that Level 5 Leadership was consistent in all
great companies
- Comparison companies lacked Level 5 Leadership
Ambition for the Company: Setting
Up Successors for Success
• Key part in making business sustainable and
ultimately making the business great.
• Ambition first and foremost for the company and
concern for its success rather than one’s own
riches and personal renown.
• In over 3 quarters of the comparison companies
successors were setup for failure, or chose weak
successors, or both.
A Compelling Modesty
• Not to be confused with false modesty
• Great leaders tended to place more emphasis on
others and the company, rather than themselves.
• Did not take credit for themselves, even where it
was due.
• “Seemingly ordinary people producing
extraordinary results.”
Unwavering Resolve… to Do What
Must Be Done
• Level 5 leaders are driven to produce results
• You must be willing to do whatever it takes
• Promoting from within = stronger resolve
The Window in the Mirror
• Level 5 leaders look out the window to
apportion credit to factors outside themselves
when things go well
• At the same time, they look in the mirror to
apportion responsibility, never blaming bad luck
when things go poorly
• Simplified, they accept blame for bad, and give
credit to others for good.
Level 5 Summarized
• Modesty & Humility
– Someone who does not care about the credit
– Accepts blame for failures – but does not give up
• Will
– Direct ambitions towards companies’ goals first and
foremost
– Strong Resolve
Atypical Leadership
Characteristics
• Tend to be introverts
• Less charismatic
• Highly motivated (not really atypical)
• Motivated more by success of company than
themselves