BE Sec E Grp5 Article Level 5 Leadership

LEVEL 5 LEADERSHIP:
THE TRIUMPH OF HUMILITY AND FIERCE RESOLVE
Presented by:-
Group 5
WHAT CATAPULTS A
COMPANY FROM
MERELY GOOD TO
TRULY GREAT?
1 Question, 5 years, 11
companies
Jim Collins: 22 Research Associates, 1996-2000

Can a Good Company be a Great Company and if so, how?
Shortlist Criteria for Companies:
Shift from good performance to great performance

Sustained growth
Comparison between these 2 groups
Specific Pattern
Cumulative stock returns at least 3X markets for next
15 years
Why is it called Level
5?
Level 5 Executive = Humility + Will
Level 4 Effective Leader
Level 3
Competent
Level 2 Manager
Level 1 Highly Capable Individual

The Level 5 Hierarchy
Level 5 Executive Builds enduring greatness through a paradoxical

combination of personal humility plus
professional will
Level 4 Effective Catalyzes commitment to and vigorous pursuit
Leader of a clear and compelling vision; stimulates the
group to high performance standards
Level 3 Competent Organizes people and resources toward the
Manager effective and efficient pursuit of
predetermined objectives
Level 2 Contributing Contributes to the achievement of group
Team objectives; works effectively with others in a
Member group setting
Level 1 Highly Makes productive contributions through talent,
Capable knowledge, skills, and good work habits
The Level 5 Hierarchy
Sits on top of a hierarchy of capabilities

Four other layers lie beneath it
Each one is appropriate in its own right, but none with the
power of Level 5
We do not need to move sequentially through each level of
the hierarchy to reach the top
But to be a fully-fledged Level 5, we need the capabilities of
all the lower levels, plus the special characteristics of level
5
LEVEL 5 LEADERSHIP
A Paradoxical blend of personal humility and professional

will
The type of Instead of being

leadership high-profile
leaders with big
required for
personalities,
turning a good they are quiet,
organization reserved, and
into a great. even shy.
NOT BY LEVEL 5 ALONE
Stock
First dale
who Parad
ox
Buildup Hedge
break
through hog
flywhee concep
l t
Technol Cultur
ogy e of
Acceler Discip
ators line
FIRST WHO.. THEN WHAT
STOCKDALE PARADOX
Admiral James Stockdale Winner of MEDAL OF
HONOUR
Survived 7 years as PoW in a Vietnam camp
BUILDUP- BREAKTHROUGH
FLYWHEEL
Good to great transformation does not happen

instantly. There is no single defining moment.
It is a process building momentum until the point

of breakthrough and beyond is reached much
like pushing a giant flywheel in one direction.
Not by Level 5 alone 4
The Hedgehog Concept
Not by Level 5 alone 5
Technology Accelerators
Good-to-great organizations have a paradoxical relationship

with technology
On the one hand they avoid jumping on new technology
bandwagons
On the other they pioneer the application of carefully
selected technologies, making bold farsighted investments
directly linked to their hedgehog concept
Like turbochargers, these technology accelerators create an
explosion in flywheel momentum
6
A Culture of
Discipline
Good-to-great organizations have
three forms of discipline
1. Disciplined people you dont
need hierarchy
2. Disciplined thought you
dont need bureaucracy
3. Disciplined action you dont
need excessive controls
Combining a culture of
discipline with ethics of
entrepreneurship results in great
performance
THE YIN AND YANG OF LEVEL 5
Personal Humility Professional Will

Demonstrates a compelling modesty, Creates superb results, a clear catalyst in
shunning public adulation; never boastful the transition from good to great
Acts with quiet, calm determination; Demonstrates an unwavering resolve to

relies principally on inspired standards, do whatever must be done to produce the
not inspiring charisma, to motivate best long-term results no matter how
difficult
Channels ambition into the organization, Sets the standard of building an enduring
not the self; sets up successors for even great organization; will settle for nothing
more greatness in the next generation else
Looks in the mirror, not out the window, Looks out the window, not in the mirror,
to apportion responsibility for poor to apportion credit for the success of the
results, never blaming other people, company to other people, external
external factors, or bad luck factors, and good luck
THE WINDOW AND THE
MIRROR
Level 5 leaders, inherently humble, look out the window to

apportion credit to factors outside themselves when things
go well and if they cannot find a specific person or event to
give credit to, they credit good luck.
At the same time, they look in the mirror to assign
responsibility, never blaming bad luck or external factors
when things go poorly.
Look out the window and give credit to those responsible
for positive outcomes
Look in the mirror and take ownership of negative
outcomes
Understand luck
Eg. CEO of Bethlehem Steel ,CEO of Nucor, Steve Ballmer
CEO of Microsoft
This concept does not reflect reality.
Level 5 leadership:
Born or bred?
1st Category 2nd category

Will never subjugate The capability
their own needs to resides within
the greater ambition them, either
of something larger
Work will always be buried, ignored or
about what they get nascent.
and not what they By self reflection, a
create or build mentor, a life
This animus and experience, loving
ambition drives them parents or other
to Level 4 factors this seed
can develop.
THANK YOU!

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LEVEL 5 LEADERSHIP:

THE TRIUMPH OF HUMILITY AND FIERCE RESOLVE

Jim Collins: 22 Research Associates, 1996-2000

Shift from good performance to great performance

Level 5 Executive = Humility + Will

Level 4 Effective Leader

Level 1 Highly Capable Individual

Level 5 Executive Builds enduring greatness through a paradoxical

Sits on top of a hierarchy of capabilities

A Paradoxical blend of personal humility and professional

The type of Instead of being

Good to great transformation does not happen

It is a process building momentum until the point

Good-to-great organizations have a paradoxical relationship

Personal Humility Professional Will

Acts with quiet, calm determination; Demonstrates an unwavering resolve to

Level 5 leaders, inherently humble, look out the window to

1st Category 2nd category

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