Level 5 leadership slides.pdf
- 1. Level 5 Leadership: Humility + Will Based on Jim Collins article, “Level 5 Leadership: The Triumph of Humility and Fierce Resolve”
- 2. The key to an organization becoming great is having a Level 5 leader Someone who blends genuine personal humility with intense professional will
- 3. “Level 5” • The highest level in a hierarchy of leadership capabilities • Leaders at the other four levels in the hierarchy can produce high levels of success but not enough to elevate organizations from mediocrity to sustained excellence • Good-to-great transformations don’t happen without Level 5 leadership • Level 5 is not the only requirement for transforming a good organization into a great one • Other factors include getting the right people on the bus (and the wrong people off the bus) and creating a culture of discipline
- 4. 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
- 5. Level 5 Executive Builds enduring greatness through a paradoxical combination of personal humility plus professional will Level 4 Effecti ve Leader Catalyzes commitment to and vigorous pursuit of a clear and compelling vision; stimulates the group to high performance standards Level 3 Compete nt Manager Organizes people and resources toward the effective and efficient pursuit of predetermined objectives Level 2 Contributi ng Team Member Contributes to the achievement of group objectives; works effectively with others in a group setting Level 1 Highly Capable Individu al Makes productive contributions through talent, knowledge, skills, and good work habits The Level 5 Hierarchy
- 6. Level 5 Leadership Counterintuitive Countercultural – people generally assume that transforming from good to great organizations requires charismatic, larger- than-life leaders
- 7. • Level 5 leadership is an essential factor for taking an organization from good to great, but it’s not the only one • There are other “drivers”, combined with Level 5 the combined package which takes the organization beyond unremarkable • The drivers are – First Who, Stockdale Paradox, the Flywheel, The Hedgehog Concept and A Culture of Discipline
- 8. First Who • Good-to-great leaders start with people first and then deal with vision and strategy second • They get the right people on the bus, • Move the wrong people off, • Usher the right people to the right seats, and • Determine where to drive it
- 9. Stockdale Paradox This finding is named after Admiral James Stockdale, winner of the Medal of Honor, who survived seven years in a Vietcong POW camp by hanging on to two contradictory beliefs: His life couldn’t be worse at the moment, and his life would someday be better than ever. Like Stockdale, people at the good-to-great companies in our research confronted the most brutal facts of their current reality, yet simultaneously maintained absolute faith that they would prevail in the end. And they held both disciplines—faith and facts—at the same time, all the time.
- 10. Buildup-Breakthrough Flywheel Good-to-great transformations do not happen overnight or in one big leap Rather, it starts one movement at a time, gradually building up momentum, till there is a breakthrough Mediocre organizations never sustained the breakthrough momentum but instead lurch back and forth with radical change programmes, reactionary moves and restructuring
- 11. The Hedgehog Concept Think of your company as three intersecting circles. What it can be best at, how its economics work best, and what ingites it’s peoples passions. Eliminate everything else.
- 12. 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
- 13. A Culture of Discipline Good-to-great organizations have three forms of discipline Disciplined people – you don’t need hierarchy, Disciplined thought – you don’t need bureaucracy, and Disciplined action – you don’t need Combining a culture of discipline with an ethic of entrepreneurship results in great performance
- 14. Level 5 Leaders Level 5 leaders are extremely modest They don’t talk about themselves They would talk about the organization, about the contribution of others and instinctively deflect discussion about their own role Unlike big personalities like Lee Iacocca, Jack Welch
- 15. Darwin E Smith Chairman and CEO Kimberly-Clark Corporation Dallas, Texas, U.S.A. 1971-1997 Darwin Smith seems to have come from Mars. Shy, unpretentious, even awkward, Smith shunned attention. But if you were to consider Smith soft or meek, you would be terribly mistaken. His lack of pretense was coupled with a fierce, even stoic, resolve toward life. Smith grew up on an Indiana farm and put himself through night school at Indiana University by working the day shift at International Harvester. One day, he lost a finger on the job. The story goes that he went to class that evening and returned to work the very next day. Eventually, this poor but determined Indiana farm boy earned admission to Harvard Law School. He showed the same iron will when he was at the helm of Kimberly-Clark. Indeed, two months after Smith became CEO, doctors diagnosed him with nose and throat cancer and told him he had less than a year to live. He duly informed the board of his illness but said he had no plans to die anytime soon. Smith held to his demanding work schedule while commuting weekly from Wisconsin to Houston for radiation therapy. He lived 25 more years, 20 of them as CEO.
- 16. Lee Iacocca Lee Iacocca, saved Chrysler from the brink of catastrophe, performing one of the most celebrated (and deservedly so) turnarounds in U.S. business history. The automaker’s stock rose 2.9 times higher Iacocca diverted his attention to transforming himself. He appeared regularly on talk shows like the Today Show and Larry King Live, starred in more than 80 commercials, entertained the idea of running for president of the United States, and promoted his autobiography, which sold 7 million copies worldwide. Iacocca’s personal stock soared, but Chrysler’s stock fell 31% below the market in the second half of his tenure. And once Iacocca had accumulated all the fame and perks, he found it difficult to leave center stage.
- 17. The Yin and Yang of Level 5 Personal Humility Professional Will Demonstrates a compelling modesty, shunning public adulation; never boastful Creates superb results, a clear catalyst in the transition from good to great Acts with quiet, calm determination; relies principally on inspired standards, not inspiring charisma, to motivate Demonstrates an unwavering resolve to do whatever must be done to produce the best long-term results, no matter how difficult Channels ambition into the organization, not the self; sets up successors for even more greatness in the next generation Sets the standard of building an enduring great organization; will settle for nothing else Looks in the mirror,not out the window, to apportion responsibility for poor results, never blaming other people, external factors, or bad luck Looks out the window, not in the mirror, to apportion credit for the success of the organization – t other people, external factors, and good luck
- 18. An Unwavering Resolve Besides extreme humility, Level 5 leaders also display tremendous professional will They possess inspired standards, cannot stand mediocrity in any form, and utterly intolerant of anyone who accept the idea that good is good enough
- 19. Succession Planning Level 5 leaders have ambition not for themselves but for their organizations They routinely select superb successors They want to see their organizations become even more successful in the next generation Comfortable with the idea that most people won’t even know that the roots of that success trace back to them Level 4 leaders often fail to set up the organization for enduring success – what better way to demonstrate your personal greatness than that the place falls apart after you leave
- 20. The Window and the Mirror Level 5 leaders, inherently humble, look out the window to apportion credit – even undue credit – to factors outside themselves If they cannot find a specific event or person to give credit to, they credit good luck At the same time, they look in the mirror to assign responsibility, never citing bad luck for external factors when things go poorly • Compare this with leaders who look out the window for factors to blame but preened in the mirror to credit themselves when things go well
- 21. Born or Bred? : Can Level 5 be developed? There are two categories of people Those who don’t have the Level 5 seed within them, And those who do
- 22. The first category Will never bring themselves to subjugate their own needs to the greater ambition of something larger and more lasting than themselves Work will always be first and foremost of what they get – fame, fortune, power, adulation, etc. Work will never be about what they build, create and contribute The great irony is that the animus and personal ambition that often drives people to become a Level 4 leader stands at odds with the humility required to rise to Level 5
- 23. The second category Could evolve to level 5 Capability resides in them, perhaps buried or ignored or simply nascent Under the right circumstances – with self- reflection, a mentor, a significant life experience, loving parents, or other factors – the seed can begin to develop