Last week, we explored the concept of “Good to Great” companies, defined by their sustained superior performance and ability to outperform their peers. We also discussed the different archetypes of good-to-great companies, highlighting the diverse paths to achieving greatness.

This week, we delve into one of the most surprising findings in “Good to Great”: the critical role of Level 5 Leadership. This concept challenges conventional wisdom about leadership styles and reveals a leadership archetype that propels companies towards greatness.

Beyond Charisma: Unveiling Level 5 Leaders

For decades, the business world has glorified charismatic, “transformational” leaders. However, Collins’ research revealed a different leadership profile at the helm of good-to-great companies: Level 5 Leaders.

These leaders are not flamboyant or attention-seeking. Instead, they possess a unique blend of two seemingly contradictory traits:

• Personal Humility: Level 5 Leaders put the company’s needs and long-term vision above personal ambition. They shun self-promotion and celebrate the achievements of others. Their focus is on building a great company, not a great personal legacy.
• Professional Will: Despite their humility, Level 5 Leaders possess an unwavering determination to achieve greatness. They are relentless in their pursuit of excellence and hold themselves and those around them to the highest standards.

The Paradox of Level 5 Leadership: Why Humility and Will Matter

This paradoxical combination of humility and will sets Level 5 Leaders apart.

• Their humility fosters trust and encourages collaboration within the organization. Employees feel empowered to contribute their talents, and a culture of collective ownership takes root.
• Their professional will ensures a relentless focus on the company’s goals. They set a clear vision, make tough decisions, and hold themselves accountable for the organization’s success.

Level 5 Leaders in Action: Examples from the Real World

Collins provides numerous examples of Level 5 Leaders throughout history. Consider these two contrasting figures:

• Lee Iacocca (Chrysler): While charismatic and outspoken, Iacocca focused on saving his own reputation rather than the long-term success of Chrysler.
• Darwin Smith (Kimberly-Clark): A humble and understated leader, Smith fostered a culture of innovation and propelled Kimberly-Clark to become a leader in the consumer products industry.

The Leadership Pipeline: Building a Culture of Level 5 Leadership

“Good to Great” acknowledges that not all companies will have a Level 5 Leader at the helm from the outset. However, it emphasizes the importance of building a leadership pipeline that fosters these qualities. By encouraging humility, accountability, and a relentless pursuit of excellence throughout the organization, companies can cultivate the environment where Level 5 leadership can emerge.

What Does This Mean for You?

The concept of Level 5 Leadership challenges you to re-evaluate your leadership style. Consider these questions:

• Do you prioritize the company’s success over personal gain?
• Do you set clear goals and hold yourself and others accountable for achieving them?
• Do you create an environment where employees feel empowered to contribute their best work?

By embracing the principles of Level 5 Leadership, you can foster a culture of excellence within your organization and set it on the path towards greatness.

Next Week: Beyond Competence – Embracing the Hedgehog Concept

Join us next week as we explore the “Hedgehog Concept,” a core principle for good-to-great companies. We’ll delve into the importance of identifying what your company can be the best in the world at and how to align your resources with your market opportunities.