Disciplined People Disciplined Thought Disciplined Action
Level 5
Leadership
First Who …
Then What
Confront the
Brutal Fac...
What are we deeply
Passionate About
What Drives
our
Economic
Engine
What we Can
Be the Best In
The World at
Three Circles ...
Level 5 Leadership
Disciplined People Disciplined Thought Disciplined Action
Level 5
Leadership
First Who …
Then What
Conf...
First Who … Then What Disciplined People Disciplined Thought Disciplined Action
Level 5
Leadership
First Who …
Then What
C...
Confront the Brutal Facts
Disciplined People Disciplined Thought Disciplined Action
Level 5
Leadership
First Who …
Then Wh...
Hedgehog Concept
Disciplined People Disciplined Thought Disciplined Action
Level 5
Leadership
First Who …
Then What
Confro...
A Culture of Discipline Disciplined People Disciplined Thought Disciplined Action
Level 5
Leadership
First Who …
Then What...
Technology Accelerators
Disciplined People Disciplined Thought Disciplined Action
Level 5
Leadership
First Who …
Then What...
Level 5 leadership
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Level 5 leadership

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Jim Collins' book Good to Great has been around awhile, but the principles are still valid. When someone speaks about "changing the system," this is the first step along that path.

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Level 5 leadership

  1. 1. Disciplined People Disciplined Thought Disciplined Action Level 5 Leadership First Who … Then What Confront the Brutal Facts Hedgehog Concept Culture of Discipline Technology Accelerators B U I L D U P B R E A K T H R O U G H F L Y W H E E L Phases of a Good–to–Great Organization Level 5 Level 1 Level 2 Level 3 Level 4 Level 5 Leader Builds enduring greatness through a paradoxical blend of personal humility and professional will. Effective Leader Catalyzes commitment to and vigorous pursuit of a clear and compelling vision, stimulating higher performance standards. Competent Manager Organizes people and resources toward the effective and efficient pursuit of predetermined objectives. Contributing Team Member Contributes individual capabilities to the achievement of group objectives and works effectively with others in a group setting. Highly Capable Individual Makes productive contributions through talent, knowledge, skills, and good work habits. 5 Levels of Leadership
  2. 2. What are we deeply Passionate About What Drives our Economic Engine What we Can Be the Best In The World at Three Circles of the Hedgehog The process of moving an organization from good to great ! Level 5 Leadership – our leaders must be self–effacing, quite, reserved, even shy. A paradoxical blend of personal humanity and professional will. ! First Who … The What – we first must get the right people, remove the wrong people, and only then figure out where to go. ! Confront the Brutal Facts (Yet Never Lose Faith) – we must maintain an unwavering faith that we can and will prevail, and at times have the discipline to confront the brutal facts of our current situation. ! The hedgehog Concept (Simplicity with the Three Circles) – transcend the curse of competence. If we can’t be the best of our core business, then our core business absolutely cannot form the basis of a great organization. ! A Culture of Discipline – when we have discipline we don’t need hierarchy ! Technology Accelerators – never use technology as a means of igniting a transformation.
  3. 3. Level 5 Leadership Disciplined People Disciplined Thought Disciplined Action Level 5 Leadership First Who … Then What Confront the Brutal Facts Hedgehog Concept Culture of Discipline Technology Accelerators B U I L D U P B R E A K T H R O U G H F L Y W H E E L ! Every good–to–great company had a Level 5 Leader during its pivotal transition years. ! “Level 5” refers to a five–level hierarchy of executive capabilities, with Level 5 at the top. Level 5 leaders embody a paradoxical mix of personal humility and professional will. They are ambitious, but ambitious first and foremost for the company, not themselves. ! Level 5 leaders set up their successors for even greater success in the next generation, whereas egocentric Level 4 leaders often set up their successors for failure. ! Level 5 leaders display a compelling modesty, are self–effacing and understated. In contrast, two thirds of the comparison companies had leaders with gargantuan personal egos that contributed to the demise or continued mediocrity of the firm. ! Level 5 leaders are fanatically driven, infected with an incurable need to produce sustainable results. They are resolved to do whatever it takes to make the firm great, no matter how big or hard the decisions. ! Level 5 leaders display a workmanlike diligence – more a plow horse and a show horse. ! Level 5 leaders look out the window to attribute success to factors other than themselves. When things to poorly, they look in the mirror and blame themselves, taking full responsibility. ! One of the most damaging trends in recent history is the tendency to select dazzling, celebrity leaders and de–select potential Level 5 leaders. ! Potential Level 5 leaders exist all around us, if we just know what to look for, and that many people have the potential to evolve to Level 5.
  4. 4. First Who … Then What Disciplined People Disciplined Thought Disciplined Action Level 5 Leadership First Who … Then What Confront the Brutal Facts Hedgehog Concept Culture of Discipline Technology Accelerators B U I L D U P B R E A K T H R O U G H F L Y W H E E L ! The good–to–great leaders began transformation by first getting the right–people on the bus, the wrong people off the bus, and then figuring out where to drive the bus. ! The key is getting the right people on the team. The key is that the “who” questions come before the “what” decisions – before vision, before strategy, before organization structure, before tactics. First who, then what – is a rigorous discipline, consistently applied. ! Comparison companies frequently followed the “genius with a thousand helpers” model – a genius leader who sets a vision and then enlists a crew of highly capable “helpers” to make the vision happen. This model fails when the leader departs. ! The good–to–great leaders are rigorous, not ruthless, in people decisions. They do not rely on layoffs and restructuring as a primary strategy for improving performance. The comparison companies used layoffs to a much greater extent. ! There are three practical disciplines for being rigorous in people decisions: ! When in doubt, don’t hire – keep looking. A firm should limit its growth based on its ability to attract enough of the right people. ! When you know you need to make a people change, act. First be sure the person is simply not in the wrong seat on the bus. ! Put the best people on the biggest opportunities, not the biggest ! Good–to–great management teams consist of people who debate vigorously in search of the best answers, yet who unify behind decisions, regardless of the parochial interests.
  5. 5. Confront the Brutal Facts Disciplined People Disciplined Thought Disciplined Action Level 5 Leadership First Who … Then What Confront the Brutal Facts Hedgehog Concept Culture of Discipline Technology Accelerators B U I L D U P B R E A K T H R O U G H F L Y W H E E L ! All good–to–great organizations began the process of finding a path to greatness by confronting the brutal facts of theirs current reality. ! Starting with an honest and diligent effort to determine the truth of the situation, the right decisions often become self–evident. It is impossible to make good decisions without infusing the entire process with an honest confrontation of the brutal facts. ! The primary task in taking an organization from good to great is to create a culture where people have tremendous opportunity to be heard and, ultimately, for the truth to be heard. ! Creating a climate where the truth is heard involves four basic practices: ! Lead with questions, not answers ! Engage in dialogue and debate, not coercion ! Conduct autopsies, without blame ! Build red flag mechanisms that turn information into information that cannot be ignored ! The good–to–great organizations faced just as much adversity as the comparison organizations, but responded to that adversity differently. They hit the realities of the situation head–on. As a result they emerge from adversity even stronger. ! A key psychology for leading a good–to–great organization is the “Stockdale Paradox:” Retain absolute faith that you can and will prevail in the end, regardless of the difficulties, AND at the same time confront the most brutal facts of your current situation, whatever they might be.
  6. 6. Hedgehog Concept Disciplined People Disciplined Thought Disciplined Action Level 5 Leadership First Who … Then What Confront the Brutal Facts Hedgehog Concept Culture of Discipline Technology Accelerators B U I L D U P B R E A K T H R O U G H F L Y W H E E L ! To go from good–to–great requires a deep understanding of three intersecting circles translated into a simple, crystalline concept – the hedgehog concept. ! The key to understand what your organization can be the best in the world at, and equally important what it cannot be the best at – not what it “wants” to be the best at. The Hedgehog Concept is not a goal, strategy, or intention; it is an understanding. ! If you cannot be the best in the world at your core business, then your core business cannot form the basis of the Hedgehog Concept. ! The “best in the world” understanding is a much more severe standard than a core competence. You might have a competence but not necessarily have the capacity to be truly the best in the world at that competence. Conversely, they may be activities at which you could become the best in the world, but at which you have no currant competence. ! To get insight into the drivers of your economic engine, search for the one denominator that has the single greatest impact. ! Good–to–great organizations set their goals and strategies based on understanding; comparison organizations set their goals and strategies based on bravado. ! Getting the Hedgehog Concept is an iterative process.
  7. 7. A Culture of Discipline Disciplined People Disciplined Thought Disciplined Action Level 5 Leadership First Who … Then What Confront the Brutal Facts Hedgehog Concept Culture of Discipline Technology Accelerators B U I L D U P B R E A K T H R O U G H F L Y W H E E L ! Sustained great results depend upon building a culture full of the self–disciplines people who take disciplined action, fanatically consistent with the three circles. ! Bureaucratic cultures arise to compensate fro incompetence and lack of discipline, which arise from having the wrong people on the bus in the first place, if you get the right people on the bus, and the wrong people off, you don’t need stultifying bureaucracy. ! A culture of discipline involves a duality. On the one hand, it requires people who adhere to a consistent system; yet on the other hand, it gives people freedom and responsibility with the framework of that system. ! A culture of discipline is not just about action. It is about getting disciplined people who engage in disciplined thought and who then take discipline action. ! The good–to–great organizations appear boring and pedestrian looking in from the outside, but upon closer inspection, they’re fill of people who display extreme diligence and a stunning intensity. ! Do not confuse a culture of discipline with a tyrant who disciplines – they are very different concepts, one highly functional, the other highly dysfunctional. ! The single most important form of discipline fro sustained results is fanatical adherence to the Hedgehog Concept and the willingness to shun opportunities that fall outside the three circles.
  8. 8. Technology Accelerators Disciplined People Disciplined Thought Disciplined Action Level 5 Leadership First Who … Then What Confront the Brutal Facts Hedgehog Concept Culture of Discipline Technology Accelerators B U I L D U P B R E A K T H R O U G H F L Y W H E E L ! Good–to–great organizations think differently about technology and technological change then mediocre ones. ! Good–to–great organizations avoid technology fads and bandwagons, yet they become pioneers in the applications of carefully selected technologies. ! The key question about any technology is, “does the technology fit directly with the Hedgehog Concept?” if yes, then the need to become a pioneer in the application of that technology. If no, then settle for parity or ignore it entirely. ! The good–to–great organizations use technology an accelerator of momentum, not a creator of it. None of the good–to–great organizations began their transformations with pioneering technology, yet they all became pioneers in the application of technology once they grasped how it fit with their three circles and they hit breakthrough. ! How a firm reacts to technological change is a good indicator of its inner drive for greatness versus mediocrity. Great organizations respond with thoughtfulness and creativity, driven by a compulsion to turn unrealized potential into results; mediocre organizations react and lurch about, motivated by fear of being left behind.

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