level 5 leadership

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level 5 leadership

  1. 1. Level 5 Leadership By Nisha Hariyani
  2. 2. <ul><li>“ You can accomplish anything in life, provided that you do not mind who gets the credit.” </li></ul><ul><li>-Harry S. Truman </li></ul>
  3. 3. Outline <ul><li>Classification of leaders </li></ul><ul><li>Level 4 Leadership </li></ul><ul><li>Level 5 Leadership </li></ul><ul><li>Characteristics of level 5 leaders </li></ul><ul><li>Operating style of level 5 leaders </li></ul>
  4. 4. Opening Case <ul><li>Darwin Smith CEO of Kimberly Clark </li></ul><ul><li>Smith decided to sell the company’s mills and enter the consumer paper products business. </li></ul><ul><ul><li>Media called it stupid and stock went down </li></ul></ul><ul><li>Kimberly Clark was in competition with P&G and Scott paper. </li></ul><ul><li>He had only two options that is to become a great company, or to perish. </li></ul><ul><li>He invested heavily in building brands like Huggies & Kleenex tissues – which appeared suicidal. </li></ul>
  5. 5. <ul><li>Kimberly Clark had beaten P&G and Scoot paper in 6 to 8 products under the leadership of Smith. </li></ul><ul><li>It also out performed the market by ratio of 4:1 </li></ul><ul><li>Its performance was far better then great companies like HP, Coca cola and even GE </li></ul>What makes a company Great ?
  6. 6. Leadership can take a company from “Good” to “Great”
  7. 7. Classification Of Leaders Level 1: Effective Individual Contributor Level 2: Effective Team Player Level 3: Effective Manager Level 4: Effective Leader Level 5: LEVEL 5 EXECUTIVE
  8. 8. LEVEL 5 Vs. LEVEL 4 <ul><li>Highly ambitious for the success of his company </li></ul><ul><li>Eg: Sam Walton – level 5 leader – wall street. He wanted to prove that his company is bigger then himself </li></ul><ul><li>Is often more bothered about his personal greatness than of the company’s greatness </li></ul><ul><li>Eg: Lee Iacocca – level 4 leader – Chrysler. He did save company but was more interested in his own image then company </li></ul>
  9. 9. <ul><li>“ I want to look from my porch, see the company as one of the great companies in the world someday, and be able to say, ‘i used to work there’ ” </li></ul><ul><li>Attitude of level 5 leader </li></ul>Level 5 Leadership
  10. 10. Characteristics of Level 5 Leaders <ul><li>Fierce Will </li></ul><ul><ul><li>Creates superb results, a clear catalyst in the transition from good to great </li></ul></ul><ul><li>Compelling Humility </li></ul><ul><ul><li>Demonstrates a compelling modesty, shunning public adulation; never boastful. </li></ul></ul>
  11. 11. Fierce will <ul><li>Robert Aders of Kroger sums up this will: </li></ul><ul><ul><li>“ there was a certain Churchillian character to what we were doing. We had a very strong will to live, the sense that we are Kroger, Kroger was here before and will be here long after we are gone, and by god we are going to win this thing. It will take us a hundred years, but we will persist for a hundred years, if that’s what it takes.” </li></ul></ul>
  12. 12. Compelling Humility <ul><li>Al Dunlap had to say </li></ul><ul><ul><li>Scott Story will go down in the annals of American business history as one of the most successful, quickest turnarounds ever. Not my story. </li></ul></ul><ul><ul><li>Its no me its my people and my company was at the right place at right time. </li></ul></ul><ul><ul><li>He always gave credits to others refusing to accept his crucial role in the transformation </li></ul></ul>
  13. 13. Operating Style of Level 5 Leaders Level 5 Leadership First Who… Then What Confront the Brutal Facts Hedgehog Concept Culture of Discipline Technology Accelerators Disciplined People Disciplined Thought Disciplined Action Good to Great Flywheel Buildup Breakthrough
  14. 14. First Who . . . Then What <ul><li>Leaders began the transformation by first getting the right people on the bus (and the wrong people off the bus). </li></ul><ul><li>“ Who” questions came before “what” decisions - before vision, strategy, organization structure, and tactics. </li></ul>
  15. 15. First Who . . . Then What <ul><li>Three practical disciplines for being rigorous: </li></ul><ul><ul><li>When in doubt, don’t hire </li></ul></ul><ul><ul><li>When you know you need to make a people decision, act </li></ul></ul><ul><li>Put your best people on your best opportunities, not biggest problems </li></ul><ul><li>Leaders were rigorous, not ruthless in people decisions. </li></ul>
  16. 16. Confront the Brutal Facts <ul><li>Must create a culture wherein people have a tremendous opportunity to be heard and, ultimately, for the truth to be heard. </li></ul><ul><li>Setting off on the path to greatness requires confronting the brutal facts of current reality. </li></ul>
  17. 17. Confront the Brutal Facts <ul><ul><li>Lead with questions, not answers </li></ul></ul><ul><ul><li>Engage in dialogue and debate, not coercion </li></ul></ul><ul><ul><li>Learn from Mistakes: Conduct autopsies, without blame </li></ul></ul><ul><ul><li>Build red flag mechanisms where information cannot be ignored </li></ul></ul><ul><li>Four basic practices: </li></ul>
  18. 18. Hedgehog Concept <ul><li>Hedgehogs see what is essential, and ignore the rest. </li></ul><ul><ul><li>What you are deeply passionate about </li></ul></ul><ul><ul><li>What you can be best in the world at </li></ul></ul><ul><ul><li>What drives your economic engine </li></ul></ul>If an organization is not the best in the world in its core business then it can not be a great company
  19. 19. Discipline Vs Freedom <ul><li>Getting disciplined people who engage in disciplined thought and who then take disciplined action </li></ul><ul><li>George Cain, Abbott Laboratories adopted a system called “responsibility accounting” </li></ul><ul><li>Cain recruited entrepreneurial </li></ul><ul><li>leaders and gave them enough </li></ul><ul><li>freedom to follow their own </li></ul><ul><li>idea to attain objectives. </li></ul>
  20. 20. Leaders have freedom but within the specified boundaries
  21. 21. Adopting Technology <ul><li>Yet they often become pioneers in the application of carefully selected technologies. </li></ul><ul><li>Does it fit directly with your Hedgehog Concept? </li></ul><ul><li>Good-to-greats used technology as an accelerator of momentum. </li></ul><ul><li>Good-to-greats avoid technology fads and bandwagons. </li></ul>
  22. 22. Can You Learn to Become Level 5? The problem is not with the availability of Level 5 leaders. The problem is recognizing that what they have is important.

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