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Level 5 Leadership
“You can accomplish anything in life, provided that you
do not mind who gets the credit.”
– Harry S. Truman
∗ Faculty member at Stanford Graduate School of
Business
∗ Served as senior executive at CNN International
∗ Founded a management laboratory in Boulder,
Colorado – conducts multi year research projects
∗ Student and teacher of lasting great companies
∗ Business consultant, author, lecturer – on business
growth and sustainability
Jim Collins
∗ Books:
∗ How the Mighty Fall: And Why Some Companies Never
Give In
∗ Good to Great
∗ Built to Last
∗ Good to Great and the Social Sectors
∗ Beyond Entrepreneurship
Jim Collins
∗ LEVEL 5 - Level 5 Executive
∗ LEVEL 4 - Effective Leader
∗ LEVEL 3 - Competent Manager
∗ LEVEL 2 - Contributing Team Member
∗ LEVEL 1 - Highly capable individual
Level 5 Hierarchy
Humility + Will = Level 5 leadership
∗ Abraham Lincoln
∗ Darwin Smith – Kimberly Clark
∗ Colman Mockler - Gillette
Examples of Level 5 Executives
∗ CEO of Kimberly Clark
∗ KC before Darwin Smith was a mediocre player –
Middling Paper industry
∗ Return fell 36% below General stock market
Darwin E Smith
∗ Level 5 leaders have ambition for the company and its
success
∗ Level 5 leaders set up company for success in the
future
∗ Comparison leaders have ambition for themselves
∗ Comparison leaders set up company for failure in the
future
Ambition- Level 5 VS. Comparison
∗ Level 5 leaders do not promote themselves
∗ Level 5 leaders are not interested in credit/recognition
∗ Comparison leaders are very I-centric
∗ Comparison leaders want credit/recognition in
magazines, interviews, photographs
Modesty – Level 5 VS. Comparison
∗ Level 5 is not only about humility and
self-less ness
∗ Level 5 always does whatever it takes to make the
company great
∗ Fire Relatives
∗ End Lasting Traditions
∗ Fight off corporate raiders
Level 5 Unwavering Resolve
∗ Window- Credit outside themselves – in good
situations
∗ Mirror- To take responsibility – in bad situations
∗ Level 5 leaders tend to attribute luck for success rather
than their own efforts
The Window and Mirror Effect
∗ Select over-the-top dazzling celebrity leaders and
over look quiet modest Level 5 leaders
∗ Thinking a high-profile outside leader can come in and
shake up the place
∗ 10 of 11 Level 5 CEOs came from inside the company
Common Mistakes Companies Make
∗ Two types of people: those who do not have the seed
of Level 5 and those who do
∗ Without Seed: Work will always be about what they get
– fame, money, power
∗ With Seed: These can evolve under the right
circumstances to be Level 5 – self-reflection, personal
development, a mentor
Can You Learn to be a Level 5 Leader?

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Level 5 leadership

  • 1. Level 5 Leadership “You can accomplish anything in life, provided that you do not mind who gets the credit.” – Harry S. Truman
  • 2. ∗ Faculty member at Stanford Graduate School of Business ∗ Served as senior executive at CNN International ∗ Founded a management laboratory in Boulder, Colorado – conducts multi year research projects ∗ Student and teacher of lasting great companies ∗ Business consultant, author, lecturer – on business growth and sustainability Jim Collins
  • 3. ∗ Books: ∗ How the Mighty Fall: And Why Some Companies Never Give In ∗ Good to Great ∗ Built to Last ∗ Good to Great and the Social Sectors ∗ Beyond Entrepreneurship Jim Collins
  • 4. ∗ LEVEL 5 - Level 5 Executive ∗ LEVEL 4 - Effective Leader ∗ LEVEL 3 - Competent Manager ∗ LEVEL 2 - Contributing Team Member ∗ LEVEL 1 - Highly capable individual Level 5 Hierarchy
  • 5. Humility + Will = Level 5 leadership
  • 6. ∗ Abraham Lincoln ∗ Darwin Smith – Kimberly Clark ∗ Colman Mockler - Gillette Examples of Level 5 Executives
  • 7. ∗ CEO of Kimberly Clark ∗ KC before Darwin Smith was a mediocre player – Middling Paper industry ∗ Return fell 36% below General stock market Darwin E Smith
  • 8. ∗ Level 5 leaders have ambition for the company and its success ∗ Level 5 leaders set up company for success in the future ∗ Comparison leaders have ambition for themselves ∗ Comparison leaders set up company for failure in the future Ambition- Level 5 VS. Comparison
  • 9. ∗ Level 5 leaders do not promote themselves ∗ Level 5 leaders are not interested in credit/recognition ∗ Comparison leaders are very I-centric ∗ Comparison leaders want credit/recognition in magazines, interviews, photographs Modesty – Level 5 VS. Comparison
  • 10. ∗ Level 5 is not only about humility and self-less ness ∗ Level 5 always does whatever it takes to make the company great ∗ Fire Relatives ∗ End Lasting Traditions ∗ Fight off corporate raiders Level 5 Unwavering Resolve
  • 11. ∗ Window- Credit outside themselves – in good situations ∗ Mirror- To take responsibility – in bad situations ∗ Level 5 leaders tend to attribute luck for success rather than their own efforts The Window and Mirror Effect
  • 12. ∗ Select over-the-top dazzling celebrity leaders and over look quiet modest Level 5 leaders ∗ Thinking a high-profile outside leader can come in and shake up the place ∗ 10 of 11 Level 5 CEOs came from inside the company Common Mistakes Companies Make
  • 13. ∗ Two types of people: those who do not have the seed of Level 5 and those who do ∗ Without Seed: Work will always be about what they get – fame, money, power ∗ With Seed: These can evolve under the right circumstances to be Level 5 – self-reflection, personal development, a mentor Can You Learn to be a Level 5 Leader?