3. Group with enough power
Getting them to work together
•Invisible but real and vital
•Firm atmosphere: loyalty or sabotage
•United to disunited
•Visitors and customers
Atmosphere
4. Group with enough power
Getting them to work together
Confluence of:
•Leadership
•Culture
•Values
Atmosphere: the Behavioural Spring
5. •All firms a coalition of human beings
•They give their time and talent for rewards
•People are not machines and need to be committed
The Living Firm
9. Group with enough power
Getting them to work together
The next board meeting was very, very jolly
Time to Enhance the Board
10. Group with enough power
Getting them to work together
The Strengthened Board
11. •Is there a distinction?
Leadership Versus Management
•Is is possible to be a great leader and a poor manager?
•Is it possible to be a great manager and a poor leader?
•Is it possible to be a great leader and a poor manager?
•Which is more important?
•Does it matter?
12. Group with enough power
Getting them to work together
Leaders Managers
Vision Planning
Strategy Budgeting
Inspiration Organizing
Motivation Staffing
Communication Controlling
Diagnosis Efficiency
Change Profitability
Distinction Between Leaders and Managers
14. 0
++
0
+
Strong
Weak
Innovative and energetic but
close to chaos
Meets today’s commitments to
customers and shareholders
superbly while adapting to
change to ensure future success
Soon to go out of business
unless a protected monopoly
Usually a solid money maker if it
has high RMS bureaucratic and
controlling and unable to adapt
well to change
Management
+ ++Weak Strong
Quadrant 4Quadrant 3
Quadrant 2Quadrant 1
The Leadership/Management Matrix
15. Management
+0 ++Weak Strong
Quadrant 2Quadrant 1
Quadrant 3 Quadrant 4X
XX
X
X
X
X
XX
X
X X
T
(X = an individual)
We Need Leadership + Management
+
++
0
Weak
Strong
17. Group with enough power
Getting them to work together
Collins, J., Level 5 Leadership: The Triumph of Humility and Fierce Resolve, Harvard
Business Review, The High Performance Organization, July-August 2005
The research question
‘Can a good company become great and if so how
does that happen?’
The measure
1. Cumulative stock returns at or below the
general stock market for 15 years,
2. A transition point, (A new leader) then
3. Cumulative stock returns of at least three times
the market for the next 15 years.
Leadership Research
18. Group with enough power
Getting them to work together
1,435 Fortune 500 companies from 1966 to 1995
•11 good to great examples were found.
• 6.9 times the general stock market for 15 years
after the transition.
Results
19. Group with enough power
Getting them to work together
The Company
The Company
0
Ave Stock
Mkt Rets
3015
Years
Transition Point
20. Humility + Will = Level 5 leadership
Findings
Level Characteristics
Level 5: Executive
Builds enduring greatness through a paradoxical
combination of personal humility and professional will.
Level 4: Effective
Leader
Catalyzes commitment to and vigorous pursuit of a
clear and compelling vision and stimulates the group to
high performance levels
Level 3 Competent
Manager
Organizes people and resources toward the effective
and efficient pursuit of predetermined objectives
Level 2: Contributing
Team Members
Contributes to the achievement of group objectives;
works effectively with others in a group setting
Level 1: Highly Capable
Individual
Makes productive contributions through talent,
knowledge, skills and good work habits
21. The Window and the Mirror
Darwin E. Smith, 1971 CEO Kimberly-Clark
From paper mills to Kleenex, Huggies etc.
Cumulative stock returns of 4.1 times general
stock market for 20 years
22. Group with enough power
Getting them to work together
The Change in Kimberly-Clark
23. Group with enough power
Getting them to work together
Duck, J., Lessons from my Three Decades with the Change Monster,
Perspectives, The Boston Consulting Group, 2008.
•Be bold.
•Be utterly obvious.
•Be careful what you promise.
•Make commitments stick.
•Forget happy and create attitudes to winning.
•Take culture seriously and work on it explicitly.
•Be responsible and stay responsible - don’t delegate.
•Stay connected - ambassadorial core.
•Provide interpretation - prevent speculative vacuums.
•Celebrate the accomplishments along the way.
Leading Strategic Change
24. Year 201X 201Y 201Z Strategy
Leadership skill
Training/Employee
Training/Sales
Labour turnover
Absenteeism
Strike days
Measuring Leadership
