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Level 5 leadership
Jim Collins conducted research on leadership and identified different levels of leadership effectiveness. The highest level is called Level 5 leadership, which is characterized by humility and fierce resolve to do whatever it takes to make the company succeed. Level 5 leaders focus on the long-term success and future of the company, not their own fame or credit. Examples include Darwin Smith of Kimberly-Clark and Abraham Lincoln. Companies often make mistakes by overlooking quiet, modest Level 5 leaders in favor of flashy celebrity leaders. While some people may have the innate potential to become Level 5 leaders through self-reflection and mentorship, others will always prioritize their own gains over the organization's success.
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Level 5 leadership
- 1. Level 5 Leadership “Youcan accomplish anything in life, provided that you do not mind who gets the credit.” – Harry S. Truman
- 2. ∗ Faculty memberat 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: ∗ Howthe 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 ofKimberly Clark ∗ KC before Darwin Smith was a mediocre player – Middling Paper industry ∗ Return fell 36% below General stock market Darwin E Smith
- 8. ∗ Level 5leaders 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 5leaders 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 5is 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- Creditoutside 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-topdazzling 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 typesof 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?