Level 5 leadership is the highest level of leadership. It involves being highly ambitious for the company's success over personal gain or credit. Level 5 leaders demonstrate a fierce resolve to create superb results for the company and a compelling humility. They first focus on getting the right people in leadership roles before making strategic decisions. They also confront the brutal facts of reality and engage in open dialogue. Level 5 leaders help companies transition from good to great through disciplined thought and action within specified boundaries, using technology cautiously to accelerate momentum.

1. Level 5
Leadership
BY :: Sagar Mali
jugnoo raja

2. “You can accomplish anything in life, provided that you do not
mind who gets the credit.”
- Harry S. Truman

3. OUTLINE
1. Classification of leadership.
2. Level 4 leadership.
3. Level 5 leadership.
4. Characteristics of level 5 leaders.
5. Operating style of level 5 leaders.

4. Opening Case ::
1. Darwin Smith CEO of Kimberly Clark.
2. Smith decided to sell the company’s mills and enter the consumer
paper products business.
- Media called it stupid and stock went down.
3. Kimberly Clark was in competition with P & G and Scott Paper.
4. He had only two options that is to become a great company, or to
perish.
5. He invested heavily in building brands like Huggies & Kleenex tissues
– which appeared suicidal.

5. . Kimberly Clark had beaten P&G and scoot paper in 6 to 8
products under the leadership of Smith.
. It also out performed the market by ratio of 4:1.
. It’s performance was better than great companies like HP, Coca
cola and even GE.
WHAT MAKES A COMPANY GREAT?

6. Leadership can take a company from “Good” to “Great”

8. LEVEL 5 Vs LEVEL 4
Level 5 ::
. Highly ambitious for the success of his company.
. E.g. :: Sam walton – level 5 leader – wall street. He wanted to prove
that his company is bigger than himself.
Level 4 ::
. Is often more bothered about his personal greatness than of the
company’s greatness.
. E.g. :: Lee Lacocca – level 4 leader – chrysler. He did save company but
was more interested in his own image than company.

9. Level 5 Leadership
. “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.”
- Attitude of level 5 leader

10. Characteristics of level 5 leaders ::
. Fierce will :: Creates superb results , a clear catalyst in the
transition from good to great.
. Humility :: Demonstrates a compelling modesty, shunning public
adulation; never boastful.

12. First who……….. Then what
1. Leaders began the transformation by first getting the right people on the bus
(and wrong people off the bus).
2. “who” questions came before “what” decisions – before
vision, strategy, organization structure and tactics.
3. Leaders are rigorous not ruthless in people decisions.
4. Three practical disciplines for being rigorous ::
a) when in doubt, do not hire.
b) when you know you need to make a people decision, act.
c) Put your best people on your best opportunities, not biggest problems.

13. Confront the brutal facts ::
1. Setting off on the path to greatness requires confronting the
brutal facts of current reality.
2. Must create a culture wherein people have a tremendous
opportunity to be heard and, ultimately, for the truth to be heard.

14. Confront the brutal facts ::
Four basic practices :
1. Lead with questions, not answers.
2. Engage in dialogue and debate, not coercion.
3. Learn from mistakes : conduct autopsies, without blame.
4. Build red flag mechanisms where information cannot be
ignored.

15. Hedgehog Concept ::
. Hedgehog see what is essential, and ignore the rest.
1. what you are deeply passionate about.
2. what you can be the best in the world at.
3. what drives your economic engine.
If any organization is not the best in the world in its core business
then it can not be a great company

16. Discipline Vs freedom…..
1. getting disciplined people who engaged in disciplined thought
and who then take disciplined action.
2. George Cain, Abbott Laboratories adopted a system called
“responsibility accounting”.
3. Cain recruited entrepreneurial leaders and gave them enough
freedom to follow their own idea to attain objectives.

17. LEADERS HAVE FREEDOM BUT WITHIN THE
SPECIFIED BOUNDARIES

18. ADOPTING TECHNOLOGY ::
1. Good-to-greats avoid technology fads and bandwagons.
2. yet they often become pioneers in the application of carefully
selected technology.
3. Does it fit with your Hedgehog concept?
4. Good-to-greats use technology as an accelerator of momentum.

19. 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.