This document discusses the differences between management and leadership and highlights characteristics of effective leaders. It contrasts traditional views of leadership and examines Jim Collins' five levels of leadership capabilities. Collins identified level 5 leadership as the highest level, capable of taking a company from mediocrity to sustained excellence. Effective leaders are able to create a compelling vision, sell their vision to others, and make decisions with situational awareness and a focus on the big picture. The context of their situation can determine whether someone emerges as a great leader.