good to great chapter 2 – level 5 leadership. darwin smith “best example of taking a good...
TRANSCRIPT
Good to GreatCHAPTER 2 – LEVEL 5 LEADERSHIP
Darwin Smith• “Best example of taking a good company
and making it great”
• CEO of Kimberly-Clark 20 Years
• Stock Returns 4.1 times higher during his time
• Not a typical leader but used Level 5 Leadership
Level 5 Leadership
“Level 5” Refers to a five-level hierarchy of executive capabilities with Level 5 at the top.
Humility + Will = Level 5
“Level 5 Leaders are ambitious… first and foremost for the company, not
themselves”
Research
“Leadership is the answer to everything” is like saying “God is the answer to everything”
- Where did Level 5 Come From?- Collins ignored executives- Team Disagreed- Found that Level 5 Leadership was consistent
in all great companies- Comparison companies lacked Level 5
Leadership
Ambition for the Company: Setting Up Successors for Success
• Key part in making business sustainable and ultimately making the business great.
• Ambition first and foremost for the company and concern for its success rather than one’s own riches and personal renown.
• In over 3 quarters of the comparison companies successors were setup for failure, or chose weak successors, or both.
A Compelling Modesty
• Not to be confused with false modesty
• Great leaders tended to place more emphasis on others and the company, rather than themselves.
• Did not take credit for themselves, even where it was due.
• “Seemingly ordinary people producing extraordinary results.”
Unwavering Resolve… to Do What Must Be Done
• Level 5 leaders are driven to produce results
• You must be willing to do whatever it takes
• Promoting from within = stronger resolve
The Window in the Mirror• Level 5 leaders look out the window to
apportion credit to factors outside themselves when things go well
• At the same time, they look in the mirror to apportion responsibility, never blaming bad luck when things go poorly
• Simplified, they accept blame for bad, and give credit to others for good.
Level 5 Summarized
• Modesty & Humility– Someone who does not care about the credit– Accepts blame for failures – but does not give
up
• Will– Direct ambitions towards companies’ goals
first and foremost– Strong Resolve
Atypical Leadership Characteristics• Tend to be introverts
• Less charismatic
• Highly motivated (not really atypical)
• Motivated more by success of company than themselves