leadingtoday.org

Leadership Tip of the Month

October 2003

Copyright 2003 ã weLEAD, Inc.

The Level 5 Leadership Style

One of the most often asked questions regarding the study of leadership behavior is what can make a good company a great company? Researchers and authors Jim Collins and Jerry Porras believe they have found some important links. They examined this issue in their book entitled Built to Last: Successful Habits of Visionary Companies published by Harper Business, 2002. The authors analyzed eleven companies who started out as good or “competent” organizations, but ended up as “great” by the mid-90’s. The definition of great included those who had an outstanding increase in market values of at least 8 times faster than the stock market.

They found that the CEO’s of these good to great companies exhibited similar qualities that Collins labeled as The Level 5 Leadership Style. According to Collins, Level 5 Leadership is a unique mixture of behaviors, including personal humility and professional will. This style is like a coin with two sides. On one side, Level 5 leaders are calm, modest and accept blame or responsibility when things go wrong. On the other side, they demonstrate a determined resolve to do whatever it takes to produce effective long-term results. They set the highest standards for themselves and others, and accept nothing less. The main behaviors of Level 5 leaders are listed below. Its source is an article by Jim Collins, “Level 5 Leadership”, Harvard Business Review, January 2001, p. 73. We recommend another book by Jim Collins entitled Good to Great: Why Some Companies Make the Leap... and Others Don't, published by Harper Collins, 2001.

Personal Humility Professional Will

Demonstrates a compelling modesty, Creates superb results, a clear catalyst

shunning public adulation, never boastful. in the transition from good to great.

Acts with quiet, calm determination; Demonstrates an unwavering resolve to

relies principally on inspired standards, do whatever must be done to produce

not inspiring charisma, to motivate others. the best long term results, no matter how difficult.

Channels ambition into the company not Set the standard of building an enduring

the self, sets up successors for even more great company; will settle for nothing less.

greatness in the next generation.

Looks in the mirror, not out the window Looks out the window, not in the mirror,

to apportion responsibility for poor results, to apportion credit for the success of the

never blaming other people, external factors company – to other people, external factors,

or bad luck. and good luck.

We encourage you to meditate on these qualities and see how your behavior compares to the 5 Level Leadership Style! For weLEAD, this is Greg Thomas reminding you that it was Thomas Edison who wrote, “Three great essentials to achieve anything worthwhile are, first, hard work; second, stick-to-itiveness; third, common sense”.

To learn more about leadership go to the weLEAD Home Page!