“You can accomplish anything in life, provided that you do not mind who gets the credit” – Harry S. Truman
A couple of things about Jim Collins
He wrote the books “Built to Last” and “Good to Great”. For this, he studied 1435 Good Companies and examined their performance over 40 years. These companies all outpaced the rest of the industry, exceeded the stock market by at least 3X over 15 years! (independent of industry)
Level 5 Leaders
Level 5 leaders channel their ego needs away from themselves and into the larger goal of building a great company. It’s not that Level 5 leaders have no ego or self-interest. Indeed, they are incredibly ambitious – but they ambition is first and foremost for the institution, not for themselves.
The Levels of Leaders are:
1: Highly Capable Individual
2: Contributing Team Member
3: Competent Manager
4: Effective Leader
5: Level 5 Executive = Humility + Will
Who the heck is…
…Darwin E. Smith?
Didn’t he write the “Origin of the Species”? Not really. He actually was an in-house lawyer who was CEO of Kimberly-Clark for 20 years. During his time, Kimberly-Clark generated stock returns 4.1 times the general market. He described his management style as “Eccentric”, his shyness was coupled with a fierce resolve toward life. He invested in brands like Huggies and Kleenex. In retirement, Smith reflected on his exceptional performances by saying “O never stopped trying to become qualified for the job”. Classic example of Level 5 Leader!
…Colman Mockler?
CEO of Gillette from 1975 to 1991 (he passed away that year still in charge). He was gracious, patrician gentleman and held off three hostile attacks in order to fight for the future greatness of Gillette. He was a placid persona that held an inner intensity to be the best.
…David Maxwell?
CEO of Fannie Mae who took over when they were losing $1 Million every business day. He turned the company into a high-performance culture that earned $4 million every day and beat the stock market 3.8 to 1.
Who of these folks do you know?
- Darwin Smith… Now you do!
- Colman Mockler – Ditto!
- David Maxwell – Ditto… But what about:
- George Cain – Abbott Lab.
- Alan Wurtzel – Circuit City
- Jim Herring – Kroger
- Lyle Everingham – Nucor
- Joe Cullman – Philip Morris
- Fred Allan – Pitney Bowes
- Carl Reichardt – Wells Fargo
Which do you want?
Show horse or plow horse? Window or the mirror?
Level 5 leaders look out the window to apportion credit to factors outside themselves when things go well (and if they cannot find specific person or event to give credit to, they credit good luck). At the same time, they look in the mirror to apportion responsibility, never blaming bad luck when things go poorly.
The Two Sides of Level 5
Professional Will: Creates superb results, a clear catalyst in the transition from good to great. Demonstrates an unwavering resolve to do whatever must be done to produce the best long – term results, no matter how difficult. Sets the standards of building and enduring great company; will settle for nothing less. Looks in the mirror, not out the window, to apportion responsibility for poor results.
Personal Humility: Demonstrates a compelling modesty, shunning public adulation; never boastful. Acts with quiet, calm determination; relies principally on inspired standards, not inspiring charisma, to motivate. Channels ambition into the company, not the self; sets up successors for even greater success in the next generation. Looks out the window, not the mirror, to apportion credit for the success of the company.
Can you learn to become Level 5?
The great irony is that animus and personal ambition that often drive people to positions of power stand at odds with the humility required for Level 5 leadership. Combine that irony with the fact that boards of directors frequently operate under the false belief that they need to hire a larger than life egocentric leader. Therefore, you can see why Level 5 leaders rarely appear at the top of our institutions. The problem is not with the availability of Level 5 leaders. The problem is recognizing that what they have is important.
Can I become a Level 5 leader? No prescription – sorry. Except to practice the other findings that lead a company from to Good to Great: disciplined people, disciplined thought, disciplined action.
* La presentación completa puede ser encontrada en: www.stlncma.org/ei-level5-leadership.ppt
