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Chapter 2 – Level 5 leadership

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1 Chapter 2 – Level 5 leadership
Good to Great Chapter 2 – Level 5 leadership


3 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


5 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”

6 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

7 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.

8 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.”

9 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

10 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.

11 Level 5 Summarized Modesty & Humility Will
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

12 Atypical Leadership Characteristics
Tend to be introverts Less charismatic Highly motivated (not really atypical) Motivated more by success of company than themselves

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