¶ … Level 5 leadership?

Level 5 leaders blend deep personal humility with professional will and determination to get things done

Level 5 leadership is credited with leading 11 companies to true greatness, as defined by Jim Collins as taking an organization with a mediocre market share to out-performing the market and/or dominating its industry

These Level 5 leaders often shun the public spotlight and put their company's success above their egos and personal financial interests. Lee Iacocca was a showy leader, but after his initial success, his focus got diverted. Chrysler stock fell 31%. Iacocca also demanded stock options, a private jet and other company perks that had little to do with real success.

Example of a Level 5 leader: Darwin Smith of Kimberly Clark

Upon assuming the helm of the company, Smith made radical decisions to make the company solvent and modernized.

Smith sold the company's signature mills, got out of the coated paper market and focused instead upon consumer products like Kleenex and Huggies.

Despite Wall Street's initial downgrade of the company stock, Smith held his ground, and now Kimberly Clark beats rival Proctor & Gamble in 6 out of 8 product categories.

Level 5 leadership is not enough

Company vision must be clear

Must be a belief in the future ( POW "Stockdale Paradox")

Change is often slow and incremental ("Flywheel")

Simplicity of direction and goals (hedgehogs, not foxes)

Judicious but forward-thinking use of new technology

Discipline

Level 5 leaders have tremendous personal will combined with a lack of personal self-serving egotism

Abbot Labs: ending nepotism, by company insider and family heir George Cain. Risky, radical move but resulted in Abbot outperforming Merck and Pfizer

Cork Walgreen turning the modern Walgreen's into a pharmacy rather than a general store/soda shop

These leaders made necessary decisions and risked their personal popularity for the sake of their companies

Level 5 leadership is difficult to embody: Difficult to change a person's character

Selflessness seems, in many ways, innate in these leaders

Many had personal turning-points before becoming Level 5, such as Smith's battle with cancer

However, all leaders can try to put Level 5 values into action