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Transcript of level 5 leadership
Level 5 Leadership
By Nisha Hariyani
• “You can accomplish anything in life, provided that you do not mind who gets the credit.”
• -Harry S. Truman
Outline
• Classification of leaders
• Level 4 Leadership
• Level 5 Leadership
• Characteristics of level 5 leaders
• Operating style of level 5 leaders
Opening Case Darwin Smith CEO of Kimberly ClarkSmith decided to sell the company’s mills and
enter the consumer paper products business. Media called it stupid and stock went down
Kimberly Clark was in competition with P&G and Scott paper.
He had only two options that is to become a great company, or to perish.
He invested heavily in building brands like Huggies & Kleenex tissues – which appeared suicidal.
• Kimberly Clark had beaten P&G and Scoot paper in 6 to 8 products under the leadership of Smith.
• It also out performed the market by ratio of 4:1
• Its performance was far better then great companies like HP, Coca cola and even GE
What makes a company Great ?
Leadership can take a company from “Good” to “Great”
Classification Of Leaders
Level 1: Effective Individual Contributor
Level 2: Effective Team Player
Level 3: Effective Manager
Level 4: Effective Leader
Level 5: LEVEL 5 EXECUTIVE
LEVEL 5 Vs. LEVEL 4
• Highly ambitious for the success of his company
• Eg: Sam Walton – level 5 leader – wall street. He wanted to prove that his company is bigger then himself
• Is often more bothered about his personal greatness than of the company’s greatness
• Eg: Lee Iacocca – level 4 leader – Chrysler. He did save company but was more interested in his own image then company
• “ I want to look from my porch, see the company as one of the great companies in the world someday, and be able to say, ‘i used to work there’ ”
– Attitude of level 5 leader
Level 5 Leadership
Characteristics of Level 5 Leaders
• Fierce Will– Creates superb results, a clear catalyst in the
transition from good to great
• Compelling Humility– Demonstrates a compelling modesty,
shunning public adulation; never boastful.
Fierce will
• Robert Aders of Kroger sums up this will:
– “there was a certain Churchillian character to what we were doing. We had a very strong will to live, the sense that we are Kroger, Kroger was here before and will be here long after we are gone, and by god we are going to win this thing. It will take us a hundred years, but we will persist for a hundred years, if that’s what it takes.”
Compelling Humility• Al Dunlap had to say
– Scott Story will go down in the annals of American business history as one of the most successful, quickest turnarounds ever. Not my story.
– Its no me its my people and my company was at the right place at right time.
– He always gave credits to others refusing to accept his crucial role in the transformation
Operating Style of Level 5 Leaders
Level 5Leadership
First Who…Then What
Confront theBrutal Facts
HedgehogConcept
Culture ofDiscipline
TechnologyAccelerators
Disciplined People Disciplined Thought Disciplined Action
BuildupBreakthrough
Good to Great
First Who . . . Then What
Leaders began the transformation by first getting the right people on the bus (and the wrong people off the bus).
Leaders began the transformation by first getting the right people on the bus (and the wrong people off the bus).
“Who” questions came before “what” decisions - before vision, strategy, organization structure, and tactics.
“Who” questions came before “what” decisions - before vision, strategy, organization structure, and tactics.
First Who . . . Then What
Three practical disciplines for being rigorous:When in doubt, don’t hireWhen you know you need to make a
people decision, act
Three practical disciplines for being rigorous:When in doubt, don’t hireWhen you know you need to make a
people decision, act
Put your best people on your best opportunities, not biggest problems
Put your best people on your best opportunities, not biggest problems
Leaders were rigorous, not ruthless in people decisions.
Leaders were rigorous, not ruthless in people decisions.
Confront the Brutal Facts
Must create a culture wherein people have a tremendous opportunity to be heard and, ultimately, for the truth to be heard.
Must create a culture wherein people have a tremendous opportunity to be heard and, ultimately, for the truth to be heard.
Setting off on the path to greatness requires confronting the brutal facts of current reality.
Setting off on the path to greatness requires confronting the brutal facts of current reality.
Confront the Brutal Facts
Lead with questions, not answers
Engage in dialogue and debate, not coercion
Learn from Mistakes: Conduct autopsies, without blame
Build red flag mechanisms where information cannot be ignored
Lead with questions, not answers
Engage in dialogue and debate, not coercion
Learn from Mistakes: Conduct autopsies, without blame
Build red flag mechanisms where information cannot be ignored
Four basic practices:Four basic practices:
Hedgehog ConceptHedgehogs see what is essential, and
ignore the rest.
What you are deeply passionate about
What you can be best in the world at
What drives your economic engine
What you are deeply passionate about
What you can be best in the world at
What drives your economic engine
If an organization is not the best in the world in its core business then it can not be a great company
Discipline Vs Freedom• Getting disciplined people who engage
in disciplined thought and who then take disciplined action
• George Cain, Abbott Laboratories adopted a system called “responsibility accounting”
• Cain recruited entrepreneurial
leaders and gave them enough
freedom to follow their own
idea to attain objectives.
Leaders have freedom but within the specified
boundaries
Adopting Technology
Yet they often become pioneers in the application of carefully selected technologies.
Yet they often become pioneers in the application of carefully selected technologies.
Does it fit directly with your Hedgehog Concept?
Good-to-greats used technology as an accelerator of momentum.
Does it fit directly with your Hedgehog Concept?
Good-to-greats used technology as an accelerator of momentum.
Good-to-greats avoid technology fads and bandwagons.
Good-to-greats avoid technology fads and bandwagons.
Can You Learn to Become Level 5?The problem is not with the
availability of Level 5 leaders. The problem is recognizing that what
they have is important.