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Jason Bullard Grant Gerhardt Patrick Kirkland Laura Moore Jeffri Vaughn

This document summarizes key points from Chapter 2 of the book "Good to Great" regarding Level 5 leadership. It describes Level 5 leaders as being humble yet resolute individuals who are ambitious primarily for the institution rather than themselves. They are self-effacing and attribute success externally rather than taking personal credit. All good-to-great companies had Level 5 leadership, while comparison companies that failed to become great lacked these characteristics and often had egotistical leaders focused on personal gains over the long-term success of the organization.

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Dr-Shefali Garg
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44 views

Jason Bullard Grant Gerhardt Patrick Kirkland Laura Moore Jeffri Vaughn

This document summarizes key points from Chapter 2 of the book "Good to Great" regarding Level 5 leadership. It describes Level 5 leaders as being humble yet resolute individuals who are ambitious primarily for the institution rather than themselves. They are self-effacing and attribute success externally rather than taking personal credit. All good-to-great companies had Level 5 leadership, while comparison companies that failed to become great lacked these characteristics and often had egotistical leaders focused on personal gains over the long-term success of the organization.

Uploaded by

Dr-Shefali Garg
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Good to Great

Chapter 2:
Level 5
Leadership
Jason Bullard
Grant Gerhardt
Patrick Kirkland
Laura Moore
Jeffri Vaughn

Key Points of Chapter 2


What
What

is Level 5 leadership?

are the Characteristics of


Level 5 leaders?

LEVEL 5 HIERACHY
L5 EXECUTIVE

EFFECTIVE LEADER

COMPETENT MANAGER

CONTRIUTING TEAM MEMEBER

HIGHLY CAPABLE INVIDIDUAL

Darwin

E. Smith former CEO of


Kimberly Clark
o
o

CEO for 20 years


His Story (pg. 17-21 C book)

Level

5 refers to the highest level in


the hierarchy of executive capabilities
in Good to Greats research
Level 5 leaders channel their ego
needs away from themselves and into
the larger goal of building a great
company

Level 5 Leaders
o

Build an enduring greatness into their


companies through a blend of personal
humility and professional will

Are not larger than life saviors

Are self-effacing individuals who have


the resolve to do whatever it takes to
make their company great

Level 5 leaders have ambition but their


ambition is first and foremost for
the institution
o

Ex. Juan T. Trippe, Founder: Pan American


World Airways
o

Pioneered commercial flights to Hawaii, China


the far east, and around the Pacific Rim in the
1920s and 30s with Pan Ams flying boats
Took great risks in the late 50s and again in
the 70s when he partnered with Boeing to
launch the 707 and 747 jetliners

Good to Great companies


had one thing in common
They all had or have Level 5
leadership!

Pan American with Juan T. Trippe


Kimberly Clark with Darwin E.
Smith

A Compelling Modesty
leaders did not talk
about themselves

Good-to-great
o

Talked about the company and the


contributions of other executives
Most are very modest and humble

Most

extraordinary executives are


not widely known

A Compelling Modesty
Was
o
o
o
o
o
o
o
o
o

not just false modesty

Quiet
Humble
Modest
Reserved
Shy
Gracious
Mild-mannered
Self-effacing
Understated

A Compelling Modesty
Good-to-great

leaders never wanted


to become larger-than-life heroes
Ordinary people quietly producing
extra-ordinary results
Presence of a gargantuan personal
ego contributed to the demise or
continued mediocrity of the company

A Compelling Modesty

Scott Paper CEO Al Dunlap


o
o

Told anyone who would listen about his success


Personally accrued $100 million for 603 days of
work
o
o

$165,000 per day


By slashing the workforce, cutting R&D budget in half,
and putting the company on growth steroids in
preparation for sale

Sold off Scott Paper and pocketed the quick


millions
Wrote a book about himself
o

Rambo in Pinstripes

A Compelling Modesty
William

McComb CEO of Liz


Claiborne
o

According to The Wall Street Journal,


McComb flies commercially, almost
always in coach
Many CEOs of major companies travel
on corporate jets

Unwavering Resolveto Do
What Must Be Done
Level

5 leadership is not just about


humility and modesty
Ferocious resolve
Determination to do whatever needs to
be done to make the company great
Call them Level 5 leaders so that they
do not sound weak by being described
as selfless executives or servant
leaders

Unwavering Resolveto Do
What Must Be Done
Level

5 leaders are fanatically driven


Incurable need to produce results
Will even drop a business, sell the
mills, or fire family, if that is what it
takes to make the company great

Unwavering Resolveto Do
What Must Be Done
Evidence

does not support the idea


that you need an outside leader to
come in and shake up the place to go
from good to great
Going for a high-profile outside
change agent is negatively
correlated with a sustained
transformation from good to great

Unwavering Resolveto Do
What Must Be Done
Ten

out of 11 good-to-great CEOs


came from inside the company, three
of them by family inheritance
The comparison companies turned to
outsiders with six times greater
frequency, yet they failed to produce
sustained great results

Walgreens
Large

part of the company had been


in food-service for many years
CEO Cork Walgreen
o

Felt that company should switch to


convenient drugstores
chose to eliminate food-service
operations despite the companys close
ties with food-service

Circuit City
Plow

horse vs. show horse


Investment in Circuit City six times
better than General Electric
Level 5 CEO Alan Wurtzel attributed
number one factor for Circuit Citys
success to luck

Windows and Mirrors


Several

Level 5 leaders attribute


success to luck
Level 5 leaders look out the window at
others to attribute success, and look in
the mirror at themselves to attribute
failure
Comparison company leaders look out
the window at others to attribute
failure, and look in the mirror at
themselves to attribute success

Level 5 Leadership

Professional will
o

Unwavering resolve
to do what it takes
to produce the best
long-term results
Looks in the mirror
to attribute failure
Settles for nothing
less than the best

Personal Humility
o

Modest, never
boastful, shuns public
adulation
Quiet, calm
determinism
Relies on inspired
standards, not
inspiring charisma
Channels ambition to
company, not to self
Looks out the window
to attribute success

Becoming a Level 5
Leader
Some Level 5 leaders experience a significant
turning point in their lives, while others have
a relatively normal life
It is possible that potential Level 5 leaders are
common; it is only a matter of finding them
Some people will never be able to tame their
egos and therefore will never reach Level 5

Work will always be about what they get (fame,


fortune, power) rather than what they build, create,
and contribute

What Makes a Level 5


Leader?

Humility
Modesty
Willful
Humble
Fearless

Not Always About the


Money

A level 5 leader isnt concerned about


money only. This leader is much more
concerned with the overall success of
the company in the present as well as
in the future when they are gone.
They will do everything they can to
make sure the company will succeed
later by appointing a successor with
their same characteristics.

When it is About the


Money

When it is about the money youre probably


talking about a Level 4 Leader. This is
somebody who is not concerned with the
future of the company after theyre gone, but
who just wants to get paid.
They are all about the I and not about the
We.
This leader will not set their successor up for
success. In fact, they will most likely choose
a person who isnt ready, or doesnt have any
idea what it takes to be a leader of that
magnitude.

Leaders

Level 5
Abraham Lincoln
(former President)
Colman Mockler
(CEO Gillette)
David Maxwell
(CEO Fannie Mae)
Frank Blake (CEO
The Home Depot)

Level 4

Stanley Gault
(CEO
Rubbermaid)
Bob Nardelli
(CEO The Home
Depot)

Personal Experience

Level 4-Bob Nardelli


Was getting large
sums of money though
stock was dropping
Company flourished,
but was concerned
about his money, and
not the future of the co
Company and Nardelli
agreed on resignation

Level 5-Frank Blake


Blake is already
more involved with
associates than
Nardelli ever was
Sincere and
concerned with the
success of the
company and the
benefits it brings to
the community

Takeaways

Level 5 Leaders are humble,


fearless, and willful

They are concerned with the


company, its employees, and the
benefits the company brings to the
community in the present and
future

Citations

http://money.cnn.com/2007/01/03/ne
ws/companies/home_depot/index.ht
m
http://money.cnn.com/2006/05/25/ne
ws/companies/home_depot/index.ht
m

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