Level 5Leadership

BY :: Sagar Malijugnoo raja

“You can accomplish anything in life, provided that you do not mind who gets the credit.”

- Harry S. Truman

OUTLINE

1. Classification of leadership. 2. Level 4 leadership. 3. Level 5 leadership. 4. Characteristics of level 5 leaders. 5. Operating style of level 5 leaders.

Opening Case ::

1. Darwin Smith CEO of Kimberly Clark.

2. Smith decided to sell the company’s mills and enter the consumer paper products business. - Media called it stupid and stock went down.

3. Kimberly Clark was in competition with P & G and Scott Paper.

4. He had only two options that is to become a great company, or to perish.

5. 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.

. It’s performance was better than great companies like HP, Coca cola and even GE.

WHAT MAKES A COMPANY GREAT?

Leadership can take a company from “Good” to “Great”

LEVEL 5 Vs LEVEL 4

Level 5 ::. Highly ambitious for the success of his company.

. E.g. :: Sam walton – level 5 leader – wall street. He wanted to prove that his company is bigger than himself.

Level 4 ::. Is often more bothered about his personal greatness than of the company’s greatness.

. E.g. :: Lee Lacocca – level 4 leader – chrysler. He did save company but was more interested in his own image than company.

Level 5 Leadership

. “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

Characteristics of level 5 leaders ::

. Fierce will :: Creates superb results , a clear catalyst in the transition from good to great.

. Humility :: Demonstrates a compelling modesty, shunning public adulation; never boastful.

First who……….. Then what

1. Leaders began the transformation by first getting the right people on the bus (and wrong people off the bus).

2. “who” questions came before “what” decisions – before vision, strategy, organization structure and tactics.

3. Leaders are rigorous not ruthless in people decisions.

4. Three practical disciplines for being rigorous :: a) when in doubt, do not hire. b) when you know you need to make a people decision, act. c) Put your best people on your best opportunities, not biggest problems.

Confront the brutal facts ::

1. Setting off on the path to greatness requires confronting the brutal facts of current reality.

2. Must create a culture wherein people have a tremendous opportunity to be heard and, ultimately, for the truth to be heard.

Confront the brutal facts ::

Four basic practices :

1. Lead with questions, not answers.

2. Engage in dialogue and debate, not coercion.

3. Learn from mistakes : conduct autopsies, without blame.

4. Build red flag mechanisms where information cannot be ignored.

Hedgehog Concept ::

. Hedgehog see what is essential, and ignore the rest. 1. what you are deeply passionate about. 2. what you can be the best in the world at. 3. what drives your economic engine.

If any organization is not the best in the world in its core business then it can not be a great company

Discipline Vs freedom…..

1. getting disciplined people who engaged in disciplined thought and who then take disciplined action.

2. George Cain, Abbott Laboratories adopted a system called “responsibility accounting”.

3. 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 ::

1. Good-to-greats avoid technology fads and bandwagons.

2. yet they often become pioneers in the application of carefully selected technology.

3. Does it fit with your Hedgehog concept?

4. Good-to-greats use technology as an accelerator of momentum.

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.