Monthly archives "August 2014"

Level 5 Leadership

Andrew

I am currently reading ‘Good To Great’ by Jim Collins, a book about what makes a truly and sustainably ‘great’ company.

I love that this book is based on in-depth and holistic research, not opinion. The research didn’t set out to prove any point, rather to unearth the true generic success factors, whatever they may be.

One of the key factors the research team identified is what they have called Level 5 Leaders. These leaders invest in people, build talented teams, move people into optimum roles and empower others. Level 5 leaders are: largely free of ego, are often recruited from within the company, are not threatened by the success of others and don’t claim the glory for themselves.

“Level 5 leaders channel their ego needs away from themselves and into the larger goal of building a great company’.

What is fascinating, is that they study compared these truly ‘great’ companies, ones that out-performed the stock market by a factor of 7 (700%) over a 15 year period, as compared to a peer group of ‘direct comparison’ companies. Whilst those direct comparison companies may have had periods of great success, it was not sustainable. Much of this was attributable to leadership style. Read More →