Do you have what it takes to lift a company from good to great?

In the world of business, leadership styles are as diverse as the companies and organizations they influence. From visionary leaders to charismatic influencers, each style has its place. However, in his groundbreaking book Good to Great, Jim Collins introduced a leadership model that challenges conventional thinking: Level 5 Leadership.

What makes this concept unique is its emphasis on an unexpected combination of traits—personal humility and professional will—that, when combined, form the basis for transforming an organization from good to great. But what exactly is a Level 5 leader, and why is this style of leadership so impactful?

What is a Level 5 Leader?

A Level 5 leader is the highest level in Collins’ five-tier hierarchy of leadership capabilities. Leaders at this level demonstrate a rare combination of personal humility and professional resolve. They are characterized by a paradoxical blend of attributes:

• Humility: They are unpretentious, modest, and quietly effective. They give credit for success to their team and external factors, while personally shouldering blame in times of difficulty.
• Willpower: At the same time, they are incredibly determined and possess an unwavering resolve to make their organizations successful. Their drive to achieve is not for personal gain but for the success and sustainability of the company.

Collins describes this type of leader as being both humble and ambitious, but their ambition is directed primarily toward the institution they lead, rather than personal accolades.

The 5 Levels of Leadership: Where Level 5 Sits

To fully grasp the significance of Level 5 leadership, it’s helpful to understand the entire hierarchy:

1. Level 1 – Highly Capable Individual: This is someone who makes productive contributions through talent, knowledge, and skills.
2. Level 2 – Contributing Team Member: At this level, the leader works effectively in teams, contributing to the group’s objectives.
3. Level 3 – Competent Manager: This leader is able to organize people and resources toward the effective and efficient pursuit of objectives.
4. Level 4 – Effective Leader: Level 4 leaders are adept at leading a team to achieve short-term and long-term objectives while motivating high performance.
5. Level 5 – Executive Leader: Finally, at Level 5, the leader demonstrates all of the competencies of the previous levels, combined with the unique blend of humility and fierce resolve that makes them transformational.

The Two Key Traits of a Level 5 Leader

At the core of the Level 5 leadership concept are two distinct traits: humility and professional will.

1. Personal Humility

Level 5 leaders display an absence of ego and demonstrate genuine humility. They don’t take personal credit for success and are often quick to acknowledge the contributions of their team and others. This humility does not reflect a lack of self-confidence but rather a deep commitment to the organization and a focus on long-term success over short-term individual recognition.

This humility often manifests in a strong sense of responsibility, as Level 5 leaders focus on creating lasting value for the company rather than seeking fame or financial rewards. They think beyond their tenure and work to build an enduring organization that thrives even after their departure.

2. Professional Will

Despite their unassuming nature, Level 5 leaders possess extraordinary professional will. They are incredibly determined to ensure the success of the organization. This drive often goes unnoticed because it is not accompanied by the usual outward signs of ambition—chest-thumping, personal accolades, or dramatic displays of leadership.

This trait allows them to make difficult decisions, including those that may not be popular in the short term, but are necessary for long-term success. Whether it involves tough strategic shifts or navigating an organization through turbulent times, a Level 5 leader is laser-focused on what is best for the company.

Level 5 Leadership in Action

One of the most famous examples of Level 5 leadership comes from the transformation of Kimberly-Clark under the leadership of Darwin Smith. When Smith took over as CEO, Kimberly-Clark was struggling, and many questioned whether it could survive. However, Smith, despite his modest and unassuming demeanor, made bold decisions that many considered risky, such as selling off the company’s paper mills. These moves ultimately positioned Kimberly-Clark for long-term success, and it became a dominant force in the consumer products industry.

Smith’s leadership style perfectly embodied the principles of Level 5 leadership. While he didn’t seek personal attention or glory, he made the tough decisions necessary for the company’s future and credited the team for Kimberly-Clark’s success, all while demonstrating unwavering determination to see his vision through.

Why Level 5 Leadership Matters Today

In today’s fast-paced, competitive business world, leadership styles that prioritize personal gain or charisma often fall short when it comes to long-term success. What sets Level 5 leaders apart is their focus on sustainable results rather than short-term wins.

In a corporate culture that often glorifies larger-than-life leaders, Level 5 leadership offers a counter-narrative: that true greatness comes from serving the organization and others rather than seeking the spotlight. The most successful organizations, according to Collins, are those where the leaders are more concerned with building a lasting institution than with building their own legacy.

Moreover, in times of crisis or change, the determination and humility of a Level 5 leader can be the key to guiding a company through uncertain waters. Their ability to put the organization first, combined with their relentless drive to succeed, allows them to make difficult decisions that benefit the business in the long term.

Developing Level 5 Leadership Qualities

While some might argue that Level 5 leadership is an innate quality, others believe that it can be developed through self-reflection and a focus on personal growth. Here are a few steps to cultivate Level 5 leadership qualities:

1. Practice humility: Regularly give credit to your team for their achievements and be willing to accept responsibility when things go wrong.
2. Focus on the organization: Keep your ambition centered on the company’s long-term success rather than personal gain or recognition.
3. Develop professional resolve: Be clear on your goals for the organization, and pursue them with determination and resilience, even in the face of challenges.
4. Build successors: A true Level 5 leader wants the organization to thrive even after they are no longer at the helm. Focus on building a strong team that can carry the torch forward.

Conclusion

Level 5 leadership represents a profound shift in our understanding of what it takes to lead an organization to greatness. By blending humility with unwavering professional resolve, these leaders create lasting impact and ensure the long-term success of their organizations. In a world where leadership is often equated with charisma and personal ambition, the Level 5 leader stands apart, proving that sometimes the quietest leaders have the most transformative impact.

Link to the Book: “Why Some Companies Make the Leap… and Others Don’t” by Jim Collins on Amazon