Leadership Present by: Igor Souto Author: Jim Collins

James C. "Jim" Collins, III (born 1958, Boulder – Colorado) is an American business consultant, author, and lecturer on the subject of company sustainability and growth. Jim has authored or co-authored six books that have sold in total more than ten million copies worldwide. The international bestseller GOOD TO GREAT, translated into 35 languages. He holds degrees in business administration and mathematical sciences from Stanford University, and honorary doctoral degrees from the University of Colorado and the Peter F. Drucker Graduate School of Management at Claremont Graduate University.

You Must Be Easy To Follow! LEADERSHIP VIDEO (

Key Points What is Level 5 leadership? What are the Characteristics of Level 5 leaders? Can you learn to become level 5? How To Go From Good to Great?

Leadership Pyramid 5–Level 5 Executive 4–Effective Leader 3–Competent Manager 2–Contributing Team Member 1–Highly Capable Individual

The 5 Levels Of Leadership Level 1 – Highly Capable Individual: Makes productive contributions through talent, knowledge, skills, and good work habits Level 2 – Contributing Team Member: Contributes to the achievement of group objectives; works effectively with others in a group setting. Level 3 – Competent Manager: Organizes people and resources toward effective and efficient pursuit of predetermined objectives. Level 4 – Effective Leader: Catalyzes commitment to and vigorous pursuit of a clear and compelling vision; stimulates the group to high performance and standards.

Level 5 Level 5 – Level 5 Executive: Builds enduring greatness through a paradoxical combination of personal humility plus professional will. Set up successors for even greater success Compelling modesty, self-effacing, understated Look in mirror and take full responsibility for poor decisions Many people have the potential to evolve into Level 5 Attribute success to other than themselves

Attitude of a Level 5 leader "I want to look out from my porch at one of the great companies of the world and be able to say: I used to work there.”

What Makes a Level 5 Leader? Humility Modesty Willful Humble Fearless

Level 5 Leaders Warren Buffett is a timeless Level 5 leader example. He gives autonomy and praise to those surrounding him. In 2008, although Berkshire stock lost 32% of its value, it still beat the S&P 500. Instead of spinning this as a victory, Buffett shouldered responsibility, saying, "I made some errors of omission, sucking my thumb when new facts came in that should have caused me to re-examine my thinking and promptly take action."

Showtime Question Obama: a Level 5 Leader?

Not Always About the Money A level 5 leader isn’t 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 you’re probably talking about a Level 4 Leader. This is somebody who is not concerned with the future of the company after they’re gone, but who just wants to get paid. They are all about the “I” and not about the “We.”

Level 5 Leadership First Who… Then What Confront the Brutal Facts Hedgehog Concept Culture of Discipline Technology Accelerators Disciplined PeopleDisciplined ThoughtDisciplined Action Buildup Breakthrough 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). “Who” questions came before “what” decisions - before vision, strategy, organization structure, and tactics. Put your best people on your best opportunities, not biggest problems

Confront the Brutal Facts Setting off on the path to greatness requires confronting the brutal facts of current reality. Must create a culture in which people have a tremendous opportunity to be heard and, ultimately, for the truth to be heard. Four basic practices: Lead with questions, not answers Engage in dialogue and debate, not coercion Conduct autopsies, without blame Build red flag mechanisms where information cannot be ignored

Hedgehog Concept Hedgehogs see what is essential, and ignore the rest. The Hedgehog Concept is a deep understanding of three intersecting circles translated into a simple, crystalline concept: What you are deeply passionate about What you can be best in the world at What drives your economic engine

Hedgehog Concept The Council All Guided by the Three Circles Ask Questions Dialogue & Debate Autopsies & Analysis Executive Decisions An Iterative Process

Culture of Discipline Gives people freedom and responsibility within framework of that system. “Stop doing” lists are more important than “to do” lists. “Anything that does not fit with our Hedgehog Concept, we will not do.”

Technology Accelerators Good-to-greats used technology as an accelerator of momentum, not a creator of it. Technology by itself is never a root cause of either greatness or decline. Good-to-greats avoid technology fads and bandwagons.

The Flywheel There was no single defining action, no grand program, no one killer innovation, no solitary lucky break, no miracle moment. Like pushing on a giant, heavy flywheel, it takes a lot of effort to get the thing moving at all, but... With persistent pushing... In a consistent direction... Over a long period of time... The flywheel builds momentum... Eventually hitting a point of breakthrough.

Questions – Thoughts? References Jim Collins website – Jim Collins article (2001) - The Misguided Mix-up of Celebrity and Leadership Jim Collins - Discussion Guide Brian Stoffel (2011) Article - Is This a Level 5 Leader? Amy Wilson (2009) Article – Obama: A level 5 leader? Jim Collins (2004) Article - Level 5 Leadership: The Triumph of Humility and Fierce Resolve Carl Robinson, Ph.D. (2004) Article - How to Become a Level 5 Leader