1. Level 5 Leadership & its impact on Fundraising
James C. McCarty
Penn State University – World Campus
L A 402

2. What is Level 5 Leadership ?
“Building enduring greatness through a paradoxical blend of personal humility and professional will (Collins, 20).
The complex notion of an individual exemplifying both professional determination and personal humility
Placing more emphasis on the progression of the group, project, company, etc.. Instead of on ones self improvement
Sociocentric as opposed to egocentric

3. Level 5 Hierarchy

4. Aspects of Level 5 Leadership to remember
An individual does not progress through the hierarchy in sequence from level 1 through level 5
Level 5 Leaders exemplify all five layers of the pyramid
Portraying a strong sense of humility,
Not about themselves, but instead a passion for their work

5. Level 5 Leaders vs. Level 4 Leaders
Level 5 Leadership
Level 4 Leadership
Work Horse
Show Pony
Lead by example
Take credit only during prosperous times
Never ask other to do what they would not do themselves
Ready to point the finger in times of regression or turmoil
Humble – Constant Humility
Egocentric – In search of praise

6. The Mirror vs. the Window
Level 5 Leaders
In times of progression, view the situation through the window. Never taking the credit for themselves, but instead looking outward to give the accomplishment elsewhere
In times of turmoil, view the situation through the mirror. Instead of pointing their finger elsewhere, they are self critical of what they need to improve to better the situation
Level 4 Leaders
In times of progression, view the situation through the mirror. Taking personal credit for the accomplishments and progression of the organization.
In times of turmoil, view the situation through the window. Looking to point the finger elsewhere of everyone else's mistakes and what they need to improve to better the situation as opposed to looking within.

7. Jim Collins insight on Level 5 Leadership

8. Important subsidiary factors
The Hedgehog Concept
The Flywheel Affect
The Doom Loop
The 3 topics all play an important role in Level 5 Leadership. Each component lays the foundation or pathway for the Level 5 Leader to improve the organization. Essentially these are the roadmap to follow (or not follow) in order to achieve success and move from good to great.

9. The Hedgehog Concept
The systematic frame work for moving from good to great
The black shaded area on the diagram
Deep understanding of each of the three circles
The Hedgehog concept is what drives progression. A Level 5 Leader deeply understands their organizations parameters, and uses this knowledge to better progress the organization towards success from being good to great.

10. The Flywheel Effect Success is not achieved in a single instance
Only through steady and constant progression will a breakthrough from good to great happen, while maintaining within the parameters of the hedgehog concept
From the outside it appears to have happened overnight
From the inside its steady and constant progression and evolution occurring over the course of time
A Level 5 Leader uses The Flywheel Effect as the vehicle to drive the organization to success. Achieving this destination does not happen in an instant. The Level 5 Leader needs to keep constant and steady pressure on the gas pedal.

11. The Doom Loop The exact opposite of the Flywheel Effect
Constant changing and altering of the organizations direction, without maintaining within the parameters of the hedgehog concept.
The Doom Loop is the downfall for many on the journey from good to great. A Level 5 Leader will need to posses the insight to staying within the confides of the Hedgehog Concept to avoid entering the Doom Loop.

12. Level 5 Leadership in fundraising
Within the field of Fundraising, the person to work the hardest to make the biggest impact, and the strongest connection with prospective donors will be the one achieving the gift.
Level 5 Leadership is essential because the field of Fundraising is becoming ever more competitive to acquire the philanthropic dollar.
The Hedgehog Concept will help the fundraiser to understand who their non-profit can establish the strongest connections with
The Flywheel Effect is the drive for always establishing new connection with new prospective donors, towards obtaining a gift.
It must be noted that a Fundraiser, even being a Level 5 Leader needs to find the balance between the workhorse and show pony mindset.
During times of commemoration or celebration, the show pony must be present
When establishing new connections, the work horse needs to be leaded by example.

13. References
Collins, J. (2001). Good to great: Why some companies make the leap--and others don't. New York, NY: Harper Bu
From Good to Great: What Defines a Level V Leader? (2009, September 21). Retrieved December 16, 2014, from