1. Ashley Gonzenbach, Brian Byrne, Diana Perkins, Amanda Long
Good to Great: Chapter 2
Ashley Gonzenbach, Brian Byrne,
Diana Perkins, Amanda Long

2. Darwin E. Smith Grew up on a farm in Indiana
Paid his way through college
In-house lawyer
Promoted to CEO of Kimberly-Clark
Nose and throat cancer
Great leader
“I never stopped trying to become qualified for the job.”

3. Level 5 Leaders Good leaders Great Leaders
Manage for the success and betterment of themselves
Great Leaders
manage for the success and betterment of the company and the people as a whole
An individual who blends extreme personal humility with intense professional will.

4. Why is it called “Level 5”?
Level 5 Executive
= Humility + Will
Level 4
Effective Leader
Level 3
Competent Manager
Level 2
Contributing Team Member
Level 1
Highly Capable Individual

5. Level 5 Leaders Coleman Mockler, CEO Gillette CEO from 1975-1991
Fought off three takeover bids
Invested in radically new and technologically advanced systems
Died after making cover of Forbes magazine

6. Level 5 Leaders David Maxwell, CEO Fannie Mae
Took over when Fannie Mae was losing $1 million a day
Transformed Fannie Mae to beat general stock market 3.8 to 1.
Gave up $5.5 million of remaining retirement package back to Fannie Mae

7. Level 5 Leaders Ken Iverson, CEO Nucor
Comparison company Scott Paper was set up for failure by CEO
Chrysler also rose in performance only to decline in later years

8. Unwavering Resolve to Do What Must Be Done
Level Five Leadership
Not just about humility and modesty
Equally about ferocious resolve
- Stoic determination to do whatever needs to be done to make a good company great

9. Deciding How to Describe Good-to-Great Leaders
Initial Terms and Ideas
The Other Side of the Coin
Selfless executive
Servant leader
Can be misleading
Certain labels sound meek and weak
Only portray the humility side
Fanatically Driven
Infected with incurable need to produce results
Will do what must be done
Humility + Will = Level 5

10. George Cain CEO Abbott Laboratories
Inside the company
Key asset- inspired standards
Would not tolerate meritocracy
Set out to destroy nepotism at Abbott
Took the company from good to great

11. Charles R “Cork” Walgreen III CEO of Walgreens
Did not let the his family and emotional ties effect his decisions
Took a chance
Transformed the entire business

12. Alan Wurtzel CEO Circuit City
Took over family’s small company
Was a plow horse rather than show horse
Sheer workmanlike diligence
Credits luck
Ties into “The window and the mirror” concept

13. Window In the Mirror Look in the mirror and blame themselves
When Things Go Well
When Things Go Poorly
Look out the window at all the people who contributed to the success
Credit factors outside themselves
If the cannot find a person or event to credit they credit luck
Look in the mirror and blame themselves
Never blame bad luck
Don’t look out on others

14. Joseph F. Cullman III CEO of Phillip Morris
Refuses Credit for success
Credits good fortune
Great colleagues, successors, and predecessors
Wrote book “I’m a Lucky Guy”

15. Ken Iverson CEO of Nucor
Comparison of corporate view with Bethlehem Steel
Challenge from imports
Stoke of good fortune
He saw problems in management

16. Irene Rosenfeld CEO of Kraft Foods
Came from within Kraft
Took over while Kraft was in a sluggish stage
Been there 20+ years prior
Held numerous other positions in the company
Exudes passion and perseverance

17. What They All Have In Common
George Cain
Charles R “Cork” Walgreen III
Joseph F. Cullman III
Alan Wurtzel
Ken Iverson
Irene Rosenfeld
Modesty and Humility
Came from within
The will to do what must be done
Emphasis on luck and good fortune
The Window and the Mirror

18. Cultivating Level 5 Leadership
Can you learn to become Level 5?
Two categories of people
1. Those who don’t have it
2. Those who do have it
Practice the 11 good-to-great leaders’ characteristics and their ways

19. Summary: The Two Sides of Level 5 Leadership
Professional Will
Professional Humility
Modest; not boastful
Acts on standards, not charisma
Sets up successors or success
Looks out the window for great results
Creates superb, clear results
Does what must be done
Sets standard for great a company
Looks in mirror for bad results

20. Irene Rosenfeld, CEO Came within the company Very competitive
Been with Kraft for 20 + years
Very competitive
Determined on standards, not self
Very ambitious
Wanted to be president, will get done what needs to be done

21. Three Takeaways Setting up Successors for Success A Compelling Modesty
David Maxwell of Fannie Mae
A Compelling Modesty
very non I-centric style
The Window and the Mirror
Look out the window for credit
Look in the mirror for blame

22. References www.kraftfoodscompany.com
Collins, Jim. Good to Great. p HarperCollins Publishers Inc.