The concept of level 5 leadership was defined in Good To Great by Jim Collins.

It was created
based on identifying leadership traits during a five-year study of publicly-traded companies. The
traits were impactful because all identified good-to-great companies began their transformation
under a level 5 leader’s guidance.
Let’s start by exploring the hierarchy of leadership qualities. While leaders don’t need to move in
sequence from level one to five, fully developed leaders embody all five layers of the pyramid.
Here is a quick breakdown of each one:

Highly Capable Individual – Makes productive contributions through talent, knowledge, skills,
and good work habits.

Contributing Team Member – Contributes individual capabilities to the achievement of group

objectives and works effectively with others.

Competent Manager – Organizes people and resources toward the effective and efficient
pursuit of predetermined objectives
.
Effective Leader – Catalyzes commitment to and vigorous pursuit of a clear and compelling
vision, stimulating higher performance standards.

Level 5 Executive – Builds enduring greatness through a paradoxical blend of personal humility
and professional will.

Personal humility of level 5 leaders:

Never boastful – Great leaders are not worried about their own ego but are more concerned about
the company itself to help it become a great company.
Always determined – Good to great leaders will do what ever needs to be done to make the
company great
Sets up successors for even greater success in the next generation – Great leaders will set people
up for success. For instance, if you leave a company and it falls apart, then you did not set the
place up for success before leaving. It should not be “I” but “we.”
Praises others for their great work – Good to great leaders tend not to talk about themselves, they
would talk about everyone and the contribution they made

What is the role of leadership in converting a good company into great

The Good to Great book outlines a model for turning a good company into a great one. It
includes a very useful model which brings the theory together in a memorable and meaningful
way. You must do whatever has to be done to turn a good company into a great company.

Get The Right People On The Bus

Often, the first step in taking a company from good to great would be to set a new direction,
vision, and strategy for the company and then get people on board. However, one of the most
important parts is to get the right people on board first and get the wrong people out. In other
words, get the right people on the bus and the wrong people off the bus. Then you can go
somewhere great.
The right people are easily motivated and require less management and will, therefore, produce
great results. Hire people with great character. You must have a culture that will work for people
in the company to make it great. If you hire the right people and they love working together, it
feels less like work. If you have the right people, you do not need to motivate them as they will
be self-motivated. Having a great vision without great people will not work. If you are ever in
doubt hiring an individual, don’t hire. Keep searching for that great individual.

The Importance Of Incentives

By offering great incentives, it will help people stay in your company. It should not be to get the
right behaviors from the wrong people. People must have a strong work ethic. If you don’t have
what it takes to work in a great company, you will not last. If people won’t last in the long term,
don’t make them suffer in the short term.
It is important to note that you can build a great company and a great life. You must have a
balanced life. Spend time with family and relax.

Confront The Brutal Facts

All good-to-great companies began the process of finding a path to greatness by confronting the
brutal facts about their company. It is impossible to make good decisions without infusing the
entire process with an honest confrontation of the brutal facts. A primary task to take a company
from good-to-great is to create a culture wherein people have a tremendous opportunity to be
heard and have a voice.

A Culture Of Discipline
A culture of discipline is where disciplined people take disciplined action that is consistent
towards the Hedgehog Concept. The culture must be built around the idea of responsibility and
freedom. This, of course, depends on having the right people on the bus who are disciplined.
Build your culture around the idea of freedom and responsibility within the Hedgehog Concept.
Then fill the culture with self-motivated people who are willing to do anything to fulfill their
responsibilities. The key is to not enforce discipline, but create a disciplined culture.

Technology Acceleration
Good-to-great companies think differently than good companies about technology and changes
in technology. Great companies become pioneers in the application of carefully selected
technologies. When technology is used correctly, it becomes an accelerator, not a creator of
momentum. “Does the technology fit directly with your Hedgehog Concept? If yes, then you
need to become a pioneer in the application of that technology. If no, then ask, do you need this
technology at all? If yes, then all you need is parity.”
The Doom Loop
The doom loop signifies companies who wanted the quick transition and results. They would
change the direction of the flywheel quickly to try and find the ‘ah-ha’ moment. It is not
recommended to take this approach.

Wrapping Up
Level 5 leaders are not worried about their ego but are more concerned about the company itself.
Get the right people on the bus and the wrong people off the bus. In other words, you must find
the best people to join your company.  These are crucial stages in building a company from good
to great. Keep pushing the flywheel. “We’re not going to hit breakthrough by Christmas, but if
we keep pushing in the right direction, we will eventually hit breakthrough.” By confronting the
brutal facts, you will see the obvious and help you identify the steps that must be taken to keep
pushing the flywheel.