Tuesday, April 19, 2011

Level 5 Leadership : From Good to Great

Level 5 Leadership, from Good to Great is a wonderful book by Jim Collins. It talks about good companies that went on to become great by virtue of their leaders.
It is not the objective to evaluate how good the book does in finding Level 5 Leaders. There are some points that Jim Collins did not give examples of Good Companies with similar results that never reached the greatness , and the leadership was the only difference from the great companies. Studies like this are hardly conclusive , but the spirit of the book is in the theme. One can aspire to be a Level 5 leader , immaterial of whether he's the CEO of an organization or not. Perhaps one day a great organization will be created.
So how is this hierarchy defined ?

Level 1 : Capable individual
At this level people concentrate on skills and good work habits. Values are important and knowledge management is critical for success.
Although all of this may sound very simple but people often forget the values of discipline and diligence and cause harm to the organization.

Level 2 : Team Member
An individual has to be part of a team sooner or later to achieve objectives that cannot be done alone. It is important to be in sync with the team and be an excellent team player. The speed of the team is the best speed of its slowest member.
This also sounds simple but how often do we see business units falter because teams do not share information, cooperate or see the larger gains with respect to their individual objectives. Typical Principal Agent issues hamper the greater goals of the organization.

Level 3 : Manager
At this level a person changes gears and starts managing a team of which he was once a member. The change is not abrupt and most organizations promote people who have already displayed their managerial acumen.
The manager's job is very important and he/she has to guide the team according to the organization objectives. At the same time a manager has to take care of aspirations of the team.
This is a very crucial role and probably the first real scope to exhibit one's real leadership skills. A manager has to know the limits set by the organization objectives, yet has to rise above those to pursue the aspirations of the team.

Level 4 : Leader
Very few managers actually elevate to a leadership position. At this stage the manager becomes a visionary and develops the skills required to motivate and stimulate a unit.
This transformation is not a very obvious one. There are several hierarchical managerial levels and when a person becomes a Vice President or a director or maybe the CEO they like to believe that they have reached Level 4. But the truth is that there is an immense inertia to get objectives and work on objectives like a manager. Well that is important because a Level 4 is encompassing the values of all the previous levels. But beyond that the leader must have the vision to cross the boundaries, redefine the boundaries and motivate others to see the same vision.

Level 5 : Final
The author stresses the point that this is an empirical finding and not an ideological one. But for aspirational persons like me perhaps an ideal position is more interesting. So what is Level 5 ?
A level 5 leader has two great qualities , humility and will. Personal humility lets a person relax and see the point of view of others. Whereas professional will lets a leader stay on course of his vision and objectives, they do not quit easily. The author goes on to explain several scenarios of behavior of a Level 5 leader. One can try to find out by self assessment what will he/she do in the same scenario.

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