Creating such a culture involves four basic practices:
1) Leading with questions , not answers
2) Engage in dialogue and debate not coercion
3) Conduct autopsies without blame
4) Build RED FLAG mechanisms that TURN information into the information that cannot be ignored
Adopted from Jim Collins’s book Good to Great
A level 5 leader realizes the need to have the right kind of people , the executives who argue and debate – sometimes violently – in the pursuit of the best answers , yet on the other hand who fully unify behind a decision irrespective of parochial interests.
Adopted from Jim Collins’s book Good to Great.
Those who build great companies understand that the ultimate throttle on growth for any great company is not markets , or technology or competition or products.
It is one thing above all others , the ability to get and keep enough of the right people.
Adopted from Jim Collins’s book Good to Great
The main point with Level 5 leaders is that they first get the right people on the bus and the wrong people off the bus.
Once the right people are there , level 5 leaders figure out where to drive to the bus to.
Once the team is settled , sheer rigor related to people decisions gives the fillip to drive the company to greatness.
Adopted from Jim Collins’s book Good to Great.
Compensation and incentives are important but for different reasons in great companies.
In great companies , the level 5 leaders realize that purpose of compensation system should NOT be to get the right behaviors from the wrong people , but to get the right people on the bus in the first place and to keep them there.
Adopted from Jim Collins’s book Good to Great.
David Packard co-founder of Hewlett Packard:
“No company can grow revenues consistently faster than its ability to get enough of the right people to implement that growth and still become a great company”.
This implies that if the growth rate in revenues consistently outpaces the growth rate in people , we simply will not and indeed cannot build a great company.
Adopted from Jim Collins’s book Good to Great
Great companies powered by Level 5 leaders adopt the following 3 principles to introduce rigor in people decisions:
Adopted from Jim Collins’s book Good to Great.
Jack Eckerd’s company Eckerd at one point of time was giving Walgreens a run for money but when Jack Eckerd left to pursue politics , the organization capsized
Though Jack was a genius what separated him from Level 5 leaders is the fact that he believed in having a team of Thousand Capable Helpers rather than investing in great people
Adopted from Jim Collins’s book Good to Great
David Maxwell the top person at Fannie Mae was prepared to sacrifice wrong people for great people to eventually take the company from “Good to Great”
His leadership style involved the following:
“If I start with the right people , ask the right questions and engage them in vigorous debate we will find a way to make the company great”
“First Who then What” thus is a very important Level 5 leadership strategy
Adopted from Jim Collins’s book Good to Great
The two key aspects are:
1) First get the right people in the bus before deciding where to drive it
2) Degree of sheer rigor needed in people decisions to taks the company from “good to great”
Adopted from Jim Collins’s book Good to Great