The Leader - November/December 2008 - (Page 8)

MESSAGE FROM THE CEO by prentice knight, iii Transition to Greatness: “LEVEL 5 LEADERSHIP” Leadership is always important, but even more so during periods of significant and increasing risk and uncertainty. The global financial crisis and the economic downturn have created such a period. One of my favorite views on leadership is provided by Jim Collins in his book, Good to Great. Collins led a large empirically-based study to determine what makes companies great. He explicitly instructed his research team to downplay the role of top executives to avoid the simplistic “credit the leader” or “blame the leader” thinking common today. But the data won out. All the great companies examined in the study had a certain type of leadership – what he calls Level 5 leadership - at the time of transition to greatness. The term “Level 5” refers to the highest level in a hierarchy of executive capabilities that Collins identified in his research. Collins found that while you don’t need to move in sequence from Level 1 to Level 5, fully developed Level 5 leaders embody all five layers of hierarchy. Competent Leader. Organizes people and resources toward the effective and efficient pursuit of predetermined objectives. Contributing Team Member. Contributes individual capabilities to the achievement of group objectives and works effectively with others in a group setting. Highly Capable Individual. Makes productive contributions through talent, knowledge, skills, and good work habits. Professional Will ° Creates superb results, a clear catalyst in the transition from good to great. ° Demonstrates an unwavering resolve to do whatever must be done to produce the best long-term results, no matter how difficult. ° Sets the standard of building an enduring great company; will settle for nothing less ° Looks in the mirror, not out the window, to apportion responsibility for poor results, never blaming other people, external factors, or bad luck. During this period of increasing risk and uncertainty we should search diligently for Level 5 leaders in the government, companies and nonprofit organizations. Collins identified two essential sides of Level 5 leadership: professional will and personal humility. Personal Humility ° Demonstrates a compelling modesty, shunning public adulation, never boastful. Acts with quiet, calm, determination; relies principally on inspired standards, not inspiring charisma, to motivate. ° Channels ambition into the company, not the self; sets up successors for even greater success in the next generation. ° Looks out the window, not in the mirror, to apportion credit for the success of the company – to other people, external factors, and good luck. During this period of increasing risk and uncertainty we should search diligently for Level 5 leaders in the government, companies and nonprofit organizations. We should also continuously assess ourselves against the characteristics of Level 5 leadership and work diligently to become leaders that make a difference in our families, organizations and society. Leadership Hierarchy Level 5 Executive. Builds enduring greatness through a paradoxical blend of personal humility and professional will. Effective Leader. Catalyzes commitment to and vigorous pursuit of a clear and compelling vision, stimulating higher performance standards. The Two Sides of Level 5 Leadership (Jim Collins, Good to Great, 2001) 2 0 0 8 TH E LE ADE R 8 NOVEMBER / DECEMBER

Table of Contents Feed for the Digital Edition of The Leader - November/December 2008

The Leader - November/December 2008 Leadership Contents Message from the CEO Real Estate in the News Leveraging Business Geography My Work @ Bank of America Blending the Old with the New A Tool for Growth Creating Real Estate Value Nokia-Siemens Networks’ Peter Doran DTZ’s James Maddock Annual Economic Development Directory The Georgia Report Location Profile: Magdeburg, Germany Linking Corporate Real Estate to the Enterprise 3rd Quarter 2008 Adding Value in Challenging Times Australia and New York Shell’s Paul Huston Economic Development in the News A Look Ahead In our Next Issue Calendar of Seminars Index of Advertisers Chapter Learning: The Global Perspective

The Leader - November/December 2008

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