Shiv Nadar Institue of Eminence

LEVEL 5 LEADERSHIP-
HUMANITY AND FIERCE
RESOLVE

Presented by Group E
 ABSTRACT
This paper delves into the critical role of leadership in
orchestrating pivotal turnarounds for companies. In an era of
unprecedented challenges and economic uncertainties, the
ability of leaders to navigate and guide their organizations
through critical waters has become paramount. Through an in-
depth analysis of case studies from various industries, this
research examines the role of company leadership and the
observed qualites exhibited by them which were crucial to the
turnaround of the company

01
 WHAT CATAPULTS A COMPANY FROM MERELY GOOD TO GREAT?

The paper is about a five year research project

which found the answers to the above
question.
The paper states that these extremely rare
cases of transformation from good to great
always have transformative executives.
Further backs the statement with relevant
studies, revealing the results and providing
insightful data.
A unique attribute that these transformative
executives posses is a mixture of personal
humility and professional will.
These leaders are extremely rare, and
unstoppable.

02
 WHAT IS LEVEL 5 LEADERSHIP?
WHO IS A LEVEL 5 LEADER?
1 2
Level 5 leadership refers to the According to the five year long
research study, Level 5 leaders are
highest level in a hierarchy of catalysts for the rare
executive capabilities transformation of a good company
to a great one

4 3
Good-to-great transformations do Leaders at the other four levels can
not happen without Level 5 leaders also produce high degrees of
success, but this success is not
sustained

Level 5 is an empirical finding

Humility+Will = Level 5 04
THE CASE OF THE MILD-MANNERED DARWIN E.
SMITH
Smith was the in-house lawyer of an old paper company- Kimberley-Clark
In 1971, Smith was named Chief Executive of Kimberley-Clark, whose stock had fallen
36% in the last 20 years.
Overview Smith, a shy even awkward individual stated that ‘he wasn’t so sure the board had made
the right decision’. But he was an extremely transformational leader, with a unique blend
of professional will and personal humility.
Labels his management style as ‘eccentric’. He had a fierce, stoic resolve toward life.
Two months after becoming CEO, he was diagnosed with nose and throat cancer, and he
told the board ‘he had no plans of dying anytime soon’ and lived for 25 more years, 20 of
them as CEO.

Smith and his team had concluded that the core business of Kimberley-Clark was doomed
to mediocrity. Smith reasoned with his ferocious resolve and decided to enter the consumer
Strategy paper market.
Darwin Smith orchestrated a remarkable turnaround, generating stock return 4.1 times the
general market, outperforming companies such as 3M, Coca-Cola, Hewlett-Packard,
General Electric.
Darwin-Smith is a classic example of a level-5 leader.

03
 THE CASE OF UNWAVERING RESOLVE:
GEORGE CAIN
When George Cain assumed control of Abbot Industries, It was still a family-
Overview owned drowsy business sitting on its hero product.
George Cain was known for having a lack of pretense. His personality was
considered such that would not inspire any sudden changes in the working of
company.
But he would be determinate to turn the situation of the company around owing
to his inspired standards: He could not settle for mediocrity.

A profound example of his professional will is shown by him removing nepotism

Strategy in a family-controlled business, rebuilding the board and executive teams with
better performing employees.
Even though such a decision would eventually hamper his own family relations,
whom he kicked out of the business, the step was later proven fruitful when their
stock out-performed industry-leaders like Pfizer and Merck.

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THE CASE OF THE IRON-WILLED LEVEL 5 LEADER:
CORK WALGREEN
Walgreen was known for his quiet demeanor and lack of ego. He credited his
success to the people around him and avoided personal aggrandizement. He didn't
Overview hesitate to delegate tasks and empower his team, trusting their capabilities.
The company was comfortable with a large chain of 500 restaurants but Walgreen
wanted to focus on one aspect of the business and elevate that: The drugstores

Building the Right Hedgehog Concept: Walgreen identified the core elements of the
Strategy business with his "convenient drugstore" concept, focusing on accessibility and
customer service.
He remained committed to this concept even amidst external pressures and
distractions. He aligned the entire organization around this shared vision, creating a
focused and efficient operation.
The stock ended up outperforming the general market 16:1.

06
 THE ANALYSIS
1 2 3
Comparison of variables The paper examines 6,000 Part of quantitative analysis
between companies who articles and 87 interviews includes financial metrics,
sustained a corporate shift with key executives, Internal executive compensation,
and those which didn’t documents quantified company layoffs
and restructurings
4 5
Calculated effect of Synthesized results to
acquisitions and divestitures indentify drivers of good-to-
on company stocks great transformations

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BORN OR BRED
After a careful and detailed analysis of a
number of companies and the key
executives involved in their turnarounds, A
set of qualities can be extracted that
seemed to be common to most leaders of
these companies. People can be termed into
broadly two categories in terms of these
characteristics:

08
 BORN OR BRED?
Category 1
This consists of people for whom it is
difficult to subjugate their own needs and
goals for the benefit of something larger
and outliving themselves. People in this
category are more work focused and
what that rewards them: fame, power
and fortune.
Category 2
This consists of people who can evolve
to a level 5 leadership. The requisite
qualities or attributes might be present in
them in nascent forms until the right
conditions present themselves. Some
people undergo the right mentorship to
develop those skills, While some change
their perspective owing to an emotional
trigger event.
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THE YIN AND YANG OF LEVEL 5
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
more greatness in the next generation.
Looks in the mirror, not out the window,
to apportion responsibility for poor
results, never blaming other people,
external factors, or bad luck.
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 out the window, not in the mirror,
to apportion credit for the success of the
company - to other people external
factors, and good luck.
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 NOT BY LEVEL 5 ALONE
The symbiotic relationship mentioned between Level 5 leadership
and the other key findings highlights the interconnected nature of
the factors that contribute to organizational greatness.

1 2
First Who?: Prioritize getting the Stockdale paradox:This paradox
right people on board before embodies the ability to hold two
determining the direction. contradictory beliefs simultaneously.
They adeptly balance both disciplines -
faith and facts

3 4
"Buildup-Breakthrough Flywheel: Achieving "A Culture of Discipline: Examining successful
good-to-great transformation is a gradual transformations from good to great reveals a
process. The breakthrough occurs when the consistent commitment to three types of
flywheel reaches a critical point, propelling the discipline: disciplined people, disciplined thought,
organization forward with significant and disciplined action.
momentum. 11
 NOT BY LEVEL 5 ALONE
5
"The Hedgehog Concept: Three key circles- what the company
can be the best in the world at, how its economics work best, and
what deeply ignites the passions of its people. Success lies in
adopting and consistently applying this hedgehog-like approach,
systematically eliminating anything outside the three circles for
sustained breakthroughs."

6
"Technology Accelerators: Rather than impulsively
adopting every new trend, they strategically avoided
tech bandwagons. Instead, they emerged as pioneers
by making bold and forward-thinking investments in
carefully selected technologies directly aligned with
their Hedgehog Concept. These technology
accelerators, akin to turbochargers, ignited an
explosive boost in their organizational flywheel."

12
CONCLUSION
We have observed tight, symbiotic relationships
between the disciplines practiced by these great
leaders and Level 5. The best advice for people
seeking to become a level 5 leader would be to
try to consciusly lead using these attributes. It
gives us a tangible place to begin and might help
grow that ‘seed’ within

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THANK
YOU