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Level 5 Leaders Characteristics and Operating Style

            

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Operating Style of Level 5 Leaders

Level 5 leaders lead with the help of disciplined people, disciplined thought, and disciplined action. They first identify disciplined people. They don't manage them. Because they don't need to. Through these disciplined or right people, they manage the system.

Then they attempt at disciplined thought. Discipline is necessary to face brutal facts. It is a prerequisite to hold faith. Faith then creates right environment to have a disciplined thought. Similarly discipline is necessary to persist till the organization identifies its Hedgehog concept (it is explained clearly below). In majority of organizations Jim Collins studied it took nearly four years to identify hedgehog concept.

Disciplined people are the source of discipline. Finally, disciplined action is necessary. This only ensures the expected results.

First Who, then What

Level 5 leaders first identify the right people Once this is over then only they turn to the task of setting new direction and strategy for making their organizations great. This approach has some obvious advantages:

1] Once right people are on the team, adapting to changes becomes relatively easy. (Refer Exhibit 9.3 to know how Wells Fargo prepared for the impending change in the industry) If people join the team primarily because they are impressed with direction of the firm or the strategy it is adopting, they are certain to feel dissatisfied when the firm changes its direction or strategy according to situational demands. These dissatisfied people will rarely be enthusiastic participants when the firm is moving in new direction with new strategy.

2] Right people will not have motivational problems. A leader need not motivate them or monitor them closely. They are driven by inner drive to achieve best results and leave their mark.

3] A great company has never been created without right people in place. Wrong people will not be of much use even when the firm is moving in right direction. Similarly, great vision or strategy is hardly meaningful without right people in place.

Exhibit: 9.3 The Secret of Wells Fargo >>

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