Level 5 Leadership Theory

(Jim Collins)

This theory was made as 5 steps which allow a company turn from a good company into a truly great one. The theory is from the book ‘Good to Great: Why Some Companies Make the Leap… and Others Don’t’

The main point of this is to improve leadership. It tries and takes away peoples ego, and instead do what is best for the organisation. Instead of the normal view of leaders, who tend to be big personality driven, this theory states that level 5 leaders seem shy and unpretentious, although they take full responsibility for anything which goes wrong in the organisation.

The following steps are the levels within this theory.

Level 1: Highly Capable Individual

Productive contributor; offers talent, knowledge, skills and good work habits as an individual employee.

Level 2: Contributing Team member

Contributes to the achievement of team goals; works effectively with others in a group.

Level 3: Competent Manager

Sets plans and organises people for the efficient and effective pursuit of objectives.

Level 4: The Effective Executive

Builds widespread commitment to a clear and compelling vision; stimulates people to high performance.

Level 5: The Level 5 Leader

Builds an enduring great organisation through a combination of personal humility and professional resolve.

Level 5 leaders do what is right for their organisation and will strive for it to be successful. These leaders are ambitious, but use that to improve the organisation instead of their own status. As well as making a strong organisation, these leaders make a strong structure, improving others in the company which in turn means that when one person leaves then there is always someone else to take over the job.