The Concept of Level 5 Leadership - Essay Example

Level 5 Leadership The paper aims to achieve a three-fold objective, to wit to research and define the concept of Level 5 Leadership; (2) to determine the presence or lack of Level 5 Leadership in an actual organization; and (3) to process what I have learned about Level 5 Leadership and what I can apply to my personal leadership style. Level 5 Leadership Section 1: Definition of Level 5 Leadership A. What is it? Level 5 Leadership is discussed in Jim Collin’s article “Level 5 Leadership: The Triumph of Humility and Fierce Resolve”, which has been published in the Harvard Business Review in 2001. As disclosed, Level 5 Leadership is a leadership style where the leader manifests a blend or balance of “extreme personal humility with intense professional will” (Collins, 2001, p. 68). Likewise, as explicitly indicated, the definition of the term ‘Level 5’ is “the highest level in a hierarchy of executive capabilities… that elevate companies from mediocrity to sustained success” (Collins, 2001, p. 68). In an interview with Jim Collins by Stuart Crainer, which was published online on January of 2006, Collins synthesized his definition of Level 5 Leadership: “The central dimension for Level 5 is a leader who is ambitious first and foremost for the cause, for the company, for the work, not for himself or herself; and has an absolutely terrifying iron will to make good on that ambition” (Dearlove & Crainer, 2006). In addition, there were reported evident exemplifications of duality traits such as shy but fearless, modest, yet willful (Collins, 2001). It can, therefore, be deduced, that for a leader to be identified as manifesting Level 5 Leadership, that leader must exude traits such as extreme personal humility, strong professional will, a committed and dedicated pursuit and resolution to steer the organization to prolonged and sustained success. B. How is it different from other leadership styles? The Level 5 Leadership style is apparently different from other leadership styles in terms of accurately identifying the unique and distinct duality traits of leaders who were identified to exude these in companies they led towards prolonged success. According to Collins, there are other levels in the leadership hierarchy: from highly capable individuals (Level 1), contributing team member (Level 2), competent managers (Level 3), and effective leaders (Level 4) (Collins, 2001, p. 70), whose differentiating characteristics and traits are not enough to sustain prolonged and unprecedented success to organizations. C. Why is it important? The importance of having been apprised of the Level 5 Leadership lies in the knowledge and awareness provided to other contemporary organizations that aims to parallel the accomplishments of those companies with Level 5 leaders. The lessons to be learned from organizations which have experienced tumults and business challenges and were already on the brink of financial distress could only have been transformed by Level 5 leaders, in conjunction with other relevant factors that were identified by Collins. They included attending to people first and strategy second; having strong faith and adherence to facts; acknowledging challenges like pushing a giant, heavy freewheel in one direction; using the hedgehog concept (determine what the company does best, how its economics works best, and what best ignites the passion of people); being technology accelerators; manifesting a culture of discipline (Collins, 2001, p. 71). These lessons are relevant to be shared with other business practitioners who might be in the same boat as organizations who have met extreme challenges but which emerged victorious in the end. Section 2: The Presence or Lack of Level 5 Leadership in an Organization A good example of the presence of a Level 5 Leadership in an actual organization is the experience of Johnson & Johnson’s James Burke, especially during the Tylenol crisis. James Burke was reported to have been the CEO of Johnson & Johnson for 13 years, from 1976 to 1989 (Watson, 2012). He started as a product director of the organization in 1953 and became the president in 1970. In 1982, there were reported deaths in the Chicago that resulted from the intake of Tylenol, apparently tampered and laden with cyanide. The sabotage has initially created public panic and caused a decline in the organization’s share in the overall analgesics market from 37 percent to 30 percent (Rehak, 2002). The strategy taken by Burke earned him the respect and admiration of many and was instrumental in leading Johnson & Johnson from a sure organizational decline to unprecedented success. As revealed by Rehak (2002) of The New York Times, “James Burke, the companys chairman, was widely admired for his leadership in the decision to pull Tylenol capsules off the market, and for his forthrightness in dealing with the media. In a news conference only a month and a half after the tragedy, he gave a full chronology of what the company had done” (Rehak, 2002, par. 5). By immediately recalling all Tylenol capsules off the market, Burke ensured that these would be replaced in tamper-proof packs. His initial and paramount concern was the consumers more than what his move would cost the organization in the short-run. As reported, by recalling all the Tylenol capsules off the market, Johnson & Johnson spent $100 million to $150 million on taxes (Prokesch, 1986). He manifested possession of the Level 5 Leadership style in terms of exemplifying both humility and strong professional will. He was humble enough to admit that the unfortunate event happened and took matters directly his hands – “rather than delegating the responsibility of corporate spokesman to a division president or public relations officer, Mr. Burke has assumed that task himself” (Prokesch, 1986, par. 6). His strategy of sacrificing dispensed Tylenol in the market, totalling about 31 million bottles, which has cost the company millions of dollars paid off and resulted in ensuring continued consumers’ safety, adherence to social responsibility, and ethical, moral, and legal standards. Likewise, the move enabled the organization to recover immediately from the blow by regaining full customer’s confidence in their products. As a result, it was revealed that after the Tylenol crisis, the following positive indicators proved that Burke’s leadership style had been instrumental in regaining market leadership and financial success: “In 1982, the stock, which had been trading near a 52-week high just before the tragedy, see-sawed in panic selling but recovered to its highs only two months later” (Rehak, 2002, par. 7); “In the nine years since Mr. Burke became Johnson & Johnsons chief executive, the companys profits have nearly tripled, to $613.7 million in 1985. And its sales have soared from $2.52 billion to $6.42 billion” (Prokesch, 1986, par. 10). Finally, Burke remained focused on the well-being of others more than on himself. Among his most notable awards were the Presidential Medal of Freedom in 2000; and he was then named one of the "Ten Greatest CEOs of All Time," by Fortune in 2002 (Watson, 2012). Section 3: Personal Reflection There have been significant lessons learned from the Level 5 Leadership that could be applied to my personal leadership style. Among these are learning the personal traits of humility and strong professional will to achieve organizational goals and, at the same time, putting other stakeholders’ interests first before my own. As proven, this particular style has been instrumental in transforming organizations from mediocrity to success. The lessons learned by Collins and his team can assist in improving my leadership style by embodying the knowledge, skills, and abilities needed to be a Level 5 leader. As the lessons indicated, the process of transformation is not immediate and would not solely come from the leadership style. As such, through ingraining the knowledge of other key factors and drivers, my personal and innate contribution for the betterment of the organization can be instrumental in the organization’s future growth. The information has enhanced my personal awareness on what particular traits I need to become a Level 5 leader. As such, with training and development, persistence, the will to do good, and extreme humility, I cannot not be derailed in the pursuit of the identified goal. I am confident that by exuding and applying this particular leadership style, I can improve organizations of which I am a part, through applying and sharing the lessons learned from the course. References Collins, J. (2001). Level 5 leadership: The triumph of humility and fierce resolve. Harvard Business Review, 65-76. Dearlove, D., & Crainer, S. (2006, January 3). Jim Collins and level 5 leadership. Retrieved June 19, 2012, from Management-Issues: http://www.management-issues.com/2006/5/24/mentors/jim-collins-and-level-5-leadership.asp Prokesch, S. (1986, February 19). MAN IN THE NEWS; A LEADER IN A CRISIS: JAMES EDWARD BURKE. Retrieved June 20, 2012, from The New York Times: http://www.nytimes.com/1986/02/19/business/man-in-the-newws-a-leader-in-a-crisis-james-edward-burke.html Rehak, J. (2002, March 23). Tylenol made a hero of Johnson & Johnson : The recall that started them all. Retrieved June 20, 2012, from The New York Times: http://www.nytimes.com/2002/03/23/your-money/23iht-mjj_ed3_.html Watson, S. (2012). James Burke 1925 - . Retrieved June 20, 2012, from referenceforbusiness.com: http://www.referenceforbusiness.com/biography/A-E/Burke-James-1925.html Read More