Thursday, January 24, 2008

Good and Great - Level 5 Leadership

Lets continue on our exploration of the principles learned in the "Good to Great" study.

The first principle discussed in the book is leadership.  Now lets be clear.  The fact that an organization "Has a leader" is not significant.  What the study found is this.

Of the 15 companies that Mr. Collins ad his group studied, all of them had a level 5 leader at the time they began the transition from good to great.  If you don't know what a level 5 leader is then your not alone. 

Mr. Collins gives the following progression of leadership on page 20.

Level 1 - Highly Capable Individual

Makes productive contributions through talent, knowledge, skill, and good work habits.

Level 2 - Contributing Team Member

Contributes individual capabilities to the achievement of group objectives and works effectively with others in a group setting.

Level 3 - Competent Manager

Organizes people and resources toward the effective and efficient pursuit of predetermined objectives.

Level 4 - Effective Leader

Catalyzes commitment to and vigorous pursuit of a clear and compelling vision, stimulating higher performance standards.

Level 5 - Level 5 Executive

Builds enduring greatness through a paradoxical blend of personal humility and professional will.

As I was reading the book I had trouble imagining what a level 5 would look like if I met one, until I began to read the examples.  So let me go through one as quickly as I can without loosing the dramatic impact of the story.

Darwin E. Smith and Kimberly-Clark Corp.

Kimberly-Clark is a paper corporation that in 1971 appointed the in-house attorney, one Mr Darwin Smith, as CEO.  Mr. Smith himself was not sure that the company had decided wisely.  His doubts were reinforced by a director who pulled him aside to remind him that he lacked some of the qualifications for the position.  He was made CEO however and remained in that position for twenty years. 

In 1971 (bNET), under the leadership of Mr. Smith, the company began a climb from paper manufacturing to becoming one of  the worlds leaders in paper based consumables.  Shortly after the beginning of his term as CEO he and his colleges came to the conclusion that the companies primary business of producing coated paper held at best a mediocre future.

Smith ultimately made the bold decision to sell all of the paper mills.  Even the original mill in Kimberly, Wisconsin, the flagship of the company.  A truly gutsy move, stepping outside of the long standing company tradition and investing the money from the sale of the mills into paper based consumables.

A man of stoic resolve and discipline he never wavered in his conviction that selling the mills was the right decision.  Eventually he was proven right.  In 1995 Kimberly-Clark announced a merger with Scott Paper Co. to create a global consumer company with $11 billion dollars in annual revenue.

What kind of leader makes this bold decision?  According to the book he was more likely to be found spending his free time among plumbers and electricians than at the country club.  He reportedly spent his vacations in the cab of a backhoe digging holes and moving rocks.  So if you have never heard of Darwin Smith, don't feel bad.  He probably would have liked it that way.

The Point

Darwin Smith made the decision to sell the mills because he knew that the company and industry had reached it's limit.  There was little possibility of growth and poor competition to drive the company forward.  At the core I believe it was a rejection of the average and the embrace of a grand vision.  Although the scope is different, I understand.

As I look at the way I do my job and production tasks; I have begun to ask, "Where are my mills?"  Where are the things that I have come to rely on that are really there because I am comfortable with them, rather than because they are the best decisions.

I can't tell you where the particular mills are in your world.  However, I would suggest that you ask the following questions.

  1. Will a software upgrade and a change in the user interface hamper my ability to work productively?
  2. Are the new features and tools not being used because no one knows how to implement them?
  3. Is it possible to customize or automate part of the project work flow?
  4. Is my company so invested in the current customization that it CANNOT upgrade without a major change in process?

These are not all "sell the mills" type of decisions but they may require a similar attitude to change current behaviors and mentalities.  I have seen all of these things hamper the productivity of drafters that would be great if they would just address their own biases.  Changing a particular way of thinking can be just as dramatic and difficult as Darwin Smith's decision to sell all of the mills and embark in a new direction.

I am not a Level 5 Leader as the book talks about them.  However I would like to be one some day, and perhaps that is a start.  One thing that I do know is this.  I do not have to be the CEO of a major corporation to start thinking in this manner.

The focus should not always be on what is most convenient for me, my employer, or my coworkers.  The best decision is not necessarily even the most obviously convenient for the client or project.  The best decision is the one that rigorously adheres to excellence in all facets.

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