Level 5Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerators

Disciplined People Disciplined Thought Disciplined Action

BuildupBreakthrough

Good to Great

Level 5Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerators

Disciplined People Disciplined Thought Disciplined Action

BuildupBreakthrough

Level 5Leadership

Good to Great

Level 5 Leadership

5–Level 5 Executive

4–Effective Leader

3–Competent Manager

2–Contributing Team Member

1–Highly Capable Individual

Level 5 Leadership

Leaders who employ a paradoxical mix of personal humility and professional will

Set up successors for even greater success

Compelling modesty, self-effacing, understated

Leaders who employ a paradoxical mix of personal humility and professional will

Set up successors for even greater success

Compelling modesty, self-effacing, understated

5–Level 5 Executive

4–Effective Leader

3–Competent Manager

2–Contributing Team Member

1–Highly Capable Individual

Fanatically driven to produce sustainable results

More plow horse than show horse

Fanatically driven to produce sustainable results

More plow horse than show horse

Level 5 Leadership

5–Level 5 Executive

4–Effective Leader

3–Competent Manager

2–Contributing Team Member

1–Highly Capable Individual

Look in mirror and take full responsibility for poor decisions

Many people have the potential to evolve into Level 5

Look in mirror and take full responsibility for poor decisions

Many people have the potential to evolve into Level 5

Attribute success to other than themselves

Attribute success to other than themselves

Level 5Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerators

Disciplined People Disciplined Thought Disciplined Action

BuildupBreakthrough

First Who…Then What

Good to Great

First Who . . . Then What

Leaders began the transformation by first getting the right people on the bus (and the wrong people off the bus).

Leaders began the transformation by first getting the right people on the bus (and the wrong people off the bus).

“Who” questions came before “what” decisions - before vision, strategy, organization structure, and tactics.

“Who” questions came before “what” decisions - before vision, strategy, organization structure, and tactics.

First Who . . . Then What

Three practical disciplines for being rigorous:When in doubt, don’t hireWhen you know you need to make a

people decision, act

Three practical disciplines for being rigorous:When in doubt, don’t hireWhen you know you need to make a

people decision, act

Put your best people on your best opportunities, not biggest problems

Put your best people on your best opportunities, not biggest problems

Leaders were rigorous, not ruthless in people decisions.

Leaders were rigorous, not ruthless in people decisions.

First Who . . . Then What

Management teams debate vigorously to find best answers, yet unify behind decisions.

Management teams debate vigorously to find best answers, yet unify behind decisions.

“Right” person has more to do with character traits and innate capabilities than with knowledge, background, or skills.

“Right” person has more to do with character traits and innate capabilities than with knowledge, background, or skills.

Level 5Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerators

Disciplined People Disciplined Thought Disciplined Action

BuildupBreakthrough

Confront theBrutal Facts

Good to Great

Confront the Brutal Facts

Must create a culture wherein people have a tremendous opportunity to be heard and, ultimately, for the truth to be heard.

Must create a culture wherein people have a tremendous opportunity to be heard and, ultimately, for the truth to be heard.

Setting off on the path to greatness requires confronting the brutal facts of current reality.

Setting off on the path to greatness requires confronting the brutal facts of current reality.

Confront the Brutal Facts

Lead with questions, not answers

Engage in dialogue and debate, not coercion

Conduct autopsies, without blame

Build red flag mechanisms where information cannot be ignored

Lead with questions, not answers

Engage in dialogue and debate, not coercion

Conduct autopsies, without blame

Build red flag mechanisms where information cannot be ignored

Four basic practices:Four basic practices:

Confront the Brutal Facts

Stockdale Paradox:Retain absolute faith that you can and will prevail in the end, AND at the same time confront the most brutal facts of your current reality, whatever they might be.

Stockdale Paradox:Retain absolute faith that you can and will prevail in the end, AND at the same time confront the most brutal facts of your current reality, whatever they might be.

Level 5Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerators

Disciplined People Disciplined Thought Disciplined Action

BuildupBreakthrough

HedgehogConcept

Good to Great

Hedgehog Concept

Hedgehogs simplify a complex world into a single organizing idea, a basic principle or concept that unifies and guides everything.

Hedgehogs see what is essential, and ignore the rest.

Hedgehogs simplify a complex world into a single organizing idea, a basic principle or concept that unifies and guides everything.

Hedgehogs see what is essential, and ignore the rest.

Hedgehog Concept

The Hedgehog Concept is a deep understanding of three intersecting circles translated into a simple, crystalline concept:

The Hedgehog Concept is a deep understanding of three intersecting circles translated into a simple, crystalline concept:

What you are deeply passionate about

What you can be best in the world at

What drives your economic engine

What you are deeply passionate about

What you can be best in the world at

What drives your economic engine

Hedgehog Concept

What you are deeplypassionate about

What you can be the best in

the world at

What drives your

economicengine

Simplicitywithinthe three circles

Hedgehog Concept

Getting the Hedgehog Concept takes an average of four years.

Getting the Hedgehog Concept takes an average of four years.

The right peopleEngaged in vigorous

dialogue and debate Infused with the

brutal factsGuided by questions

formed by the three circles

The right peopleEngaged in vigorous

dialogue and debate Infused with the

brutal factsGuided by questions

formed by the three circles

It is an iterative process by The Council: It is an iterative process by The Council:

Hedgehog Concept

TheCouncil

All Guided by the Three Circles

Ask Questions

Dialogue &Debate

Autopsies& Analysis

ExecutiveDecisions

An IterativeProcess

Level 5Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerators

Disciplined People Disciplined Thought Disciplined Action

BuildupBreakthrough

Culture ofDiscipline

Good to Great

Culture of Discipline

People who “rinse their cottage cheese”

Not about a tyrant who disciplines

People who “rinse their cottage cheese”

Not about a tyrant who disciplines

Getting disciplined people who engage in disciplined thought and who then take disciplined action, fanatically consistent with three circles

Getting disciplined people who engage in disciplined thought and who then take disciplined action, fanatically consistent with three circles

Culture of Discipline

Requires people who adhere to a consistent system.

Gives people freedom and responsibility within framework of that system.

Requires people who adhere to a consistent system.

Gives people freedom and responsibility within framework of that system.

Involves a duality. Involves a duality.

Culture of Discipline

Budgeting is to decide which arenas fit Hedgehog Concept and should be fully funded and which should not be funded at all.

Budgeting is to decide which arenas fit Hedgehog Concept and should be fully funded and which should not be funded at all.

“Stop doing” lists are more important than “to do” lists.

“Anything that does not fit with our Hedgehog Concept, we will not do.”

“Stop doing” lists are more important than “to do” lists.

“Anything that does not fit with our Hedgehog Concept, we will not do.”

Includes willingness to shun opportunities that fall outside the three circles.

Includes willingness to shun opportunities that fall outside the three circles.

Level 5Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerators

Disciplined People Disciplined Thought Disciplined Action

BuildupBreakthrough

TechnologyAccelerators

Good to Great

Technology Accelerators

Yet they often become pioneers in the application of carefully selected technologies.

Yet they often become pioneers in the application of carefully selected technologies.

Does it fit directly with your Hedgehog Concept?

Good-to-greats used technology as an accelerator of momentum, not a creator of it.

Does it fit directly with your Hedgehog Concept?

Good-to-greats used technology as an accelerator of momentum, not a creator of it.

Good-to-greats avoid technology fads and bandwagons.

Good-to-greats avoid technology fads and bandwagons.

Technology Accelerators

Technology by itself is never a root cause of either greatness or decline.

Technology by itself is never a root cause of either greatness or decline.

“Crawl, walk, run” can be a very effective approach, even during times of rapid and radical technological change.

“Crawl, walk, run” can be a very effective approach, even during times of rapid and radical technological change.

Level 5Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerations

Disciplined People Disciplined Thought Disciplined Action

BuildupBreakthrough

Flywheel

Good to Great

The Flywheel

Good-to-great transformations never happened in one fell swoop.

Good-to-great transformations never happened in one fell swoop.

There was no single defining action, no grand program, no one killer innovation, no solitary lucky break, no miracle moment.

Instead they followed a predictable pattern of buildup and breakthrough.

Like pushing on a giant, heavy flywheel, it takes a lot of effort to get the thing moving at all, but . . .

There was no single defining action, no grand program, no one killer innovation, no solitary lucky break, no miracle moment.

Instead they followed a predictable pattern of buildup and breakthrough.

Like pushing on a giant, heavy flywheel, it takes a lot of effort to get the thing moving at all, but . . .

The Flywheel

With persistent pushing . . . In a consistent direction . . .Over a long period of time . . .

With persistent pushing . . . In a consistent direction . . .Over a long period of time . . .

In good-to-great companies problems of commitment, alignment, motivation, and change largely take care of themselves.

Alignment follows from results and momentum, not the other way around.

In good-to-great companies problems of commitment, alignment, motivation, and change largely take care of themselves.

Alignment follows from results and momentum, not the other way around.

The flywheel builds momentum . . .Eventually hitting a point of breakthrough.

The flywheel builds momentum . . .Eventually hitting a point of breakthrough.

Level 5Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerators

Disciplined People Disciplined Thought Disciplined Action

BuildupBreakthrough

Good to Great