level 5 leadership: moving from good to great
TRANSCRIPT
Sage Growth Partners Level 5 Leadership Moving from Good to Great
Today’s Agenda
• If only we knew!
• What’s an ownership culture?
• Good to Great Primer
• ConvenDonal wisdom – NOT!
• Small groups
-‐Jim Collins, author
“Good is the Enemy of Great.”
Empirical Evidence
• Answer: “How does a good company become great?”
• Research: 1435 companies down to 11 plus peer firms for comparison purposes,
• 20 researchers for 5 years,
• QualitaDve and quanDtaDve analyses,
• 15 years at market, inflecDon, 15 years at 3x market threshold
• Firms on p. 7.
What they didn’t find…
• Larger-‐than-‐life, self-‐promoDonal leaders from outside the firm – 10 of 11 from within,
• Specific linkage between the specific forms of execuDve compensaDon and movement from GTG, using incenDves not to moDvate but to get and keep the right people
• Evidence that GTG companies spent more Dme on long-‐range strategic planning,
• A focus on what-‐to-‐do as much as what not-‐to-‐do and what to stop doing,
What they didn’t find…
• That technology causes transformaDons, but yet accelerates transformaDons,
• That mergers necessarily ignite a transformaDon,
• That GTG companies spend Dme managing change, moDvaDng people or creaDng alignment – they don’t need to,
• TransformaDonal slogans, and no revoluDons, but evoluDons,
• GTG companies in great industries, many in terrible industries.
Level 5 Leader?
Level 5 Leader!
Personal Humility • Modest • Inspired standards, not inspired charisma • Focus on Company, not the self • ApporDons credit for success
+ Professional Will • Creates superb results • Unwavering commitment to long-‐term results • Sets the standard for and enduring company • Looks inward, not outward to apporDon responsibility for poor results
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First, Who, Then What Teach for America
• 1988: 1 idea, 1 person, and a $26,000 grant • 2005: 14,000 new teachers a year, and $40 million in annual
support
First Who, Then What: Success Factors
• ProducDve, self-‐moDvated, disciplined volunteers • The more selecDve the process, the more adracDve the
opportunity • The opportunity must be meaningful
The 5 DysfuncDons
Absence of TRUST: Invulnerable
Fear of CONFLICT: Artificial Harmony
Lack of COMMITMENT: Ambiguity
Avoidance of ACCOUNTABILITY: Low Standards
Inattention to Results
Status and Ego
The 5 “FuncDons”
Trust & Vulnerability
Unfiltered Conflict around Ideas, Not People
Buy-in to Plan of Action
Peer ACCOUNTABILITY
Collective, Team Goals
QuesDons?
Thank you
Don McDaniel dmcdaniel@sage-‐growth.com
410.534.1161 443.904.2882
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