Month: March 2025

Level Five Leadership: The Key to Long-Term Success in Business

In today’s fast-paced business world, it can be easy to overlook the foundational principles that truly drive long-term success. One concept that has remained relevant for decades is Level Five Leadership, a term coined by Jim Collins in his groundbreaking book Good to Great. After conducting a thorough, 15-year research study on companies that made the leap from good to great, Collins identified a unique style of leadership that consistently led these companies to outstanding and sustainable success.

But what does Level Five Leadership actually look like? And how can you apply it to your own life and business?

Understanding Level Five Leadership

At its core, Level Five Leadership is defined by two key traits: humility and fierce resolve. These leaders are not flashy or outwardly charismatic; instead, they exhibit a quiet, relentless drive for excellence and an unshakable focus on the long-term success of the company.

Jim Collins and his research team studied over 1,400 companies in the Fortune 500, looking for those that had made exceptional, sustained progress over 15 years. Out of these, only 11 companies qualified as “great,” based on their long-term performance. What set these companies apart wasn’t just strategy or market conditions—it was the leadership at the helm.

The highest correlation to success in these companies was Level Five Leadership.

But what makes Level Five Leaders stand out?

The Five Levels of Leadership

To better understand what Level Five leadership looks like in practice, let’s break down Collins’ five levels of leadership:

1. Highly Capable Individual – At this level, the leader is an individual contributor who excels at producing excellent work. They’re skilled and able to make meaningful contributions.

2. Contributing Team Member – These individuals can work well within a team, helping the group achieve results. They play a key role in group success.

3. Competent Manager – At this level, the leader is able to organize people and resources effectively to achieve the organization’s goals.

4. Effective Leader – This leader is able to rally a team around a compelling vision and set high standards to achieve it. They inspire others to work towards a common goal with enthusiasm and energy.

5. Level Five Executive – The ultimate level of leadership, where individuals combine personal humility with professional will. They create lasting greatness for their organizations through a blend of quiet determination and an unyielding drive to achieve long-term goals.

The Power of Humility and Resolve

In Level Five leadership, humility is perhaps the most striking characteristic. These leaders focus on the success of their company, not their own personal recognition. They don’t boast about their achievements; instead, they demonstrate a quiet, calm determination. Their ambition is channeled into making their organization great, not into building their personal legacy.

On the flip side, Level Five leaders also demonstrate fierce resolve—an unwavering commitment to doing whatever it takes to achieve the best long-term results for their company. They don’t give up in the face of adversity, and they always strive for the highest standards, no matter the obstacles.

Real-World Examples of Level Five Leadership

You may recognize some well-known names when it comes to leadership, but the most striking examples of Level Five Leadership come from lesser-known individuals who led their companies to extraordinary heights.

1. Lee Iacocca (Chrysler)
Many people know the name Lee Iacocca, particularly for his role in Chrysler’s remarkable turnaround in the 1980s. In the first half of his leadership, he led the company to great success. However, in the second half of his tenure, his leadership began to decline as he became more focused on personal fame and accolades. He made multiple public appearances, wrote a bestselling autobiography, and became a media star. Unfortunately, this shift in focus led to a decline in Chrysler’s stock, which dropped by 31%. Iacocca’s story serves as a cautionary tale of what happens when a leader loses sight of the company’s needs in favor of personal gain.

2. Darwin Smith (Kimberly-Clark)
On the other hand, Darwin Smith, CEO of Kimberly-Clark, exemplified the traits of a Level Five leader. A humble and introverted accountant, Smith led the company for 20 years, achieving a return on investment that was 4.1 times higher than the market. He made bold, controversial decisions, such as selling off the company’s profitable paper mills to invest in consumer products like Huggies and Kleenex. His unflinching will to transform Kimberly-Clark into a leader in the consumer paper product industry was driven by a focus on long-term success, not immediate rewards.

3. George Kane (Abbott Laboratories)
Another example of a Level Five leader is George Kane, who served as CEO of Abbott Laboratories for 14 years. Under his leadership, Abbott outperformed industry giants like Merck and Pfizer, achieving a 4.5-to-1 return higher than the general stock market. Kane was known for his intolerance of mediocrity. He demanded excellence from his team and made difficult decisions—such as firing family members—if they couldn’t meet his high standards. Despite his no-nonsense approach, Kane was also respected for his quiet, humble leadership style.

Key Behaviors of Level Five Leadership

So, what can we learn from these leaders? Here are some key behaviors and characteristics that define Level Five leadership in today’s world:

• Listen to Understand: Rather than feeling the need to be the loudest voice in the room, a Level Five leader listens first. They seek to understand before seeking to be understood—a concept popularized by Stephen Covey in The 7 Habits of Highly Effective People.

• Hire Smarter People: Level Five leaders recognize they don’t have to be the smartest person in the room. They hire people who are more capable than they are, and they encourage them to take ownership and lead.

• Graciously Give Praise: Great leaders don’t withhold praise out of fear that their team members might ask for more recognition. They offer specific, genuine praise that encourages others to do their best work.

• Respectful Termination: When someone no longer fits within the company’s vision or culture, a Level Five leader addresses it with respect. They make the tough decisions to part ways without dragging the individual or company down.

• Take Responsibility: Great leaders accept responsibility for both successes and failures. They don’t blame external factors like the economy or market conditions. Instead, they look in the mirror and hold themselves accountable.

• Apologize When Necessary: Level Five leaders are humble enough to admit their mistakes. They apologize when necessary, showing vulnerability and fostering a culture of openness and trust.

• Speak Well of People, Even When They Aren’t Around: A Level Five leader speaks highly of their people, even when they are not present. This builds trust and respect, contributing to a positive and supportive company culture.

Conclusion: Applying Level Five Leadership Today

While Jim Collins’ research is decades old, the principles of Level Five leadership continue to hold true today. Whether you’re leading a startup or managing a large corporation, adopting these traits of humility and fierce resolve can help you build an organization that thrives in the long term.

In our fast-moving world, it’s easy to focus on short-term success and individual accolades. However, the true hallmark of great leadership is the ability to inspire and sustain greatness in others. By practicing personal humility and professional will, you can transform your business and achieve lasting success—just like the leaders of the companies studied by Collins.

Remember, it’s not about being the loudest or most visible leader in the room—it’s about having the courage to make the tough decisions, the resolve to stay the course, and the humility to put the needs of the organization before your own.

If you want to elevate your leadership to the next level, consider how you can apply these principles in your own life. Whether in business or personal development, Level Five Leadership offers a timeless path to true greatness.

The Power of Small Details: Applying the Broken Windows Theory to Business Success

In today’s world of business optimization and continuous improvement, we often hear about large strategies and big goals. But sometimes, the secret to significant success lies in the smallest of details. This concept comes from criminology, where it’s known as the “Broken Windows Theory.” What if we could apply this same principle to our businesses to drive greater success with less effort and stress?

Let’s take a look at the theory itself and how it can be a game changer for how we scale our businesses.

What Is the Broken Windows Theory?

The Broken Windows Theory, developed in the 1980s and popularized in the 1990s in New York, offers a simple yet profound insight: Take care of small problems before they escalate into bigger ones. The theory suggests that visible signs of disorder or neglect—like broken windows or graffiti—create an environment that encourages further crime or problems.

In the early ’90s, New York City was facing a crisis with high levels of violent crime. Mayor Rudy Giuliani and Police Commissioner Bill Bratton applied this theory by focusing on minor infractions—such as fare evasion, vandalism, and graffiti. By addressing these smaller offenses, they believed it would reduce the likelihood of larger, more serious crimes.

And the results were staggering. New York City experienced a dramatic drop in crime, with the murder rate falling from over 2,000 annually to fewer than 600 by the end of the decade. This wasn’t the only measure they took, but the Broken Windows approach played a pivotal role in improving the city’s safety and residents’ perceptions.

The Small Things Matter: Applying the Theory to Your Business

While the Broken Windows Theory originates from criminology, its principles can be effectively applied to the world of business. The key takeaway is simple: paying attention to the small things will lead to big improvements. Let’s explore how this applies to different aspects of business.

1. Workplace Organization and Environment

Think about the environment in which you and your team work. A cluttered, disorganized office or workspace can affect productivity and morale. If you’ve ever walked into a chaotic office, you know how it can feel uninspiring. But imagine the impact of a clean, organized, and well-maintained workspace. When employees take pride in their environment, it fosters a sense of professionalism and motivation. In fact, many of my colleagues make it a priority to set up their office spaces as soon as they join a new company, ensuring their work environment is conducive to success.

2. Customer Experience

Now, let’s apply this thinking to customer experience. Have you ever visited a business with a dirty or poorly maintained storefront or a broken sign out front? It doesn’t leave a great first impression, does it? A clean, inviting storefront, a welcoming smile from employees, and a well-maintained exterior can go a long way in shaping customers’ perceptions. Small improvements, like updating signage, organizing your front office, or offering better customer service, can have a huge impact on how customers feel about your business and, ultimately, how likely they are to return.

3. Brand Image and Online Presence

Your brand is more than just your logo or tagline; it’s how your customers perceive you, and small details matter. If your website is outdated, if your social media profiles aren’t regularly updated, or if your logo looks old-fashioned, these seemingly minor issues can hurt your reputation. Keeping your brand fresh and up-to-date is a small effort with a big payoff in terms of customer engagement and acquisition.

4. Employee Behavior and Productivity

It’s easy to overlook minor infractions like tardiness or unprofessional behavior, especially if you don’t want to cause conflict. But ignoring these small issues can lead to larger problems down the line. By constructively addressing minor issues, you set expectations for your team and create a culture of accountability. A workplace that values professionalism in even the smallest of actions is likely to experience higher productivity, improved morale, and more loyal employees.

5. Continuous Improvement: Small Changes, Big Results

In the same way that the Broken Windows Theory emphasizes the importance of small changes to reduce larger problems, businesses can leverage small improvements for long-term success. A great example of this in practice is British Cycling’s turnaround, where focusing on 1% improvements in various areas led to massive gains in performance. These incremental changes, when compounded over time, can create dramatic results. Similarly, if you focus on making small improvements in your business every day—whether it’s customer service, employee engagement, or organizational efficiency—you can expect significant, long-term benefits.

6. Community Relations

Another application of the Broken Windows Theory can be seen in how businesses engage with their local community. Companies that invest in community sponsorships, charitable events, and local initiatives strengthen their reputation and foster customer loyalty. By maintaining a visible and active presence in the community, businesses can build positive relationships and enhance their brand image. For example, Levitt, a company with dealerships across North America, allocates funds for each branch to sponsor local events, creating goodwill and enhancing customer trust.

Conclusion: Small Details, Big Wins

In business, it’s easy to get caught up in grand strategies and large optimization projects, but the real power often lies in the small details. The Broken Windows Theory teaches us that by addressing the little things—whether it’s maintaining a clean office, improving customer service, updating your brand, or holding employees accountable—we can create a ripple effect that leads to greater success in the long run.

As you scale your business, don’t overlook the small things. The clean desk, the friendly smile, the well-maintained website—these seemingly minor improvements can have a huge impact on the overall success of your business. So, take a page from criminology’s Broken Windows Theory and apply it to your own business. With a little attention to detail, you’ll see big results.

Remember, success is built on a foundation of small, continuous improvements. Pay attention to those “broken windows” in your business, and watch how they add up to massive success.

Best of luck with your continuous improvement journey!

How to Unlock Discretionary Effort in Your Team

Getting the best out of your team isn’t just about motivation—it’s about creating an environment where discretionary effort becomes natural. Your top performers, or “A players,” already have a strong internal drive. However, the rest of your team may need a structured approach to keep them engaged and pushing beyond the basics.

In today’s uncertain economic climate, where every bit of effort counts, you need all hands on deck. It’s not just about working hard; it’s about working smart. So, how do you create a system that drives everyone to give their best?

The Power of Execution Rhythms and KPI Report Ups

One of the most effective ways to keep your team accountable and motivated is by implementing an execution rhythm. This includes structured weekly, monthly, and quarterly check-ins to ensure consistent progress toward your goals.

Key Performance Indicator (KPI) report-ups play a crucial role in this. Many organizations use these to track progress, but the real game-changer is adding aggregate scoring to these reports.

Introducing Aggregate Scoring

The concept is simple: Instead of reviewing KPIs in isolation, assign a weighted or average score to summarize overall performance. Much like a final score in sports, an aggregate KPI score provides a clear and immediate performance snapshot.

For example, if an employee has three KPIs:

• KPI 1: 50% to goal
• KPI 2: 75% to goal
• KPI 3: 100% to goal

Their aggregate score would be 75%. This approach brings instant clarity and accountability. Employees can compare their scores to their peers, fostering a healthy, competitive environment that encourages continuous improvement.

Why Aggregate Scoring Works

1. Increased Accountability – When performance is visible and measured consistently, employees naturally want to improve.
2. Healthy Competition – No one wants to be the lowest scorer in a public forum.
3. Clearer Focus – Employees understand exactly where they stand and where they need to improve.
4. Improved Leading Indicators – If employees work toward perfecting controllable leading indicators, the lagging indicators (like sales and revenue) will follow.

Real-World Success Stories

Several organizations have implemented aggregate scoring with incredible results. One team in the heavy equipment industry set a target where every member had to achieve at least a 70% aggregate score. If they didn’t, they received additional coaching from leadership. Another team introduced incentives—if the entire group averaged over 90%, they would receive a reward, like homemade pumpkin bread. The results? Increased engagement, focus, and performance across the board.

How to Get Started

1. Define Key KPIs – Identify 3-7 critical metrics per role.
2. Standardize Reporting – Use a consistent reporting format, like the “BAT” (Baseline, Actual, Target, Trend).
3. Implement Aggregate Scoring – Calculate a total score based on all KPIs.
4. Make Scores Visible – Share results publicly within the team.
5. Encourage Healthy Competition – Set team-wide or individual challenges to drive improvement.
6. Offer Rewards & Recognition – Small incentives can drive big results.

Try It and See the Results

When discretionary effort is built into your team’s culture, motivation becomes intrinsic, and performance skyrockets. If you’re looking to reduce the time spent managing, following up, and coaching, aggregate scoring could be the key to unlocking your team’s full potential.

Give it a try, track the results, and see how it transforms your organization’s execution and performance!

Mastering the Art of Value-Added Follow-Up in B2B Sales

Sales isn’t just about the pitch and the close—it’s about persistence, trust, and adding value throughout the entire sales process. If you’ve been following our sales framework, you know that lead generation is the first step, followed by discovery calls, pitching, and closing. But what happens when a deal goes cold after the pitch? That’s where value-added follow-up comes in.

Don’t Assume It’s Dead

One of the biggest mistakes sales professionals make is assuming that silence means rejection. More often than not, potential clients are simply busy, waiting for approvals, or dealing with other priorities. Instead of following up with generic check-ins like, “Have you decided yet?” take a different approach—one that provides value.

How to Add Value in Your Follow-Up

Rather than just reminding prospects of your proposal, use your follow-up as an opportunity to engage and offer something meaningful. Here are some ideas:

1. Send a Case Study: Share a success story from a similar client who has achieved results with your solution.
2. Provide a Client Testimonial: A strong endorsement can reinforce the impact of your product or service.
3. Offer a Referral Call: Connect them with an existing client who can speak to their experience.
4. Personalized Industry Insights: Share an article or research study related to their industry trends.
5. Comment on Their Interests: If you know they’re sports fans, send an article about their favorite team.
6. Offer a Free Analysis: Evaluate their website, ads, or current strategy and provide free insights.
7. Deliver a Competitive Benchmark: If they’re in the decision-making phase, show them how they stack up against competitors.
8. Set Up a Call with Peers: Arrange for them to speak with executives who’ve successfully implemented your solution.

An Example of Value-Added Follow-Up in Action

Let’s take a real-life scenario where a value-added follow-up turned a cold lead into a long-term partnership.

A referral led us to Peter, a VP of Purchasing at a large firm. Our discovery call confirmed that they needed a solution and had an urgent timeline, but we weren’t yet in front of the ultimate decision-maker, the VP of Operations. Despite a successful pitch, the deal stalled.

Rather than giving up, we took a strategic approach. After reconnecting with Peter and understanding his challenges in influencing the final decision, we proposed setting up calls with three top executives from past clients who had successfully implemented our solution. These executives shared their experiences, lessons learned, and tangible results.

This not only reassured Peter’s team but also built tremendous trust. Two days later, we moved forward with the contract. A decade later, this client remains one of our largest accounts, proving that persistence and value-based follow-ups drive long-term success.

Why Value-Added Follow-Up Works

When you focus on providing value rather than just closing a deal, you achieve several key benefits:

• Keeps you top of mind without being pushy.
• Builds trust and strengthens your relationship with the client.
• Positions you as a strategic partner, not just a salesperson.
• Increases your closing rate by addressing concerns and demonstrating impact.

The Takeaway

Sales don’t end with the pitch. If a deal goes silent, don’t retreat—add value. Whether it’s a case study, a referral call, or free insights, keep finding ways to engage meaningfully. When you truly believe in the value of your product or service, persistence isn’t just about meeting a quota—it’s about delivering real solutions that benefit your clients.

By mastering value-added follow-up, you not only increase your chances of closing deals but also lay the foundation for long-term partnerships that drive mutual success.