The study
Jim Collins and his team analysed US public companies and identified 11 that, after years of average performance, outperformed the market by a wide margin for at least 15 years. They were compared with firms in the same industries that did not make the leap. The results appeared in Good to Great (2001) and in a Harvard Business Review article.
Collins admits the team at first wanted to ignore the role of chief executives, but the data forced the conclusion: all the “great” companies had a particular type of leader during their transition.
The five-level hierarchy
- Highly capable individual - talent, knowledge, good work habits.
- Contributing team member - works well with others.
- Competent manager - organises people and resources effectively.
- Effective leader - vision, commitment, high standards.
- Level 5 executive - builds enduring greatness through a paradoxical blend of personal humility and professional will.
Humility and will
| Humility | Will |
|---|---|
| modesty, shunning publicity | unwavering resolve to do what must be done |
| ambition channelled into the organisation, not the self | high standards, refusal to settle for mediocrity |
| sets up successors for even greater success | consistency in hard decisions |
| “window” - gives credit to others | “mirror” - takes responsibility for failure |
Collins also observed that comparison companies were often run by charismatic leaders with big egos whose departure was followed by decline - they had not prepared successors.
Assessment and criticism
The study was criticised methodologically (e.g. for selecting the sample on outcomes and because some “great” companies later declined). Even so, the concept is widely cited, and newer research on leader humility (e.g. Owens and Hekman, 2012) confirms its positive effect on teams. See humility.
Resonance with the Gospel
The combination of humility and courage is close to the biblical image of the leader - cf. Moses, described as very meek (Num 12:3), yet resolute before Pharaoh. See Christian leadership, Jim Collins, Good to Great.
Sources
J. Collins, Good to Great: Why Some Companies Make the Leap... and Others Don't, HarperBusiness 2001 J. Collins, Level 5 Leadership: The Triumph of Humility and Fierce Resolve, Harvard Business Review 2001 B. P. Owens, D. R. Hekman, Modeling how to grow: An inductive examination of humble leader behaviors, Academy of Management Journal 55 (2012) Num 12:3