Level-up Your Leadership for A Sustainable Future

Jim Collins wrote about the Level 5 Leader. He defined a Level 5 Leader as one who blends personal humility and professional will.

Leadership a Cut Above

In short, a Level 5 Leader gets results. They have a long-term view and vision for what the company stands for and what it is best at.

Because of this, they can lead transformative change when it's called for in the circumstances. And they are unwavering and resolved to do whatever must be done to produce long-term results that are in the best interest of the company and they set the standard for building a great company.

They are fierce, ambitious, competitive, and driven. It's just that they channel their energy with the company first, not their ego.

Level 5 Leaders embrace taking 100 percent responsibility. They don't blame. They take action.

They have their sites set on the next-generation leaders, setting them up for success. They work on cultivating future leaders to carry on the work after they are done. They cultivate future Level 5 Leaders.

Nowadays there is a lot written about and talked about when it comes to organizational success and putting people first.

Smart Leaders

The smart business leaders of today know that they need to emphasize the importance of people, culture, and relationships. Once these were thought to be so-called Soft Skills.

Smart leaders know to reframe their thinking about these skills as essential to long-term organizational success. They are a bedrock, foundational.

Engage More

I was asked once by a mid-level manager, "How do we get our employees more engaged?" I thought about this for a moment. If you want them more engaged, engage with them more.

Tom Peters calls it Extreme Employee Engagement. Make it safe to make mistakes. Encourage (and reward) innovative ideas from every level in your firm.

Build a culture that embraces collaboration, communication, and cooperation.

Capital Investments

Your people are the most important asset not on your balance sheet. They are quite frankly your long-term capital investment.

How do you evaluate your capital investments? You look to the return on investment and the net cash flow that results. Why would you think of your people any differently?

For your people, where do invest in them? It's training and development.

People and Performance

A recent McKinsey Global Institute report, Performance through people: Transforming human capital into a competitive advantage, found that companies with a dual focus on developing human capital and managing it well far outperform other firms.

They are more resilient, have greater employee retention, and higher profitable growth. Not only do they attract top talent, but they also invest heavily in their organizational capital, i.e., their management practices, systems, and culture.

These companies are People and Performance-driven. When compared with only Performance-Driven organizations, the winners are the ones that put a greater emphasis on talent and training. People plus Performance.

What does this all mean?

You can lead a people-first culture and your firm will have success. But without emphasizing results, you likely will have haphazard performance. The key is to have high expectations in all things and expect and lead for excellence.

If you follow sports teams, you know that the successful ones do not tolerate mediocrity. They are always striving for excellence and greatness.

Level 5 Leaders expect greatness. They have a ferocious resolve to make their companies great.

Culture is important. People are important. Relationships are important. They are a bedrock. Results matter, too. Investing in these and the management processes and systems to support growth, collaboration, and innovation will pay off.

Until next time...