Insights from Jim Collins’ Level 5 leadership model.

In previous articles, we explored how to design and populate a strategic and tactical data repository with information to make management decisions. Initially, these discussions formed a comprehensive set of information that companies need to collect to make robust decisions.

However, while writing the final article on customer lifetime value, it became clear that leadership is crucial for effectively allocating resources and executing the concepts outlined in those articles. Some might argue that it is the most essential ingredient. Therefore, this article focuses on the importance of leadership within the facility management industry, drawing on Jim Collins’ Level 5 Leadership Model from his influential book, Good to Great.

Understanding leadership

Leadership transcends management. It is about inspiring and guiding teams toward collective goals. While management is concerned with organizing workflows, operations, and resources, leadership fosters an environment where individuals are empowered to work efficiently and productively. A robust organizational structure provides guidance while establishing the tone and focus for employees’ work.

As leaders, our responsibilities encompass various tasks, including:

• Setting clear objectives and aligning team efforts.
• Fostering a culture of collaboration and innovation.
• Providing ongoing support and resources to our teams.
• Evaluating and refining processes to enhance

Insights from Jim Collins

Jim Collins analyzed over 1,400 companies to identify those that achieved sustained growth, selecting 11 organizations whose stock returns outperformed the market by at least three times over fifteen years. Collins began with the premise that great organizations don’t necessarily need great leaders. As his research progressed, he found a correlation among the successful companies. They were all led by what he terms “Level 5 leaders.”

Unlike prominent figures such as Jack Welch (GE), Al Dunlap (known for turnarounds), and Lee Iacocca (Chrysler), Collins argues these leaders often prioritized their own egos. These leaders exemplified the lack of personal humility and commitment to their teams.

Collins emphasizes that the downfall of companies led by these well-known CEOs after their departures serves as a testament to the importance of leadership grounded in humility rather than self-promotion. Ultimately, the difference lies in how Level 5 leaders “look out the window” to credit others for their success rather than “looking in the mirror” to seek personal glory.

Dual characteristics of Level 5 leaders

Level 5 leadership is unique and can be distilled into two primary constructs: personal humility and professional will.

1. Personal humility: Level 5 leaders are characterized by their modesty. They shun public accolades and focus on the success of their teams. Collins uses the metaphor that these leaders “look out the window” to attribute success to others and external factors, rather than looking in the mirror to seek personal credit. They demonstrate a calm determination and rely on inspired standards rather than charisma to motivate their teams.
2. Professional will: In stark contrast to their humility, Level 5 leaders exhibit a fierce resolve and unwavering commitment to the organization’s long-term success. They possess an “absolute, obsessed, burning ambition” for the company. This commitment is not about personal glory; instead, it involves a relentless drive to build an enduring organization that will outlast them.

Collins describes Level 5 leaders as a “study in duality.” They are both modest and willful, humble and fearless. Their personal humility fosters a supportive and inclusive environment, while their professional will drives their organizations toward excellence.

Implementing Level 5 leadership in facility management

The 11 “good-to-great” companies were benchmarked against comparable firms within the same industry that did not achieve similar greatness. A key differentiator was the leadership style of their CEOs. Collins articulates a hierarchy of leadership comprising five levels:

1. Highly Capable Individual
2. Contributing Team Member
3. Competent Manager
4. Effective Leader
5. Executive

Welch, Dunlop, and Iacocca were Level 3 or Level 4 leaders, not Level 5 leaders.

In the context of facility management, the principles of Level 5 leadership can be instrumental in driving organizational success. Here are several ways to incorporate these concepts into your leadership practice:

• Empower your team: Foster a culture where team members feel valued and empowered. Encourage collaboration and open communication, allowing individuals to contribute their best ideas and efforts.
• Set clear goals: Align team efforts with clear, compelling objectives that resonate with the organization’s mission. Ensure everyone understands how their contributions impact overall success.
• Cultivate accountability: Lead by example, demonstrating accountability for outcomes. Encourage your team to take ownership of their responsibilities and support them in overcoming challenges.
• Prioritize long-term success: Focus on sustainable practices and long-term goals over short-term gains. This mindset creates a resilient organization capable of adapting to changes and challenges.

The impact on facility management

Incorporating Level 5 leadership principles can transform how facility management teams operate. By embodying humility and resolve, leaders can inspire their teams to excel, fostering an environment where everyone works towards common goals. The result is not just improved performance, but also enhanced employee satisfaction and retention.

Effective leadership is essential for elevating practices in the facility management industry. By embracing the principles of Level 5 leadership as outlined by Jim Collins, leaders can create organizations that not only thrive, but endure challenges and changes.

Reflecting on these insights, I encourage you to consider how you can implement Level 5 leadership within your organization. As leaders at all levels, we can drive our industry forward, achieving excellence and setting new standards that make our organizations great.

               Jon Hill is the CEO of Cobotiq and provides business managers with information on how to create and implement profitability. He is a frequent speaker and presenter on the future impact of automation and technology in the cleaning industry.