Words: Jon Hill

While management is concerned with organising workflows, operations and resources, leadership fosters an environment where individuals are empowered to work efficiently and productively. A robust organisational 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 productivity  

Insights from Jim Collins’ Level 5 leadership model

Jim Collins analysed over 1400 companies to identify those that achieved sustained growth, selecting 11 organisations whose stock returns outperformed the market by at least three times over 15 years. Collins began with the premise that great organisations 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 prioritised their own egos. These leaders exemplified the lack of personal humility and commitment to their teams.

Collins emphasises 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 characterised 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 organisation’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 organisation 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 organisations 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 organisational 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 organisation’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.
• Prioritise long-term success: Focus on sustainable practices and long-term goals over short-term gains. This mindset creates a resilient organisation 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 organisations 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 organisation. As leaders at all levels, we can drive our industry forward, achieving excellence and setting new standards that make our organisations great.

This article first appeared on the ISSA website in the US.