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What makes some companies go from good to great?
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Jim Collins and his research team examined
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30 years of data from over a thousand companies
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and identified factors that contributed to outsized market performance,
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including one they termed level-five leadership.
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Leadership ability ranges from highly capable individuals
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at level one to contributing team members,
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competent managers, effective leaders, and finally,
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the fifth and final level, effective executives.
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Being a full-fledged level-five leader
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requires the capabilities of all the lower levels,
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such as the level-four ability to both improve company performance
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and paint a clear and compelling vision.
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But level-five leaders have something special
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that separates them from the rest, namely
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the rare combination of fierce resolve and personal humility.
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When faced with setbacks, they look in the mirror,
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blaming themselves for underperformance, never
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external factors or bad luck.
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When their companies succeed, however, the mirror
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turns into a window and they give credit to others.
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The funny thing is this does not reflect reality.
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According to the research, the level-five leaders
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were responsible for their company's success,
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but they would never admit it.
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In fact, although they're very ambitious,
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level-five leaders rarely talk about themselves.
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Instead, they channel their ambition
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into something bigger than personal achievement.
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To grasp this concept, consider US president Abraham Lincoln,
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a reserved, even shy leader who nonetheless held the country
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together during the Civil War.
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Despite monumental losses on both sides,
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his resolute determination to unify the country
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resulted in the reunited nation becoming a world power.
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It might be a stretch to compare a great CEO
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to a president like Lincoln, but the level-five leaders
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in the study displayed the same kind of duality,
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modest yet willful, quiet yet fierce.
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If you're thinking that sounds like a rare combination
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of traits, you're right.
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Ironically, the drive that often propels people
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into level-four leadership stands
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at odds with the humility required to rise to level five,
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and too many companies reward extroverted style
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over substance.
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To help your company go from good to great,
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seek out the fierce but humble leaders
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you may have overlooked.