Good to Great: Level 5 Leadership by Jim Collins

Have you ever wondered why some leaders transform good companies into truly exceptional ones, while others, despite impressive credentials and charismatic personalities, never create anything that lasts?

The answer lies in what Jim Collins calls "Level 5 Leadership," and it might be the most counterintuitive leadership concept you'll ever come across.

This post is part of my full Good to Great by Jim Collins book summary, where I break down every concept in the book chapter by chapter. If you haven't read that pillar post yet, start there for the big picture. This post goes deep on just one piece of it: the leadership trait that showed up, without exception, at the top of every good-to-great company Collins studied.

I've written before about individual pieces of this book: First Who, Then What, Confronting the Brutal Facts, The Flywheel Effect, and even pulled together my favorite Good to Great quotes and thoughts on what greatness actually requires.

When I first learned about Level 5 Leadership, it challenged everything I thought I knew about what makes leaders effective. Collins' research revealed something nobody on his team expected going in.

The leaders who built the most enduring, successful companies weren't celebrity CEOs or larger-than-life personalities. They were humble, quietly determined people who blended personal humility with professional will in a way that defies almost every leadership stereotype we celebrate today.

Let's dig into what that actually looks like, and what it might mean for you.

• Level 5 leaders combine personal humility with professional will to create enduring greatness.

• The most successful companies are often led by seemingly ordinary individuals who produce extraordinary results.

• Building a leadership pipeline is crucial for long-term sustainability.

• True leadership legacy is measured by who you develop, not just what you achieve.

• Humility doesn't equate to weakness—the strongest leaders often possess both modest personalities and fierce resolve.

When Darwin E. Smith became CEO of Kimberly-Clark in 1971, few expected the changes he would bring. The company’s in-house lawyer, who was calm and composed, came from a modest background. He wasn’t the flashy type often seen in business magazines.

When he learned he was appointed CEO, Smith said the board was taking a big risk. "I've never been tested," he admitted with characteristic humility. In the next 20 years, this ordinary man would change Kimberly-Clark.

He turned it from a mediocre paper company into a global leader in consumer products. As a result, stock returns soared 4.1 times higher than the general market.

Smith's leadership style defied conventional wisdom. He stayed out of the spotlight. He lived and focused on his executive team instead of himself.

Yet behind this unassuming exterior was a leader of steel-like resolve. His biggest decision was selling the company's paper mills. He wanted to focus on consumer products. Experts thought this was a risky move, but it ultimately proved to be a smart decision.

"I'm not a genius," Smith once said. "I'm just a hard worker with good common sense who can operate with strong people at my side."

This real-world example shows what leadership expert Jim Collins discovered through research. Big personalities don't always lead the most successful, lasting companies.

They are often led by regular people who show great humility and determination. Collins referred to this as "Level 5 Leadership."

In his groundbreaking book "Good to Great," Jim Collins and his research team examined 1,435 companies, applying a rigorous selection process to identify just 11 that had transformed from good performance to sustained excellence over 15 years or more. The companies they compared, similar organizations that had not succeeded, showed a clear pattern.

Every single great company that made this transition had Level 5 leadership at the helm during critical periods.

"Level 5 leaders are a paradoxical blend of personal humility and professional will." —Jim Collins

This wasn't what they expected to find. The general market celebrates egocentric leaders who dominate headlines. Collins discovered something even more powerful: quiet, dedicated leaders. They prioritize their companies and the well-being of others over personal fame.

To grasp Level 5, the peak of leadership, we must recognize the entire range of leadership growth.

• Highly Capable Individual – Contributes through talent, knowledge, and necessary skills.

• Contributing Team Member – Works effectively within a larger group to achieve shared goals.

• Competent Manager – Organizes people and resources to meet business needs and production targets.

• Effective Leader – Catalyzes commitment to a compelling vision and higher performance standards.

• Level 5 Executive – Creates lasting success by combining deep humility with strong determination.

Most leaders plateau at Level 4. Only a few reach the highest level. It’s not by chance; it comes from important life experiences and intentional growth.

Level 5 leaders focus on building strong senior leadership teams. They don't seek to show they are irreplaceable, unlike some strong leaders. They understand that their job involves identifying and supporting the next great leader.

Darwin E. Smith is a great example of a Level 5 leader. He led Kimberly-Clark for 20 years as chief executive. This ordinary man was the company's quiet in-house lawyer before his promotion.

He changed the organization by making bold decisions. He also helped others around him grow their leadership skills.

A Kimberly-Clark director said, "Darwin Smith may have avoided the spotlight, but the results show his lasting impact."

Good-to-great leaders understand that lasting impact comes through service rather than self-promotion. They direct attention to the accomplishments of their team rather than themselves.

"Such leaders are more interested in the success of others than polishing their own reputation," notes The Growth Faculty in their analysis of Level 5 leadership.

This humility isn't a marketing strategy—it's genuine. In interviews about their company's success, these leaders often mention their great team first.

They also point to other factors and good luck. They usually recognize their own contributions last.

Don't mistake humility for weakness. These leaders pair their humility with a strong will to achieve the organization's success.

They confront harsh truths, make tough choices, and consistently push for best practices. Their leadership style isn't about being liked—it's about moving the company in the right direction.

Level 5 isn't about being mild. It's about focusing on the mission, not yourself.

In Collins' research, 10 out of the 11 good-to-great companies were led by insiders, not high-profile CEOs hired from outside. This challenges the notion that external "saviors" are needed for transformation.

Top companies like Trek Bicycles don’t need flashy leaders. They thrive with humble, local leaders who truly understand the company’s culture and potential.

Collins' research revealed an important distinction among leaders:

The first category includes individuals who have the potential to become Level 5 leaders but have not yet achieved this status. This often happens because they don’t see their own Level 5 potential.

The second category of people: Those who lack the capacity for the necessary humility. Their ego-driven needs will always override what is best for the organization's long-term sustainability.

Where might you fall in this spectrum?

Ask yourself these questions to gauge your current leadership position level:

• Do you share credit widely but accept responsibility personally?

• Are you developing your successor even if it means they might outshine you?

• Do you make decisions that benefit the organization after your departure?

• Can you set aside personal ambition when it conflicts with what is best for your team?

• Are you building something that requires your presence, or something that will thrive without you?

A good leader consistently prioritizes the organization's interests over personal recognition. A great leader builds sustainable excellence that endures long after they are gone.

To lead with humility and resolve, try these steps:

• Conduct a Candid Self-Assessment – Where are you in the levels of leadership development? What's your next growth edge?

• Develop Your Successor – Identify and mentor your replacement. Make their success part of your success.

• Seek Feedback From Your Ideal Clients or Team – Ask "How could I better serve the group of people I lead?"

• Practice the Paradox: Look for opportunities to demonstrate both humility and professional resolve.  

  • Listen and give credit to others for humility.  

  • Make tough decisions and hold high standards for professional will.

• Study Level 5 Models – Besides Darwin Smith and the Kimberly-Clark story, find examples of great Level 5 leadership in your field.

• For the rest of this framework, including Level 5 Leadership, First Who Then What, the Hedgehog Concept, and the Flywheel Effect, read the complete Good to Great book summary.

• Jim Collins on Level 5 Leadership – Explore the original research and concept development

• MindTools' Breakdown of Level 5 Leadership – Practical applications for your leadership journey

• The Growth Faculty: The Essence of Level 5 Leaders – Additional insights on implementing these principles

The journey to becoming a Level 5 leader isn't easy. It requires honest self-reflection, consistent growth, and a willingness to prioritize others. But the impact of this approach extends far beyond quarterly reports or annual recognitions.

True Level 5 leaders leave a lasting legacy that continues to grow long after they have moved on. They create thriving organizations, develop talented people, and foster cultures that support excellence.

And perhaps this is the most important question of all:

What kind of legacy are you building right now?

Are you developing the most successful level of leadership within yourself and your organization?

Are you creating space for others to grow into their full potential?

Are you building something that matters beyond your tenure?

The journey to Level 5 leadership starts with one choice: to serve a cause bigger than yourself. Daily choices, both small actions and significant decisions, distinguish good leaders from those who achieve lasting greatness.

What will your next step be?

For the rest of this framework, including Level 5 Leadership, First Who Then What, the Hedgehog Concept, and the Flywheel Effect, read the complete Good to Great book summary.

If Good to Great resonated with you, here's where to go next in Collins' body of work:

1. Built to Last: Co-authored with Jerry Porras, this is the book that started it all: what makes visionary companies endure across generations, built around core ideology and the discipline to preserve the core while stimulating progress.

2. How the Mighty Fall: A sobering companion piece exploring the five stages of decline, and how even great companies can unravel if they stop confronting the brutal facts.

3. Great by Choice: Written with Morten Hansen, this one studies companies that thrived in uncertain, turbulent environments, introducing concepts like "fanatic discipline," "productive paranoia," and "return on luck."

4. BE: 2.0 (Beyond Entrepreneurship 2.0): Co-authored with his late mentor, Bill Lazier, this is Collins' guide for entrepreneurs and founders building a company from the ground up. Originally published nearly thirty years before Good to Great, this updated edition adds four new chapters and fifteen new essays, pulling together three decades of Collins' research into a single integrated framework he calls "The Map." If Good to Great is about the leap from good to great, BE 2.0 is about laying the right foundation from day one, so your company has something worth sustaining.

5. What to Make of a Life: (His Latest): Collins turns his research lens from companies to people. After a decade studying the lives of remarkable individuals, from Olympians to scientists to public figures who weathered scandal, Collins examines the "cliffs" that upend a life's direction, the disorienting "fog" that follows, and what it takes to keep your inner "fire" burning long after. For the first time, Collins also shares his own story, tracing how the project changed him. It's a fitting capstone to a body of work that's always really been about one question: what does it take to build something that matters, whether that something is a company or a life?

6. Good to Great and the Social Sectors: The monograph adapting the framework for nonprofits, schools, and mission-driven organizations.

Each one builds on the same foundation: disciplined people, disciplined thought, disciplined action. Read them in order, or read them out of order; either way, you'll come away with a sharper, more honest picture of what it actually takes to build something great and make it last.

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