Good to Great

Collins opens this chapter by highlighting Darwin E. Smith, the former Kimberly-Clark CEO who led the company from good to great. Smith is a prototypical example of what Collins calls a “Level 5 leader.” According to Collins, a Level 5 leader is a necessary ingredient for any company moving from good to great, as this type of leadership is generally more focused and results-driven than a CEO with a magnetic personality and charisma. The defining qualities of a Level 5 leader are humility and resolve; they are ambitious not for their own gain, but on behalf of the companies they represent and lead. Furthermore, Level 5 leaders have the foresight to understand that another leader will eventually replace them.

When Collins and his team researched the direct comparison companies, they often found leaders who had “gargantuan personal egos” (39), and who were quick to take the credit for success. On the other hand, Level 5 leaders are often the last ones to claim credit for their company’s success, even suggesting that they simply had “good luck.”

Collins likens these differences in claiming or diverting credit to using a window versus using a mirror.