Leadership Styles

Leadership Style of the Three Leaders

The idea of Level 5 Leadership was developed by James C. Collins and seeks to explain common traits of highly successful leaders that take businesses from good to great. Many people consider a Chief Executive Officer (CEO) to be a highly sought after position that would grant one great riches and a celebrity status like Richard Branson or Donald Trump. However, Mr. Collins argues that a Level 5 Leader is someone who is modest, humble, fearless, and often shy. According to Jim Collins Level 5 Leaders “…routinely credit others, external factors, and good luck for their companies’ success. But when the results are poor, they blame themselves. They also act quietly, calmly, and determinedly…” (Collins, 2005). Executive A fits this mold exactly, when Executive A took over the company was failing but Executive A was able to make the company profitable again and more than double the companies’ stock prices. Executive A does not take credit for the success of the company; instead the spotlight is placed on other leaders. Executive A is driven, ambitious, focused on the success of the company, gives credit to others for success but takes full responsibility for failures, and develops strong leaders. All of these are typical qualities of a Level 5 Leader. Now that it is time for Executive A to move on from the company, a predecessor must be named and since Executive A is a Level 5 Leader a suitor will be picked who is most likely to lead the company to even greater success.

A transactional leader is someone who loves processes more than fresh ideas, they enforce standards by awarding personnel who reach goals and punishing those who do not reach goals, and hold personnel solely responsible for allocated work. Leader B is transactional leader through and through. Leader B sets goals and rewards employees who meet those goals and punishes those who fall short, believes in structure and a clear chain of command, and likes...