LEVEL 5 LEADERSHIP & ITS
IMPACT ON FUNDRAISING
James C. McCarty
Penn State University – World Campus
L A 402
WHAT IS LEVEL 5 LEADERSHIP ?

“Building enduring greatness through a paradoxical blend of
personal humility and professional will (Collins, 20).

The complex notion of an individual exemplifying both professional
determination and personal humility

Placing more emphasis on the progression of the group, project,
company, etc.. Instead of on ones self improvement

Sociocentric as opposed to egocentric
LEVEL 5 HIERARCHY
ASPECTS OF LEVEL 5 LEADERSHIP
TO REMEMBER

An individual does not progress through the hierarchy in
sequence from level 1 through level 5


Level 5 Leaders exemplify all five layers of the pyramid
Portraying a strong sense of humility,

Not about themselves, but instead a passion for their work
LEVEL 5 LEADERS VS. LEVEL 4 LEADERS
Level 5 Leadership
Level 4 Leadership
• Work Horse
• Show Pony
• Lead by example
• Take credit only during prosperous
times
• Never ask other to do what they
would not do themselves
• Ready to point the finger in times
of regression or turmoil
• Humble – Constant Humility
• Egocentric – In search of praise
THE MIRROR VS. THE WINDOW


Level 5 Leaders

In times of progression, view the situation through the window. Never
taking the credit for themselves, but instead looking outward to give the
accomplishment elsewhere

In times of turmoil, view the situation through the mirror. Instead of
pointing their finger elsewhere, they are self critical of what they need to
improve to better the situation
Level 4 Leaders

In times of progression, view the situation through the mirror. Taking
personal credit for the accomplishments and progression of the
organization.

In times of turmoil, view the situation through the window. Looking to
point the finger elsewhere of everyone else's mistakes and what they
need to improve to better the situation as opposed to looking within.
JIM COLLINS INSIGHT ON
LEVEL 5 LEADERSHIP
IMPORTANT SUBSIDIARY FACTORS

The Hedgehog Concept

The Flywheel Affect

The Doom Loop
The 3 topics all play an important role in Level 5 Leadership. Each
component lays the foundation or pathway for the Level 5 Leader
to improve the organization. Essentially these are the roadmap to
follow (or not follow) in order to achieve success and move from
good to great.
THE HEDGEHOG CONCEPT

The systematic frame work for moving from good to great

The black shaded area on the diagram

Deep understanding of each of the three circles
The Hedgehog concept is what drives progression. A Level 5 Leader
deeply understands their organizations parameters, and uses this
knowledge to better progress the organization towards success
from being good to great.
THE FLYWHEEL EFFECT

Success is not achieved in a single instance

Only through steady and constant progression will a
breakthrough from good to great happen, while maintaining
within the parameters of the hedgehog concept

From the outside it appears to have happened overnight

From the inside its steady and constant progression and evolution
occurring over the course of time
A Level 5 Leader uses The Flywheel Effect as the vehicle to drive the
organization to success. Achieving this destination does not
happen in an instant. The Level 5 Leader needs to keep constant
and steady pressure on the gas pedal.
THE DOOM LOOP

The exact opposite of the Flywheel Effect

Constant changing and altering of the organizations direction,
without maintaining within the parameters of the hedgehog
concept.
The Doom Loop is the downfall for many on the journey from good
to great. A Level 5 Leader will need to posses the insight to staying
within the confides of the Hedgehog Concept to avoid entering
the Doom Loop.
LEVEL 5 LEADERSHIP IN FUNDRAISING

Within the field of Fundraising, the person to work the hardest to
make the biggest impact, and the strongest connection with
prospective donors will be the one achieving the gift.

Level 5 Leadership is essential because the field of Fundraising is
becoming ever more competitive to acquire the philanthropic
dollar.


The Hedgehog Concept will help the fundraiser to understand who their
non-profit can establish the strongest connections with

The Flywheel Effect is the drive for always establishing new connection
with new prospective donors, towards obtaining a gift.
It must be noted that a Fundraiser, even being a Level 5 Leader
needs to find the balance between the workhorse and show pony
mindset.

During times of commemoration or celebration, the show pony must be
present

When establishing new connections, the work horse needs to be leaded
by example.
REFERENCES

Collins, J. (2001). Good to great: Why some companies make the
leap--and others don't. New York, NY: Harper Bu

From Good to Great: What Defines a Level V Leader? (2009,
September 21). Retrieved December 16, 2014, from
https://www.youtube.com/watch?v=q-KyQ90XByYsiness.