Monday, August 31, 2009

Level 5 Leadership at Zappos

Jim Collins in Good to Great, clearly spelled out the attributes of great leaders. Level 5 leaders, as Collins calls them, exemplify a seemingly incongruous mix of personal humility and professional will.

Humility + Will = Level 5

“Level 5 Leaders are a study in duality: modest and willful, humble and fearless,” Collins explains. They don’t allow their egos to interfere with their primary focus on the larger goal of building a great company. Collins clarifies that Level 5 leaders are usually highly ambitious, but their ambition is directed for the good of the institution, not themselves.

At Zappos, you won’t find any sacrosanct corner offices reserved for the higher ups. Zappos executives are fondly referred to as “Monkeys” and sit in what is aptly named “Monkey Row.” Here, CEO Tony Hsieh sits in an open cubicle among other executives, and encourages his employees to throw peanut shells on the floor of his workspace. Hsieh sends a subtle yet clear message that he’s not more important than anyone else in the company.

Collins further explains, “The good-to-great leaders never wanted to become larger-than-life heroes. They never aspired to be put on a pedestal or become unreachable icons. They were seemingly ordinary people quietly producing extraordinary results.” Aligned with this core principle, Hsieh openly advertises his email address and encourages people to drop him a message. You might be skeptical, thinking that your message would go unanswered, lost in a flood of emails. Hsieh, however, means what he says and stands by his word.

How can a CEO of a billion dollar company be so responsive? According to Collins, it’s because Level 5 leaders have a “ferocious resolve” to do whatever it takes to make the company great. And by his very nature, Hsieh embodies the perfect balance between personal humility and professional will, leading Zappos's transformation into the great company it is today.

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