Good to Great: Why Some Companies Make the Leap... and Others Don't

Imagine a leader who walks quietly through the halls, never seeking the spotlight, yet whose presence commands respect. Such leaders embody the rare and powerful combination of humility and unwavering determination. They are not the CEOs who dominate headlines or seek personal glory; instead, they channel their energy into building something far greater than themselves—a company that thrives long after their tenure.

One such leader, a mild-mannered lawyer turned CEO, transformed a paper company that had long lagged behind its competitors into a global powerhouse. Despite skepticism from outsiders and even some board members, he made bold decisions that others feared to touch, such as selling off core mills to focus on consumer products. His quiet resolve was the engine behind a remarkable stock performance that outpaced giants like Procter & Gamble and Coca-Cola.

This story is not an anomaly. Across the companies studied, ten of eleven successful transformations were led by insiders—leaders who knew the company culture intimately and who had earned the trust of their colleagues over years. These leaders did not arrive with fanfare; they grew into their roles, embodying a deep commitment to the institution rather than personal fame.

Contrast this with the charismatic outsiders who stormed into companies with grand promises but left behind instability and decline. The data showed a negative correlation between outside celebrity CEOs and sustained greatness. It seems that deep roots and a long-term perspective are essential ingredients for lasting success.

Level 5 leaders also display a remarkable pattern in how they view success and failure. When things go well, they look out the window, crediting their teams, predecessors, and sometimes even luck. When things go poorly, they look in the mirror, taking full responsibility. This 'window and mirror' approach builds trust and accountability throughout the organization.

These leaders are more plow horse than show horse—steadfast, diligent, and focused on results rather than applause. Their ambition is for the company’s greatness, not their own.

As we embark on this journey through the principles that transform companies from good to great, keep in mind the quiet power of these leaders. Their stories remind us that greatness often comes not from flamboyance, but from the steady, humble commitment to do what must be done.

Next, we explore how these leaders build their teams, because having the right people on board is the foundation for any great journey.