{"id":5937,"date":"2019-12-29T20:02:17","date_gmt":"2019-12-30T00:02:17","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=5937"},"modified":"2022-03-18T15:30:13","modified_gmt":"2022-03-18T19:30:13","slug":"characteristics-of-a-good-leader","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/characteristics-of-a-good-leader\/","title":{"rendered":"4 Key Characteristics of a Good Leader (Good to Great)"},"content":{"rendered":"\n<p>What are the <a href=\"https:\/\/www.shortform.com\/blog\/characteristics-of-a-good-leader-2\/\">characteristics of a good leader<\/a>? Further, what are the qualities of a <em>great <\/em>leader?<\/p>\n\n\n\n<p>In his book <em><a href=\"https:\/\/www.shortform.com\/blog\/key-takeaways-from-good-to-great\/\">Good to Great<\/a>, <\/em>Jim Collins unearths the qualities of the greatest leaders of business. We&#8217;ll cover the defining characteristics of a good leader.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\">Characteristics of a Good Leader<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Characteristic #1 of a Good Leader: <strong>Self-Effacing, but Resolute<\/strong><\/h3>\n\n\n\n<p>The first characteristic of a good leader is that he or she tends to avoid the public eye, has a reserved demeanor, and even tends to shyness. But while not ambitious for themselves, they are ambitious for the company &#8211; <strong>they never back down from <a href=\"https:\/\/www.shortform.com\/blog\/accepting-responsibility\/\">taking responsibility<\/a> or <a href=\"https:\/\/www.shortform.com\/blog\/how-to-make-a-difficult-decision\/\">making a difficult decision<\/a><\/strong>.<br><br><\/p>\n\n\n\n<p>For example, Darwin E. Smith, CEO of Kimberly-Clark from the 70s through the 90s, was no darling of reporters: He wore unfashionable suits, was uncomfortable in interviews, and preferred the company of manual laborers to that of fellow executives. Rather than take flashy vacations to exotic locales, Smith spent his time off on his property in rural Wisconsin, performing hard labor himself. This is a quality of a great leader.<br><br><\/p>\n\n\n\n<p>Smith\u2019s \u201caw shucks\u201d demeanor, however, belied a rigorous and gutsy businessman. Shortly after he became CEO in 1971, Smith and his team determined that coated paper, which constituted the core of Kimberley-Clark\u2019s business, featured both little opportunity for growth and poor competition. He made a momentous decision: to sell the company\u2019s paper mills and go all in on consumer paper goods, where growth potential was significant and competition fierce.<br><br><\/p>\n\n\n\n<p>The decision was panned by industry analysts, but it paid off: During Smith\u2019s 20-year tenure as CEO, Kimberly-Clark produced cumulative stock returns 4.1x the general market return.&nbsp;<br><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Characteristic #2 of a Good Leader: <strong>Prepares the Next Generation of Level 5s<\/strong><\/h3>\n\n\n\n<p>The second characteristic of a good leader is that he or she prepares the next generation of leaders. Because <a href=\"https:\/\/www.shortform.com\/blog\/jim-collins-level-5-leadership\/\">Level 5 leaders<\/a> subsume their egos to a single objective\u2014<em>making their companies successful<\/em>\u2014they are compelled to groom successors to ensure their companies\u2019 continued<em> <\/em>success. <br><br><\/p>\n\n\n\n<p>David Maxwell, CEO of Fannie Mae in 80s, for example, took over a company losing $1 million a day and transformed it into one earning $4 million a day in profit. Rather than cling to the job, Maxwell retired at the height of his powers in 1990, leaving the company in the able hands of his chosen successor, Jim Johnson.<br><br><\/p>\n\n\n\n<p>Maxwell\u2019s \u201ccompany-first\u201d mentality continued even into his retirement. When his generous retirement package came under fire in the U.S. Congress, Maxwell told Johnson to redirect the amount still to be paid\u2014about $5.5 million\u2014to the Fannie Mae foundation so that it could help low-income Americans secure mortgages. <strong>For Maxwell, the company\u2019s reputation was more important than his personal gain<\/strong>.&nbsp;This is another quality of a great leader.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Characteristic #3 of a Good Leader: <strong>Comes from Within the Company<\/strong><\/h3>\n\n\n\n<p>The third characteristic of a good leader is that he or she comes from within the company. Good to Great leaders were often <em>promoted<\/em> to chief executive rather than hired from outside.<br><br><\/p>\n\n\n\n<p>Good-to-great executives Darwin Smith (Kimberly-Clark), Colman Mockler (Gillette), and George Cain (Abbott Laboratories) all emerged from within the ranks of their respective companies, whereas comparison CEOs like Al Dunlap (Scott Paper) and Lee Iacocca (Chrysler) were brought in.<br><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Characteristic #4 of a Good Leader: <strong>Takes Blame and Deflects Credit<\/strong><\/h3>\n\n\n\n<p>The fourth characteristic of a good leader is that he or she takes responsibility for problems and gives credit to others. In Collins\u2019s interviews, good-to-great CEOs credited their colleagues\u2014or just dumb luck\u2014for their companies\u2019 successes, whereas comparison leaders were quick to blame outside factors or others for their companies\u2019 failures.<br><br><\/p>\n\n\n\n<p>Good-to-great leaders will \u201clook out the window\u201d when assigning credit for their successes, whereas lesser leaders will \u201clook in the mirror.\u201d This is a crucial quality of a great leader.<br><br><\/p>\n\n\n\n<p>A prime example is Joseph F. Cullman, CEO of Philip Morris in the 60s and 70s, who watched Marlboro become the most popular cigarette brand in America. Despite leading the company to returns 7x the general market, Cullman staunchly refused to take credit for the company\u2019s success, instead pointing to predecessors, contemporaries, successors\u2014and luck. In fact, at the request of his admiring colleagues, Cullman wrote a book originally intended for their enjoyment only. The title? <em>I\u2019m a Lucky Guy<\/em>.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What are the characteristics of a good leader? Further, what are the qualities of a great leader? In his book Good to Great, Jim Collins unearths the qualities of the greatest leaders of business. We&#8217;ll cover the defining characteristics of a good leader.<\/p>\n","protected":false},"author":4,"featured_media":5952,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[29,14],"tags":[67],"class_list":["post-5937","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-career","category-management","tag-good-to-great","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>4 Key Characteristics of a Good Leader (Good to Great) - Shortform Books<\/title>\n<meta name=\"description\" content=\"What are the characteristics of a good leader? Further, what are the qualities of a great leader? 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