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LEVEL 5 LEADERSHIP

THE TRIUMPH OF HUMILITY AND FIERCE RESOLVE

What catapults a company from merely good to truly great? A five-year research good to truly great? A five-year research project searched for the answer to that question, and its discoveries ought to change the way we think about leadership. The most powerfully transformative executives possess a paradoxical mixture pf personal humility and professional will. They are timid and ferocious. shy and fearless. They are rare -- and unstoppable.

In 1971, a seemingly ordinary man named Darwin E. Smith was named chief executive of Kimberly-Clark, a stodgy old paper company whose stock had fallen 36% behind the general market during the previous 20 years. Smith, the company's mild-mannered in-house lawyer, wasn't so sure the board had made the right choice -- a feeling that was reinforced when a Kimberly-Clark director pulled him aside and reminded him that he lacked some of the qualifications for the position. But CEO he was, and CEO he remained for 20 years.

What a 20 years it was. In that period, Smith created a stunning transformation at Kimberly-Clark, turning it into the leading consumer paper products company in the world. Under his stewardship, the company beat its rivals Scott Paper and Procter & Gamble. And in doing so, Kimberly-Clark generated cumulative stock returns that were 4.1 times greater than those of the general market, outperforming venerable companies such as Hewlett-Packard, 3M, Coca-Cola, and General Electric.

Smith's turnaround of Kimberly-Clark is one the best examples in the twentieth century of a leader taking a company from merely good to truly great. And yet few people -- even ardent students of business history -- have heard of Darwin Smith. He probably would have liked it that way. Smith is a classic example of a Level 5 leader -- an individual who blends extreme

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