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How to manage risk
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The importance of long-term planning
Level 5 leaders channel their ego needs away from themselves and into the larger goal of building a great company. Itās not that Level 5 leaders have no ego or self-interest. Indeed, they are incredibly ambitiousā but their ambition is first and foremost for the institution, not themselves.
Level 5 leadership is not just about humility and modesty. It is equally about ferocious resolve, an almost stoic determination to do whatever needs to be done to make the company great.
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The Key To Greatness: Start with the right people, ask them the right questions, and engage them in vigorous debate.
To be rigorous, not ruthless, means that the best people need not worry about their positions and can concentrate fully on their work.
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The moment a leader allows himself to become the primary reality people worry about, rather than reality being the primary reality, you have a recipe for mediocrity, or worse. This is one of the key reasons why less charismatic leaders often produce better long-term results than their more charismatic counterparts.
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Spending time and energy trying to āmotivateā people is a waste of effort. The real question is not, āHow do we motivate our people?ā If you have the right people, they will be self-motivated. The key is to not de-motivate them. One of the primary ways to de-motivate people is to ignore the brutal facts of reality.
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Hedgehog Concept is a simple, crystalline concept that flows from a deep understanding of the intersection of the following three circles:
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Curious about different takes? Check out our Good to Great: Why Some Companies Make the Leap Summary book page to explore multiple unique summaries written by Deepstash users.
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