The Five Levels of Leadership: Proven Steps to Maximize Your Potential

Around 83% of companies acknowledge the importance of leadership in their organization. Now, that is a pretty high percentage! It means that almost all countries across the globe know the relevance of leadership in organizational success.

But knowing is one thing, and implementing is another. Most companies are unsuccessful in developing compelling leaders in their organizations. It is because finding the right leadership style that fits the culture of the company and the employees is no small task. 

It's high time we took a closer look at the concept of leadership and analyzed it from a different angle.

Many recognize John C. Maxwell as a renowned educator. He was also a leadership specialist, lecturer, and author. His bestseller book "The 5 Levels of Leadership: Proven Steps to Maximize Your Potential" was a major contribution to HR and the world as a whole.

Maxwell’s model takes leadership to five different levels, each representing a new standard of influence and impact. These are my interpretations of each step.

Position (Level 1) – Leadership starts with your title or role. In the promotional products industry, having a management title is just the beginning. But Maxwell is clear – just being the “boss” won’t take you far if you don’t move beyond this level. At this stage, people follow you because they have to, not necessarily because they want to.

Permission (Level 2) – Leadership grows through relationships. This is where it gets interesting for those of us in promotional products, where strong relationships with clients, suppliers and team members are essential. Maxwell emphasizes that at Level 2, people follow you because they trust you and respect you – this is where real leadership starts.

Production (Level 3) – People follow you because you deliver results. In our industry, where deadlines and creativity drive business, this is huge. Leaders at this level inspire their teams by showing that they can achieve goals, hit targets and get the job done. Maxwell explains that the best way to motivate people is by setting the example – something that every promotional products leader can relate to.

People Development (Level 4) – Great leaders help others become leaders. This level is critical in an industry where things change fast, and team development is key to staying competitive. Maxwell explains how investing in your team not only boosts their growth but also strengthens your entire organization.

Pinnacle (Level 5) – The highest level is about creating a legacy. This is where leaders become truly transformational. In the promotional products industry, this might mean building a business culture that thrives even after you step back. Maxwell’s insights here are about leaving a lasting impact that continues to shape the business and industry for years to come.

If you want to become more than a boss, whereby people just follow you because they have to, you’re going to need to master the skill of inspiration, whilst investing your time and attention into being the best version of you, you can be.

To be a stronger leader, you must produce results and build a team that is engaged and high performing.

To get to the next levels of leadership, invest your time in developing others, so they can be the best leaders they can be. If you are dedicated, skilled, and determined enough, then you can become a leader of the highest caliber.

By following the 5 levels of leadership, John C. Maxwell shares insight into how to pragmatically become a successful leader, and how to teach others to do the same – to reach the 5 levels of leadership.