The 5 Levels of Leadership: How to Reach Level 5

Becoming a great leader doesn’t happen overnight. It takes time, effort, and a willingness to grow. Whether you’re leading a small team or running a company, understanding the 5 levels of leadership can help you build stronger relationships, get better results, and make a real impact.

At AMB Performance Group, we help business owners all across the country become more confident, capable leaders. Let’s walk through the 5 levels of leadership and show you how to reach the top.

What Are the 5 Levels of Leadership?

The 5 levels of leadership were first introduced by leadership expert John C. Maxwell. This simple but powerful model shows how leaders grow—and how they can earn more trust and influence over time.

Here’s a quick breakdown:

1. Position – People follow you because they have to.
2. Permission – People follow you because they want to.
3. Production – People follow you because of what you’ve done.
4. People Development – People follow you because of what you’ve done for them.
5. Pinnacle – People follow you because of who you are and what you stand for.

Each level builds on the one before it. Let’s take a closer look at each one and how you can grow to the next.

Level 1: Position – Leading by Title

At this first stage of leadership, people follow you because they have to—not because they’re inspired by you. Your title gives you authority, but it doesn’t automatically make you a great leader. You might be the boss, a supervisor, or the owner of the business, but that’s just a starting point.

What this looks like:

• You give directions, and your team follows them because it’s part of their job.
• Communication is often one-way—you talk, and they listen.
• Your team might not feel comfortable sharing ideas or concerns.
• People do what’s required, but they don’t go above and beyond.

Is it bad to be at Level 1? Not at all! Everyone starts here. It’s a normal part of the leadership journey. What matters most is that you don’t stay at this level forever.

Why isn’t a title enough? A title might get compliance, but it doesn’t earn trust. Real leadership goes beyond telling people what to do—it’s about motivating them to do their best work.

How do I know if I’m stuck at Level 1? If your team only follows your instructions and rarely takes initiative, it’s a sign that they’re following out of obligation, not belief in you.

How to grow beyond Level 1:

To move past this level, you need to build real relationships with your team. Leadership isn’t about control—it’s about connection.

Here are a few ways to start:

• Ask questions. Get to know your team members as people. What do they enjoy? What motivates them?
• Listen more. Don’t just talk—take time to hear what others think and feel.
• Be present. Show up consistently and be available when your team needs you.
• Care about their success. Celebrate their wins, support their challenges, and let them know you’re on their side.

When your team sees that you care about them—not just the work they do—they’ll begin to open up and trust you more. That’s when you’ll start to see the shift toward Level 2.

Level 2: Permission – Building Strong Relationships

Once you’ve earned your team’s trust, you move into the second level of leadership: Permission. This is where things start to get more enjoyable—for you and your team. People follow you because they want to, not because they’re told to.

At this stage, leadership becomes more personal. You’ve taken the time to understand your team, and in return, they feel valued and respected. Now, you’re leading through relationships, not just your job title.

What this looks like:

• Team members feel comfortable coming to you with ideas, feedback, or problems.
• There’s more teamwork and collaboration—people want to work together.
• Your team sees you as a coach or guide, not just “the boss.”
• There’s more laughter, energy, and overall connection in your workplace.

Isn’t being friends with my team unprofessional? Not necessarily. You don’t have to be best friends, but showing that you care and building trust makes your team more productive—not less. People work harder for leaders they like and respect.

What if someone takes advantage of being too friendly? Being relational doesn’t mean letting people walk all over you. You can still hold people accountable while being kind and supportive.

How do I know if I’ve reached Level 2? If your team voluntarily seeks out your advice, shares ideas, and shows enthusiasm at work, you’re on the right track.

How to grow at Level 2:

Now that your team trusts you, keep that trust strong. This level is all about communication, consistency, and care.

Try these tips:

• Be approachable. Make it easy for your team to talk to you—no need for big meetings or formal check-ins.
• Show empathy. When someone’s struggling, be patient and supportive. Even small gestures matter.
• Encourage feedback. Let your team know their opinions count, and take their suggestions seriously.
• Lead by example. If you want a respectful, honest team—model those behaviors every day.

When people feel safe and supported, they’ll not only follow your lead—they’ll also bring their best ideas and energy to the table. That’s when leadership becomes a shared journey, not a solo job.

Level 3: Production – Getting Results Together

At this point in your leadership journey, things are starting to click. You’re no longer just building relationships—you’re building results. At Level 3, people follow you because they can see your impact. You’re helping the team reach goals, and you’re making the business stronger.

What this looks like:

• You set clear, measurable goals—and your team consistently hits them.
• Everyone knows what success looks like, and they know how to get there.
• You’ve created routines, tools, or systems that help everything run more efficiently.
• You’ve built a reputation for being reliable and getting things done.

Is it okay to focus on performance at this stage? Yes—this is the level where performance becomes a key part of leadership. But the key is to focus on team performance, not just your own. If your team wins, you win.

What if someone on my team isn’t keeping up? That’s a great time to lean into coaching. At Level 3, you should still be developing relationships, so talk to them. Figure out what’s getting in the way—lack of clarity, motivation, or resources—and help them get back on track.

What if I feel like I have to do everything myself? That’s a sign it’s time to grow. If you’re the one solving every problem, you might be blocking your team from learning how to solve things on their own.

How to grow beyond Level 3:

At this stage, it’s easy to get stuck being the “go-to person.” But if you’re always the one making things happen, the business can’t scale.

Here’s how to keep growing:

• Start identifying future leaders. Who’s showing potential? Who’s asking good questions? Who’s eager to take on more?
• Begin delegating with intention. Don’t just assign tasks—explain why something matters and how it connects to the bigger picture.
• Create systems that don’t need you. The more your team can run without your direct involvement, the stronger your business becomes.

When you stop doing everything yourself and start empowering others, you open the door to Level 4.

Level 4: People Development – Growing Other Leaders

This level is a big shift. You’re no longer just leading a team—you’re building new leaders. At Level 4, your focus is on helping others grow into leadership roles of their own. It’s not just about the results you can get—it’s about the results your team can get without you.

What this looks like:

• You delegate important work and help people build the confidence to lead it.
• Your team feels empowered to make decisions and solve problems on their own.
• You provide regular feedback and development opportunities.
• Team members are growing in their roles—and some are stepping into new ones.

Isn’t it risky to give away leadership? It might feel risky at first, but it’s actually one of the smartest things you can do. When more people on your team can lead, your business becomes stronger and more resilient.

What if someone I develop ends up leaving? That can happen—but it’s not always a bad thing. When people grow, they may move on—and that’s a sign you’re doing something right. Plus, developing a reputation for growing talent will attract even more high-quality people to your team.

How do I know someone is ready to lead? Start small. Give them a project or let them lead a meeting. Watch how they handle it, and offer support along the way. Leadership isn’t about being perfect—it’s about being willing to learn.

How to grow at Level 4:

This stage is where leadership becomes truly transformational. When you invest in your team’s growth, you’re building something that can outlast you.

Here’s how to keep growing:

• Set up regular check-ins focused on development. These are different from performance reviews—they’re about helping your team grow.
• Celebrate progress, not just outcomes. If someone takes on a new challenge and doesn’t nail it, praise the effort and coach them through it.
• Create leadership paths. Let your team see what’s possible in your business. Show them there’s room to grow—and that you’ll support them every step of the way.

The more you grow your people, the more your business grows with them. And that’s how you step into the final level.

Level 5: Pinnacle – What Level 5 Leadership Looks Like

Level 5 leadership is the highest stage—and it’s rare. At this point, people follow you not just because of your results or how you treat them, but because of who you are. You’ve built a reputation for being someone with strong values, integrity, and a lasting impact.

This level isn’t about ego. It’s about influence. Your leadership goes beyond your team or your business. You’re creating a legacy that others want to be part of.

What this looks like:

• You’re known for being consistent, honest, and purpose-driven.
• You’ve developed multiple leaders who now lead with their own teams.
• People outside your business recognize and respect the impact you’ve made.
• Your business continues to grow and thrive—even when you’re not in the room.

Is Level 5 about being famous or popular? Not at all. Level 5 leadership isn’t about being the center of attention—it’s about being the kind of leader people deeply respect. It’s about how you make people feel, how you develop others, and the example you set.

Can anyone reach Level 5? Yes—but it takes time, humility, and commitment. Most people won’t get here by accident. It requires a deep investment in others, a strong sense of purpose, and consistent leadership over many years.

What’s the biggest difference between Level 4 and Level 5? At Level 4, you’re developing leaders. At Level 5, you’ve developed multiple leaders who now lead others. Your influence has multiplied, and you’re focused on the long-term impact of your leadership.

How to keep growing at Level 5:

This level isn’t about climbing higher—it’s about going deeper. It’s about staying grounded in your values and continuing to serve others.

To stay on track:

• Keep developing others. Even at the highest level, you’re still a teacher and a guide.
• Live your values. Make decisions that reflect who you are and what you believe in.
• Lead with humility. Let others shine. Your job now is to help others succeed—even beyond your business.

The journey to Level 5 takes years, but the reward is worth it: a business that runs on strong leadership, a team that thrives, and a legacy that lasts.

Why the 5 Levels of Leadership Matter

Leadership isn’t just about being in charge—it’s about how you show up, how you treat people, and how you help others grow. If you’re a business owner, how you lead can shape everything from day-to-day teamwork to your company’s long-term success. That’s why understanding the 5 levels of leadership is so important.

This model gives you a clear roadmap. Instead of guessing at what kind of leader you are—or what to work on next—you can see exactly where you are and where you’re headed. It helps you move from just “managing people” to inspiring and developing them.

Why should business owners care?

Because your business will only grow as much as you do. If your leadership stays stuck, your team will too. But when you grow as a leader—when you learn how to connect, deliver results, and build other leaders—you unlock a whole new level of potential for your company.

Common questions:

What if I’m already a good leader? That’s great! But even great leaders can improve. The 5 levels aren’t about starting over—they’re about leveling up. There’s always room to grow.

What if I’ve made mistakes in the past? That’s okay. Every leader has. What matters most is how you move forward. The beauty of this model is that it doesn’t matter where you start—it matters that you keep climbing.

Can my team tell what level I’m at? Yes—and their behavior often gives you clues. If they only do what they’re told, you might be at Level 1. If they bring you ideas and take initiative, you’re likely moving into Level 2 or beyond.

How to Start Climbing the Leadership Ladder

If you’re ready to grow your leadership, here are a few simple but powerful steps to take:

1. Be honest with yourself.

Take a moment to reflect: What level are you currently operating at? Are your team members following you just because you’re the boss—or because they believe in you?

Ask yourself:

• Do people feel comfortable coming to me?
• Do I help my team grow, or just tell them what to do?
• Am I setting an example others want to follow?

2. Ask for feedback.

Sometimes, we don’t see ourselves clearly. That’s why it helps to ask others. Talk to your team, a business partner, or a trusted mentor. Ask questions like:

• “How can I be a better leader to you?”
• “What’s something I could do differently?”
• “When do you feel most supported by me?”

Honest feedback is one of the fastest ways to improve.

3. Work with a coach.

Leadership doesn’t have to be a solo journey. A business coach can help you:

• Identify where you are and where you want to be
• Create a clear plan for growth
• Avoid common leadership mistakes
• Build skills in communication, delegation, and team development

Having a coach means having someone in your corner who helps you stay focused, keeps you accountable, and pushes you to keep growing.

4. Invest in your team.

Strong leaders don’t just focus on themselves—they invest in others. When your team feels supported and encouraged, they’ll rise to the challenge and grow alongside you.

Here’s how you can do that:

• Provide training opportunities and tools for growth
• Give feedback that helps, not hurts
• Let people take on new responsibilities—even if they’re not perfect yet
• Celebrate wins, both big and small

What if I don’t have time to work on this? Leadership growth doesn’t have to take hours each day. Even small changes—like listening more or having regular check-ins—can make a big difference over time.

What if I’m not naturally a leader? Leadership isn’t something you’re born with—it’s something you develop. With practice, patience, and the right support, anyone can become a strong, respected leader.

How long does it take to climb the levels? There’s no set timeline. Some people move quickly, while others grow steadily over time. What matters is that you keep moving forward.

FAQs: 5 Levels of Leadership and Level 5 Leadership

1. What are the 5 levels of leadership?
   Position, Permission, Production, People Development, and Pinnacle.
2. What’s the goal of the 5 levels of leadership?
   To help leaders grow their influence and lead with purpose—not just power.
3. Is it hard to reach level 5 leadership?
   It takes time and effort, but it’s possible for anyone who’s committed to growing and helping others.
4. Can I fall back a level?
   Yes. Leadership is earned every day. Poor communication, broken trust, or lack of results can cause setbacks.
5. How do I know what level I’m on now?
   Think about why your team follows you. Is it your title, your results, or how you’ve helped them grow?
6. Can level 5 leadership be taught?
   Yes! With the right coaching, support, and experience, you can grow into a level 5 leader.
7. What’s the most important level?
   Each one matters, but level 4 is often where real momentum happens—when you start developing other leaders.
8. Does AMB Performance Group teach leadership?
   Yes. We help business owners grow through personalized coaching, workshops, and leadership programs.
9. What’s the benefit of growing through the levels?
   You build stronger relationships, get better results, and create a business that can grow without burning out.
10. Can I use this model with my leadership team?
    Absolutely. It’s a great tool to spark conversation, set goals, and support each other’s growth.

Ready to Grow Your Leadership?

The 5 levels of leadership offer a roadmap to becoming the kind of leader people trust, respect, and want to follow. Whether you’re just starting or already on your way, there’s always room to grow.

Want help reaching the next level?
Explore our leadership coaching services or contact AMB Performance Group today to learn how we can support your journey toward Level 5.