Level 3 of The 5 Levels of Leadership

You may have heard it said that everything rises and falls on leadership.

But what exactly is leadership?

Leadership is influence.

The more influence you earn, the more people you can lead.

Some are natural-born leaders.

The rest of us have to learn how to be an effective leader.

Fortunately for us, there is a clear process, but a few points before we begin:

Point 1: You are at a different leadership level with each person.

Point 2: Each level builds upon the next.

Point 3: If you switch divisions for companies, you start over at Level 1, and have to earn your way back up.

There are 5 Levels of Leadership (see John Maxwell’s book The 5 Levels of Leadership) and yesterday we covered the second Level. On to Level 3!

Level 3: Production

It’s at level 3 that you actually start to build the company or organization.

You’ve been given a position and you’ve earned your team’s trust, but here is where you lead by example by becoming productive and effective.

Level 3 is when your people follow you because you get results.

You lead by example. You have done what you are asking others to do.

If you want your people to be organized, you have to first be organized.

If you want your team to be productive, you have to be productive.

The Upside of Production: You Now Have Leadership Credibility.
The Downside of Production: The Weight Of Leadership Just Got Heavier

One of the dangers of level 2 leadership is that a leader may be tempted to stay there.

Who doesn’t enjoy being liked?

But good leaders don’t just create a great work environment…

They get things done!

Many positive things begin to happen at Level 3.

Work gets done on or under budget, morale goes up, turnover goes down, and goals are achieved.

On Level 3, leaders can become change agents.

They can tackle tough problems and face thorny issues.

They can make the difficult decisions that will make a difference, and they can take their people to another level of effectiveness.

Here are some tips to grow through Level 3:

1. Be the Team Member You Want on Your Team:

Lead by example and set a positive tone.
Avoid expecting others to do what you wouldn’t do yourself.

2. Cast Vision Continually:

Keep the vision in front of your team consistently.
Make time to communicate and reinforce the vision.

3. Discern How Team Members Affect Momentum:

Momentum Makers (Producers who make things happen)
Momentum Takers (People who go along for the ride)
Momentum Breakers (People who cause problems and hurt morale)
2. Focus on investing time in the momentum makers.

Encourage momentum takers to become makers themselves.
Address issues with momentum breakers through candid conversations and provide opportunities for attitude change.
Remove individuals who consistently disrupt the team’s progress.

4. Balance Your Leadership Style:

- Prioritize tasks but also maintain relationships with your team.
- Allocate regular time for connecting with your team.

2. If you’re a strong Level 2 People Leader:

- Apply the 80/20 Pareto Principle.
- List responsibilities in order of their impact on the company.
- Focus the majority of your time on the top priority.
- Consider using resources like “The ONE Thing” by Gary Keller for guidance.

In the next post, we will be unpacking the fourth level of leadership, level 4: People Development.

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About the Author

As many of you know, my journey has been one of grit, grace, and transformation. At 19, I was a high school dropout, single father, and struggling paint contractor in Michigan. I later moved to Florida, where I faced both personal and professional hardships. With nothing left to lose, I turned to prayer—and was blessed with a relentless hunger to learn. I devoured books, attended seminars, and discovered better ways to streamline and grow my business—even through the Great Recession (and yes, I did hit the wife lottery along the way!). In 2014, I published How To Double Your Business and later sold the painting business, launching a new chapter: coaching others to grow their businesses. For the past 10 years, I’ve dedicated myself to helping business owners scale through the DYB System, while also drawing from frameworks like EOS, Scaling Up, and The Four Disciplines of Execution. Yet something was still missing—something more adaptive, integrated, and complete. Then I found Pinnacle. After months of research and interviews with other Guides, I joined Pinnacle. Their tools and strategies have exceeded every expectation. Now, as a Pinnacle Business Guide, I help leadership teams implement a custom-tailored operating system that draws from the best in the industry—but flexes with your unique business. It’s a dynamic, proven approach to achieve clarity, momentum, and lasting growth. I’m no longer taking on any more 1:1 coaching clients… Instead, I now specialize in working with visionary business owners who are ready to get their leadership teams aligned—around a clear vision, a focused strategy, and an actionable execution plan. With the tools and process I now have as a Pinnacle Business Guide, I help turn alignment into momentum, and momentum into results. If your business is growing—but your leadership team isn’t fully rowing in the same direction—let’s talk.