CIBN Connect | Rockefeller Habits: how wealthy people think
Rockefeller Habits: how wealthy people think
By Kerry George
Rockefeller Habit #1
A HEALTHY EXECUTIVE TEAM IS ALIGNED; a healthy executive team must be aligned with the company’s main vision. So they need to know what the vision is. They need to internalize it. On a healthy team: team members understand each other; they know about their differences; they make room for each other’s priorities; and they enjoy one another’s unique styles.
At CIBN our members meet weekly for strategic thinking. We participate in a monthly executive education process. Learners are growers. There is engagement by the members in constructive brainstorming and debates where all of the members feels comfortable in participating.
CIBN is your ready-made team.
Many gurus from around the world have been using the Rockefeller Habits to create success in business. They say these Habits can be worked on, one habit at a time. The first Habit needs to be in place first!
What about solopreneurs or business owners with few or no team members of their own? What if we created the team atmosphere with the team power from our CIBN chapter for their benefit? Then anyone in The CIBN could benefit from the team concept and begin applying the Rockefeller Habits directly to their own business whether they have staff or not.
We have found that there are unhealthy things that will derail a CIBN club and it is interesting to note that these are exactly the same unhealthy situations that will derail a leadership team: Absence of Trust Fear of Conflict Lack of Commitment Avoidance of Accountability Inattention to Results.
What can we do to empower your group to remove unhealthy barriers to your success? Can we create an atmosphere or even have a special monthly meeting where we are able to hash out brutal facts and challenge each other without the fear of hurt feelings? Are you able to stay laser-focused on a single priority in your business? Can we create clarity and power within your group to help you achieve more in your individual businesses? You can work on any of the Rockefeller habits now once this first habit is in place
Rockefeller Habit #2
ALIGNING EVERYONE WITH THE #1 PRIORITY THIS QUARTER:
What is the critical number that will move this company ahead this quarter? Is it a revenue number? Is it the number of sales? Is it the number of leads? What is the focus, and what is the number associated with that focus? What are 3 – 5 priorities that will support that critical number once it is identified? Is there a quarterly theme or a celebration that can be announced to all team members to bring that critical number to life? Can we post the number throughout the company so all of the employees or team members can see it? How can we put it in front of every team member so they are aware of the progress towards that number? Prioritize one goal this quarter and get everyone on board to achieving it.
"Leaders make commitment a clear priority, leaving no room for mis-understanding." --Vince Lombardi
Multiple goals is a monster with multiple heads. In order to scale your business or to grow your vision one has to take a step forward, then check in, and make adjustments. The Quarterly Goal allows for small wins and it leads to your #1priority.
"There is no service so low and simple, neither any so high,, neither any so high, in which the young man of ability and willing disposition cannot readily and almost daily prove himself capable of greater trust and usefulness, and, what is equally important, show his invincible determination to rise."
Rockefeller Habit #3
COMMUNICATION THROUGH MEETING RHYTHM:
How does information travel through your organization? Is it accurate and quick? Is there a rhythm to it? Employees need a daily huddle that lasts less than 15 minutes. All teams have a weekly meeting. Executives meet for a day of learning and resolving larger issues, while enjoying a DNA transfer once a month. Quarterly and annually Executives and middle managers meet in the office to work on strategy, execution, people and cash flow.
“Team participation also teaches people the art of amplifying their own talent by using the talents of others a highly valuable capability to pass long to the younger and the lower-ranking people in your organization. ” – Gilbert Amelio
Meetings are necessary for communications. Whether these meetings are online, on the phone, or in person may vary for certain teams, however if they are not had, communication will lack. When meetings are executed properly it actually saves everyone a lot of time over the long haul because communication is more open and smooth. This allows you clarity and input so you can focus on your company’s #1 Priority.
“Leadership is scarce because few people are willing to go through the discomfort required to lead. ” – Seth Godin
Here is a breakdown on how long each meeting should run: Daily Huddle: 5 - 15 minutes Weekly Meeting: 60 - 90 minutes Monthly Management Meeting: Half to full day Quarterly and Annual Planning Meeting: One to three-day offsite meeting.
Rockefeller Habit #4
LEADERSHIP ACCOUNTABILITY:
If you are still trying to do everything by yourself then you are not thinking big enough. Your business can not grow to new heights unless it involves others. Delegation is the beginning of something great. Taking on employees or working with team members will help you to grow and to scale your operations. As you begin to grow each person needs to be doing the right things at the right time. In order to accomplish that create an accountability chart and determine who is responsible for what activities. Write those activities into job descriptions as you hire, and write them into your operations manual as you expand. Financial statements should have a person assigned to each line item. How is revenue generated? Who generates that revenue? Are others aware of their part in supporting that effort? Identify 4 – 9 Processes that drive your business forward. Who are responsible for each of those processes? What are some Key Performance Indicators for each of those processes? How can you do them cheaper, faster, or better? This is a story about four people named Everybody, Somebody, Anybody and Nobody. There was an important job to be done and Everybody was sure that Somebody would do it. Anybody could have done it, but Nobody did it. Somebody got angry about that, because it was Everybody’s job. Everybody thought Anybody could do it, but Nobody realized that Everybody wouldn’t do it. It ended up that Everybody blamed Somebody when Nobody did what Anybody could have. Make sure that 3 to 5 year Each 3-5 year Key Thrust/Capability has a corresponding expert on the Advisory Board if internal expertise doesn’t exist. Getting accountabilities clear throughout the organization is crucial. There should be one accountable person assigned to each cell and working on the objectives of that cell. This does not make them the boss, just the person who is focused on that objective.
Rockefeller Habit #5
COLLECT EMPLOYEE IMPUT:
An effective company has their Executives and Middle Manager create Start/Stop/Keep conversations with at least one employee each week. The Start/Stop/Keep Conversation Method: We need to START DOING something we are not yet doing. We need to STOP DOING something that we are doing. We need to CONTINUE (KEEP) DOING what we are doing, perhaps with adjustments, or with larger groups… Insights from these conversations should be shared at the weekly Executive Team Meeting. Gather input from the employees or members about obstacles and opportunities. Put a middle management team in place to be responsible for the process of closing the loop on all obstacles and opportunities. Roll up your sleeves and take notes. It is in the trenches where we win the battles. Here are some guidelines we recommend: Collect data from your employees, partners, members, customers or anyone willing to offer you data. Your sales channels are best because they are closest to the action. Senior Executives and leaders should talk to at least one employee a week. Here is the question they should ask: “What should the company Start/Stop/Keep doing?” Pay attention to the “Stops. ” This will help you to identify the roadblocks your people are facing, and what you may want to eliminate.
Rockefeller Habit #6
GATHER CUSTOMER FEEDBACK:
Accurate information needs to be gathered frequently. All Executives and Middle Managers should have a 4 Q Conversation with at least one end user each week. We recommend that all executives and managers have a 4Q conversation with at least one end user weekly. Particularly in business to business situations you may have to bypass your distribution channels and purchasing agents (with permission) and talk directly with those benefitting from your products and services. The 4Q refers to the 4 questions that we suggest leaders ask customers in person (not on a survey): 1. HOW ARE YOU DOING? 2. WHAT’S GOING ON IN YOUR INDUSTRY / NEIGHBOURHOOD? 3. WHAT DO YOU HEAR ABOUT OUR COMPETITORS? 4. HOW ARE WE DOING? The key is to get them to talk about their favorite subject: themselves! The first question will give you an understanding of their current situation. What are their pain points? What are their priorities? Share the insights from these conversations at the weekly team meetings. All employees are involved in collecting customer data. Put someone in Middle Management in charge of following up on customer data and closing the loop. Next look at the data that comes from customers. All employees should talk to customers, because they are the next biggest source of data that you can use guide the growth of your organization. Senior leaders should formally talk to one customer a week to gather data about the market and competitors.
Rockefeller Habit #7
CORE VALUES AND PURPOSE:
Core values give a company purpose. They give a human purpose as well, whether that human is the sole proprietor of a small business, or the first employee hired by one. If you are not sure where to start, go to the internet and bring up a list of core values. Spend some time looking through the list. Pick 5 to 7 that resonate with you. Write them out and then add a sentence about why that core value speaks to you. Some thoughts about core values: They are alive and well Core Values are discovered, Purpose is articulated, and both are known by all employees. All executives and middle managers refer back to the Core Values and Purpose when giving praise or reprimands. HR processes and activities align with the Core Values and Purpose (hiring, orientation, appraisal, recognition, etc.). Actions are identified and implemented each quarter to strengthen the Core Values and Purpose in the organization. This habit will give you a baseline for current and future decisions, including when making a hire, sharing praise and when giving constructive criticism. I like to think of Core Values and Purpose as “alive’ in an organization. Having a purpose (which to me, is a better way to say, “mission”), gives your company the critical “why” behind all that it does. Your purpose needs to be more than just making money.
Rockefeller Habit #8
VISION AND STRATEGY:
Employees need to be able to articulate the vision, and understand the strategy to accomplish it. Does your company have a vision? What is it? Do you have a strategy to accomplish it? What is your Big Hairy Audacious Goal? (BHAG) If money or time was not a problem what would you want to accomplish? Can you see yourself in that place? Is your progress being tracked? You have Core Customers. What do they look like? Create a profile of your Core Customer that is 25 words or less. What is your elevator pitch? In 30 seconds can you describe what you can do? Write it out. Practice it over and over so you are ready when the opportunity presents itself. Does your whole team know your brand strategy? What are your three main brand promises? Can everyone on the team share the elevator pitch with effectiveness?
Rockefeller Habit #9
KEY PERFORMANCE INDICATORS FOR ALL:
All employees should be able to answer if they are having a good day or a good week. The basis of that response is the number that they are supposed to be in charge of. What is the key performance indicator that was assigned to that team member to manage? That is the foundation of their “good week.” Each employee should have one critical number that is important to the company’s critical number for that quarter. Executives and middle managers should have a coach or a peer coach. This coach works with them and holds them accountable to making positive behavioral changes. Every member of the team including the CEO and owner should have an answer to the question, “Did I have a great day or week?” If a person cannot answer that question then perhaps they are not clear on what their priorities are or what their key performance indicator is. To move forward, all team members must be aligned with the greater number that is the focus for the quarter. The organization is similar to a machine. Parts need to be working, aligned, well-oiled, maintained and in sync with one another. Every part is a part of the greater whole.
Rockefeller Habit #10
SCOREBOARDS GO UP EVERYWHERE:
The company’s plans and performance need to be visible to everyone at all times. Establish a “situation room. ” It can be real or virtual, but you need to visit it each week during your team meeting so everyone can see the count. Post the core values, the purpose and the priorities that you are working on throughout the company so that everyone knows them. Scoreboards need to go up everywhere to display the current progress on the key performance indicators and any critical numbers. There needs to be a system to track and manage the priorities and the key performance indicators as they change. Put up goals, metrics, and plans everywhere so everyone can see them and be engaged with those numbers. Keep track of these numbers and make sure that your core values and purpose are posted throughout the firm so everyone has access to that.
"Your business can not grow to new heights unless it involves others."
“Leaders make commitment a clear priority, leaving no room for mis-understanding.” — Vince Lombardi[1]
"There is no service so low and simple, neither any so high,, neither any so high, in which the young man of ability and willing disposition cannot readily and almost daily prove himself capable of greater trust and usefulness, and, what is equally important, show his invincible determination to rise." --Andrew Carnegie[2]
“Team participation also teaches people the art of amplifying their own alent by using the talents of others a highly valuable capability to pass long to the younger and the lower-ranking people in your organization.” – Gil Amelio[3]
“Leadership is scarce because few people are willing to go through the discomfort required to lead. ” – Seth Godin [3]
- Lombardi, Vince. What it Takes to be Number One. United Kingdom: Thomas Nelson, 2012. ↩
- Carnegie, Andrew. The Empire of Business. United States: Books for Business, 2001. ↩
- Amelio, Gil., Simon, William L.. Profit from Experience: Practical, Proven Skills for Transforming Your Organization. United Kingdom: Touchstone, 1997. ↩
- Godin, Seth. Tribes: We Need You to Lead Us. United States: Penguin Publishing Group, 2008. ↩
