Mastering the
Rockefeller Habits

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Video Introduction

Mastering the 10 Rockefeller Habits is a foundational technique for any business preparing to scale up.

You may have heard of the Rockefeller Habits, but if you have not, the concept is explained in great detail in Verne Harnish’s 2002 book, Mastering the Rockefeller Habits.

Many business coaches teach this method for one excellent reason and I will introduce you to 6 of them.

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Introducing The 3 Pillars
Rockefeller Habits?

It’s easy to focus your efforts on profits. It’s what most people think of first. But focusing on your multiple is the smarter way to grow your company, increase its value, drive profit, and—perhaps most importantly—maintain your sanity and freedom.

So, what directs your multiple?

Pillar #1
Priorities

Have the leaders identified their top 3-5 priorities for the year and top 3-5 for the quarter, and a clear #1 priority? Does everyone in the company have their own priorities? And, are their priorities aligned with the company’s priorities? Priorities matter because you’ll make quicker progress by focusing everyone’s energies on the same areas.

Pillar # 2
Data

Is the company getting sufficient feedback on a daily and weekly basis beyond the financial and sales indicators to provide the leadership team with insights on how the company is doing, what employees want, and what customers and the market are demanding. This will also help you predict better.

Pillar # 3
Rhythm

Does the company have an effective rhythm of well-organized daily, weekly, monthly, quarterly and annual meetings to maintain alignment and drive accountability?

Introducing The 10
Rockefeller Habits?

If you speak to leaders of some of the world’s most successful companies, they will all tell you that in terms of scaling up, mastering the Rockefeller Habits is a life-altering endeavour. In every client I have ever helped put these into place, the business markedly improved.

#1 - Health

The executive team is healthy and aligned.

This habit looks at how well the leadership team understands each other. This includes their differences as well as where they come together. Weekly strategy meetings are essential, as is ongoing education. All members of the team must contribute and be able to engage in healthy debate.

#2 - Alignment

Everyone is aligned with the #1 thing that needs to be accomplished this quarter to move the company forward.

Identify three to five priorities that support the #1 thing. Each quarter, wins must be celebrated so that everybody in the company knows.

#3 - Flow

Communication flow is instituted, and data moves through the organization quickly and accurately.

Employees engage in brief daily huddles. Teams meet weekly, and all management meets for a day each month to learn, resolve, and set the stage for the coming month.

# 4 - Accountable

Every aspect of the daily business has an assigned person who is accountable for the goals.

The right people are doing the right things. Each stakeholder has a financial line item assigned to them, and each process has one person who is responsible for that thing. If the company lacks internal expertise on a capability, one is assigned in an advisory capacity.

# 5 - Input

Solicit employee input to identify problems and opportunities.

Each manager and member of the leadership team has one employee with whom they have a conversation with each week. These insights are then shared at weekly meetings of the executive team. Middle management is accountable for resolving such discussions.

#6 - Insights

Report and analyze customer feedback as frequently and meticulously as financial data.

Each manager and executive have, at minimum, one conversation with an end-user each week. Insights are shared at weekly team meetings. Every employee is tasked with collecting customer feedback, and mid-management is again responsible for resolving these issues.

#7 - Values

Core values and purpose are active throughout the organization.

The company’s core values and purpose are illustrated and communicated throughout the organization. Feedback, whether positive or negative, is based on these principles. All processes, including hiring, onboarding, and recognition/promotion, align with the collective focus. Action is taken to strengthen the core values.

#8 - Vision

Core values and purpose are active throughout the organization.

The company’s core values and purpose are illustrated and communicated throughout the organization. Feedback, whether positive or negative, is based on these principles. All processes, including hiring, onboarding, and recognition/promotion, align with the collective focus. Action is taken to strengthen the core values.

#9- KPI's

All employees can quantify whether they have had a good day or week.

Every day or week, every employee reports on one or two KPIs. Each will have one KPI that supports the company’s #1 goal for that period. In addition, each employee has three to five of their own KPIs that also line up with organizational goals. All employees and middle management have a mentor or a peer coach to whom they answer for any changes in behavior or deviation from the course.

#10 - Visibility

The company’s plans and performance are visible to everyone.

Weekly meetings are held, either physically or virtually, to keep the collective focus aligned. A central location, or a situation room, should be established for that purpose. The core values, purpose, and priorities are posted throughout the company so that every employee is aware of the goals and progress towards them. Scoreboards are posted to display progress towards achieving KPIs and other critical milestones. A system is in place to track and manage priorities and KPIs.

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