Saturday, August 27, 2005
Mastering the Rockefeller Habits
Mastering the Rockefeller Habits
© 2002 by Verne Harnish
Anyone with children will recognize the fundamentals I’ve summarized as:
1. Have a handful of rules.
2. Repeat yourself a lot.
3. Act consistently with those rules
PRIORITY:
Does the organization have objective Top 5 priorities for the year and the quarter and a clear Top 1 priority along with an appropriate Theme? Does everyone in the organization have their own handful of priorities that align with the company's priorities?
DATA
Does everyone in the organization have at least one key daily or weekly metric driving his or her performance?
RHYTHM
Does the organization have an effective rhythm of daily, weekly, monthly, quarterly, and annual meetings?
THE X-FACTOR
Identify the chokepoint in your business model and then gain control of that chokepoint. In planning, the "middle" is gone.
You only have to define two points: where you plan to be 10 to 25 years from now and what you have to do in the next 90 days. Keep everything stupidly simple.
Jack Welch had only four #1 priorities the entire two decades he was GE's leader.
Tom Siebel has all employees outline their handful of objectives each quarter and post them on an internal portal for everyone to see with compensation tied to the quantifiable objectives. You don't have a real strategy if it doesn't pass these two tests: that what you're planning to do really matters to your existing and potential customers; and second, that it differentiates you from the competition.
Entrepreneurs don’t like working with anyone including their own employees, this is the major reason why 97% of all firms have less than 10 employees and a vast majority of those have less than three. Therefore the decision to grow is an uneasy one.
As you grow you must keep the company focused.
John keeps the top 5 corporate priorities for the quarter and the companies core values on an 8½ X 11 laminated sheet posted inserts from its employees notice. Also on the sheet is a place for each employee to write his own top 5 priorities for the quarter aligning them with the company’s top five.
Between start up and the first million or two in revenue the key driver is revenue between one and ten million cash concerns are now added to the list. Mastering the right people doing the right things right. Optimize your human capital. Do we have the right people or are do we doing the right things or are we doing those things right?
What makes people hate their jobs? The answer is recurring problems. Mistakes that happen over and over again. Believe it or not recurring problems may be more than 40% of the average employee’s time. Michael Dell understood the concept of compound interest if you solve just 1% of your problems or make a 1% improvement in your products and services each week it makes for a huge change.
What should we start doing? What should we stop doing? What should we continue doing?
Amazon: http://www.amazon.com/exec/obidos/ASIN/1590790154
© 2002 by Verne Harnish
Anyone with children will recognize the fundamentals I’ve summarized as:
1. Have a handful of rules.
2. Repeat yourself a lot.
3. Act consistently with those rules
PRIORITY:
Does the organization have objective Top 5 priorities for the year and the quarter and a clear Top 1 priority along with an appropriate Theme? Does everyone in the organization have their own handful of priorities that align with the company's priorities?
DATA
Does everyone in the organization have at least one key daily or weekly metric driving his or her performance?
RHYTHM
Does the organization have an effective rhythm of daily, weekly, monthly, quarterly, and annual meetings?
THE X-FACTOR
Identify the chokepoint in your business model and then gain control of that chokepoint. In planning, the "middle" is gone.
You only have to define two points: where you plan to be 10 to 25 years from now and what you have to do in the next 90 days. Keep everything stupidly simple.
Jack Welch had only four #1 priorities the entire two decades he was GE's leader.
Tom Siebel has all employees outline their handful of objectives each quarter and post them on an internal portal for everyone to see with compensation tied to the quantifiable objectives. You don't have a real strategy if it doesn't pass these two tests: that what you're planning to do really matters to your existing and potential customers; and second, that it differentiates you from the competition.
Entrepreneurs don’t like working with anyone including their own employees, this is the major reason why 97% of all firms have less than 10 employees and a vast majority of those have less than three. Therefore the decision to grow is an uneasy one.
As you grow you must keep the company focused.
John keeps the top 5 corporate priorities for the quarter and the companies core values on an 8½ X 11 laminated sheet posted inserts from its employees notice. Also on the sheet is a place for each employee to write his own top 5 priorities for the quarter aligning them with the company’s top five.
Between start up and the first million or two in revenue the key driver is revenue between one and ten million cash concerns are now added to the list. Mastering the right people doing the right things right. Optimize your human capital. Do we have the right people or are do we doing the right things or are we doing those things right?
What makes people hate their jobs? The answer is recurring problems. Mistakes that happen over and over again. Believe it or not recurring problems may be more than 40% of the average employee’s time. Michael Dell understood the concept of compound interest if you solve just 1% of your problems or make a 1% improvement in your products and services each week it makes for a huge change.
What should we start doing? What should we stop doing? What should we continue doing?
Amazon: http://www.amazon.com/exec/obidos/ASIN/1590790154
