The Rockefeller Habits are a set of growth habits embraced by fast-growth companies.
An explanation of all 10 habits is found in the book Mastering the Rockefeller Habits (Verne Harnish, 2002).
The name Rockefeller was attached by the author to these habits because they are habits which were embraced by Standard Oil founder John D. Rockefeller as he grew his business.
What are the 10 Rockefeller Habits?
1. The executive team is healthy and aligned
As goes the executive team, so goes the rest of the firm. Alignment at the top is essential to healthy growth throughout the business.
2. Everyone is aligned with the #1 thing that needs to be accomplished this quarter to move the company forward
Teams gather together quarterly and set goals, choosing a number one goal that needs to be accomplished. In 90 days, they meet again to review and reset these goals.
3. Communication rhythm is established and information moves through the organization quickly
Half of the battle is growth is getting communication flowing. The author recommends a system of ‘cascading’ huddles that go from top to bottom and happen every single business day at the same time of day.
4. Every facet of the organization has a person assigned with accountability for ensuring goals are met
The author encourages the building of a ‘one page strategic plan.’ Part of the plan outlines goals and puts an actual name of a person attached to each goal so there’s some accountability to reaching it.
5. Ongoing employee input is collected to identify obstacles and opportunities
People in the company are the ones who really know what’s going on at a basic level, so their input is asked for when it’s time to set goals.
6. Reporting and analysis of customer feedback data is as frequent and accurate as financial data
Because it is the customer who drives the business, there’s a focus on collecting customer feedback and reviewing it regularly.
7. Core values and purpose are ‘alive’ in the organization
Core values are the most important HR tool a business has. Purpose make people care about what they do. Both of these need to be more than just words hanging in a frame in the lobby. They need to be ‘alive.’
8. Employees can articulate the key components of the company’s strategy accurately
Because it’s the employees who really run the business, they need to understand key parts of the strategy. The strategy represents how the company is driving top line sales and connecting with customers.
9. All employees can answer quantitatively whether they had a good day or week
Employees need scoreboards that measure objective data so they know whether they’re winning or losing.
10. The company’s plans and performance are visible to everyone
Plans are communicated through daily huddles and quarterly planning meetings. Performance is communicated through scoreboards. The important thing is that everyone knows how the company is performing.
In summary:
The Rockefeller Habits are a growth system based on the book “Mastering the Rockefeller Habits.” The 10 Rockefeller Habits are:
- The executive team is healthy and aligned
- Everyone is aligned with the #1 thing that needs to be accomplished this quarter to move the company forward
- Communication rhythm is established and information moves through the organization quickly
- Every facet of the organization has a person assigned with accountability for ensuring goals are met
- Ongoing employee input is collected to identify obstacles and opportunities
- Reporting and analysis of customer feedback data is as frequent and accurate as financial data
- Core values and purpose are ‘alive’ in the organization
- Employees can articulate the key components of the company’s strategy accurately
- All employees can answer quantitatively whether they had a good day or week
- The company’s plans and performance are visible to everyone
Additional resources
Thanks for reading this article on ‘What are the Rockefeller Habits in 2 minutes?’ Below are additional resources from Professional Leadership Institute, the global provider of online human resources and leadership tools:
- How to build a one page strategic plan for your organization https://www.professionalleadershipinstitute.com/resources/how-to-build-a-one-page-strategic-plan-for-your-organization/
- 4 steps to save your strategic plan from killing the team with boredom https://www.professionalleadershipinstitute.com/resources/4-steps-to-save-your-strategic-plan-from-killing-the-team-with-boredom/
- 7 ways to make company core values come alive in your organization https://www.professionalleadershipinstitute.com/resources/7-way-to-make-company-core-values-come-alive-in-your-organization/
- A great trust exercise https://www.professionalleadershipinstitute.com/tips/a-great-trust-exercise/
Trevor Throness is a speaker, consultant, and author of “The Power of People Skills.” He is also co-founder and senior instructor at www.professionalleadershipinstitute.com https://www.professionalleadershipinstitute.com/
Find more about “The Power of People Skills” here: https://www.amazon.com/Power-People-Skills-Dramatically-Performance/dp/1632651068
