LEADERSHIPMonths to result

The Rockefeller Habits Checklist

Ten execution habits that dramatically increase profitability and reduce the time it takes to manage the business.

Problem it solves

the time it takes to manage the business

Best for

Growing companies that want to dramatically improve execution, reduce organizational drama, and achieve industry-leading profitability

Not ideal for

Organizations where the executive team is not yet healthy and aligned, since Habit 1 is the prerequisite for all other habits

Overview

Why this framework exists

The Rockefeller Habits Checklist contains 10 fundamental routines that support successful execution of strategy. These habits have not changed for over 100 years since John D. Rockefeller implemented them to build what became ExxonMobil. Like a preflight checklist for airlines, these 10 habits keep the company growing and prevent it from stalling out. The habits cover executive team health, quarterly alignment, communication rhythm, accountability, employee input, customer feedback, living Core Values, strategy articulation, individual KPIs, and visible performance data. Leadership teams should implement one or two habits per quarter over 24 to 36 months, starting wherever the biggest benefit lies.

Core principles

5 total
  1. Routines set you free — disciplined habits create the structure for improvisation and speed
  2. You cannot implement any habit unless the executive team is healthy and aligned first
  3. Those who pulse faster, grow faster — communication frequency drives execution speed
  4. People love to know the score — visible metrics create engagement and accountability
  5. The brutal facts must be faced — constructive conflict and trust are prerequisites for progress

Steps

10 steps
  1. Habit 1: Executive Team Health and Alignment
    Build a level of trust on the executive team that permits true debate and constructive conflict. What prevents this in large companies is politics; what blocks it in growth firms is friendship. Team members must embrace diversity and challenge each other in making decisions and exposing the brutal facts.
    Pro tipRead Patrick Lencioni's The Five Dysfunctions of a Team. This habit is the prerequisite — you cannot implement any of the other nine without it.
  2. Habit 2: Quarterly Alignment on #1 Priority
    Align everyone with the single most important thing that needs to be accomplished this quarter to move the company forward. Set a Quarterly Theme that provides a finish line every 90 days, creating an opportunity to celebrate or recalibrate.
    Pro tipScaling is about taking one significant step at a time and then checking data and adjusting. The 90-day rhythm prevents endless running without a finish line.
  3. Habit 3: Communication Rhythm Established
    Implement a daily, weekly, monthly, quarterly, and annual meeting rhythm. When executed properly, this rhythm saves everyone tremendous time by reducing ad hoc interruptions, duplicated conversations, and misaligned efforts.
  4. Habit 4: Accountability Assigned for Every Goal
    Assign one person with accountability for ensuring each goal is met, both vertically across functions and horizontally across processes. Clear accountability is the second-biggest challenge as companies scale, right after communication.
  5. Habit 5: Ongoing Employee Input Collected
    Each senior leader has a Start/Stop/Keep conversation with at least one employee weekly. Pay particular attention to the stops — these are the roadblocks destroying motivation. Share insights at the weekly executive team meeting.
    Pro tipChoose employees who work directly with customers and those newest to the company. Recent hires have fresh eyes that notice things long-term employees have come to accept.
  6. Habit 6: Customer Feedback Analyzed Weekly
    Each senior leader has a 4Q conversation with at least one end user weekly, asking: How are you doing? What is going on in your industry? What do you hear about our competitors? How are we doing? Share insights at the weekly meeting.
    Pro tipThe third question — what do you hear about competitors — is the most important because it cuts through your own biases. Ask about the customer first; ask about yourself last.
  7. Habit 7: Core Values and Purpose Alive in the Organization
    Use Core Values to guide all HR systems: hiring, feedback, rewards and recognition, and the employee handbook. Purpose provides the critical 'why' behind everything the company does.
  8. Habit 8: Employees Can Articulate Strategy
    Ensure all employees know and understand the BHAG, core customers, three Brand Promises, and the elevator pitch. When employees can articulate strategy accurately, they align their daily actions with the company's direction.
  9. Habit 9: KPIs for Everyone
    Each employee reports on one to two KPIs weekly and has one Critical Number aligned with the company's quarterly Critical Number, plus three to five quarterly priorities (Rocks). Every person should be able to answer objectively whether they had a good day or week.
    Pro tipPeople love to know the score — that is the attraction of video games, sports, and competitions. Make metrics visible and personal.
  10. Habit 10: Plans and Performance Visible to Everyone
    Create large scoreboards visible to everyone in the organization showing the company's plans and performance. Steal this idea from the sports industry: make the score impossible to miss.

Common mistakes

3 traps
Implementing all 10 habits simultaneously
Trying to do everything at once overwhelms the organization. Focus on one or two habits per quarter over 24 to 36 months for sustainable adoption.
Skipping Habit 1 and jumping to easier habits
Executive team health and alignment is the prerequisite for everything else. Without trust and constructive conflict at the top, the other habits will not take root.
Treating the checklist as a pass/fail exercise
The checklist is a work in progress, not a test. Review it every quarter, acknowledge blind spots, and continuously improve. No company gets it perfect every quarter.

Origin story

How this framework came to be

Verne Harnish studied how John D. Rockefeller managed Standard Oil and distilled the management practices into repeatable habits. Rockefeller held daily luncheon meetings with his key people without fail — first with four co-founders, then expanding to nine directors as the company grew. A century later, Steve Jobs repeated a similar ritual with daily lunches with Jonathan Ive. These routines form the foundation of the 10 habits.

Source

Traced to primary
Source · BOOK
Scaling Up
Verne Harnish · 2014
Open source →

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