Professional Documents
Culture Documents
8
I
TH HABIT
Stephen R. Covey
Industrial Age Blues Leadership Culture for the New Millennium Empowering the Information Age The 4 Disciplines of Execution
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ABOUT THE AUTHOR Dr Stephen Covey is a world-renowned authority on leadership, business management, family issues, education and effectiveness. He has lectured to thousands and consulted to organisations across the globe. His books The 7 Habits of Highly Effective People and Principle-Centred Leadership have been translated to dozens of languages and have sold millions of copies. He is the co-founder and vice-president of Franklin Covey Co, which promotes the ideals of Principle-Centred Leadership throughout the world. Stephen Covey lives with his wife and family in the Rocky Mountains of Utah. THE PROBLEM AND THE PAIN In todays workforce, the pain is more apparent than ever. How many times have you heard statements like these: Im burned out. Im stuck in a rut. I never seem to get ahead. I just cant make enough money to make ends meet. Im stressed out and constantly overwhelmed by the demands on my time. Office politics, backstabbing and favouritism are driving me nuts! My life lacks meaning. My work doesnt make a difference. I dont feel valued, needed or appreciated. These are the voices of thousands of people at work and home who feel increasingly unsatisfied by their working lives. Despite all our gains and advances in technology, we have created a business environment where people feel stressed, uninspired and unsatisfied. Employees are under constant pressure to produce more for less, while being discouraged from using their natural talents and creativity. The result is a workforce full of stressed, suffering, unfulfilled and unproductive workers.
THE INFORMATION AGE And while industrial age organisations are still tied up in their own red tape, in the real world, everything has changed. The internet is the ultimate symbol of the new age we live in. Information is travelling around the world at the speed of light, the borders and restrictions of yesteryear, forgotten rendered useless by technology. The internet has been nothing short of a communication revolution. Chaotic, unregulated, uncontrolled, it is the chorus of billions of human voices ringing out in millions of conversations 24 hours a day, 7 days a week across the globe. NOTHING FAILS LIKE SUCCESS The institutions and organisations of today were designed to deal with the challenges of the industrial age. And at this, they succeed incredibly well. But in the famous words of Albert Toynbee Nothing fails like success. The successful industrial age organisation in todays world is like a dinosaur in a shopping mall hopelessly ill equipped to understand and respond to the challenges of its new environment. The problem is that applying industrial age thinking to workers in the information age stops leaders from recognising and tapping into the true potential of their people. Workers feel alienated, insulted and misunderstood. There is low trust, low morale, poor performance and employee retention. And contrary to industrial age thinking, it costs todays companies dearly. LOVE YOUR WORK OR HATE IT? People, unlike things, have choices. They can choose how much of themselves to invest in their work, depending on how they are treated and the opportunities they are given to express themselves as a whole person. Every day when you get up to go to work, which of these choices do you make? Creative excitement Heartfelt commitment Cheerful co-operation
Willing compliance Malicious obedience Rebel or quit! If you want to bring out the best in people inspiring them to creative excitement and heartfelt commitment you have to respect their humanity. That means respecting your workers body, mind, heart and spirit. THE WHOLE PERSON PARADIGM In the information age, there is one fundamental reason why so many people remain unsatisfied with their work and so many organisations fail to bring out the best in talented and creative people. The legacy of unfulfilled
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workers and faltering organisations stems from a basic misunderstanding of human nature. Human beings are four-dimensional and only by appealing to all four elements of human nature can you create a truly inspired workforce. The Body the physical/economic dimension fair pay and conditions The Mind the learning/rational dimension creative challenges The Heart the social/emotional dimension kind and considerate treatment The Spirit the meaning/conscience dimension serving human needs in principled ways THE ROAD LESS TRAVELLED Each of us chooses 1 of 2 roads in life. One is the wide open road to mediocrity, and the other is the narrow, rocky road to greatness and meaning. The path to mediocrity straitjackets our potential and stifles our creativity. The road to greatness unleashes our magnificent capacity to rise to any challenge. Every one of us has it in our power to live not just a good, but a great life. No matter how long we have been walking down the wrong path, we can always make a different choice. Its not too late. Theres still time to find your voice. DISCOVER YOUR VOICE The key to finding your voice lies in your natural gifts 3 natural capacities each of us is given as our birthright. These 3 gifts are: 1. Our freedom of choice 2. The natural laws and principles governing all of our lives 3. Our natural capacities mental, physical, emotional and spiritual. In order to develop a creative synergy of our 3 natural gifts which can lead us toward our dreams, we must first understand what it is that is most important to us. To discover what truly moves you consider this: Imagine youve had a heart attack now live accordingly. Imagine your career has a half-life of only two years now live accordingly. Imagine everything you say about another, they can hear now live accordingly. Imagine you have a visit from the Almighty every three months now live accordingly. These questions will inspire you to dig deep and understand what is important to you on the most fundamental level. When you know what matters most to you, you can truly start to find your voice. When you combine your natural gifts with your deepest values, your newfound voice will ring out loud and clear.
Talent
Passion
VOICE
Need
Conscience
Voice is discovered at the intersection of passion, talent, conscience and need. Your voice is your unique personal significance, your own contribution to the world, your souls code. Your voice is what you find when you bring together your passion and talent and apply it conscientiously to meeting the worlds needs. COMMON ORGANISATIONAL DISEASES AND THEIR SYMPTOMS Just like our bodies, organisations can suffer from two kinds of disorders acute or chronic: Chronic underlying, causal, continuing disorders. Acute painful, symptomatic, debilitating disorders.
Not every chronic problem has acute symptoms. A person or an organisation can live with a chronic disorder for years without suffering serious pain or debilitating symptoms. But just because you cant see the problems doesnt mean theyre not there. And as soon as the organisation is under stress, the chronic problems will become acute and may threaten its survival. If we look more closely at the whole-person paradigm, and how industrial age organisations operate, we will start to recognise some problems that are widespread in todays corporations. By neglecting essential aspects of the whole-person paradigm, organisations set themselves up to suffer and to undermine their own success. And even when they become aware of the problems, Industrial Age solutions, like medieval medicine, just make the affliction worse. SPIRITUAL DISORDERS If an organisation neglects the spirit, or the conscience, what happens? Exactly the same thing that happens to our relationships when we conduct them without conscience, honesty and integrity. Theres a fundamental loss of trust that pervades the organisation or the relationship. The acute manifestations of low trust are: Backbiting In-fighting Playing the victim Defensiveness Information hoarding Protective communication MENTAL DISORDERS What about when an organisation overlooks the mind or fails to create a shared vision? Where there is no shared value system, and common vision, these symptoms will begin to emerge: Hidden agendas Political games Inconsistent decision making Ambiguous and chaotic environment PHYSICAL DISORDERS When there is a widespread lack of discipline within an organisation, it is neglecting the body of the organisation. Instead of understanding, trust and initiative; rules, bureaucracy and intrusive management take over in an attempt to impose control. But controlling people never brings out their best. When there is no execution or systemic support for the values of the organisation if it even knows what they are you will begin to see: Misalignment of goals, structures, systems, processes and culture Ineffective communication, recruitment, accountability, compensation and information systems Bureaucracy, hierarchies, rules and regulations take over
from initiative and trust Controlling management style that stifles creativity and ferments resentment HEART DISORDERS And finally, what happens when organisations neglect the heart? When there is no passion, no emotional connection, no feeling for the goals or the work? People cant be managed into giving their best. Their true voice, passion and enthusiasm must be volunteered. Organisations with heart disease exhibit the following symptoms: Profoundly disempowered workforce Moonlighting, daydreaming and boredom Low morale, high absenteeism and turnover Anger, fear, apathy and malicious obedience The prognosis for all these disorders is the acute pain of failure in the marketplace, negative cash flow, poor quality, inflated costs, inflexibility, slow response time and a culture of blame. THE LEADERSHIP SOLUTION BECOME AN INSPIRATION True leadership the kind that endures, inspires and creates great organisations and people is like a beacon. Most people believe that unless they hold a senior position in an organisation, they cant be a leader. But the truth is very different. No matter what your position in the company, through your behaviour, your actions and your integrity, you can become a leader and inspire others to give their best.
Leadership is communicating to people their worth and potential so clearly that they come to see it in themselves.
To become a leader youll have to be prepared to do things differently. Youll have to be strong enough to go against the grain. It will be a daily challenge. But youll be surprised at the difference one person can make to some of the most typical problems of todays companies.
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work with and that includes everyone from the cleaner to the CEO. It takes character, integrity, honesty and good habits. As a leader you can help build these strengths at every level of the organisation. 2. Pathfinding Pathfinding is all about vision. And for a vision to be wholeheartedly embraced, it must be truly shared. In concert with your colleagues, set the course. Seeing the bigger picture, and envisioning and sharing a bold and powerful strategy, are the essence of this role. 3. Aligning This role revolves around creating structures, systems and disciplines that bring your vision into reality. Making sure the systems continue to support your corporate values and achieve your goals is an ongoing challenge. 4. Empowering To truly bring out the best in your people you have to empower them. And that means igniting their passion and trusting them to use their initiative to achieve the vision you have created together. Just as a child must learn to walk before she can run, and crawl before she can walk, its essential to find your own authentic voice before trying to inspire others to find theirs. The 8th Habit is not a quick fix. Its not about making changes from the outside in. Its not about blaming others or looking for external solutions. Its a sequential process that works from the inside out. Its a process that begins and ends with you. MANAGEMENT FROM THE OLD TO THE NEW Back in the heyday of new-age management techniques, flashy seminars were all the rage. Managers brainstormed, workshopped and role-played organisational problems. They did team-building exercises, worked on themselves emotionally, and learned conflict resolution techniques. Mission Statements and Vision Statements were generated, facilitated by highly-paid consultants who had never even visited the office. The conferences wrapped up with tears and hugging and neatly framed statements of feel-good visions with no connection to the daily realities of the company. When the consultants packed up their whiteboards and went home, the Mission Statements were hung up on the walls, where they gathered dust, unread. The employees, who had no involvement in the process, or identification with the executives statements, were then expected to carry out missions they didnt believe in, and achieve visions they couldnt see. Meanwhile, the old problems continued without a hiccup. This is a common symptom of the old paradigm of leadership that tells us: Leadership comes from the top down. Leadership comes from a position of formal authority. Only those in formal authority have a voice.
Change comes only from the leadership. The role of the leader is to impose strategy, set direction and enforce compliance. In the new leadership paradigm, we develop a culture of trust through modelling honesty and integrity. Communication channels open. It becomes natural for your team to be involved in creating and developing the vision. They become passionate advocates, committed to a shared future. GETTING DOWN TO BUSINESS In order to be effective in the pathfinding role, its essential to come to grips with 4 realities: Reality 1. Market Forces How does your business see the marketplace? What is the economic, political and technological context? What about industry trends and cycles? What are the major threats from competition? Could a technological breakthrough revolutionise the industry or render it obsolete? Reality 2. Core Competencies Look at your unique strengths. Ask yourself these four questions: 1. What are you really good at is there any area in which you could truly excel? 2. What are you deeply passionate about? 3. What are the strengths that people will pay for? 4. What does your conscience counsel? In the search for answers to these questions, you have a whole-person approach to finding your voice. Apply the process first to yourself as an individual, and then to your organisation. Reality 3. Stakeholder Interests From the customers, to the shareholders, employees, and their families, any sizable organisation affects many, many lives. Find out who the stakeholders are customers, employees, shareholders, community groups. Identify their interests what do they want and need? What are the market realities surrounding their financial lives? How is your organisation affecting stakeholders and how could it enhance the positive and beneficial effects it brings? Reality 4. Values What is the central purpose of the organisation? What are its values? How do these match up with your own, with those of the most senior management, and those of the many people affected by the organisation? What will the company stand for? Pathfinding is the ultimate challenge it requires you to deal with an amazing diversity of personalities, agendas, perceptions, abilities and egos. Thats why modelling integrity and creating trust are the foundation of leadership. If there is no trust in the leader, there will be no commitment, no identification and the results will be dysfunctional at best and disastrous at worst.
ALIGNMENT THE KEY TO EFFECTIVE EXECUTION We used to believe that the right vision, the right mission statement, would solve all our organisational problems. It wasnt until this nave belief began to flounder on the rocks of reality that we became aware that the problems went much deeper than such superficial methods could reach. The old problems didnt persist just because nobody noticed them, or cared enough to change anything. They persisted because the systems, structures and culture of the organisation promoted, encouraged and perpetuated them. All the fancy words in the world couldnt change that. In order to achieve lasting change, the systems which built the problem into the very fabric of the organisation need to be uprooted and replaced with healthy foundations. ALIGNMENT TRUST IN THE SYSTEM A recent survey of executives shows that there is a disturbing trust gap in organisations. Less than half the executives surveyed believed that their organisations lived up to the values they claimed to represent. And where trustworthy people work with systems that are not aligned with integrity, the untrustworthy systems will win every time. Alignment is about institutionalising trustworthiness. Its about creating systems, procedures and cultures that nurture and develop trust, by operating transparently and fairly. Just like a gardener, you must water what you want to grow. There is no point saying that you want to create a culture of trust and co-operation, if you reward competition, encourage factionalism and play favourites. If you genuinely want co-operation, it must be generated, encouraged and rewarded by the companys systems and culture. Systems will override the rhetoric of good intentions every time. Theres little point playing beautiful classical music to your garden if you have planted your seeds in toxic soil. Alignment is a never-ending process. Youre dealing with constantly shifting realities in a fast-paced marketplace. Systems and processes need to be flexible so they can adapt to the changing environment. Yet they must also be founded on principle unchanging and timeless principles. The process of adjusting systems so they continue to align with the corporate values and mission is a daily challenge, and one which must be shared by everyone at all levels of the company. Successful organisations do not depend on the personality of a single leader. They depend on systems and cultures that generate, encourage and reward success first for the individual, then for the team, then for the organisation. Then leadership doesnt just come from the top every single person in your organisation has the opportunity to become a leader. THAT WAS THEN THIS IS NOW In the industrial age, product costs were roughly 80% materials and 20% knowledge. In the information age the
pendulum has swung back the other way now product costs are around 70% knowledge and 30% materials. Now just about every worker is a knowledge worker. Industrial age management was a very mechanical process. People were controlled, managed, poked, prodded and bawled out into performing. Unfortunately, people dont respond well to this kind of treatment. Not only does it stifle creativity and initiative, it generates hostility between staff and management which disrupts the smooth flow of communication and execution of strategy at every level of the organisation. As we moved into the Information Age, the terrible consequences of this management style became all too clear. High turnover, low morale, poor output and declining market performance crippled previously successful companies. As the information age took hold, the greatest cost of this outdated management style began to crystallise. It was the lost knowledge of the workers who were walking away in droves from companies that didnt understand and empower them to be their best. Companies just cant afford to lose the precious knowledge of their best people. And high turnover is no longer a small cost. It is becoming a massive haemorrhage that threatens their continued survival.
The difference between what were doing and what were capable of doing would solve most of the worlds problems
Mahatma Ghandi There are six primary drivers behind execution, and failures of execution usually indicate a breakdown in one of these areas. 1. Clarity people dont know the goals or priorities of their organisation.
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2. Commitment people dont internalise the companys goals. 3. Translation people dont know what they need to do to help the team achieve its goals. 4. Enabling structures, systems and cultures dont give people the freedom to do their best. 5. Synergy people dont get along or struggle to work together. 6. Accountability there are no systems to institutionalise accountability.
Think about a warm-up game of football, soccer or basketball. People are having a laugh and a joke, taking it easy. But once the match starts theres a new intensity. Teams huddle. The play takes on a new sense of urgency and importance. Its the same in our work. Without clear measures of success, people are never really sure of the goal and how close they might be to victory or defeat. Without some way to measure success in achieving our goals, everyone in the organisation will have different ideas about whats important. According to our research on executives, only about one in three workers can identify clear, accurate measures to gauge their progress towards key goals. And only about three in ten believe that rewards will follow performance against measurable goals. Thats where the scoreboard comes in. It must be compelling, visible and accessible to all. THE SCOREBOARD 1. List your top priorities your wildly important goals those your team simply must achieve. 2. Your scoreboard needs the following elements: The current results where are we now? The target results where do we want to go? The deadline when do we want to get there? The scoreboard can take the form of a bar graph, a trend line, a pie chart. It could look like a thermometer, a speedometer or scales. Dont forget to make it visible, dynamic and accessible. 3. Ask people to review the scoreboard daily or weekly. Discuss it, meet over it, and resolve issues as they come up. Discipline 3: Translate Lofty Goals into Specific Actions To achieve goals youve never achieved before, you need to do things youve never done before. Its one thing to come up with a new strategy, but turning that strategy into action is another matter entirely. Just because the leaders understand the goals and priorities, doesnt mean that the people in the front line, who have to bring the vision into reality, know what to do about them. Goals will never be achieved until everyone understands what the goals are and what they can do to help make them a reality. Always remember, the front line creates the bottom line. To practice this discipline successfully, your team must be creative in finding new and better behaviours to push you towards your goals. Then they must translate them into concrete daily and weekly tasks at all levels of the organisation. Discipline 4: Hold Each Other Accountable Always Everyone on the team must hold all members accountable all the time!
Most ailing organisations have developed a functional blindness to their own defects. They are not suffering because they cannot resolve their problems, but because they cannot see their problems.
John Gardner
The most effective teams meet weekly or even daily to discuss the scoreboard, resolve issues and account for their commitments. Self-empowering teams focus and re-focus through these accountability sessions. Accountability Sessions
Effective Accountability Sessions Quick reporting of vital issues Review of scoreboard Follow-up Mutual accountability People openly report struggles and failures Celebration of success Energetic, synergistic problem solving New and better ideas are created Wisdom of the group A stroke of the pen for me eliminates hours of work for you Were in this together Admitting you need help and asking for it Typical Staff Meetings Death March around the room where people feel pressured to talk while others tune out. No measures of progress No follow-up Only manager holds people accountable People hide their mistakes and problems Exclusive focus on problems All talk, no action No time or environment for creative dialogue. Enforced consensus or compromise. The lone genius
FINAL THOUGHTS
Courage is not the absence of fear but rather the judgment that something else is more important than fear.
Ambrose Redmoon The key to learning the 8th Habit is the whole-person paradigm. To achieve our potential, we have to respect each of the four elements of ourselves body, mind, heart and spirit. If we want to get the best out of the people we work with, we have to respect them as whole people and honour each aspect of them.
4 Intelligences Body Mind Physical Intelligence IQ (Intellectual Intelligence) EQ (Emotional Intelligence) Spiritual Intelligence 4 Attributes Vision Discipline Passion Conscience 4 Roles Modelling Pathfinding Aligning Empowering
Getting stuck because of barriers you cant overcome alone Youre on your own Being afraid to admit you need help
Heart Spirit
The 3 keys to effective accountability sessions are: 1. Triage Reporting In triage reporting, everyone reports quickly on the vital few issues, leaving less important matters aside. They focus on key results, critical problems and high-level issues. It means that only important subjects are raised whether they are urgent or not. 2. Finding Third Alternatives Effective accountability sessions create an intense focus on how to achieve the key goals. Communication should seek to find a truly creative solution, through a synergy of different viewpoints. This is a third alternative; a true middle path not a compromise, but a better solution arrived at through genuine collaboration. 3. Clearing the Path Effective leadership should open the way for people to do their best work. Some of a leaders most crucial acts involve clearing the path and removing the obstacles that prevent people giving their best. And of course its not just the managers or those in formal positions of authority who can clear the path its everyones job. By practicing the four disciplines, execution will no longer be a matter of luck. It will become institutionalised part of the very fabric of your organisation.
Through this process we will each find our own authentic voice and inspire others to find theirs. Like the 7 Habits before it, the 8th Habit will spread through the business world this time at the speed of high-speed broadband internet connection. And as it does, it will bring out the leader in each and every one of us.
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