Highly Effective People - The 7 Habits

Our character is a collection of our habits, and habits have a powerful role in our lives. Habits consist of knowledge, skill, and desire. Knowledge allows us to know what to do, skill gives us the ability to know how to do it, and desire is the motivation to do it.

           1) Habit 1: Be Proactive
     2) Habit 2: Begin with the End in Mind
     3) Habit 3: Put First Things First
     4) Habit 4: Think Win/Win
     5) Habit 5: Seek First to Understand, Then to Be Understood
     6) Habit 6: Synergize

Habit 1:  Be Proactive

Change starts from within, and highly effective people make the decision to improve their lives through the things that they can influence rather than by simply reacting to external forces.

Habit 2:  Begin with the End in Mind

Develop a principle-centered personal mission statement. Extend the mission statement into long-term goals based on personal principles.

Habit 3:  Put First Things First

Spend time doing what fits into your personal mission, observing the proper balance between productions and building production capacity. Identify the key roles that you take on in life, and make time for each of them.

Habit 4:  Think Win/Win

Seek agreements and relationships that are mutually beneficial. In cases where a "win/win" deal cannot be achieved, accept the fact that agreeing to make "no deal" may be the best alternative. In developing an organizational culture, be sure to reward win/win behavior among employees and avoid inadvertently rewarding win/lose behavior.

Habit 5:  Seek First to Understand, Then to Be Understood

First seek to understand the other person, and only then try to be understood. Stephen Covey presents this habit as the most important principle of interpersonal relations. Effective listening is not simply echoing what the other person has said through the lens of one's own experience. Rather, it is putting oneself in the perspective of the other person, listening empathically for both feeling and meaning.

Habit 6:  Synergize

Through trustful communication, find ways to leverage individual differences to create a whole that is greater than the sum of the parts. Through mutual trust and understanding, one often can solve conflicts and find a better solution than would have been obtained through either person's own solution.

Habit 7:  Sharpen the Saw

Take time out from production to build production capacity through personal renewal of the physical, mental, social/emotional, and spiritual dimensions. Maintain a balance among these dimensions.

The Seven Habits move us through the following stages:

1) Dependence: the paradigm under which we are born, relying upon others to take care of us. 

2) Independence: the paradigm under which we can make our own decisions and take care of ourselves.

3) Interdependence: the paradigm under which we cooperate to achieve something that cannot be achieved independently.

7-S framework of McKinsey

The 7-S is a framework for analyzing organizations and their effectiveness. It looks at the seven key elements that make the organizations successful, or not: Strategy, Structure, Systems, Style, Skills, Staff and Shared values.

7S model in the late 1970s to help managers address the difficulties of organizational change. The model shows that organizational immune systems and the many interconnected variables involved make change complex, and that an effective change effort must address many of these issues simultaneously.

1) Strategy

Plans for the allocation of firms scarce resources, over time, to reach identified goals. Environment, competition, customers.

• What is our strategy?
• How do we intend to achieve our objectives?
• How do we deal with competitive pressure?
• How are changes in customer demands dealt with?
• How is strategy adjusted for environmental issues?

2) Structure

The way the organization's units relate to each other: centralized, functional divisions (top-down); decentralized (the trend in larger organizations); matrix, network, holding, etc.

• How is the company/team divided? 
• What is the hierarchy?
• How do the various departments coordinate activities? 
• How do the team members organize and align themselves?
• Is decision making and controlling centralized or decentralized? Is this as it should be, given what we're doing? 
• Where are the lines of communication? Explicit and implicit?

3) System

The procedures, processes and routines that characterize how important work is to be done: financial systems; hiring, promotion and performance appraisal systems; information systems.

• What are the main systems that run the organization? Consider financial and HR systems as well as communications and document storage.
• Where are the controls and how are they monitored and evaluated?
• What internal rules and processes does the team use to keep on track?

4) Staff

Wherever possible and feasible, opinions should be gathered from all levels of staff. Whether this is done formally through staff surveys and focus groups, or more informally will depend on many factors. It is always worth doing, as it avoids the pitfalls of making too many assumptions. However, sometimes factors such as commercial confidentiality or proposed lay offs make it very difficult to sample opinion. In this case, it might be possible to review previous surveys for clues.

• What positions or specializations are represented within the team?
• What positions need to be filled?
• Are there gaps in required competencies?

5) Style

Sometimes a change is necessary for organizational survival even if this is contrary to the management style and culture. If the proposal is counter cultural, then there will be significant resistance. A change in culture will be required. If so, then you will need to deploy a wide range of Change Management techniques.

• How participative is the management/leadership style?
• How effective is that leadership?
• Do employees/team members tend to be competitive or cooperative?
• Are there real teams functioning within the organization or are they just nominal groups?

6) Shared Value

The same applies to Shared Values or guiding principles. If the proposed change is counter to the Shared Values then you may actually be talking about a change initiative that needs to change the Shared Values or at the very least reinterpret them. If that is so, then it will be a large and potentially difficult change.

• What are the core values?
• What is the corporate/team culture?
• How strong are the values?
• What are the fundamental values that the company/team was built on?

7) Skill

Dominant attributes or capabilities that exist in the organization. 

• What are the strongest skills represented within the company/team?
• Are there any skills gaps?
• What is the company/team known for doing well?
• Do the current employees/team members have the ability to do the job?
• How are skills monitored and assessed?

How to Use the 7S Framework Model

The model is based on the theory that, for an organization to perform well, these seven elements need to be aligned and mutually reinforcing. So, the model can be used to help identify what needs to be realigned to improve performance, or to maintain alignment (and performance) during other types of change.

Whatever the type of change - restructuring, new processes, organizational merger, new systems, change of leadership, and so on - the model can be used to understand how the organizational elements are interrelated, and so ensure that the wider impact of changes made in one area is taken into consideration.

You can use the 7S model to help analyze the current situation (Point A), a proposed future situation (Point B) and to identify gaps and inconsistencies between them. It's then a question of adjusting and tuning the elements of the 7S model to ensure that your organization works effectively and well once you reach the desired endpoint.

Sounds simple? Well, of course not: Changing your organization probably will not be simple at all! Whole books and methodologies are dedicated to analyzing organizational strategy, improving performance and managing change. The 7S model is a good framework to help you ask the right questions - but it won't give you all the answers. For that you'll need to bring together the right knowledge, skills and experience.

When it comes to asking the right questions, we've developed a Mind Tools checklist and a matrix to keep track of how the seven elements align with each other. Supplement these with your own questions, based on your organization's specific circumstances and accumulated wisdom.

5S Concept

5-S can be defined as

1. Seiri (Proper Arrangement and Clearing Up)
a) Look around your work area and ask yourself “is it really necessary for all items to be there?”
b) Separate O.K., reworkable and rejected items
c) Rework the reworkable items and dispose of the rejected items.

2. Seiton (Orderliness)
Items must be placed in prefixed locations so that they are easily accessible and can be easily used. Make sure that iten=ms can be clearly identified by labeling them properly.

3. Seiso (Clean Up)
Seiso means cleaning the work place and all the machinery by ourselves.

4. Seiketsu (Standardisation)
Even a clean work place with proper selection and proper arrangement will soon become dirty if Seiri, Seiton and Seiso are not continuously repeated. Let us prevent problems by keeping things standardized and maintaining a good environment.

5. Shisuke (Discipline)
Everyone should be disciplined to follow strictly the rules and maintain standards while working. For example let us adhere to the timings and let us follow the prescribed operation standards. Everybody should wear shoes for safety.

Advantages of 5S

By thoroughly enforcing 5S in each work area.

1. Operations can be performed without error, proceeding in a well-regulated fashion, resulting in fewer defective items thereby increasing the overall quality of product.

2. Operations can be performed safely and comfortably, reducing the chances of accidents.

3. Machinery and equipment can be carefully maintained, reducing the number of breakdowns.

4. Operations can be performed efficiently, eliminating waste thereby increasing the efficiency and productivity.


How to Achieve 5S

5S can be achieved very easily by every employee by having a close look at his work place. He is to ensure that

1. No rejected / unwanted items are lying at his work place.
2. All items are kept in proper locations/order.
3. Everybody should co-operate with each other in keeping his and others areas and the machines clean.
4. All follow rules and regulations and maintain required standards.

Please Check

1. Do you have any unuseful thing around you?
2. Are all the required things kept at their allocated places?
3. Are you following the timings?
4. Are you following the operating standards?
5. Let us all review 5S.

3C’s Model by Kenichi Ohmae

The 3C’s model describes the three key factors for the creation of successful business strategies. This strategy was developed by Kenichi Ohmae and after the development of this strategy, he was named Mr. Strategy! Kenichi Ohmae is one of the most well known world’s leading business and corporate strategists.

The 3C’s model provides a strategically look at the factor which is required for the success in any business process. It points out three key factors for the success. In the construction of any business strategy, these three models must be taken into account. They are:

1. The Corporation.
2. The Customer and
3. The Competitors.

Ohmae considered these three factors as the three C’s or strategy triangle.

The corporation: The Corporation needs strategies for maximizing its strength relative to the competitions in functional areas that are very difficult to achieve success in the industry. The corporation plays roles as:

1.1 Selectivity and sequencing

1.2 Make or buy

1.3 Cost-effectiveness

Selectivity and Sequencing: The Corporation does not have to lead in every function to win. If it gets gain decisive then only it will improve its other functions which are below average.

Make or Buy: It becomes a critical decision for a company to subcontract a major share of its operations. If its competitors are approaching then it make use of subcontractors or vendors to make the function at earliest as possible, this leads to difference in cost structure.

Cost-effectiveness: Improving the cost-effectiveness can be done in three ways;

By reducing basic cost

By exercising greater selectivity

By sharing certain key functions with other companies

The Customer: clients are the base of any strategy, means a company that is genuinely interested in its customers will be interesting for its investors and take care of their interests automatically. Segmentation is helping to understand the customer.

Segmentation by objectives: here differentiation is done on the basis of the ways the customer use products.

Segmentation by customer coverage: here differentiation is made on the basis of coverage of a product over the market.

The competitors:

The strategies based on competitors can be built on by looking at various available sources of differentiation in functions. Some of the aspects are:

Power of Image: it may be the only source of differentiation in between product performance and mode of distribution.

Hito-Kane-Mono: It is a Japanese business favorite phrase, standing for people, money and thing. They believe that a company can achieve its goal when these three factors are well managed and utilised.

Who is Kenichi Ohmae

Kenichi Ohmae (born February 21, 1943) is one of the world's leading business and corporate strategists. He is known as Mr. Strategy and has developed the 3C's Model.

For a period of twenty-three years, Dr. Ohmae was a senior partner in McKinsey & Company, Inc., the international management consulting firm. As a co-founder of its strategic management practice, he has served companies in a wide spectrum of industries, including industrial and consumer electronics, financial institutions, telecommunications, office equipment, photographic equipment, industrial machinery, food, rubber, and chemicals.

Born in 1943 in Kitakyushu, he earned a BS from Waseda University, an MS from the Tokyo Institute of Technology, and a doctorate in nuclear engineering from the Massachusetts Institute of Technology, and subsequently worked as a senior design engineer for Hitachi.

He then joined McKinsey & Company, becoming a senior partner, developing and running the company's Japan operations for a number of years. He gained an unrivaled knowledge and sensitivity to developments in a wide range of business sectors.

Ohmae has written a number of books, including The End of the Nation State and The Borderless World.

Kenichi Ohmae now lives in Tokyo with his wife and two sons

The 14 Management Principles from Henri Fayol (1841 – 1925)

1.    Division of Work. Specialization allows the individual to build up experience, and to continuously improve his skills. Thereby he can be more productive.

2.    Authority. The right to issue commands, along with which must go the balanced responsibility for its function.

3.    Discipline. Employees must obey, but this is two-sided: employees will only obey orders if management play their part by providing good leadership.

4.    Unity of Command. Each worker should have only one boss with no other conflicting lines of command.

5.    Unity of Direction. People engaged in the same kind of activities must have the same objectives in a single plan. This is essential to ensure unity and coordination in the enterprise. Unity of command does not exist without unity of direction but does not necessarily flows from it.

6.    Subordination of individual interest (to the general interest). Management must see that the goals of the firms are always paramount.

7.    Remuneration. Payment is an important motivator although by analyzing a number of possibilities, Fayol points out that there is no such thing as a perfect system.

8.    Centralization (or Decentralization). This is a matter of degree depending on the condition of the business and the quality of its personnel.

9.    Scalar chain (Line of Authority). A hierarchy is necessary for unity of direction. But lateral communication is also fundamental, as long as superiors know that such communication is taking place. Scalar chain refers to the number of levels in the hierarchy from the ultimate authority to the lowest level in the organization. It should not be over-stretched and consist of too-many levels.

10. Order. Both material order and social order are necessary. The former minimizes lost time and useless handling of materials. The latter is achieved through organization and selection.

11. Equity. In running a business a ‘combination of kindliness and justice’ is needed. Treating employees well is important to achieve equity.

12. Stability of Tenure of Personnel. Employees work better if job security and career progress are assured to them. An insecure tenure and a high rate of employee turnover will affect the organization adversely.

13. Initiative. Allowing all personnel to show their initiative in some way is a source of strength for the organization. Even though it may well involve a sacrifice of ‘personal vanity’ on the part of many managers.

14. Esprit de Corps. Management must foster the morale of its employees. He further suggests that: “real talent is needed to coordinate effort, encourage keenness, use each person’s abilities, and reward each one’s merit without arousing possible jealousies and disturbing harmonious relations.”


Usage of the 14 Management Principles. Applications

 1.    Change and Organization.

 2.    Decision-making.

 3.    Skills. Can be used to improve the basic effectiveness of a manager.

 4.    Understand that management can be seen as a variety of activities, which can be listed and grouped.

Who is Henri Fayol

Henri Fayol (1841-1925) was a French management theorist whose theories in management and organization of labor were widely influential in the beginning of 20th century. He was a mining engineer who worked for a French mining company Commentry-Fourchamboult-Decazeville, first as an engineer. Then he moved into general management and became Managing Director from 1888 to 1918. During his tenure as Managing Director he wrote various articles on 'administration' and in 1916 the Bulletin de la Société de l’ Industrie Minérale, printed his "Administration, Industrielle et Générale – Prévoyance, Organisation, Commandement, Coordination, Contrôle". In 1949 the first English translation appeared:  ‘General and Industrial Management’ by Constance Storrs.