Mastering the Rockefeller Habits

The Fundamentals of Business Management

Managing a business is like parenting a child. Certain fundamentals apply. The three basic guidelines are:

1. Establish a limited number of rules.
2. Repeatedly stress your real priorities to your colleagues and employees – or kids.
3. Always behave according to the rules you set.

Ron Chernow’s book Titan, a biography of Standard Oil co-founder John D. Rockefeller (1839–1937), sets forth the famous industrialist’s three bedrock management precepts: “priorities, data and rhythm.” Your firm should adopt all three:

1. Priorities

Every business needs five primary annual and quarterly objectives (plus monthly goals if your firm is expanding at a 100% growth rate every year). Include one primary target for the periods you measure. These objectives will become your “Top 5 and Top 1-of-5 priority list.” Don’t exceed this number of priorities because an “organization with too many priorities has no priorities.” Every employee should have his or her own work objectives, which must align with your firm’s goals. Establish short- and long-term priorities for...