8th_habit_summary

Published by Soundview Executive Book Summaries, P.O. Box 1053, Concordville, PA 19331 USA © 2005 Soundview Executive Book Summaries • All rights reserved. Reproduction in whole or part is prohibited. From Effectiveness to Greatness THE 8TH HABIT THE SUMMARY IN BRIEF For individuals and organizations, effectiveness is no longer merely an option — survival requires it. But to thrive, excel and lead in the Knowledge Worker Age, we must move beyond effectiveness to greatness, which includes fulfillment, passionate execution and significant contribution. Accessing a higher level of human genius and motivation requires a sea change in think- ing: a new mind-set and skill set — in short, an additional habit to those featured in The 7 Habits of Highly Effective People. The crucial challenge is to find our own voice and inspire others to find theirs. This is the 8th Habit. The 8th Habit shows you how to tap the limitless value-creation promise of the Knowledge Worker Age. It shows you how to solve the major contradictions inherent in organizational life — most of which are a carry- over from the Industrial Age. This summary will transform the way you think about yourself, your purpose in life, your organization and other peo- ple. It explains how to move from effectiveness to greatness. Concentrated Knowledge™ for the Busy Executive Vol. 27, No. 9 (3 parts), Part 1, September 2005 • Order # 27-21 CONTENTS The Pain, the Problem And the Solution Page 2 Discover Your Voice Page 3 Express Your Voice Page 3 The Leadership Challenge Pages 3, 4 The Voice of Influence Page 4 The Voice of Trustworthiness Page 4 The Voice and Speed of Trust Pages 4, 5 Blending Voices Pages 5, 6 One Voice Page 6 The Voice and Discipline of Execution Page 7 The Empowering Voice Pages 7, 8 The 8th Habit and the Sweet Spot Page 8 Using Our Voices Wisely to Serve Others Page 8 By Stephen R. Covey FILE:LEADERSHIP What You’ll Learn In This Summary ✓ The power of win-win thinking. When you’re willing to suspend your own interests long enough to understand what the other person wants most, you can collaborate on a new, creative solution. ✓ How to increase your influence. Find out how to work on these three dimensions of yourself: ethos (your ethical nature, personal credibility, and the trust that others have in your integrity and competence); pathos (your empathy — knowing how others feel and how they see things); and logos (the power and persuasion of your own presentation and thinking). ✓ There is a connection between leadership style and success. The very top people in truly great organizations are “Servant Leaders.” They are the most humble, the most reverent, the most open, the most teachable, the most respectful and the most caring. They model moral authority through service, humility and contribution. ✓ The importance of the Balanced Scorecard. It is concerned not only with the traditional bottom line, but also with the quality of the organization’s rela- tionships with all its key stakeholders. These are predictors of future results. ✓ How to create 8th Habit leadership. The 8th Habit leader has the mind- set and the skill set to constantly look for the potential in people. This kind of leadership communicates to people their own worth so clearly that they come to see it in themselves. ® The Pain, the Problem And the Solution More than 25 years ago, Muhammad Yunus was teaching economics at a university in Bangladesh when he met a woman making bamboo stools for two U.S. pennies a day. She explained that because she didn’t have the money to buy the bamboo to make the stools, she had to borrow from a trader who imposed the condition that she had to sell the product to him alone, at a price that he decided. Yunus made a list of 42 similar workers around the vil- lage who could use very small loans to improve their lives. The total needed by all those people was $27. After loaning them the money, he was paid back every penny. Grameen Bank After making many more loans and proving that poor people would pay back every cent, Yunus struggled unsuc- cessfully to find a local bank that would lend small amounts of money to the poor people in nearby villages. He then spent two years setting up a formal, independent bank to do just that. On Oct. 2, 1983, Grameen Bank was created. Grameen Bank now works in more than 46,000 villages in Bangladesh, has 1,267 branches and more than 12,000 staff members, and has lent more than $4.5 billion, in loans of $12 to $15. A housing loan is $300. At the heart of this empowerment are individuals who chose to become self- reliant, independent entrepreneurs producing goods out of their own homes or neighborhoods to become economically viable and successful. They found their voices. The Pain Most people in organizations today are neither fulfilled nor excited. They’re frustrated and uninvolved in their organization’s goals. That’s why our high-pressure, 24/7 era requires more than effectiveness (the “7 Habits”). To achieve greatness, we need an “8th Habit”: Find your voice and inspire others to find theirs. The Problem Our basic management practices come from the Industrial Age. These include: ● The belief that you must control people; ● Our view of accounting (People are an expense; machines are assets.); ● The carrot-and-stick motivational philosophy; and ● Centralized budgeting, which creates hierarchies and bureaucracies to drive “getting the numbers” — a reactive process that produces “kiss-up” cultures bent on “spend- ing so we won’t lose it next year.” As people consent to be controlled like things, their pas- sivity only fuels leaders’ urge to direct and manage. There’s a simple connection between the controlling, Industrial Age, “thing” paradigm that dominates today’s workplace and the inability of managers and organizations to inspire people’s best contributions in the Knowledge Worker Age: People choose how much of themselves to give to their work, depending on how they’re treated. Their choices may range from rebelling or quitting (if they’re treated as things), to creative excitement (if they’re treated as whole people). The Solution Most great organizations start with one person who first changed him- or herself, then inspired others. Such people realize that they can’t wait for their boss or organization to change. They become an island of excellence in a sea of mediocrity. They learn their true nature and gifts, then use them to envision what they want to accomplish. They find and use their voice. Greatness involves transcending the negative cultural “software” of ego, scarcity, comparison and competitive- ness, and choosing to become the creative force in your life. All of us can choose greatness — we can cultivate a mag- nificent spirit in facing a serious disease, make a difference in the life of a child, be a catalyst inside an organization, or initiate or contribute to a cause. ■ THE 8TH HABIT by Stephen R. Covey — THE COMPLETE SUMMARY Published by Soundview Executive Book Summaries (ISSN 0747-2196), P.O. Box 1053, Concordville, PA 19331 USA, a division of Concentrated Knowledge Corp. Published monthly. Subscriptions: $195 per year in the United States, Canada and Mexico, and $275 to all other countries. Periodicals postage paid at Concordville, Pa., and additional offices. Postmaster: Send address changes to Soundview, P.O. Box 1053, Concordville, PA 19331. Copyright © 2005 by Soundview Executive Book Summaries. Available formats: Summaries are available in print, audio and electronic formats. To subscribe, call us at 1-800-SUMMARY (610-558-9495 outside the United States and Canada). Multiple-subscription discounts and corporate site licenses are also available. Soundview Executive Book Summaries® ALAN PERLMAN – Contributing Editor DEBRA A. DEPRINZIO – Senior Graphic Designer CHRIS LAUER – Senior Editor CHRISTOPHER G. MURRAY – Editor in Chief GEORGE Y. CLEMENT – Publisher Soundview Executive Book Summaries®2 The author: Stephen R. Covey is a respected leadership authority, family expert, teacher, author, organizational consul- tant, and co-founder and vice chairman of FranklinCovey Co. From THE 8th HABIT by Stephen R. Covey. Copyright © 2004 by FranklinCovey Co. Reprinted by permission of Free Press, a Division of Simon & Schuster, Inc., 1230 Avenue of the Americas, New York, NY 10020. 409 pages. $26.00. ISBN 0-684-84665-9. Summary Copyright © 2005 by Soundview Executive Book Summaries, 1-800-SUMMARY, 1-610-558-9495. Discover Your Voice We can discover our voice because of three gifts we’re born with. These gifts are: Gift #1: The Freedom to Choose. Our past, our genes, the way others have treated us — these influence us but don’t determine us. Between stimulus and response there is a space where we choose our response. In our choices lie growth and our happiness. Gift #2: Natural Laws or Principles. To use wisely that space between stimulus and response, we must live by natural laws that dictate the consequences of behav- ior. Positive consequences come from fairness, kindness, respect, honesty, integrity, service and contribution. Gift #3: The Four Intelligences. These are: ● Mental Intelligence (IQ). IQ is our ability to ana- lyze, reason, think abstractly and comprehend. ● Physical intelligence (PQ). PQ is what our body does without conscious effort, coordinating 7 trillion cells with incredibly complex precision. ● Emotional Intelligence (EQ). EQ is one’s self-knowl- edge, self-awareness, social sensitivity, empathy and ability to communicate successfully. It is a sense of timing and appropriateness, and having the courage to acknowledge weaknesses and express and respect differences. ● Spiritual Intelligence (SQ). SQ is our drive for mean- ing and connection with the infinite. We use this to develop our longing and capacity for meaning, vision and value. It allows us to dream and to strive. It’s our conscience. SQ helped the late president of Egypt, Anwar Sadat (who, with former Israeli prime minister Menachem Begin, brought about the Camp David Peace Accord between Israel and Egypt) write these words while he was a young man in solitary confinement in a Cairo prison, “He who cannot change the very fabric of his thought will never be able to change reality, and will never, therefore, make any progress.” ■ Express Your Voice Great achievers develop their mental energy into vision. Vision is applied imagination. Everything is cre- ated first as a mental creation, then as a physical reality. Vision also means affirming others, believing in them and helping them realize their potential. Great achievers develop their physical energy into disci- pline. They don’t deny reality. They accept the sacrifice entailed in doing whatever it takes to realize their vision. Only the disciplined are truly free. Only a person who has disciplined him- or herself for decades to play the piano is free to create magnificent art. Great achievers develop their emotional energy into passion — desire, conviction and drive. Passion appears as optimism, excitement, emotional connection and deter- mination, and is deeply rooted in the power of choice. Passionate people believe in creating their own future. Great achievers develop their spiritual energy into con- science — their inward moral sense of what’s right and wrong, and their drive toward meaning and contribution. Moral authority makes formal authority work toward pos- itive ends. Hitler had vision, discipline and passion, but was driven by a mad ego. Lack of conscience was his downfall. Conscience — the small voice within us — is quiet and peaceful. It deeply reveres people and sees their potential for self-control. It empowers, understands the value of all people, and affirms their power and freedom to choose. It values feedback and tries to see the truth in it. But our ego is a tyrant. It micromanages, disempowers and excels in control. It is threatened by negative feedback. It punishes the messenger, interprets all data in terms of self-preservation, censors information and denies reality. We must control our ego and let our conscience guide our moment-to-moment behavior. As we develop the four intelligences — physical, mental, emotional and spiritual — in their highest manifestations, we find our voice. ■ The 8th Habit — SUMMARY Soundview Executive Book Summaries® PART TWO: INSPIRE OTHERS TO FIND THEIR VOICE The Leadership Challenge The leadership challenge is to enable people to sense their individual innate worth and potential for greatness, and contribute their talents and passion — their voice — to accomplish the organization’s highest priorities in a principled way. Leaders must model the four intelli- gences, so that the organization won’t neglect them. If an organization neglects its spirit and conscience, the result is low trust; backbiting; in-fighting; victim- ism; defensiveness; information hoarding; and defen- sive, protective communication. If it neglects its mind, it has no shared vision or com- mon value system. If there’s an ambiguous, chaotic cul- ture, people act with hidden agendas, play political games and use different criteria in decision-making. When there’s widespread neglect of discipline, there’s no execution or systemic support for the priorities of the orga- nization. Processes, culture and rules replace human judg- ment. Bureaucracy, hierarchies and regulations replace trust and produce the codependent “wait until told” mentality. When the heart is neglected, there’s profound disem- powerment. Thus, a great deal of moonlighting, day- PART ONE: FIND YOUR VOICE (continued on page 4) 3 dreaming, boredom, escapism, anger, fear, apathy and malicious obedience results. Where there’s no trust, “servant leaders” model trust- worthiness. Where there’s no common vision or values, they try to create them. Where there’s misalignment, they align goals, structures, systems and processes. Where there’s disempowerment, they empower individuals and teams at the project or job level. This kind of leadership affirms people’s worth and unites them as a team. To model conscience, set a good example. To engage in pathfinding, jointly determine the course. To achieve alignment and discipline, set up and manage systems to stay on course. And to empower and evoke passion, focus on results, not methods — and then get out of people’s way and give help as requested. These modeling roles are sequential. We must first strive to find our voice personally before attempting to build high- trust relationships and practice creative problem solving. ■ The Voice of Influence Before you respond to a situation, decide whether or how to use the voice of influence. The boss may be a jerk, but you can choose your response. The key question: What’s the best thing you can do under these circumstances? You choose which level of initiative to use on the basis of how far the task lies within or outside your “cir- cle of influence.” This choice takes sensitivity and judg- ment, but gradually your circle will expand. There are seven levels of initiative. They are: 1. Wait until told. Unless you have the influence of someone who can do something about a problem, don’t waste energy on something you can do nothing about. Otherwise, you risk the “emotional cancers” of criticizing, complaining, comparing, competing and contending. 2. Ask. Ask about something within your job descrip- tion but outside your circle. If the question is intelligent and preceded by thorough analysis and careful thinking, it could be very impressive and may widen your circle. 3. Make a recommendation on an issue outside your job and at the outside edge of your circle. This process works great in many situations, and can enlarge your circle. 4. “I intend to.” Here you’ve done more analytical work. You’ve owned not only the problem but the solu- tion, and you’re ready to implement it. 5. Do it and report immediately. This is on the out- side edge of your circle but within your job. Report to the people who need to know. 6. Do it and report periodically. You are clearly within your job description and your circle. 7. Do it. When something is at the center of your circle, it’s at the core of your job description, and you just do it. You empower yourself by taking initiative in some way. Be sensitive, wise and careful about timing, but do some- thing — and avoid complaining, criticizing or negativity. In our culture of blame, taking responsibility means going against the current. It will also require some vision, a standard to be met, some improvement to be made — and discipline. It requires enlisting your pas- sion, in a principled way, toward a worthy end. ■ The Voice of Trustworthiness Trust is the key to all relationships — and the glue of organizations. It’s not true that all we need for success is talent, energy and personality. Over the long haul, who we are is more important than who we appear to be. Trustworthiness comes from personal character: ● Integrity. Your actions are based on principles and natural laws that govern the consequences of behavior. ● Maturity develops when we win the private victory over self, so that we can be simultaneously courageous and kind, and deal with tough issues compassionately. ● Abundance Mentality. Rather than seeing life as a competition with only one winner, you see it as a cornu- copia of opportunity and resources. You don’t compare yourself to others: You’re genuinely happy for their success. Trustworthiness also involves competence: ● Technical competence is the skill and knowledge necessary to accomplish a particular task. ● Conceptual knowledge is the ability to think strate- gically and systematically, not just tactically. ● Awareness of interdependency and the connected- ness of all life is important for organizations concerned with the loyalty of customers, associates and suppliers. We must model trust in order to deserve it. So, to improve any relationship, we start with ourselves. ■ The Voice and Speed of Trust Communicating in an environment of no trust is impossi- ble. Even if communication is clear and precise, people will always look for hidden meanings and agendas. But when there’s high trust, communication is easy and instantaneous. Mistakes hardly matter, because people trust you: “Don’t worry about it. I understand.” No technology ever devised can do that. There is nothing as fast as the speed of trust. When trust is present, mistakes are forgiven and forgotten. Enduring trust in a relationship cannot be faked and is rarely produced by a dramatic, one-time effort. It’s the fruit of regular actions inspired by conscience. The “deposits” and “withdrawals” we make have a profound impact on the level of trust in any relationship. The 8th Habit — SUMMARY 4 (continued on page 5) Soundview Executive Book Summaries® The Leadership Challenge (continued from page 3) Deposits to the “Emotional Bank Account” include: ● Seek First to Understand. We don’t even know what a deposit is to another person unless we understand that person from his or her frame of reference. What may be a high-level, high-value deposit to you may be a low- value deposit to another — or even a withdrawal. ● Make and Keep Promises. Nothing destroys trust faster than breaking a promise. ● Honesty and Integrity. If we can put our integrity and our relationship with another person above our pride and natural desires to hide our mistakes and avoid embarrassment, we can form powerful bonds of trust. ● Kindnesses and Courtesies. Everyone has feelings. Small courtesies and kindnesses can yield huge divi- dends. But people see through superficial techniques; they know when they’re being manipulated. True kind- ness comes from a deep character reservoir of SQ. ● Thinking Win-Win or No Deal. The key to break- ing out of the “win/lose” mind-set is to settle on champi- oni