Mastering the Rockefeller Habits Notes Chapter 1: Mastering Growth 1. Delegate a.

Create a hierarchical chart from top to bottom and fill in each position with a name. b. Create a list of roles and responsibilities for each position and assign them to people. 2. Systems and Structures a. Create a system to integrate processes together and a way to make sure tasks are being done on time and people are being held accountable. i. Salary schedule ii. Performance evaluations iii. Information systems iv. Strategic planning processes 3. Data Driven a. Manage financials and key performance indicators (KPIs). b. Think, what indicators will determine if we are on track for positive cash flow or not? 4. Top 5 Priorities a. Make a list of the top 5 corporate goals for the quarter. b. Make a list of the top 5 personal goals that align with corporate goals for the quarter. c. Create quarterly themes that have a WOW goal (Top 1 of 5). d. Give recognition to people at the end of the quarter. 5. Meeting Rhythm a. Short meeting every morning (max. 15 minutes) i. Focus on achieving the Top 1 of 5 goal in every meeting. ii. Discuss roadblocks youve encountered and your numbers for your Top 1 of 5. 1. Report the numbers. 2. Highlight bottlenecks and achievements. 3. Have all people involved with a problem take it offline to problem solve after the morning meeting. 1. Managements Role (Leadership) a. Create measurement system b. Provide feedback c. Giving out recognition and reward 2. Systems & Structures a. Hierarchical chart (Accountability chart)

i. All projects, income statement line items, priorities and processes must have a sole owner attached to them who is responsible even if others contribute to it. b. Organizational Chart (Work Process chart) i. Contains 4-9 key work flow processes that outline a system from A to Z. ii. Pick the most dysfunctional one and clean it up every . c. Relationships between organizational functions (Matrix chart) i. Can be organized around product lines, customer niches, geographical locations or business units acting as wholly owned subsidiaries. Chapter 2: Right Things Right

Balance Sheet

Profit & Loss

Result

Result

Activities Activities 1. 2. 3. 4. 5. Each month choose 1 circle & 1 activity for each the B/S and P&L side. Create accountability for each of the items and each of the drivers (activities). Get metrics from all 6 circles of the business as frequently as possible. Create a weekly & daily rhythm for each of the people in the P&L (sales, operations, accounting). When you reach over $10M in revenue further segment the circles and create departments: a. Employees HR Department b. Customers Product focus groups + Customer focused groups c. Shareholders Shareholder relations + Board of Directors d. Sell Sales + Marketing (#1 key metric more marketing is lead generation) e. Make or Buy Operations + R&D f. Keep Records Accounting + Finance