Can the ‘Rockefeller Habit’ help us grow richer?
February 20, 2006 | 12:00am
If you want to succeed, you should strike out on new paths rather than travel the worn paths of accepted success. –John D. Rockefeller
Who are the business icons we should learn priceless lessons from, if not try to emulate and even dream of surpassing? Even if we can never play as superbly as Michael Jordan, Allen Iverson or Lebron James in basketball, or Tiger Woods in golf, or create art like Shakespeare, Michelangelo or Mozart, I believe we must study their great moves, discipline and techniques to improve ourselves and gain inspiration.
While many of our so-called "leaders" are mired in corrupt politics, various groups are now at the forefront of promoting entrepreneurship such as the "Go Negosyo" Summit spearheaded by Joey Concepcion and co-supported by The Philippine Star on February 23 to 25, while young Filipino-Chinese entrepreneurs of the Anvil Business Club who advocate a fusion of rugged entrepreneurship with Confucian values will have as their next speaker SGV Group founder Dr. Washington SyCip on February 27 in Makati.
Recently, Philippine Star columnist and Summit Media boss Lisa Gokongwei-Cheng asked this column to share with Star readers the exciting news about a special two-day workshop on the "Rockefeller Habit" from March 8 to 9 at Crowne Plaza Hotel beside Robinsons Galleria, Ortigas Center, Pasig City.
I told Lisa that John D. Rockefeller is one of my business heroes and I have five books by different biographers on his incredible life story. He could be the ideal role model for entrepreneurs everywhere. Rockefeller was remarkable for rising out of poverty to the zenith of wealth. He was richer in relation to the US economy and the world than Bill Gates of Microsoft or others will ever be. He grew up without a good father, was a high school dropout who started out as a clerk whom his boss thought wouldn’t amount to anything. Rockefeller was an entrepreneurial genius, systematic, driven, hardworking, a deeply religious Baptist Christian who started tithing or donating 10 percent of his income upon receiving his first paycheck. Among his numerous charities is the world-class University of Chicago.
"It’s a two-day workshop sponsored by The Philippine Star and Credit Suisse First Boston for 300 to 350 people," says Lisa Gokongwei-Cheng. "The Young Entrepreneurs’ Organization Philippines is presenting the event but we are inviting the public to come." Tickets are P10,000 for outsiders. Reservations are care of Val Erana, who can be contacted at 0918-904-5581. Merienda and lunch will be served.
"Rich Russakof, who is giving the seminar, is the proprietor of Bottom Line Consultants and is one of the most sought-after speakers in the US for growing businesses," she continued. "He is a consultant for Inc. magazine and is a very popular speaker at the ‘Birthing of Giants Boot Camp for Entrepreneurs’ in the Massachusetts Institute of Technology (MIT). I know two business people who have attended this talk and they speak very, very highly of it. It really works to improve a company’s bottom line."
Rich is not the author of the book Rockefeller Habits (credit for that goes to Verne Harnish), although he did write the last chapter of the book on Mastering the Art of Bank Financing. The premise behind Rockefeller Habits is to teach entrepreneurs and corporations a framework, language and habits to more effectively run their companies.
"Part of Rockefeller’s genius was his ability to achieve alignment with his management team," says Rich. "They in turn would use these habits with middle management and then middle management would use them to achieve alignment with the entire company. The mantra is one percent vision and 99 percent alignment. I teach the principles of Rockefeller Habits to my clients because these principles provide the framework for businesses to communicate, develop and measure metrics, and establish goals on a weekly, monthly, quarterly and annual basis. I have been astonished at how many companies in the US and throughout the world have embraced Verne’s program and thoroughly integrated these ideas and structures into their business. The stuff works. It will have a tremendous impact on companies that bring their management team to this seminar."
Rich first met Verne at an international program he founded called "Birthing of Giants" at MIT. BOG selects 66 high-growth entrepreneurs from throughout the world to attend this three-day program. Attendees return every year for three years and are not taught how to do, but how to think. Rich has been fortunate to enough to be a part of the faculty for the second-year class for six years.
"Many of our clients have been selected for the program or I have met them there," he says. "Because Verne was not available to teach this program due to his schedule, I was asked to take his place. I have taught the program for Verne’s company Gazelles numerous times."
Rich is the founder and CEO of Bottom Line Consultants, which has been in existence for 17 years, working primarily with entrepreneurial companies with top-line revenues ranging from US$1 million to $50 million. He specializes in strategic planning: helping companies building leadership teams, CEO coaching, and capital acquisition for high-growth companies. "I spend about 100 days per year working on-site with my clients and generally make about a dozen speaking presentations per year. As a result my knowledge is real-time based upon the current challenges businesses are facing. This provides tremendous value to my clients and the seminars I deliver," he says.
Rich was a senior consultant and frequent speaker at Inc. conferences for 10 years until the founder sold the magazine and the new company eliminated both divisions. "My relationship with Inc. was a strategic one; I never worked directly for them. While there, I had the opportunity to work with and study many of the companies who made the Inc. 500 list. (The list is made up of the fastest-growing privately held companies in the USA.) The consulting division was surprised to discover that 18 to 20 percent of these companies were out of business within two years of making the list. The primary reason had little to do with their industry, ability to raise capital or the economy. It was the critical decisions that management made at each level of growth that made the difference. In essence, what gets you to one level will not get you to the next. Successful companies learn how to reinvent themselves at each level of growth."
Should we prematurely celebrate the recent strong surge of the peso and increased foreign exchange inflows from overseas Filipino workers (OFWs) as proof of Philippine economic success? Shouldn’t we shake ourselves out of illusions, mediocrity, political propaganda and complacency by aspiring for real high standards of success such as genuine economic independence, robust investments growth, higher exports and rising quality of life for all citizens?
If we are earnest about making the Philippine economy globally competitive, prosperous and socially equitable, we must encourage our entrepreneurs, business executives, leaders of various sectors and professionals – even our many inept and scandalously inefficient political leaders – to improve their standards of excellence by studying the habits of the world’s first billionaire, John D. Rockefeller.
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