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Summary: The 7 Habits of Highly Effective People

by ExecutiveGrowth Summaries, summarizing Stephen R. Covey

Introduction: Principles, Paradigms, and Habits

  • Principles are the compass that show what actions move us toward our goals; paradigms show us the landscape we must cross; habits serve as the tools to traverse that space.
  • Principles are the qualities of human character that have been lauded throughout history because they consistently prove effective.
  • A paradigm forms the basis of how we see the world.
  • Habits are the tools of your principles and enable you to act upon your paradigms.

Part I: Ownership & Definition

1. Principle of Ownership (Habit 1: Be Proactive)

  • The Principle of Ownership says we have the capability to take control of our lives. In life, we either act or are acted upon.
  • When maintaining ownership of our lives becomes a principle, we are forced to admit that we let ourselves go and we stopped trying. But it also gives us ownership over the successes of our lives.
  • This paradigm shift paves the way for the first habit of Be Proactive.

2. Principle of Direction (Habit 2: Begin with the End in Mind)

  • The Principle of Direction says that living an undirected life is untenable, and with the Principle of Ownership it argues for self-directed proactivity.
  • The second habit is Begin with the End in Mind, so that our actions fit into the blueprint of our lives.
  • As we adopt the habits, we grow through the Maturity Continuum, with the three stages of dependence, independence, and interdependence.
  • The concept of Centeredness says that what we value most will determine other aspects of our lives – such as our self-esteem, relationships, and consistency.
  • One of the biggest mistakes we all make is choosing entities rather than principles as our centers.
  • If the center of our existence is the well being of an entity, then our state of mind becomes susceptible to everything that those entities are susceptible to.
  • If we place immutable principles at our center, we remain steadfast in the face of whatever bad events may transpire to those entities.
  • We all have roles, and the well-principled core informs us how to best fulfill those roles. By identifying our roles, we identify our long-term goals for our relationships.

Part II: Progress & Achievement

3. Principle of Individual Progress (Habit 3: First Things First)

  • The Principle of Individual Progress says that individuals should become more capable over time rather than less capable.
  • Living builds experience in every moment, and through experience we grow. Furthermore, it is through mindful experience that we grow toward a specific end.
  • The third habit is First Things First, where the first things are whatever maximize production and increase production capability (called P/PC).
  • To put first things first means to engage with activities that increase our production capability.
  • We each have a Circle of Concern, within which is a Circle of Influence which contains those things that we can have an immediate effect on.
  • When we spend time in the Circle of Concern, the Circle of Influence contracts as we lose out on opportunities to work within it.
  • In a Time Management Matrix, we want to spend as much time in Quadrant 2 (Important & Not Urgent) since it boosts our production capability.
  • To shrink Q1 (Important & Urgent) activities, eliminate Q3 and Q4 activities and substitute them with Q2 actions. Over time, Q2 actions will increase our PC, resulting in less Q1.

4. Principle of Abundance (Habit 4: Think Win/Win)

  • Two overlooked outcomes in addition to the normal win/lose breakdown:
    • Win: The concern is winning, and the outcome for the other party doesn't matter.
    • Win/Win or No Deal: Both parties commit to a Win/Win, and if none can be found then there are no hard feelings.
  • The Principle of Abundance embraces an Abundance Mentality, which says there is more than enough for everyone.
  • The Scarcity Mentality in business often gives rise to Win/Lose paradigms.
  • The relationship between two parties improves when they find a Win/Win solution.
  • If you are attempting to find a Win/Win solution but the other party does not trust you, then you must build character with them.
  • Character means proving yourself by your actions repeatedly. The consistency of acting on our principles shows others that our actions will always be chosen according to those principles.
  • The Emotional Bank Account (EBA) models building trust through character. It says that:
    1. We have a joint account with whomever we have a relationship with, and its currency is trust.
    2. Our actions are either deposits or withdrawals.
  • Building the EPA is critical because strong relationships yield better opportunities for both parties, and enable Win/Win outcomes.
  • A Win/Win or No Deal outcome preserves the relationship in the event that a solution cannot be found.
  • If you can tolerate a Lose/Win outcome, then you can preserve the relationship and may thereby achieve a much larger win down the road.

5. Principle of Effective Communication (Habit 5: Seek First to Understand, then to Be Understood)

  • The fifth habit Seek First to Understand, then to Be Understood says that by listening and gathering information, we can proceed more effectively.
  • By seeking first to be understood, you often come away from interactions with no new information.
  • The Principle of Effective Communication maintains that it is better if our interactions yield growth.
  • When your primary goal is to be heard, you are acting like you are struggling and you need to be validated and recognized.
  • Listening supplies Psychological Air, which allows each party to share openly and feel heard, accepted, and understood. The resulting free flow of ideas can be exceptionally powerful.
  • Empathetic Listening is listening where we seek first to understand the other person's paradigms and principles.
  • Empathetic listening makes a large deposit in the EBA by showing other people that we value our common humanity more than we care about forcing our beliefs upon them.

6. Principle of Team Execution (Habit 6: Synergy)

  • Our psychological needs require maintenance in four areas: physical, spiritual, mental, and social.
  • The Principle of Team Execution says that we need each other to thrive, and helps meet our social need.
  • Along the Maturity Continuum of dependence, independence, and interdependence, our ideal state is on the border between independence and interdependence.
  • The sixth habit, Synergy, happens when the team produces more than the sum of its parts and the production of ideas depends on the participation of each team member.
  • Only when a high state of trust exists, and the Emotional Bank Accounts are rich, does synergy become possible.
  • Unlike an ordinary team, each member of a synergistic group seeks the Win/Win outcome.
  • Negative Synergy is when a group becomes so toxic that each member attempts to fail the project. In the end there may be no deal, but the EBA is now empty.
  • Because negative synergy can be as powerful as synergy, it's crucial to approach team interaction with Win/Win or No Deal.

Part III: Perpetual Growth

7. Principle of Greater Attainment (Habit 7: Sharpen the Saw)

  • The Principle of Greater Attainment says that our lives should reflect an Upward Spiral that comprises of learning, committing, and doing.
  • The final habit Sharpening the Saw means that each day we take time to focus on obtaining a Daily Private Victory.
  • This victory is won by engaging with the three independent dimensions of our lives: the mental, the physical, and the spiritual.
  • To meet the social/emotional dimension, we use the Daily Public Victory where we find a way to assist our family, friends, or colleagues in some small way each day.