Stephen Covey Management Theory: The Principle-Centered Approach

Stephen Covey made a significant impact on organizations and how they viewed leadership and effectiveness. In his best-selling book, The 7 Habits of Highly Effective People, Covey provides a management theory for individuals and organizations to base their actions upon principles instead of short-term techniques.

Covey’s management approach and methods for success put character and the inner person at the center of his work. Known for his books and keynotes, Covey was also named one of Time magazine’s 25 most influential Americans. In 2013, the book was recognized as one of the most influential management books ever published more than 30 years after its original release.

Character Ethic vs. Personality Ethic

Understanding the distinction between character ethic and personality ethic represents one of the initial steps in Covey’s management theory. Before WWI, Covey explains that the focus was on “Character Ethic” or success based on traits such as integrity, humility, courage, justice, and patience.

The character ethic focuses on the foundation of human effectiveness, whereas after WWII, a change began to take place. The shift Covey recognized was what he called the “Personality Ethic.” A personality ethic was defined as success based on a person’s personality, public image, attitudes, techniques, and practices.

Covey argued that this new form of an ethic was a surface solution because it created manipulation. The difference between the two was explained as surface (techniques and skills) and source (moral principles).

According to Covey’s principle-centered approach, individuals as leaders should be based on principles that are not in conflict with one another. The sources or natural laws he gives are universal and include integrity, accountability, compassion, and fidelity. These sources can be applied to any situation and will never change based on external circumstances. The concepts of the sources are a standard to make decisions, and as a leader, when you base your decision-making on the principles of the sources you can not be wrong.

The Seven Habits

The next part of Covey’s management theory and approach to be successful and effective as an individual is his seven habits. These habits are based on each other and are in a developmental process. Covey used the terms independent (dependent to independent) and interdependent (dependent through independent to interdependent) for the seven habits.

He grouped the habits in a private victory and public victory.

The first three habits move you from dependent to independent, and the other four move you from independent to interdependent. This is because the habits take you through the process of personal change and mastery.

Private Victory (Dependent to Independent)

The first three habits focus on achieving personal mastery and self-management. Before you can effectively work with others, you must first develop independence through taking control of your choices, defining your direction, and managing your priorities.

Habit 1: Be Proactive

A proactive person takes responsibility for their responses and actions. In other words, they are responsible for the choices they make and their reaction to a situation. It is important to realize that we can only control our circle of influence and not the circle of concern.

Habit 2: Begin with the End in Mind

Begin with the end in mind is the habit of defining your values and goals before taking action. According to Covey, a proactive person will create a personal mission statement. The mission statement is a changeless standard and a mental picture of where we want to go in life.

Habit 3: Put First Things First

In order to execute your priorities, discipline is key. The habit of putting first things first explains that there are both urgent and important activities. Covey explains that we spend most of our time on activities that are urgent but not important. With this habit, you focus on important activities and execute them.

Public Victory (Independent to Interdependent)

After developing independence, these three habits help you work effectively with others by building trust, practicing empathy, and creating collaborative solutions where everyone wins.

Habit 4: Think Win-Win

The word “win” means a solution or a reasonable amount of satisfaction. Covey makes a clear distinction between personality ethics and character ethics. In a personality ethic you would focus on techniques and “winning at all costs” while in a character ethic, it is more of a code for human interaction based on principles.

Habit 5: Seek First to Understand, Then to be Understood

When we listen with the intent to understand before we respond or talk, it is empathic listening. Covey’s habit states that it is important to understand others first and not your own viewpoint. This is because you have a lot of filters that only let your own thoughts through.

Habit 6: Synergize

Synergy is created through different perspectives. The principal in this habit is that better solutions are created when different perspectives, opinions, and backgrounds come together to form one unit. The habit of synergizing is focused on mutual benefit.

Habit 7: Sharpen the Saw

The last habit, sharpen the saw, is a supporting habit. This means that it supports the other six habits. This habit is a concept of self-renewal. The main focus of this habit is to be renewed in four areas which include:

• Physical
• Mental
• Social/emotional
• Spiritual

The Time Management Matrix

Time Management Matrix has four quadrants and differentiates between urgent and important.

Quadrant 1 – Urgent and Important

Activities that fall in this quadrant are often crisis-related and are deadlines that need to be done.

Quadrant 2 – Not Urgent and Important

This quadrant includes activities that are not urgent and include planning and relationship building.

Quadrant 3 – Urgent and Not Important

Activities that come under this quadrant are not really important to your success but are interruptions that you must deal with urgently.

Quadrant 4 – Not Urgent and Not Important

Activities under this quadrant are pure time wasters.

The time management matrix is to spend more time in Quadrant 2 and less time in Quadrants 3 and 4.

Applying Covey’s Management Theory

Organizations that adopt Covey’s principle-centered management approach will focus on principles and not personalities and systems. They will also make the best use of the time management matrix by focusing more time on Quadrant 2 activities.

Applying Covey’s approach to management requires the leader and management of the organization to model the seven habits first. A principle-centered approach also requires leaders to be proactive and to make decisions based on principles that will never change.

The implementation of Covey’s management theory requires patience. Organizations cannot just make it a policy and require all staff members to do it. It will also not happen overnight and must be something that you as a leader are committed to for the long term.