The Rockefeller Habits, named after the famous business magnate John D. Rockefeller, are a set of ten core principles that are designed to help businesses achieve success through disciplined execution and strategic planning. These habits have been widely adopted by many successful companies around the world, and they continue to be a popular framework for business growth and development. This article will provide a comprehensive breakdown of the 7 Strata of Strategy, which is a key component of the Rockefeller Habits.

The 7 Strata of Strategy is a strategic planning tool that helps businesses to define their core strategy and align their team around it. It consists of seven layers or 'strata', each of which represents a different aspect of the business strategy. By working through each stratum, businesses can create a clear and cohesive strategy that is easy to communicate and execute.

Stratum 1: Words That Work

The first stratum of the 7 Strata of Strategy is 'Words That Work'. This stratum is all about identifying the key phrases and words that best represent your company and its values. These words should be unique to your business and should resonate with your target audience. They should be used consistently across all your communication channels to create a strong and consistent brand image.

Identifying your 'Words That Work' is not a task to be taken lightly. It requires a deep understanding of your business, your industry, and your customers. It may involve market research, customer interviews, and brainstorming sessions with your team. The goal is to find words that are not only descriptive of your business, but also emotionally engaging for your customers.

Importance of Words That Work

The 'Words That Work' are crucial in setting the tone for your brand and creating a strong connection with your customers. They help to differentiate your business from your competitors and make your brand more memorable. They also play a key role in your marketing and sales efforts, as they can be used to craft compelling messages that resonate with your target audience.

Moreover, the 'Words That Work' can also serve as a guide for your team, helping them to understand the core values of your business and how to communicate them effectively. They can be used as a benchmark for evaluating the effectiveness of your communication efforts and for making adjustments as needed.

Stratum 2: Profit per X

The second stratum of the 7 Strata of Strategy is 'Profit per X'. This stratum is all about identifying the key metric that drives your business's profitability. This metric, referred to as the 'X', is unique to each business and depends on various factors such as the nature of the business, the industry, and the business model.

The 'Profit per X' is a powerful tool for strategic decision making. It helps businesses to focus their resources on the most profitable activities and to identify opportunities for growth and improvement. It also provides a clear and simple way to measure the success of the business strategy.

Identifying the Profit per X

Identifying the 'Profit per X' is a strategic exercise that requires a deep understanding of your business and its financials. It involves analyzing your revenue streams, your cost structure, and your profit margins. The goal is to identify the key metric that has the greatest impact on your profitability and that can be influenced by your strategic decisions.

Once you have identified your 'Profit per X', it should be communicated to your team and used as a key performance indicator (KPI). It should be tracked regularly and used to guide your strategic decisions. It should also be used to align your team around the goal of increasing profitability and to motivate them to achieve this goal.

Stratum 3: Brand Promise

The third stratum of the 7 Strata of Strategy is 'Brand Promise'. This stratum is all about defining the unique value proposition of your business and communicating it to your customers. Your brand promise is a commitment to your customers about what they can expect from your products or services. It should be unique, compelling, and credible.

Your brand promise should be based on your 'Words That Work' and your 'Profit per X'. It should reflect the core values of your business and the unique benefits that you offer to your customers. It should be communicated consistently across all your communication channels and should be delivered consistently through your products or services.

Creating a Compelling Brand Promise

Creating a compelling brand promise is a strategic exercise that requires a deep understanding of your customers and their needs. It involves identifying the unique benefits that your business offers and how these benefits meet the needs of your customers. It also involves crafting a compelling message that communicates these benefits in a way that resonates with your customers.

Once you have created your brand promise, it should be communicated to your team and used as a guide for all your business activities. It should be used to align your team around the goal of delivering on this promise and to motivate them to achieve this goal. It should also be used to evaluate the effectiveness of your business strategy and to make adjustments as needed.

Stratum 4: Core Customer

The fourth stratum of the 7 Strata of Strategy is 'Core Customer'. This stratum is all about identifying the key customer segment that your business serves. Your core customer is the customer segment that is most profitable for your business and that is most aligned with your brand promise.

Identifying your core customer is a strategic exercise that requires a deep understanding of your customers and their needs. It involves analyzing your customer data, conducting market research, and understanding the buying behavior of your customers. The goal is to identify the customer segment that is most valuable to your business and that can be served most effectively by your business strategy.

Understanding Your Core Customer

Understanding your core customer is crucial for the success of your business strategy. It helps you to focus your resources on the most profitable customer segment and to tailor your products or services to meet their needs. It also provides a clear and simple way to measure the success of your business strategy.

Once you have identified your core customer, it should be communicated to your team and used as a key performance indicator (KPI). It should be tracked regularly and used to guide your strategic decisions. It should also be used to align your team around the goal of serving this customer segment and to motivate them to achieve this goal.

Stratum 5: Sandbox

The fifth stratum of the 7 Strata of Strategy is 'Sandbox'. This stratum is all about defining the market space or 'sandbox' in which your business operates. Your sandbox is the market space that is most aligned with your brand promise and that can be served most effectively by your business strategy.

Defining your sandbox is a strategic exercise that requires a deep understanding of your market and your competitors. It involves analyzing your market data, conducting market research, and understanding the competitive landscape. The goal is to identify the market space that is most valuable to your business and that can be dominated by your business strategy.

Defining Your Sandbox

Defining your sandbox is crucial for the success of your business strategy. It helps you to focus your resources on the most profitable market space and to differentiate your business from your competitors. It also provides a clear and simple way to measure the success of your business strategy.

Once you have defined your sandbox, it should be communicated to your team and used as a key performance indicator (KPI). It should be tracked regularly and used to guide your strategic decisions. It should also be used to align your team around the goal of dominating this market space and to motivate them to achieve this goal.

Stratum 6: Brand Promise Guarantee

The sixth stratum of the 7 Strata of Strategy is 'Brand Promise Guarantee'. This stratum is all about creating a guarantee that backs up your brand promise. Your brand promise guarantee is a commitment to your customers that you will deliver on your brand promise, and it provides a clear and tangible measure of your commitment.

Creating your brand promise guarantee is a strategic exercise that requires a deep understanding of your brand promise and your customers' expectations. It involves identifying the key measures that demonstrate your commitment to your brand promise and creating a guarantee that is credible, measurable, and compelling to your customers.

Creating a Credible Brand Promise Guarantee

Creating a credible brand promise guarantee is crucial for the success of your brand promise. It helps to build trust with your customers and to differentiate your business from your competitors. It also provides a clear and simple way to measure your commitment to your brand promise.

Once you have created your brand promise guarantee, it should be communicated to your team and used as a key performance indicator (KPI). It should be tracked regularly and used to guide your strategic decisions. It should also be used to align your team around the goal of delivering on this guarantee and to motivate them to achieve this goal.

Stratum 7: Big Hairy Audacious Goal (BHAG)

The seventh and final stratum of the 7 Strata of Strategy is 'Big Hairy Audacious Goal' or BHAG. This stratum is all about setting a long-term, ambitious goal that drives your business strategy. Your BHAG is a clear and compelling goal that serves as a focal point for your team and motivates them to achieve extraordinary results.

Setting your BHAG is a strategic exercise that requires a deep understanding of your business and its potential. It involves setting a goal that is ambitious, measurable, and inspiring to your team. The goal should be aligned with your business strategy and should serve as a guide for your strategic decisions.

Setting a Compelling BHAG

Setting a compelling BHAG is crucial for the success of your business strategy. It helps to align your team around a common goal and to motivate them to achieve extraordinary results. It also provides a clear and simple way to measure the success of your business strategy.

Once you have set your BHAG, it should be communicated to your team and used as a key performance indicator (KPI). It should be tracked regularly and used to guide your strategic decisions. It should also be used to align your team around the goal of achieving this BHAG and to motivate them to achieve this goal.

In conclusion, the 7 Strata of Strategy is a powerful tool for strategic planning and execution. It provides a clear and comprehensive framework for defining your business strategy and aligning your team around it. By working through each stratum, you can create a cohesive and compelling strategy that drives your business towards success.