This is the first in an ongoing series about Stephen J Covey’s landmark book The Seven Habits of Highly Effective People

If there ever was a bible for those in the business world, it is The Seven Habits of Highly Effective People. Startling in its simplicity and vast in the scope of industries and professions to which it can be applied, the book is a must-have for both new businessowners and those who have been in business for years.

In the the book’s first chapter, Covey talks about the familiar Aesop’s Fable about the goose and the golden egg.

Covey breaks down this classic story into its most basic business principles. At the end of the story, it becomes clear that the farmer has put too much emphasis on the golden egg and not enough on the goose that produced it. For the purposes of Covey’s analogy, the golden egg is the asset (which he labels “P” for production) and the goose is the resource that produces the asset (labeled “PC” for production capability).

Covey stresses the importance of having a P/PC balance in running your business. Too much of either will set you up for failure. In many cases, businesses tend to overemphasize their product or service at the expense of the resources that go into its production.

For example, if you’re selling ice cream cones, you might not want to make too much ice cream at once. Or produce too many flavors if the consumer demand for it isn’t quite there yet. Conversely, if you spend too much on your employees (human capital) or ice cream making equipment, you might not have enough money left to make sure you are still able to provide a quality ice cream product.

Ideally, your goal as a business owner should be to strike a balance between your product and your means of production. Ultimately, these two factors should work in concert with one another. If you can do this consistently, you’re going to be well on your way to success in any business you choose.

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