While working on his doctorate in the 1970's, Stephen R. Covey reviewed 200 years of success literature.  He noticed that since the 1920's, success writings have focused on solutions to specific problems.  In some cases such tactical advice may have been effective, but only for immediate issues and not for the long-term, underlying ones.  The success literature of the last half of the 20th century largely attributed success to personality traits, skills, techniques, maintaining a positive attitude, etc. This philosophy can be referred to as the Personality Ethic.

However, during the 150 years or so that preceded that period, the literature on success was more character oriented.  It emphasized the deeper principles and foundations of success.  This philosophy is known as the Character Ethic, under which success is attributed more to underlying characteristics such as integrity, courage, justice, patience, etc.

The elements of the Character Ethic are primary traits while those of the Personality Ethic are secondary.  While secondary traits may help one to play the game to succeed in some specific circumstances, for long-term success both are necessary.  One's character is what is most visible in long-term relationships.  Ralph Waldo Emerson once said,  "What you are shouts so loudly in my ears I cannot hear what you say."

To illustrate the difference between primary and secondary traits, Covey offers the following example.  Suppose you are in Chicago and are using a map to find a particular destination in the city.  You may have excellent secondary skills in map reading and navigation, but will never find your destination if you are using a map of Detroit.  In this example, getting the right map is a necessary primary element before your secondary skills can be used effectively.

The problem with relying on the Personality Ethic is that unless the basic underlying paradigms are right, simply changing outward behavior is not effective.  We see the world based on our perspective, which can have a dramatic impact on the way we perceive things.  For example, many experiments have been conducted in which two groups of people are shown two different drawings.  One group is shown, for instance, a drawing of a young, beautiful woman and the other group is shown a drawing of an old, frail woman.  After the initial exposure to the pictures, both groups are shown one picture of a more abstract drawing.  This drawing actually contains the elements of both the young and the old woman.  Almost invariably, everybody in the group that was first shown the young woman sees a young woman in the abstract drawing, and those who were shown the old woman see an old woman.  Each group was convinced that it had objectively evaluated the drawing.  The point is that we see things not as they are, but as we are conditioned to see them.  Once we understand the importance of our past conditioning, we can experience a paradigm shift in the way we see things.  To make large changes in our lives, we must work on the basic paradigms through which we see the world.

The Character Ethic assumes that there are some absolute principles that exist in all human beings.  Some examples of such principles are fairness, honesty, integrity, human dignity, quality, potential, and growth.  Principles contrast with practices in that practices are for specific situations whereas principles have universal application.

The Seven Habits of Highly Effective People presents an "inside-out" approach to effectiveness that is centered on principles and character.  Inside-out means that the change starts within oneself.  For many people, this approach represents a paradigm shift away from the Personality Ethic and toward the Character Ethic.