My insights on 'The Power of Habits' by C. Duhigg - Part 2

HABITS, PROCESSES AND ORGANISATIONAL CULTURE

Organisations run on processes and habits, not just a few but hundreds and thousands of them put in place by the managers for smooth functioning at some time.  These could be referred to and has come to be recognised as the corporate culture. Habits form a large form of corporate culture but the entirety cannot be defined by it. However, the habits, routines are in fact processes in practice, outnumbering the actual no. of processes. Therefore, if we talk about improvement, then it should be our endeavour to bring in continuous improvement by changing both the habits as well as processes. Gradual and continuous improvement and bringing about change in both the processes and habits is what pertains to LEAN Movement. Lean implies continuous improvement.

Lean Process Improvement is the process of continually reviewing a process identifying waste or areas in a process map that can be improved. It is an on-going feedback process of loop that over time improves the business through better processes. It is a systematic method to identify and eliminate waste within a process to bring about smooth flow in the velocity of outputs.

 The insights by Duhigg in this book can be applied within the dynamic sphere of Organisational change also. This can be achieved by:

1.       ANALYSIS AND REFLECTION

Going by the book, a habit is a repeated activity that is performed automatically in similar situations using ‘cue, routine and reward’ formula. Therefore, the first step would be obviously to analyse and reflect the reasons behind the habit. Identify the cue, when and where it manifests as action and the reward associated with the action. People aren’t very good at finding the root cause.

2.       IDENTIFYING WHAT MATTERS THE MOST

It might seem an insurmountable ordeal to change innumerable processes, habits and routines that need to be changed and improved. Everything can’t be changed over -night, therefore it would be viable to prioritize. The key here lies in accepting the fact that one can’t bring about change for quite some time, it’s so very gradual. One can’t possibly change multiple things at once, however, prioritization also could be a tricky prospect. It’s only by practice that one can identify issues/ areas that need to be driven by change urgently in the business sphere.  There could be a likelihood of ripple effects.  When an issue/ area is understood by everyone as important, and there is just enough sense of urgency created, then it becomes understood by everyone as being important.  There is less difficulty in the communication and rationalization of change and drive for change becomes people’s priority. If this gets reflected in positive results on the business as a whole, people start believing in the change thus, creating a self- fulfilling prophecy.

3.       THE RIPPLE EFFECT

It also needs to be understood that if and only if the areas picked will also drive in change in the other parts of the business, it could end up driving positive change throughout the organisation and create a culture of continuous improvement leading to a succession of positive change.

This is well showcased in the case of Alcoa. The new CEO Paul O’Neil started by focussing on just one component, job safety, seemingly irrelevant in terms of financial gains for the company. This made a great impact on the conditions and with a ripple effect impact on the morale of the employees in a positive manner. The goals were set high, ‘stupidity’ was done away with. Faulty processes and routines were identified and corrected, it started as a bottoms up as a result of the initiative and quintupled profits within a span of a decade.

4.       CHANGE TAKES TIME AND ALWAYS INVOLVES FAILURE

Striking out things not aligned with our core values in our personal lives or in organisations, takes time. Harmful habits are not born out of a single action and can’t disappear overnight. Stanford University Psychologist, Kelly McGonigal says one can achieve consistent long term goals by taking small steps. The transformation will be more successful if one outsources their willpower one by one as opposed to all at once. He further says, “Every time you take an action that engages the muscles of willpower, they get stronger.”  Learning usually takes time and a lot of practice and repetition. In business time is essence. Humans learn from failure either their own or others’. If the endeavour is complex and challenging, the more effort and trials it would require getting it right.

Tony Dungy’s coaching philosophy was his belief that the key to winning was changing players’ habits. He wanted to get players to stop making so many decisions during a game. He wanted them to react automatically, habitually. If he could instil the right habits, his team would win.

His strategy was to shift the team’s behaviours until their performances were automatic.  He didn’t think they had to memorize hundreds of formations. They just had to learn a few key moves and get them right every time. .. Slowly, they began to improve. Eventually, the patterns became so familiar to players that they unfolded automatically when the team took the field… the Bucs won the division championship.’

5.       CHANGE SHOULD BEGIN AT GRASSROOT LEVEL

Change is usually initiated at the top level but it needs to first strike the grassroots levels. This is because improvement needs to be ingrained in everyone. More people driving change means more results. If development process is taken care of at the lower levels then the leaders get the opportunity to focus on the larger issues. If every single employee is rooted in change, the change that comes in is unbelievable and together they can make anything is possible. If employees feel they are in control and are treated with respect they’ll have more willpower and energy to focus on job increase radically.

As was the case in Alcoa, when employees were encouraged to tell about the accidents and dangers in the working environment to the executives, change gradually started. With time, the communication improved and employees actually started to contact their superiors not just about safety issues but also to tell about their ideas and suggestions to improve efficiency. Needless to say, the company underwent a great changeover revolution.

6.       THE COMPOUND EFFECT OF GOOD HABITS

If people consistently feel no desire for change and are consistent in their behaviour, the success also would be insignificant overtime. However, if people show slow but gradual improvement, they could end up with a significant result. Small, smart decisions made consistently lead to incomprehensible and incredible results later. At the same time it would also be wise to keep a focus on aligning core values within work ethics. Within the corporate culture if there is a process of ‘instants’ ; habitual , unconscious work culture without any desire of improvement or even the desire to eliminate thee unconscious, unfruitful actions or reactions, the result would be stagnation and loss.  It would be wise to focus on percent gains and not on net gain.

There’s a saying “Compound interest is the most powerful force in the universe”, as often attributed to Albert Einstein. It still continues to be a powerful lesson to be learnt. The traditional take on this is that by investing early on, but consistently in something, the effect of the interest will dwarf the original amount given some time. One has to build the systems, processes and the culture for creating that compound effect to improve one’s business, just like Alcoa did. Starting early could make change happen!

CONCLUSION

”It seems ridiculously simple, but once you’re aware of how your habit works, once you recognize the cues and rewards, you’re halfway to changing it,” said Nathan Azrin, one of the developers of habit reversal training. “It seems like it should be more complex. The truth is, the brain can be reprogrammed. You just have to be deliberate about it.”