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The Secret of Organizational Habits: How Do They Affect Business Success and Change?
In today's highly competitive market environment, how can companies achieve sustained success and effectively respond to change? The answer may lie in the daily habits of an organization. Organizational habits are defined as “repeated, identifiable patterns of interactive behavior involving multiple participants.” In evolutionary economics, these habits are essentially society’s replication mechanisms, helping firms maintain behaviors and knowledge and financing their growth and transformation.
The Roots of Habits
"Organizational habits are the basic structure that supports the operation of an enterprise. They are not just a form, but also an essence."
If we look back at Carnegie school theory, we see that habits are seen as important drivers of reflective action. According to Simon, the behavior of individuals and organizations is a constantly updated system, and the formation of organizational habits makes the decision-making process no longer too time-consuming.
Nelson and Winter's views
In the work of Nelson and Winter, habits are compared to "genes", in which they may be selected and transmitted in the environment. This perspective emphasizes the importance of these habits in organizational evolution as the basis for defining organizational change.
"Habits are the organization's memory repository of past experiences and responses."
It is important to manage these habits so that they provide ongoing stability during change. The repeatability of these patterns provides the enterprise with the ability to cope with uncertainty, thereby ensuring the company's continued operation and survival.
Wick and Roberts’ views
Weick and Roberts suggest that habits are manifestations of collective mind and consensus, which enables organizational members to cooperate without much conscious involvement. But this doesn’t mean habits are rigid; as Pentland points out, enforcing habits requires individual effort and choice.
“Habits are conscious choices, not automatic reactions.”
This understanding of habits enables us to better shape corporate strategy, aligning habits with the dynamic capabilities of the organization. As these perspectives evolve, our understanding of habits is no longer limited to "the way things are done" but is more inclusive of the rich organizational culture and capabilities.
Characteristics of Habits
Recent research shows that habits have several key characteristics: they are repetitive, persistent, predictable, and collective. These characteristics allow them to cope with environmental changes and form a more stable organizational foundation.
"Habits are self-driven phenomena; they operate without active thought."
This nudge ensures that critical tasks in day-to-day business are completed without attention, leaving awareness for more complex decision-making processes.
Impact of change
When an enterprise faces external changes, existing procedures and habits can become the core of rapid response. Unexpected situations often challenge the rationality of existing habits, but the reflection and change in this process promote the innovation and development of the organization.
"Habits play a complementary role in stability and change."
However, it is important to recognize that habits are not simply limiting factors, but in fact they are more profound, providing both stability and facilitating necessary change. Therefore, managers need to be cautious about the existence of these habits and their potential impact when triggering organizational change.
Thinking about the future
In general, organizational habits, as the hidden driving force behind business success, are affecting the survival and development of enterprises in unexpected ways. In the face of a changing environment, how can we find influence in these habits to promote the success of our organization? Is it possible to be the next key to winning?
