Management experts explain that many organizations fail to take control of their collective habits because they assume that what worked historically to bring them success will continue to work in the future. New employees quickly adopt these habits to fit in, and the cycle of automatic routines perpetuates.ĭuhigg argues that, when a company is unaware of the automatic routines that underpin its organization, it can easily fall into the trap of adopting deconstructive habits that undermine its operations.īusinesses Fail to Align Collective Habits With Their Overall Goals

As a result, they end up acting out these automatic routines without knowing why. Over time, the company loses track of the individual decisions that initiated the habits that are now deeply ingrained in the company’s culture. However, many of these collective habits grow organically from an accumulation of individual decisions taken by different managers and employees.

How Habits Impact Businessesĭuhigg argues that businesses rely on automatic routines so that managers and employees can get things done without having to question every action they take. We’ll explore this further throughout the rest of this section. However, what’s interesting here is that, by their nature, these entities rely on the collective habits of multiple people to determine how they operate. Psychologists recommend that you write a shopping list and go straight for these items to avoid falling into the trap of making impulsive purchases.) The Influence of Collective HabitsĪccording to Duhigg, businesses and communities rely on automatic routines just as much as you do to save time and energy. Research indicates that you’re more likely to make impulsive purchases when you shop without a list, walk through more aisles, feel hungry, or when your store rearranges its layout (which they deliberately do periodically). Retailers manipulate their environments to accommodate your habitual purchases and trick you into making impulsive and unnecessary buying decisions.

(Shortform note: Psychologists warn that your brain’s tendency to operate in autopilot mode when shopping may save you time but it doesn’t save you money.

Sparknotes the power of habit