How great managers shape habits

In last week’s article, we saw how habits are the main driver of behavior, not incentives. After all, Toyota achieved great quality not (just) with incentives, but mostly by creating the habits that ensure high quality. And Ryanair did the same to drive costs down: it worked not just on incentives but mostly on habits, such as “question every expense,” “look for cheaper alternatives,” and “challenge assumptions.”

The best managers do not just set targets. They shape what people repeatedly notice and do. They shape their mental habits.

One way they do that is by using repetition. They keep asking the same questions over and over, until those questions become a mental habit that directs attention.

Another way they do that is by shaping the feedback people get for their behavior. For example, what happens when someone suggests an idea? Is it explored or dismissed? Does the person learn the lesson that the next time they have an idea, they should raise their hand or shut up?

Not only does feedback shape the likelihood of them exhibiting this or that behavior, but it also shapes the questions that they ask themselves when deciding what to do. The feedback they receive determines whether employees spend time asking themselves, “Is this a good idea and how can I make it better?” or “Should I say it or will I get blamed?” And these questions further influence behavior.

Finally, great managers know that habit reinforcement must be immediate and consistent. Gregg Popovich, the coach with the most wins in the history of the NBA, famously benched players for taking bad shots, even if they went in. He didn’t focus on the outcome but on the behavior. That helps bring attention to the behavior, which is a prerequisite for changing it.

So if you want to change behavior, instead of starting with incentives, or on top of it, ask three questions:

1. What is the default habit?
2. What question are people asking themselves when deciding what to do?
3. What feedback are they getting when they act?

Incentives only work when the habits are already there; otherwise, the habits must be the target.

Of course, changing the habits within an organization is part of my advisory work.