Wednesday, November 14, 2012

Alcoa and the Afternoon Cookie Habit


Charles Dugigg talks about his cookie habit.

In Chapter 4 of his book Power of HabitCharles Dugigg shares the story of Paul O'Neill and his leadership at Alcoa Aluminum.  O'Neill, the former United States Secretary of the Treasure under George W Bush, shocked investors and employees when in his acceptance speech at the yearly he said:

I want to talk to you about worker safety. Every year, numerous Alcoa workers are injured so badly that they miss a day of work. I intend to make Alcoa the safest company in America. I intend to go for zero injuries.


Investors called their clients and advised them to sell their stock immediately.  Alcoa was already doing poorly and some were talking of the end of the business.  The new CEO needed to save the company.  However, instead of focusing on profits O'Neill was introducing what he thought would be a keystone habit.  Dugigg writes:


O’Neill believed that some habits have the power to start a chain reaction, changing other habits as they move through an organization. Some habits, in other words, matter more than others in remaking businesses and lives. These are “keystone habits,” and they can influence how people work, eat, play, live, spend, and communicate. Keystone habits start a process that, over time, transforms everything.



As the company focused on safety, employees and investors were amazed at the other areas of change, as well. Alcoa eventually rose to new heights in production, employee satisfaction, and in their portfolios, as well.
The Power of Habit is an excellent book.  There are two ways we can apply it to the work we are doing.  
1.  Much of what principals, teachers and students do is based on their habits.  If you cannot change a habit then you can change their approach or performance.
2.  Transformational change, especially in touch situations, must focus on these keystone habits.  

See how to change a habit below:



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