This is an excerpt from Charles Duhigg’s The Power of Habit that explains the power of “keystone habits”, habits which, in Duhigg’s own words, “start a process that, over time, transforms everything.” When Paul O’Neill became the CEO of the Aluminum Company of America (also known as Alcoa), he made it clear that his primary focus was on keeping workers safe and aiming for zero worker injuries. Once this change was implemented, it resulted in major improvements at the company and created many positive benefits for the workers, managers, customers, and shareholders. I love this example because it shows the importance of properly-ordered priorities and the many benefits that come from doing the right thing. Without further ado, here’s how it happened:
O’Neill’s safety plan, in effect, was modeled on the habit loop. He identified a simple cue: an employee injury. He instituted an automatic routine: Anytime someone was injured, the unit president had to report it to O’Neill within twenty-four hours and present a plan for making sure their injury never happened again. And there was a reward: The only people who got promoted were those who embraced the system.
Unit presidents were busy people. To contact O’Neill within twenty-four hours of an injury, they needed to hear about n accident from their vice presidents as soon as it happened. So vice presidents needed to be in constant communication with floor managers. And floor managers needed to get workers to raise warnings as soon as they saw a problem and keep a list of suggestions nearby, so that when the vice president asked for a plan, there was an idea box already full of possibilities. To make all of that happen, each unit had to build new communication systems that made it easier for the lowliest worker to get an idea to the loftiest executive, as fast as possible. Almost everything about the company’s rigid hierarchy had to change to accommodate O’Neill’s safety program. Hew as building new corporate habits.
As Alcoa’s safety patterns shifted, other aspects of the company started changing with startling speed, as well. Rules that unions had spent decades opposing – such as measuring the productivity of individual workers – were suddenly embraced, because such measurements helped everyone figure out when part of the manufacturing process was getting out of whack, posing a safety risk. Policies that managers had long resisted – such as giving workers autonomy to shut down a production line when the pace became overwhelming – were now welcomed, because that was the best way to stop injuries before they occurred. The company shifted so much that some employees found safety habits spilling into other parts of their lives.
Duhigg later continues:
O’Neill never promised that his focus on worker safety would increase Alcoa’s profits. However, as his new routines moved through the organization, costs came down, quality went up, and productivity skyrocketed. If molten metal was injuring workers when it splashed, then the pouring system was redesigned, which led to fewer injuries. It also saved money because Alcoa lost less raw materials in spills. If a machine kept breaking down, it was replaced, which meant there was less risk of a broken gear snagging an employee’s arm. It also meant higher quality products because, as Alcoa discovered, equipment malfunctions were a chief cause of subpar aluminum.