The Several Habits of Highly Effective Organizations

Constancy of purpose, to take a leaf from Dr Edward Deming, is one of the prime contributory factors to business success. It is a commitment to the long-term and connected with a continual improvement ethos. In order for any organization to become highly effective at sustaining its constancy of purpose it has to develop several habits.

The first of these habits is Strategy. Strategic planning and on-going reference to strategy is central to mobilizing people, empowering them and maintaining a greater level of control over results. Strategy as a habit is akin to taking regular compass bearings to ensure the venture is heading in the right direction. Companies should strive to become accomplished at strategic thinking as far down their organization as possible. The greater strategic awareness, the more attention to detail is paid. Detail is competitive edge.

In order for Strategy to be effectively put into action, a second critical habit needs to be developed. Culture. The way people think, communicate and act will also determine effectiveness. If Culture is a conscious habit, then there will be a consistency of approach throughout a business that reflects a common set of values and beliefs. It makes for the possibility of an environment in which people can excel. A great Culture is the product of great leadership.

If ‘Change is the only constant’ (Heraclitus), then it should be embraced. Change is another habit of highly effective organizations. They decide for Change rather than having to always react to it. It becomes a habit coupled with regular reference to strategy and the ability to move quickly because of a strong culture. Change, if it is a habit, is seen as positive and quickly adopted. Standing still in business is the same as dying.

Highly effective organizations are in the habit of referencing Principles. A business that is guided by Principles is able to make quicker, more confident decisions. A decision is a pivot between the past and the future. Strong, confident decision making is a reflection of clear strategic focus and translates into more committed action. Recognized Principles communicate integrity and unite teams. A Principle is only a Principle until it costs you something.

When things go wrong highly effective organizations listen. Real listening is linked to Openness. When a company sees success and failure as two ends of

the same stick, everything is simply information. Not only does openness allow focus to quickly move to solutions, it reflects confidence and security in its ability to cope with a setback. A blame culture cannot exist when the habit is to seek to understand, make a new decision and Govern Change. An organization is able to learn. Openness is the gateway to creativity and innovation.

Future Orientation is at the core of any effective enterprise. Habitually focusing on the future prompts the question ‘How do we move forward?’ and is action oriented. Future orientation is a reflection of a strategic organization with a culture and principles that propel it forwards. When a business is Future Oriented it will use time better and achieve more. Turn hope into expectation.

All organizational habits are characterized, exemplified and adopted by people. One more habit is finding, developing and retaining the Right People. Highly effective organizations are uncompromising in their recruitment. It is more about cultural fit than technical fit. They create a learning environment and encourage involvement. Training is a commitment to the people and appraisal is looked forward to. Management is rewarded and feedback is on a regular basis. People work without fear. It is people who deliver an organization’s results.


It is possible to build these habits deliberately, quickly and easily into any organization. Mitchell Phoenix has been transforming businesses with core business strengths for over twenty years.