Habits, the small decisions and actions we perform daily, have a profound impact on our lives. They are the building blocks of our routines and behaviors, and by understanding their mechanics, we can transform our lives.

Consider the story of Olympic swimmer Michael Phelps. His coach, Bob Bowman, helped Phelps develop a set of habits and routines that he followed religiously. These habits, which included visualizing success, following a strict diet, and maintaining a rigorous training schedule, were instrumental in Phelps becoming the most decorated Olympian of all time.

Similarly, a study conducted by researchers at Duke University found that about 40% of our daily actions are not actual decisions, but habits. This underscores the significant role habits play in our lives.

Another example is the story of Starbucks, which trains its employees to follow specific routines in dealing with customers. These routines, or habits, have helped Starbucks maintain a high level of customer service, contributing to its global success.

Small improvements, when consistently made, can accumulate into remarkable results over time. This principle, known as the compound effect, is particularly applicable to habits. For instance, if you improve by just 1% each day for a year, you'll end up thirty-seven times better by the end of that year. Conversely, if you get 1% worse each day for a year, you'll decline nearly down to zero. This demonstrates how small, seemingly insignificant changes can have a profound impact over time.