This paper advances research on the conceptual nature of organizational routines. We examine whether and how routines contribute to organizational stability, renewal, or change. We review the “routine as change” perspective and find several important shortcomings. To mitigate some of the conceptual problems of this perspective, we develop a rule-based understanding of routines that focuses on rule-following and rule-breaking. Our model of routines clarifies the primarily organizational nature of routines. We conceptualize ways in which organizations may react to a violation of their rules and argue that it is the subtle relation between rule-following and rule-breaking that drives routine dynamics.