Change Management | Exec Ed Insider

What’s the best way to get someone to do something? You can incentivize them financially, you can limit their choices, or you can nudge them. Nudging is an insight from the field of behavioural economics, a way to get someone to do something without restraining their freedom or changing the financial incentives.

The Behavioural Economics in Action (BEAR) research institute at Rotman conducts leading edge research in this field, working on real projects that help people design better products, services and programs.

But how does that work exactly? Let’s take a look at a real world example. If you want to encourage people to stop littering, you have a few options. You could

Hand out fines for littering
Pay people for using the garbage or recycling bins, or
Place green footprints on the ground pointing the way to the nearest bin

That last option is what Professor Dilip Soman would call a nudge. “Human decision making isn’t rational,” Dilip says. “People make mistakes, they get emotional.” But so what? Green footprints on the ground aren’t logical, and yet a 2011 Copenhagen study showed a 46% decrease in littering where the green footprints were in use. That’s not just a nudge, that’s a major behavioural change, and a very effective one at that.

Sometimes nudging is about simplifying processes, including the decision-making process. In a 2013 Cornell University study, they found that simply placing junk food on higher shelves and healthy food at eye level immediately helped high school students make healthier choices. They were 13% more likely to choose fruits and 23% more likely to choose vegetables in their school cafeteria. It was that easy.

What’s really interesting is that influencing behaviour in this way isn’t just an academic study. Every organization, public and private, is in the business of changing behaviour, from getting customers to switch from a competitor, getting people to be more honest when filing their taxes or applying for insurance, or even getting patients to take their medicine and treatment as directed.

Despite this being a universal constant across the board, many organizations are not particularly good at managing behaviour change. Without the right tools and information, the actions of your customers and clients can seem irrational, unpredictable, and difficult to measure.

Rotman now offers a new Behavioural Economics at Work program based on proven research out of BEAR, providing hands-on experience so you can start applying these techniques immediately upon returning to work. Seats are limited and class starts April 19. Apply now.

Last week, we welcomed a diverse group of professionals from the private and public sectors of Canada, the US, and as far away as New Zealand, to our Leading Strategic Change program. The program uses a model-based problem solving approach to help participants effectively lead transformative initiatives at their organizations.

John Oesch, a published authority on change management, who also happens to have impeccable comedic timing, led the five-day program. With a background in organizational behavior, decision-making and negotiations, John presented learnings from diverse fields through the course of the week.

As John explained, the rate of change in business is much quicker than in most other fields. However, a thoughtful process during the change can be the difference between a successful initiative embraced by all stakeholders or a tumultuous change that heightens anxiety and resistance to the initiative.

On day one, John was joined by Rick Powers, a leading expert on corporate strategy, governance and law. Using case studies, Rick helped the class frame their change initiatives within the context of their organization’s strategy. Next, using the principles of Integrative Thinking, participants began analyzing a series of best-in-class models of change management and began modifying these to meet the unique needs of their organization.

Later, the class explored the psychology behind reactions to change and the role leaders have in managing the level of anxiety during transition. They also learned best practices to identify, understand and work with resistors to change. Finally, the class learned how to master procedural justice: the perceived fairness behind the process of change.

David Weiss at Rotman’s Leading Strategic Change

Guest speaker, Dr. David Weiss, a sought after global consultant on change management to some of the world’s biggest firms, helped participants synthesize the learnings from previous sessions. Through focused exercises, he also helped them develop effective story-telling techniques to inspire the action necessary to implement change.

Next, using relevant case studies, participants tested their learnings by evaluating the actions of key players during different stages of transitions.

Armed with change-management theories, key models and case study analyses, participants began working on their own change management models in consultations with faculty.

On our final day, each participant presented their change model and benefited from feedback from David Weiss, John Oesch and their team members. They now return to their organizations with a robust customized model and strategies to sustain their initiatives through the transition.

As always, participants benefited from the wealth of knowledge of their classmates. A highly engaged group, they were eager to share their experiences (both cautionary tales and best practices). They now have an expanded network ready to serve as consultants as they each work through their exciting initiatives.

To learn more about our programs connect with me at joanne.goveas@rotman.utoronto.ca

Exec Ed Insider

Category Archives: Change Management

Want results? Learn how to nudge your customers.

Highlights from Rotman’s Leading Strategic Change program