Nudge Change Management is the art of facilitating organizational change by using behavioral nudges to guide employees in leading the change effort. Whose using change management is leading the market.
Blue Cross, known as one of America’s main health insurance providers decided to ban smoking on company property. Their math pointed out that to insure their own employees for cost reasons they needed to invest in creating healthier employees to lower future medical costs. They decided to employ a behavioral nudge by banning smoking on the property which would, in turn, make it harder for the employee to smoke during work hours. The employees would have to leave work, walk-off company property, have their cigarette break, and then return back to work. Their nudge was to make it easier to not smoke.
Virgin Atlantic during the oil crises of the mid-2000s drove their management team to initiate cost-cutting measures that would lower fuel costs by pilots. Using a simple experiment, they notified one group of pilots that their fuel usage would be monitored. The second group was told that they’d receive a monthly report on their fuel usage, the third group was told they would get a monthly report and a target to hit. The last group got the reports, targets to hit, and the incentive that a charitable donation would be given for each target hit. The Hawthorne Effect took place and all four of the groups lowered their fuel consumption totaling over $4.2 Million in fuel savings.
To increase sales, the leadership team at McDonald’s wanted to maximize the sales of french fries. These were a high margin product that was relatively easy to manufacture and cook. They applied the “Supersize Me” campaign. Before each transaction was concluded, the attendant would ask if they wanted to “Super-Size that order?” From 1992 to 2004 profits went through the roof as a natural response from customers was yes to the increased amount of food. The successful campaign died though in part to the bad press from the movie Supersize Me.
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