The IKEA Effect: Embracing Change by Co-Creating It

What you create or invest effort in, you value more than what others create.

This is the IKEA Effect, named after the Swedish furniture retailer. Many people think IKEA is successful because of its affordability, but that’s just one part of its value proposition. The other important aspect is allowing customers to assemble their furniture themselves using simple instructions, which increases perceived value.

Ready-Made vs. DIY 

In 2011, the IKEA Effect was proven in a study by Harvard, Yale, and Duke, featuring renowned professor and author Dan Ariely. His TED Talk illustrates how a ready-made cake mix holds less value than one requiring finishing touches. Similarly, services like HelloFresh or Foodbag—offering meal kits with ingredients and recipes—are perceived as more valuable than pre-made supermarket meals. The psychological need to feel competent fuels this phenomenon. When we overvalue our creations, it signifies pride in our work.

The IKEA Effect in Organizational Change 

The application to organizational change is straightforward: people value what they create. This principle applies to work just as much as furniture. Co-creation has gained traction in recent years—not just because it’s engaging, but because involving employees in change processes boosts motivation by making them part of the solution. Allowing people to contribute fosters belief in the change and enhances its perceived value.

The Challenge of Balance 

The challenge lies in making the task neither too easy nor too difficult. The IKEA Effect only activates when the task is successfully completed.

“Labor leads to love only when that labor is successful.” 

(Norton, Mochon, Ariely) 

Workshops and Change Design Sprints 

Co-creation can occur in workshops or asynchronously via online idea platforms. Employee involvement can range from small contributions to significant roles in the change process. The more involved employees are, the higher the adoption rate due to increased ownership. Successful change projects are those where ownership is widely distributed rather than centralized in the project lead.

Teams 

Teams play a crucial role in change management. Let managers work with their teams on specific changes by providing a framework, objectives, and clear yet flexible guidelines. Avoid overly detailed instructions and allow teams to shape the change at their own pace.

At Soulcenter, we use this approach for implementing change in care homes. We provide a roadmap, clear steps, and practical examples for managers and employees, while allowing teams to take ownership of the process with our support in the background.

Ambassadors and Champions 

Research highlights the key role of change agents in organizational transformation. While they are often involved in execution, it’s even better to include them in the planning and, if possible, solution design. Point them in the right direction and then step back.

Idea Processes and Toolkits 

Adobe’s Kickbox program empowers employees to actively participate in innovation by creating and submitting their ideas. Since 2015, the concept has been open source. Initially, the kickbox included a prepaid $100 card, brainstorming exercises, Post-it notes, and a snack bar. This toolkit, designed to foster innovation, can also support change initiatives.

Did-It-Yourself vs. Do-It-Yourself 

The IKEA Effect is retrospective, it enhances the value of something after it’s created. Employees may not immediately see the value of co-creation unless they’ve experienced it before. Starting with small, manageable contributions, such as gathering feedback on ideas, can help build engagement.

Workshops Without Results? 

While the IKEA Effect boosts motivation, it doesn’t guarantee better solutions. Workshops can be engaging and inspiring but still fail to yield actionable results. To ensure meaningful outcomes, involve diverse perspectives, conduct thorough preparation, and implement intermediate research.

The Sunk-Cost Trap 

Managers may continue to invest in failing projects due to the time and energy they’ve already invested, a phenomenon known as the sunk-cost effect. This is why seeking early feedback is vital. Additionally, beware of the Not-Invented-Here Syndrome, where managers favor internally developed ideas over external ones, even when the latter are better.

Leverage the IKEA Effect in Change 

The IKEA Effect is a powerful cognitive bias that can be leveraged in change management. By providing frameworks, clear objectives, and guidance, you can encourage employees to contribute, increasing their appreciation for the change and their motivation to sustain it. However, be mindful of potential pitfalls like overattachment to ideas or resistance to external contributions.

When used strategically, the IKEA Effect can become a valuable ally in driving organizational change.