Organizations Change One Nudge at a Time 🧠

 I think it was in 2010 when I read the book Nudge by Richard Thaler and Cass Sunstein, one of the most influential books in behavioral economics. I was instantly a fan. And in 2017, I was genuinely happy for the first time with a Nobel Prize winner. That year, Richard Thaler won the Nobel Prize in Economics for his research on how people can be guided toward making better choices.

🅽🆄🅳🅶🅸🅽🅶 

This concept is all about nudging. A nudge is a small push, a gentle prod in the right direction. You can help people make better choices by creating conditions that encourage those choices. This is not about issuing strict orders but gently guiding people without limiting their freedom to choose. People can still opt for the less ideal alternative (for their health, finances, career, etc.). Placing fruit at eye level counts as a nudge; banning junk food does not.

Reducing Salt Consumption 

In the UK, research revealed that takeaway restaurant customers were using excessive amounts of salt on their fish and chips. Studies found that many takeaways used salt shakers with 17 holes. To address this, the government distributed free salt shakers with only five holes to reduce the amount of salt used on food.

Reducing Food Waste 

The “Pick Me I’m Single” nudges in Denmark’s supermarkets led to a 90% reduction in banana waste. Similarly, research by Kallbekken & Salen (2013) showed that using smaller plates in hotel restaurants resulted in a 20% reduction in food waste.

Creating Discipline 

Have you ever been in a hurry only to be blocked by people standing in zigzag patterns on the escalator? The photo below shows how a simple nudge can solve this problem. Nudges are not only aimed at individual well-being but can also be used to benefit society or an organization.

 “A good manager never thinks: ‘Why are these people behaving so poorly? They must be bad people.’ Instead, they think: ‘How can I create a situation that brings out the best in people?’” 

Nudging in Organizational Change 

People are the most crucial element in successful change. It’s essential to understand what motivates people to embrace change and to design pathways that help them transition. Using behavioral change models, such as nudge theory, can help leaders, change managers, and designers better understand human behavior and support people through change by smoothing the path. Organizational change often requires people to change how they work and think. So, how can we find ways to help them follow through with change?

The EAST Model 

The Behavioral Insights Team uses the EAST acronym (Easy, Attractive, Social, Timely) to categorize commonly used nudges. It’s not the only model, but it’s one of the simplest and most practical starting points. These four principles help facilitate good choices: make them easy, attractive, social, and timely.

Nudges for Cost Reduction 

Virgin Atlantic used nudges to reduce fuel costs. Pilots were divided into four groups:

 1. A control group was told fuel consumption would be monitored.

 2. A second group received monthly fuel reports.

 3. A third group was given additional encouragement.

 4. A fourth group was told donations would be made to charities if targets were met.

The results? All groups saved more fuel than the control group, saving Virgin Atlantic over $5 million without major programs—just a few nudges.

Nudges for Productivity 

Deep, focused work can be encouraged by implementing “no-meeting days.” For example, at Haribo, a “focus elephant” was used. When the elephant was on someone’s desk, it meant they didn’t want to be disturbed. Similarly, at Soulcenter, we avoid scheduling meetings in the morning, reserving this time for uninterrupted project work. Morning Slack check-ins help determine priorities and clarify who needs assistance. Slackbots also provide nudges to update plans and complete specific actions.

Nudges for Knowledge Sharing 

Google introduced “micro kitchens” to encourage spontaneous knowledge sharing. These small shared spaces are designed to foster casual interactions between employees. Similarly, Steve Jobs designed Pixar’s atrium so people would frequently run into each other, sparking idea exchange.

Nudges for Employee Experience 

Managers play a key role in shaping employee experiences. Supporting managers with timely nudges can improve organizational change outcomes. For example, sending reminders to managers about allowing time for learning programs or encouraging supportive check-ins can make a significant difference. AI tools now enable automated, personalized nudges.

Nudges for Movement 

Footsteps painted on the floor leading to stairs instead of elevators are classic nudges to promote movement. Similarly, walking meetings can be encouraged by adding “walking meeting” as a location option in calendar apps.

Nudges for Customer-Centric Thinking 

To instill a customer-centric mindset, you can integrate client-focused questions into daily operations. For example, adding “What would our customer think?” to daily stand-up meetings can reinforce this perspective. Another example is placing an empty chair in meeting rooms to represent the customer, reminding everyone of their importance.

Nudging as a “Last Mile” Intervention 

In my article “The Last Mile of Change,” I discussed how nudges can serve as tactical tools for ensuring change reaches people effectively. Nudges are particularly powerful at this “last mile,” where they can provide the final push needed to embrace change.

How to Create Effective Nudges 

 1. Map Current and Desired Behaviors: Observe or ask employees about their current habits and obstacles to change.

 2. Define the Challenge: Identify the underlying needs or barriers.

 3. Use the EAST Model: Simplify, personalize, and make the change attractive, social, and timely.

 4. Test Small Interventions: Experiment with nudges and evaluate their effectiveness.

A Note of Caution 

Nudges walk a fine line between constructive guidance and manipulation. Transparency and ethical intent are crucial. Richard Thaler emphasizes three principles for ethical nudging:

 1. Nudges should be transparent and not misleading.

 2. Opting out should be easy.

 3. There should be evidence that the nudge improves well-being.

When used thoughtfully, nudges can transform organizational culture, improve performance, and foster meaningful change. By leveraging behavioral science, we can create small but impactful nudges that help teams, individuals, and organizations thrive.