Hack, Nudge and Prod: The Little Changes That Transform · Decide what goal you're hacking toward....

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Summit 2019

Mary Mesaglio

Hack, Nudge and Prod: The Little ChangesThat Transform

Gartner CIO & IT Executive Summit

1 © 2018 Gartner, Inc. and/or its affiliates. All rights reserved.

What is the biggest barrier to change

in your enterprise?


Culture


The first step to culture change is to

know what you want to change into.


The Quick and Dirty Transformation Test

1. Can you tell me what your enterprise is

transforming into and why?

2. In under two minutes?

3. Using no corporate speak?

4. In a way that someone at the frontline would

understand - and be motivated by?

5. Would your peers say roughly the same thing you

have?


"A digital-ready organization

prepared for the challenges of

the 21st century. We are

innovators first, preserving

agility and partnering with our

ecosystem to delight our

customers everywhere."

We Are Transforming Into …

Does this transformation message pass our test?

+


Let's imagine you now have a clear

transformation destination and it's

comprehensible and motivating to your people.

Now, what?


Hack, Nudge and Prod Your Way to Transformation

Exploit a single point where the

culture is vulnerable to change.Hack

ProdUse incentives and rules to

change behavior.

NudgeMake it easier for people to behave in

ways that are good for them.Culture


CIOs Want Their Cultures to Be More

Agile Open

CreativeCustomer-

Centric






change behavior.


ways that are good for them.Culture


A Culture Hack Is

Emotional

Immediate

Visible

Low Effort*

* But not low courage.


Cultures Are Vulnerable to Change Where Associates Spend Most of Their Time

Processes MeetingsProjects


Culture Hacks Are All Around You

1. Cape Town and the two-minute shower song

2. Lisbon and the death of plastic bags

3. A CEO starts an internal corporate blog

4. A CIO hacks the strategy execution process

5. Ireland?






change behavior.

Culture NudgeMake it easier for people to behave in

ways that are good for them.


Nudge

/nudge/verb

1. To touch or push gently

2. Any aspect of the choice architecture that alters

people's behavior in a predictable way without

forbidding any options or significantly changing their

economic incentives. Nudges are not mandates.

Source: 1. Merriam-Webster Online Dictionary. 2. "Nudge: Improving Decisions About Health, Wealth

and Happiness" by R. H. Thaler and C. H. Sunstein


Imagine you

were moving

into new offices

and you had to

choose the

layout.


Nudging Is Encouraging — But Never Mandating — Behavior

▪ Nudging is a gentle form of hacking.

▪ In this scenario, you are a "choice architect" whether you know

it or not.

▪ There is no such thing as a neutral design — you must choose a layout which will

have pros and cons.

▪ You can design the office to "nudge" associates toward:

– More or less collaboration

– More or fewer accidental meetings

– More or less noise

– More or less formal behavior


Two Great Nudge Techniques Are Design and Default

Design Default




change behavior.

Culture




ways that are good for them.


Prod

/prod/verb

1. The act of pushing someone or something with your

finger or a pointed object

2. Something said or done to encourage or remind

someone to do something

Source: Merriam-Webster Online Dictionary


Prodding Uses Incentives and Rules to Change the Culture

Prodding is a subset of hacking, focused on actions that are slightly more aggressive than nudges.

Incentives (Small) Rules


Two Worlds of Incentives: Market Norms and Social Norms

Market Norms

Social Norms

World of value for

money, transactional,

based on economic

benefit.

World of relationships, neighborly conduct, based on social benefit.

Can I hire you to move my couch?

Hey, could you give me a hand moving my couch?

These two worlds don't mix. Humans operate in one or the other.


Avoid Mixed Messages — Selling Social Norms When Actually Offering Market Norms

▪ Humans work as hard or harder when prompted by social norms as compared to

when motivated by money

▪ Money doesn't work well for creativity, transformation and culture change because

people game the system

▪ Two good incentives are peer pressure and loss

Peer pressure: If you want to prod your team to be more sustainable, disclose how

sustainable other teams are being. Bonus: Add an emoticon.

Loss aversion: If you want people to transform, talk in terms of the cost of inaction,

not the benefits of action. What would they miss out on if you didn’t transform?


Small Rules, Rather Than Big Mandates, Make HacksSelf-Sustaining and Create New Habits

"All staff meetings from now on will be held as 15 minute stand-ups."

Agile

"You must pitch new ideas using something other than PowerPoint or Word."

Creative

"You must work with someone outside your team for this type of project."

Open

"You must obtain customer data to proceed beyond this point in the project."

Customer-Centric


✓ Small actions are at least as important as big actions in order to change

behaviors. Don't overlook them as you transform.

✓ When it comes to culture change, creative hacks, prods and nudges work

better than blunt coercion.

✓ There are a myriad number of small actions at your disposal:

– Hacks — small changes that exploit a point where your culture is vulnerable

to change.

– Nudges — set useful defaults, design in reminders, recommendations

to user interfaces.

– Prods — include small rules and incentives to change behavior

Recommendations


Action Plan for CIOs

Monday Morning:

▪ Decide what goal you're hacking toward. Avoid cultural schizophrenia.

▪ Design a single hack for next week that gets you closer to that goal

Next 90 Days:

▪ Review your team's incentives to check alignment. Are they in the world of social norms or market norms? Don't mix the two.

▪ Incorporate small rules that become habits, or the "way we do things around here."

Next 12 Months:

▪ Make nudging a standard part of interface and process design.


For information, please contact your Gartner representative.

Recommended Gartner Research

The Art of Culture HackingMary Mesaglio (G00348246)

CIO Mastery of Leadership, Culture and People Dynamics Primer for 2018Bruce Robertson, Diane Berry and Others (G00348696)

Culture Change Is Easier Than You ThinkLeigh McMullen, Bard Papegaaij and Patrick Meehan (G00276736)

Case Study: AT&T Takes Practical Steps to Transform Its Culture and Behavior for Digital BusinessMentor Cana (G00324019)

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Hack, Nudge and Prod: The Little Changes That Transform · Decide what goal you're hacking toward....

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