In Part II of our series on Decisions, we explore how often our environments dictate our decisions, and how we can use that to our advantage.
Ever wondered why people buy the products they do? According to Richard Thaler and Cass Sunstein, authors of Nudge, many of our everyday decisions are shaped primarily by the placement of things around us. For example, the end of a store aisle is a money-making machine. Just ask The Coca-Cola Company, which sees 45% (!!) of its sales come from end-of-the-aisle racks.
Like those end caps, options that are visible and prominent often become our default decisions. For example:
- If our phones are next to us in bed, then it’s likely we will look at social media or check email before we go to sleep or immediately upon waking in the morning.
- If our living room furniture all faces the television, then it’s likely watching TV will be the staple activity in that room.
- If we have snacks on the counter-tops, then it’s likely we’ll grab one as we walk through the kitchen.
Many of us are silently cursing ourselves right now because we realized how often we’ve had decisions dictated to us by our environments. But what if we could leverage that decision-making force to help us and our organizations make better choices?
Keep it Simple.
How often do we zone out during a conversation with our spouse because the television is on? How well do we focus at work with the constant ping ping ping ping of text notifications? When stimuli are plentiful, our brains dart around like moths to a flame…and often get scorched. When in doubt, eliminate options. Create simple, straight-forward paths to desired decisions. For instance, if we want to have a chat with our spouse, let’s suggest taking a walk without the kids. If we’re going to encourage meaningful meeting participation, let’s close all electronic devices. Sometimes the simple solution truly is the best one!
Create Visual Cues.
Just like the aisle end caps, visual cues keep important ideas in front of us and help us to make consistent choices. For instance, Becky stows her work-out clothes in a basket next to her bed so that each morning she will be reminded of her commitment to work-out. That doesn’t always lead to the desired choice, but her record is much stronger than it was when she kept her work-out clothes in a dresser drawer! One of our clients emphasizes safety by displaying pictures of family members, friends, and pets with a prominent banner that reads, “THIS is why I work safely.” Talk about motivation!
Force an Opt-Out.
Multiple European nations saw organ donation rates skyrocket when they made a simple change: citizens had to opt-out of donating rather than opting-in. We can create similar returns for our future selves by making better choices ahead of time. For example, we can schedule a work-out with friends for next week while we’re feeling motivated today. And because we’re working out next week, we might as well pre-schedule our date night at a healthier restaurant for this Friday. While we’re at it, we should schedule that meeting with our direct report that we’ve been avoiding for three weeks. See how that works? When we pre-plan activities, we force an opt-out—a lever that most of us will not pull because we prefer to keep our commitments to ourselves and others.
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The Big Takeaway: Nudges are powerful behavioral drivers. What nudge do you need to give yourself today?