Encouraging people to make better decisions is a large part of our role as change agents. We support many stakeholders, from senior leaders deciding how to shape the change, to end users deciding to adopt new ways of working. We have all experienced sponsors who make not-so-rational decisions. To predict, and guide sponsor behavior we need to understand the choices they make, what their trade-offs are, and how they make them. What hurdles do sponsors face in implementing initiatives? What characteristics set the strong and effective sponsors apart from the rest? How can you as a change agent, nudge sponsors into making better decisions? Behavioral economics can help shed light on the factors that guide everyday decisions. In this presentation, we will touch upon the rational and irrational forces that influence sponsor behavior. We will discuss practical strategies to increase sponsor effectiveness by leveraging these insights.

1. NUDGE FOR GOOD:
Behavioral approaches to increasing
sponsor effectiveness
VABADD Conference, March 2, 2018
Kay Fudala
Change Management Consultant

2. 2
About Impact Makers
At Impact Makers, we are redefining
business. Our passion is doing the right
thing to create meaningful change for our
clients and our community.We drive
change through our teams of exceptional
people, motivated by our mission and guided
by our values. Success with us is a different
experience, by design.
Kay Fudala
Lead Change
Consultant

3. Agenda
 Learn about the sponsor’s role
 Learn basic behavioral economics concepts
 Discuss practical ways to nudge sponsor
behavior
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4. Who are you?
4
Mediator
Advocate
Messenger
Investigator
Coach
Change Agent
Business Analyst
Trusted Advisor

5. Roles in Organizational Change
• Individuals or groups with authority to
determine that change will occurChange Sponsor
• Responsible for implementing a well
defined change successfullyChange Agent
• Individuals who change knowledge,
skills, and behavior as a result of the
change
ChangeTarget
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Business
Analysts
cascade
change

6. Sponsor’s Role
Sponsors play a role in building
awareness and desire to change
with their direct reports, groups,
divisions or departments. A sponsor
promises or guarantees that they
will do everything in their power to
make the project or initiative a
success.
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7. What do effective sponsors do? (1 of 2)
Dimension What effective change sponsors do…
Business Case
Constantly communicate the drivers of change as well as the consequences
of not changing
Vision
Constantly maintain organizational focus on the change vision and the
objectives
Personal Impact
Understand the changes people are being asked to make in behaviors, skills
and attitude
Scope Understand which groups of people will be affected by the change
Private Support
Communicate their strong commitment to the change in private
discussions with people
Public
Commitment
Demonstrate their personal commitment to the change effort in public
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8. What do effective sponsors do? (2 of 2)
Dimension What effective change sponsors do…
Resources
Provide the financial support and organize resources to meet the needs of
the change
Network
Collaborate with other sponsors and change leaders in the organization to
implement the change
Transparency
Create an environment where people feel able to give real time feedback
about the change
Measurement Use a disciplined approach to track and follow through on change execution
Reinforcement
Use positive and corrective reinforcement to stimulate people’s full
participation
Behavior Modeling
Role model the new behaviors required for the change to be implemented
successfully
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How do sponsors really perform?
• Becoming disconnected from change
• Not communicating the why
• Failing to build a coalition
• Moving on to the next change too quickly
• Relinquishing responsibility, delegating
down
• Underestimating resistance to change
• Failing to set expectations with managers
• Spending too little time on the change
• 30% of participants stated their sponsors
were ineffective
• Over 50% of participants reported that their
sponsors did not have an adequate
understanding of their role
• 25% of participants indicated hesitation,
resistance or indifference from their
sponsor
Sponsorship
Mistakes
Facts from Prosci Benchmark
Studies

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Why do sponsors fail?
Common assumptions we make about
people (and sponsors) are incorrect:
1. People are rational actors.They always
make decisions based on logic
2. People always seek out and
understand all the information
available before making a decision
3. People always make decisions based
on what is best for themselves
Because they are notVulcan.They are human
and predictably irrational!

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How can you get your sponsors to be more effective?
• Understand how they Think Fast and Think Slow
• Understand common cognitive biases
• Understand when they may rely on heuristics (rules of thumb)
• Use NudgeTheory to influence sponsors

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Thinking Fast andThinking Slow

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Cognitive Bias
A cognitive bias is a systematic error in thinking that affects the decisions and
judgments that people make.
Too Much Information
Not Enough MeaningThe need to act quickly
Limitations of Memory

14. 14
COGNITIVE BIAS CODEX
Status Quo
Bias
Mental
Accounting
Willpower
Choice
Overload
Information
Overload
Hyperbolic
Discounting
Endowment
Effect
Loss
Aversion

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Heuristics
“Heuristics, which are commonly defined as cognitive shortcuts or rules of thumb that
simplify decisions, represent a process of substituting a difficult question with an easier one.”
~ Daniel Kahneman
Availability Representativeness Anchoring and
Adjustment

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NudgeTheory
Nudge: “to seek the attention
of by a push of the elbow. to
prod lightly. urge into action.”
Merriam-webster.com

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Nudge Decision Making
“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.To count as
a mere nudge, the intervention must be easy
and cheap to avoid.”
~Thaler & Sunstein 2008

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PRODUCTS
BASED ON
NUDGE
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NudgeTactics
• Boost Self-Control vs. Activate
a Desired Behavior
• Externally-Imposed vs. Self-
Imposed
• Mindful vs. Mindless
• Encourage vs. Discourage

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Behavioral Influence Model to Nudge
Make It
Easy
• Harness the
power of defaults
• Reduce the ‘hassle
factor’ of taking
actions
• Simplify
messages
Make It
Attractive
• Attract attention
• Design rewards
and incentives for
maximum effect
Make It
Social
• Demonstrate
most people
perform the
desired behavior
• Use the power of
networks
• Encourage people
to make a public
commitment
Make It
Timely
• Prompt people
when they are
receptive
• Promote the
immediate costs
and benefits
• Help people plan
their response to
events
Source:The Behavioral InsightsTeam, UK

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Sponsor Nudge Examples
• Make it Easy
• Setup default meetings, check-ins and reminders
• Clearly define decision criteria to avoid System 2 limitations
• Make it Attractive
• Connect sponsor incentives to program goals
• Make it Social
• Demonstrate how other sponsors are performing
• Make public commitments
• Make it Timely
• Read sponsor’s mood and nudge when they will be most
receptive
• Help plan for events (roadshows,Town Halls etc.)

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How can you apply nudge theory?
• Assess your sponsor on their readiness and
fit for the role
• Educate yourself and your sponsor on
system 1 & 2, heuristics and cognitive
biases
• Don’t just rely on sponsor actions plans,
actively identify opportunities to nudge
• Follow the EAST Model to nudge your
sponsor to be an effective change
champion

23. “Often we can do
more to facilitate
good behavior by
removing some
small obstacle than
by trying to shove
people in a certain
direction.”
― RichardThaler
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24. Resources Summary
• Nudge: An Overview,YouTubeVideo by
RichardThaler
• UK Behavioral Insights Unit
• Blog
• EAST Model
• Thinking Fast andThinking Slow, Daniel
Kahneman,Talks at Google
• This is how your brain works,YouTubeVideo
by ASAP Science
• Cognitive Bias Codex
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25. Additional Resources
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