Aug 3, 2018
The past two weeks have been dedicated to my “it’s not about the
cookie” framework, which shows how the experience and all the
things leading up to the sale matter much more than whatever is
being sold itself. This week, I am extending this framework to one
more application – change management. Think of this as any time you
are trying to get someone to buy in and make a commitment where
money is not exchanged.
In this behavioral economics
podcast, I talk about what
change management actually means and how the “it’s not about the
cookie” framework ties into change management. I talk about how
using perceived ownership, the endowment effect, and loss aversion
to your advantage in the beginning will pay off in the end. I also
talk about how framing is not what you say but how you say it and
how to overcome status quo bias. This is the most complex episode
of the cookie framework, but it will give you proven tools to
- [03:38] What the concept of change management actually
- [04:59] Change management or leading through change is
something that a lot of people are talking about these days.
- [05:18] Change and getting people to change is all about
selling them on your perspective and getting them to buy in and
- [05:48] An example of trying to get your significant other or
child to do something.
- [07:48] Ways to get the child to buy in may be making it fun,
leading by example, and using distraction.
- [08:32] I often compare our subconscious brain to a small
child. Much of our decision-making is still that on this
- [09:22] A small detail can hang people up when making positive
- [10:30] How what the person selling the concept thinks is
important may not align with what the person buying the concept may
think is important.
- [10:52] Consider the ripples. One small word can have a
different impact on different people.
- [11:21] An example from my credit union days.
- [12:51] When it comes to credit cards there will be several
different groups affected. The messaging needs to be focused for
the individual groups that matter. Keep the overall brand message
- [14:36] I'm not getting into habitual buying in this episode,
but it is really fascinating and I will dedicate an episode to it
- [15:17] It's important to think about what the specific people
need to hear and where they are coming from before applying your
- [15:34] Thinking about the group as a whole instead of
considering the individuals.
- [15:55] Office Space, Milton and the red stapler.
- [17:19] How our brains are very good at dwelling on small
- [17:42] When trying to sell change get ready for loss aversion
to rear its head. The
Endowment Effect, Loss Aversion, and Status Quo Bias
- [18:21] The endowment effect as the anomaly that our brains
favor things they own over other things.
- [20:10] We go all in with things that we already have.
- [20:24] Loss aversion. People hate to lose things. It takes
double the joy of a gain to outweigh the pain of a loss.
- [22:35] Status quo bias. When given the choice people tend to
go with the status quo and favor it heavily. Be wary of giving
people too many choices.
- [23:13] How all of this ties into change management. Using
these concepts to your advantage is the best approach.
- [23:45] The five components of “it's not about the cookie.” The
scent of the cookie, free sample, perceived ownership, today only,
and buy three get one free.
- [24:26] The prep is critical for change management.
- [24:46] How the smell of the cookies breaks through your
- [26:33] How rumors about the upcoming change are like the smell
of burnt popcorn.
- [28:04] Be thoughtful of how the meeting is framed. Avoid being
- [29:14] People need time to process. Share and be
- [29:32] Reciprocity - sharing information makes the recipient
more likely to have an open conversation.
- [30:43] Perceived ownership is where people work harder for
ideas that they came to on their own. Outline the information you
present, so that the recipient will perceive ownership.
- [31:12] Do your homework when proposing a big change.
- [34:07] The importance of having advocates and thinking
long-term when any change is implemented.
- [35:10] Using scarcity is optional in change management
conversations. Use with caution.
- [36:45] Knowing what matters to each person helps facilitate
the conversation with the desk moving example.
- [38:28] The problem with unintended ripples using the scarcity
- [39:10] Framing is everything when it comes to change
management. It's not what you say it's how you say it.
- [40:03] Decide what the one thing is that you want this person
to do. Get the person invested in the outcome.
- [40:37] Frame your offer properly by pointing out the
- [44:07] If you thought this was the most complex of the
scenarios in the “it’s not about the cookie” scenario, you’re
right. There is a reason it was the final installment.
- [46:11] Change is all around us, and being able to lead people
through it is important in any business. Turning naysayers into
advocates is critical to your success.
- [47:28] Don't forget to tune in next week to Episode 8 What
is Value? This episode will make it clear why the cookie
framework is effective.
Thanks for listening. Don’t forget to subscribe on
Apple Podcasts or Android.
If you like what you heard, please leave a
review on iTunes and share what you liked about the show.
Links and Resources: