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OPEN PRACTICESBusiness Behaviour Change Research Briefing report
PURPOSE OF THIS BRIEFING
There is a growing interest among governments in applying innovative practices to developing government policies, interventions and services. This includes using design thinking, foresight and applying insights from the behavioural and social sciences.
Businesses participate in and impact on the socio-technical conditions that drive long-standing behaviours and habits among the wider public. This can be through the products and services that are produced but also how businesses shape the cultural and social context within which people live their daily lives.
While the application of behavioural insights have become increasing popular, for example “nudge” approaches, these are typically applied to individuals. Businesses are not typically susceptible to the cognitive biases that underpin the nudge type interventions.
Over a 3.5 month period, the Open Practices project conducted research with businesses and public sector organisations across Ireland. This research explored the scope an potential of applying behavioural insights in the design of policy interventions to support behaviour change in Ireland.
The research applied design research methods such as design ethnography, user journey mapping, service safaris and contextual interviewing.
This slide deck provides a summary of the key research outputs and presents a simple framework through which policy interventions for behaviour change can be designed.
This framework is intended for policy makers and state agencies. It is not intended to be a general employee engagement or change management tool but it may support these activities
BACKGROUND & CONTEXT
The design of policy interventions for resource efficiency and the circular economy has been dominated by a “resource based view of the firm”. This undervalues the socio-technical drivers of organisational and business behaviour as well as the potential biases that influence business decision-making.
In this context, behaviour refers to how an organisation makes decisions, how these are influenced by factors such as socio-technical system, organisational culture and structures but also biases at the cognitive level of decision makers.
Given the recent insights emerging from the behavioural sciences literature with regards the cognitive dimensions of decision making there has been a clear desire to apply these insights across a range of contexts e.g. individual decision making, organisational behaviour.
While this is understandable there is also evidence from the literature that the application of these approaches may not be as readily applicable to businesses and other types of organisations so policy makers need to proceed with caution.
Organisations are less susceptible to the cognitive biases that underpin many "nudge" type interventions. Having said that, some evidence suggests that organisations are not immune from cognitive biases.
Decision makers in organisations have to work within the context of unavoidable constraints such as information asymmetry or limitations, time constraints, limited capacity and experience.
Therefore, designing more effective policies and policy interventions may be contingent on understanding the behavioural constraints and biases affecting decision makers and managers.
BACKGROUND & CONTEXT
Historically a failure to embrace more sustainable businesses practices has resulted in higher operating costs, e.g. landfill tax, fines, penalties. Whereas businesses that have successfully implemented more sustainable practices have reduced costs, built a strong brand reputations, attracted investment, driven innovation and created repeat business.
Because of this, increasing numbers of companies have moved towards applying Life Cycle Thinking or circular economy approaches with integrated environmental strategies and management systems. It is clear that these approaches to creating closed-loop, circular production systems have driven resource efficiency and innovation.
There are also many examples of companies working with their supply and value chains in environmentally responsible ways. This is helping these companies to innovate their business model and capture value from these new sustainable approaches.
Typically there are four different levels of a business where resource efficiency can be applied. These include:
Process improvement: e.g. designing recycling greywater systems, better process controls, intelligent lighting
Product or service redesign: e.g. using less materials, material substitution, reducing the volume of packaging
Technology change: e.g. heat pumps instead of gas heaters, replacement production process, and more efficient equipment
System design: circular economy, new business models, product service systems, leasing models, product take-back and remanufacturing
BACKGROUND & CONTEXT
The business barriers to resource efficiency are often discussed in terms of endogenous and resource-based factors such as organisational issues, financial resources and so on. Other key barriers include:
Weak external pressures & incentives Often there are weak market signals for investing in resource efficiency. These unclear market demands are reinforced by a misalignment of policy incentives, few favourable tax incentives or consumer subsidies.
Lack of skills and resources Resource efficiency typically requires new skills, mindsets and resources. Many SMEs in Ireland are highly dependent on the local supply of skills so their capacity to increase their skills base is limited.
Limited access to finance Businesses often mention the difficulty in raising finance for resource efficiency from internal and external sources.
Inflexible business models A key barrier to the shift towards more resource efficient business models is that companies remain aligned to and directly or indirectly locked into their existing business models.
Innovation capacity The low level of innovation capacity in some businesses can be observed through factors such as a traditional mindset among senior management and a lack of horizontality among different business functions.
A lack of information A frequently cited barrier to resource efficiency is a lack of information or information asymmetry.
BACKGROUND & CONTEXT
In the context of resource efficiency policy makers may need to:
• Address system and market failures, imperfect information and unaccounted externalities (e.g. carbon emissions)
• Rectify regulatory barriers to resource efficiency (e.g. definitions of waste that hinder trade and transport of products for remanufacturing)
• Co-create appropriate enabling conditions for resource efficiency
• Actively steer and stimulate market activity by setting targets, sustainable public procurement, phasing out unsustainable products, facilitating sustainable behaviour in the public
• Invest in innovative pilots, sustainable and socially innovative start-ups and sustainable R&D.
• Promoting markets for secondary raw materials, reuse and repair
• Reduce the cost of doing resource efficient business
Three forms of policy intervention may be useful to consider when developing services and interventions for resource efficiency.
1. Resources based: financial, human and organisational resources - deployed through or on behalf of policy programmes and projects
3. Informational: the provision of new information (vision, strategy, coordination, best practice) that is geared towards innovation activities
5. Institutional: new institutions (legal acts, rules) designed to explicitly affect the innovation process.
RESEARCH DESIGN
The research applied a qualitative research strategy to investigate the experiences, socio-cultural structures and the practices that shape resource efficiency behaviours in Irish companies.
DISCOVER(research)
DEFINE(insights)
DEVELOP(ideas)
DELIVER(prototypes)
1. UNDERSTAND POLICY & SERVICE CONTEXT
METHODS:EVIDENCE ASSESSMENT, DESK RESEARCH, LITERATURE REVIEW
2. UNDERSTAND BUSINESS & SERVICE PROVIDER CONTEXT
METHODS:CONTEXTUAL INTERVIEWS. SERVICE SAFARIS, PARTICIPANT OBSERVATION, CO-DESIGN WORKSHOPS, USER JOURNEY MAPPING
3. SYNTHESIS
METHODS:CODING, DATA VISUALISATION,
4. SERVICE PROTOTYPES & STRATEGY METHODS:STORYBOARDING, WIREFRAMING
DISCOVER(research)
DEFINE(insights)
DEVELOP(ideas)
DELIVER(prototypes)
KEY STAGES - 3.6 MONTHS
Attending events and workshop - Green Business, Enterprise Ireland, expanding networks
Service Safari / particpant observation of the delivery of Green Business with company
Desk research
Mapping policy lansdscape
Developing initial company database
DISCOVER: FEBRUARY - APRIL 2015
DEFINE: MAY - SEPT. 2015
DEVELOP: SEPTEMBER 2015
Interviews and meetings with service providers intermediary organisations and government agencies
Journey map workshop with Green Business programme manager and team
Field research with companies
Site vists, contextual Interviews
Synthesis of data collected and refining of insights
Co-design workshop with service providers and consultants
development of design report and briefing document
development of design propositions
development of service prototypes
start
DISCOVER STAGE (DESK RESEARCH)
DISCOVER(research)
DEFINE(insights)
DEVELOP(ideas)
DELIVER(prototypes)
1. UNDERSTAND POLICY & SERVICE CONTEXT
METHODS:EVIDENCE ASSESSMENT, DESK RESEARCH, LITERATURE REVIEW
2. UNDERSTAND BUSINESS & SERVICE PROVIDER CONTEXT
METHODS:CONTEXTUAL INTERVIEWS. SERVICE SAFARIS, PARTICIPANT OBSERVATION, CO-DESIGN WORKSHOPS, USER JOURNEY MAPPING
3. SYNTHESIS
METHODS:CODING, DATA VISUALISATION,
4. SERVICE PROTOTYPES & STRATEGY METHODS:STORYBOARDING, WIREFRAMING
DISCOVER(research)
DEFINE(insights)
DEVELOP(ideas)
DELIVER(prototypes)
BEHAVIOURAL ROLE OF POLICY INTERVENTIONS
POLICY OPTIONS
POLICYLEVEL
INTERVENTION CATGEGORY
Research, guidance
Fiscal instruments
Funding and co financing
Public procurement
Voluntary Agreements
Education Training mobility and research
Enterprise support networking collaboration platforms
Knowledge and technology exchange and brokerage
Regulatory instruments bans obligations standards
Motivate(create demand)
Inform
Enable(build capacity)
Restrict behaviour
Demand Side
Regulation
Supply Side
IRISH INTERVENTIONS
Key issue: Irish interventions are dominated by information-based interventions, strategies and grants
EPA INTERVENTIONS BY THEME
Key issue: EPA interventions mostly information or advisory
BENEFICIARIES & OTHER PROVIDERS
Bia Food / EPA
Bord Bia
Bord Iascaigh Mhara / EPA
DOECLG
Econcertive
Enterprise Ireland
EPA
Forfas
IDA
NPWS
Offaly County Council
Repak
SEAI
Teagasc
Business
Farming
Energy / Climate
Resource Efficiency Waste
Sustainability
Key issue: EPA interventions aimed at business intersect with interventions by other providers
Key issue: Irish SMEs more focussed on waste issues than energy
IRISH SME ATTITUDES (N=400, EUROBAROMETER)
IRISH SME ATTITUDES (N=400, EUROBAROMETER)
Key issue: Irish SMEs rely on private sector or sectoral organisations for advice as well as own financial or technical resources
KEY BEHAVIOURAL INSIGHTS
Business behaviour can understood by looking at various levels of business activity and the interaction between these e.g. Capacity, Structures, Social Context, Culture.
While each of these levels have an impact on business behaviour and should considered when designing or evaluating interventions and service it is important to note that some aspects are more dynamic and change over time.
The behavioural economics literature presents a number of social factors that can influence decision making at an individual level. These include factors such as messaging, reciprocity, fairness and inequality-aversion.
Capacity decision-making processes
and practices of individuals, skills, competencies
Culture the interactions between the dominant culture and various subcultures within
an organisation
Structures the tacit structures of the
organisation as set out in its procedures, history and
ethos
Social Context social factors that can
influence decision making at an individual level
KEY BEHAVIOURAL INSIGHTS
From the desk and field research on sustainable community initiatives, there appeared to be some behavioural insights that will be more relevant for future intervention and service design. These include:
Salience
Salience refers to how important a topic is perceived to be at a particular time. The salience of resource efficiency can be a key issue to consider when determining whether it becomes a strategic or investable issue for a company. This is typically determined by a number of factors such as the overall resource intensity of the business (e.g. material input per unit of productive output), the size of the business, its sector or and position within its value chain.
Groupthink
Research has shown that decision makers often present a bias towards established ways of doing things and that change only occurs if there are strong incentives. This status quo bias can be reinforced by organisational or sectoral conditions, for example by having senior management having similar training and backgrounds. These conditions can lead to ‘groupthink’ and this reduces the likelihood to pursue alternatives, especially alternatives that vary from the established practices.
Norms & peer influence
There are a wide variety of motivations to invest in resource efficiency, even at an exploratory stage, and these vary between and within sectors.
A dominant motivation is the combination of willingness to comply with regulation or licence requirements and informal sectoral norms.
KEY BEHAVIOURAL INSIGHTS
From the desk and field research on sustainable community initiatives, there appeared to be some behavioural insights that will be more relevant for future intervention and service design. These include:
Messaging
The behaviour literature focussing on individuals has dealt with the delivery of messages and how a key driver of the impact of messaging is who is delivering the message (as opposed to the content).
Given that other evidence points to the fact that decision makers seek advice from and add weight to a trusted advisor this has implications for the design of these information based interventions.
Framing
It is well understood that the outcome of a decision can depend on how the choice or decision is framed. This means that different outcomes can be achieved by framing choices in different ways. ness of framing through trials. Resource efficiency is often framed or “sold” to industry as a cost and that efficiency savings are framed as a “gain” compared with the theoretical counterfactual case (of not investing in efficiency).
Principle agent problem
This is the situation where production or facilities staff tend to be distant from the senior management that set the strategic direction of the business.
This can have restrictive effects on innovation in the business and the same is true for investment in resource efficiency.
KEY BEHAVIOURAL INSIGHTS
From the desk and field research on sustainable community initiatives, there appeared to be some behavioural insights that will be more relevant for future intervention and service design. These include:
Heuristics
Many people in business use heuristics or ‘rules of thumb’ to tackle complex problems and this can often be an efficient and effective approach to making decisions.
While this can have adverse implications for particular types of policy interventions (e.g. incentives) the heuristics also help overcome potential delays and “analysis paralysis”.
Satisficing
The term ‘satisficing’ describes the situation where a decision maker achieves 'satisfactory' rather than optimal decision outcomes. Sometimes decision makers or managers choose courses of action that are satisfactory or “good enough”. In the case of ‘satisficing’ the decision makers may apply heuristics (e.g. imitating “best practice”) rather than on a complete calculation of options and optimal strategies
Bounded Rationality
Bounded rationality describes the situation wherein sub-optimal decisions are taken because decision makers have to work with limited, often unreliable, information, under time constraints and with limited cognitive capacity to evaluate and process the information that is available.
DEFINE STAGE (FIELD RESEARCH)
DISCOVER(research)
DEFINE(insights)
DEVELOP(ideas)
DELIVER(prototypes)
1. UNDERSTAND POLICY & SERVICE CONTEXT
METHODS:EVIDENCE ASSESSMENT, DESK RESEARCH, LITERATURE REVIEW
2. UNDERSTAND BUSINESS & SERVICE PROVIDER CONTEXT
METHODS:CONTEXTUAL INTERVIEWS. SERVICE SAFARIS, PARTICIPANT OBSERVATION, CO-DESIGN WORKSHOPS, USER JOURNEY MAPPING
3. SYNTHESIS
METHODS:CODING, DATA VISUALISATION,
4. SERVICE PROTOTYPES & STRATEGY METHODS:STORYBOARDING, WIREFRAMING
DISCOVER(research)
DEFINE(insights)
DEVELOP(ideas)
DELIVER(prototypes)
EXPLORING 2 EPA SERVICES
GREEN ENTERPRISE
The provision of direct public finance for R&D (e.g. Environmental R&D) has been a common model internationally for many decades. The rationale is typically driven by the assumption that R&D will, directly or indirectly stimulate innovation.
Model: direct public finance for R&D - common model internationally
Justification: Presence of information failures (information asymmetry, variable quality) and wider potential for economic development through capacity building
Advantage : support can be targeted, low investment in environmental R&D strengthens rationale. popularity has diminished in recent years in favour of more generally supportive environment for sustainable innovation
Assumption: R&D will directly or indirectly stimulate innovation or concerns re. underinvestment
Challenge: evaluation of impacts can be problematic. E.G. timing. Difficulty measure spillover effective and intangible impacts (skills, innovation capabilities and capacities).
Needs to avoid “picking winners” or create exemplar cases
GREEN BUSINESS
Green Business is a resource efficiency support service that aims to support Irish SMEs become more resource efficient through the provision of subsidised consultancy, knowledge exchange and networking opportunities.
Model: subsidised consultancy, information provision
Justification: Presence of information failures (information asymmetry, variable quality) which are widely understood and reported by SMEs themselves.
Advantage : support can be low cost
Assumption: Information will directly or indirectly stimulate innovation or concerns re. underinvestment
Challenge: evaluation of impacts can be problematic - evaluations are scarce
GREEN BUSINESS JOURNEY MAP
EPA INTERVENTION THEORY OF CHANGE
FIELD RESEARCH
LOCATION OF COMPANIES (N=20)
Energy services
Energy
Farming
Consulting
PharmaceuticalsRetail
Manufacturing Social Enterprise
Food products
Healthcare
Manufacturing
Manufacturing
Digital / software
PROFILE OF COMPANIES (N=20)
Key issue: Irish SMEs rely on private sector or sectoral organisations for advice
CONTEXTUAL INTERVIEWS (N=20)
USER JOURNEY MAP
A user journey map outlines the route or journey a service user or customer takes when accessing a service. Typically a user journey map will seek to understand what happens before the service is accessed, what happens during use and what happens after the user is finished with the service.
Each moment that the user interacts with the service or is expected to do something is called a ‘touchpoint’. When designing services it is important to consider the entire customer journey and to design all touchpoints as effectively as possible.
To better understand the experience of businesses that access support services, user journey maps were created. These journey maps highlight the stages each company went through from the point they considered resource efficiency, accessing support services to developing projects and in-
company initiatives and what happened after they exited services.
This journey map has the following four broad phases:
1. Trigger to action 2. Formalisation of possible actions 3. Accessing and using service 4. After service
At each stage there are identifiable friction or pain points that can prevent a business from undertaking an action
SERVICE PROVIDERS
Through the interviews and co-design workshops with service providers, a number of key insights were generated. This include the stated preferences of service providers for improvements to be made to the system of delivery and key hassle factors they experience.
Making resource efficiency salient For resource efficiency to become a strategic objective it needs to be salient among senior staff so that it can compete with other spending priorities.
Cost saving is likely a weak incentive Resource efficiency is often framed or “sold” to industry as a cost saving exercise rather than an investment in productive capacity. If the savings are uncertain or low compared to overall cost base this can be a weak incentive. Also, smaller companies have been shown to be more concerned with avoiding losses than seeking gains.
Current public sector support can be complex There is an expectation that support should be available but that the current offerings can be difficult to navigate or differentiate between providers. There is a relatively complex network of providers of support and each of these is operating to the best of their ability but with limited reach and resources.
Information overload Environmental staff tend to feel overloaded with paperwork and this can reduce their capacity to champion the issue and build strong businesses case.
KEY BUSINESS LEVEL INSIGHTS
Through the contextual interviews, service safaris and participant observation with companies, a number of key insights were generated.
SERVICE PROVIDERS
Through the interviews and co-design workshops with service providers, a number of key insights were generated. This include the stated preferences of service providers for improvements to be made to the system of delivery and key hassle factors they experience.
Resistance to moving past “low hanging fruit” There is some resistance to moving past the “low hanging fruit” of resource efficiency e.g. waste management. This may be related to the weak links between resource efficiency and wider innovation activities in businesses.
Impacts sometimes go unmeasured Positive impacts from existing services and intervention (e.g. input additionality) can go unmeasured and misattributed because the intermediary organisations do not have resources to evaluate over the most appropriate timeframes.
Fear of engagement While compliance, licensing and enforcement are the primary touchpoints through which businesses interact with the public sector there is general fear and uncertainty around these issues and the role they play in assisting the business.
Aspiration-resource gap The research found that while the opportunities emerging from resource efficiency are significant there is still a gap between government aspirations and what resources are allocated to support and enable sustainable behaviour change in reality.
KEY BUSINESS LEVEL INSIGHTS
Through the contextual interviews, service safaris and participant observation with companies, a number of key insights were generated.
KEY BUSINESS LEVEL INSIGHTS
Through the contextual interviews, service safaris and participant observation with companies, a number of key insights were generated.
Evidence and data There is a need to build upon the high quality support that is available by addressing the capacity for policy prototyping and trials, evidence and data, communication and ongoing iterations to the services and interventions on offer.
Personal contact a key motivator There is a need to maintain an integrated policy and service framework that encourages, enables and engages businesses while exemplifying the necessary changes through public sector leadership.
Top slicing of available funds Those that access support consider it to be responsive and easy to access but only once the
correct support has been identified. In many cases there is an additional intermediary (e.g. a consultant) between the service provider and the business and this can increase costs (top-slicing budgets) or act as a form of rent seeking.
Innovative approaches As a trusted regulator, the EPA is well positioned to inform the development of innovative business models by aligning with other innovation financing. This can be through the development of policy projects and supports that specifically target environmental tech-start-ups, sharing and collaborative economy businesses as well as alternative business models within existing sectors.
SERVICE PROVIDER WORKSHOP
SERVICE PROVIDERS
Through the interviews and co-design workshops with service providers, a number of key insights were generated. This include the stated preferences of service providers for improvements to be made to the system of delivery and key hassle factors they experience.
Service providers need:
Better ways to network with other service providers, share data, case studies and evaluations
To reach out to businesses and to engage them effectively over the long term (using the limited resources)
To find a way to increase knowledge and awareness in ways that are not time consuming
Key hassle factors include:
The administration of services can be labour intensive
There is a need to test / evaluate / learn
SERVICE DESIGN CONSIDERATIONS
Through the contextual interviews, service safaris and participant observation with companies, a number of key insights were generated.
Peer influence Peer influence can occur between, as well as within, organisations (e.g. leadership acting consistently with sustainability agenda). The prevailing local business climate can have a powerful influence on organisational behaviour, particularly in SMEs.
Physical context matters Evidence suggests that context (e.g. physical environment, visual cues) can have a significant impact on behaviour. Potential for nudges.
Less susceptible to “nudging’’ Organisations are more cognitively sophisticated than individuals - better at slower, more rational thinking than
individuals. Also, cultural norms in established organisations may make them resistant to being ‘nudged’.
Intrinsic motivations Successful employee programmes work with intrinsic motivations of staff
Structure is important Structural factors (such as organisation size, shape, sector and decision topic)
Affect & emotional rationale “questionable” behaviour can be framed as affecting an identifiable individual or situation as opposed to something anonymous.
SERVICE DESIGN CONSIDERATIONS
Through the contextual interviews, service safaris and participant observation with companies, a number of key insights were generated.
Remove frictions Identify any ‘friction points’ in service or bureaucratic and operational procedures and design them out.
Simplification Make information clearer and easier; pre-populate forms
Exemplify Respond to desires for reciprocity and fairness by leading through example and by public commitments
Key moments Consider timing interventions around critical points (e.g. following media coverage of climate change or flood events), or at key stages when managers are open to change (e.g. investment)
Framing Frame interventions as investment in productive capacity rather than saving
Commitments Encourage public commitments (and then publish pledges/charters on websites)
Incentive design Provide short-term incentives for resource efficiency such as helping to meet other management objectives
DISCOVER(research)
DEFINE(insights)
DEVELOP(ideas)
DELIVER(prototypes)
1. UNDERSTAND POLICY & SERVICE CONTEXT
METHODS:EVIDENCE ASSESSMENT, DESK RESEARCH, LITERATURE REVIEW
2. UNDERSTAND BUSINESS & SERVICE PROVIDER CONTEXT
METHODS:CONTEXTUAL INTERVIEWS. SERVICE SAFARIS, PARTICIPANT OBSERVATION, CO-DESIGN WORKSHOPS, USER JOURNEY MAPPING
3. SYNTHESIS
METHODS:CODING, DATA VISUALISATION,
4. SERVICE PROTOTYPES & STRATEGY METHODS:STORYBOARDING, WIREFRAMING
DISCOVER(research)
DEFINE(insights)
DEVELOP(ideas)
DELIVER(prototypes)
POTENTIAL BEHAVIOURAL INTERVENTIONS
Increasing information about RE / CE (includes benefits)
Experiencing RE / CE
Assessing RE / CE
Reading and seeing information about RE/CE (e.g. TV and radio; press; specific communications or leaflets)
Conversations with business peers, trade associations, family and others.
Seeing RE / CE in practice (e.g. on neighbouring business)
Encountering RE / CE messages at other events (e.g. trade shows)
Sectoral or regional predisposition against RE / CE
Assessing how RE / CE is driven or affect the operating environment or market
Consideration of wider commercial benefits (including non-market benefits e.g. CSR)
Priming – people behave differently if they have been ‘primed’ by certain cues beforehand, e.g. words, sights. Anchoring – relies heavily on an initial value
Framing and simplification – can facilitate information processing
Context and learning – collective discussions aid familiarisation with issues and process
Social norms – people make choices based upon the perceived or informed view of others.
Exemplify – leading by example
Cultural polarisation, mental accounting – RE / CE may be mentally assigned to particular types of businesses or only in EH&S
Priming, salience, framing – Information presentation
POTENTIAL BEHAVIOURAL INTERVENTIONS
Seeking clarification of benefits relative to commercial goals
Generating ideas
Researching options
Building business case
Assessing how RE / CE is driven or affect the operating environment or market
Tailored material emphasising impacts, framed to emphasise non-environmental and other benefits
Provide experiential learning opportunities - e.g. site visits, practical workshops
Provide opportunities for previously successful application to assist in framing projects.
Use novel techniques (e.g. visualisation and metrics) within other business events (aimed at those considering investment).
Tailor presentation material to managers, board, (e.g. business concerns, investor trends). Also consider the context (setting), and tailoring discussions to the individual or group.
Information presentation
Learning effects – people’s values and attitudes can change when information is exchanged in a constructive way
Reciprocation – people reciprocate help
Information presentation and salience including visualisations
Priming, salience, framing – Information presentation
POTENTIAL BEHAVIOURAL INTERVENTIONS
Makes a commitment to undertaking a project
Dealing with sceptical or otherwise negative ‘others’
Identifying available and appropriate funding / support
Applying for a grant
Accessing a grant
Developing a plan - seeking reassurance from sector peers
Identifying contractor or advisor
Engage contractor to offer advice
Commitment – through public ‘pledges
Removing frictions – making it easier
Remove frictions – remove any ‘sticking points’ that may deter individual from acting
Defaults and prompted choices – people will go for the default option
Loss aversion – incentives
Learning effects – people’s values and attitudes can change when information is exchanged in a constructive way
Networks – information, presentation and framing
Networks – information, presentation and framing
Encouraging public pledges to invest in RE / CE (publishing pledges on a EPA or sector website).
If concern relates ‘an onerous application process’ or risk of EPA visit, reduce the bureaucracy burden for applicant through simplifying process, pre-populating forms engaging with inspection teams where they exist
Offer application traininig to managers, have one-fill forms so all future applications can be faster
Make RE a default in other grant options to steer businesses towards a particular purpose
Emphasis of top-up grant availability as a time-limit may encourage take up to avoid missing out - Provide a higher level of grant if a threshold of applicants is reached
Facilitate learning and knowledge exchange, rather than just providing materials
Support business in search for contractors
Support business by pooling/sharing information and expertise on RE and the delivery of projects
POTENTIAL BEHAVIOURAL INTERVENTIONS
Makes a commitment to undertaking a project
Dealing with sceptical or otherwise negative ‘others’
Identifying available and appropriate funding / support
Applying for a grant
Accessing a grant
Developing a plan - seeking reassurance from sector peers
Identifying contractor or advisor
Engage contractor to offer advice
Commitment – through public ‘pledges
Removing frictions – making it easier
Remove frictions – remove any ‘sticking points’ that may deter individual from acting
Defaults and prompted choices – people will go for the default option
Loss aversion – incentives
Learning effects – people’s values and attitudes can change when information is exchanged in a constructive way
Networks – information, presentation and framing
Networks – information, presentation and framing
Encouraging public pledges to invest in RE / CE (publishing pledges on a EPA or sector website).
If concern relates ‘an onerous application process’ or risk of EPA visit, reduce the bureaucracy burden for applicant through simplifying process, pre-populating forms engaging with inspection teams where they exist
Offer application traininig to managers, have one-fill forms so all future applications can be faster
Make RE a default in other grant options to steer businesses towards a particular purpose
Emphasis of top-up grant availability as a time-limit may encourage take up to avoid missing out - Provide a higher level of grant if a threshold of applicants is reached
Facilitate learning and knowledge exchange, rather than just providing materials
Support business in search for contractors
Support business by pooling/sharing information and expertise on RE and the delivery of projects
Provide options for feedback
Consider further actions (to increase/maximise benefits)
Demonstrating RE / CE to peers & local/sector discussions
Provide access to peers (to enable further/wider benefits to be realised)
Communicate benefits of RE to other businesses
Engage in and view results of RE projects
Reciprocation – people reciprocate help
Reciprocation – people reciprocate help
Messenger - Using social networks to encourage collective behaviour
Learning effects – people’s values and attitudes can change when information is exchanged in a constructive way
Social norms
Social norms
Provide opportunities for previously successful application to assist in framing projects.
Provide opportunities for previously successful application to assist in framing new programmes
Encourage business that successfully implement RE to become a ‘champion’ to reinforce benefits.
Communicate RE as the preferred social norm at other non-environmental events e.g. membership organisation events
Encourage view of investing in RE as the preferred social norm
MEASURING BEHAVIOUR CHANGE
Traditionally approaches to evaluating the impact of public service and policy interventions such as R&D programmes, in particular those related to resource efficiency or eco-innovation, have failed to distinguish between single project outputs and the persistent change in business practices following an intervention.
There is also a need to measure the effects of individual interventions, such as R&D grants and tax incentives, but also on the different types of effects they have on the behaviour of businesses.
Additionality Additionality describes the change that has occurred over and above what would have happened anyway without the intervention. Additionality is a key component of evidence that proves an intervention has corrected the market or system failure that gave rise to the need for an intervention.
Input additionality is concerned with resources provided to a company and whether these are additional.
Output additionality is concerned with outputs of an intervention that would not have occurred without public support.
Behavioural additionality addresses the difference in company behaviour as a result of the intervention. Behaviour in this context can relate to persistent changes to strategies, capabilities and routines.
BEHAVIOUR CHANGE METRICS
Resource efficiency behaviours are diverse (company dependant) but there are generalised and aggregated patterns that are systematically linked to factors such as the size of an organisation, its sector, sub-sector and local and national context. These behaviours can be modelled and better segmented in order to support the effective targeting of interventions and service touchpoints. The table below presents an example of a framework of metrics that can inform an assessment of additionality.
BEHAVIOURAL INTERVENTION TOOL
One of the issues that emerged through this research was there was no accessible tool that could be used to guide discussions on behaviour change for resource efficiency in business.
The Behavioural Intervention Tool assists policy makers and intermediary organisations in better understanding why businesses may behave in particular ways. The tool describes key themes driving behaviour identified through the research and can be applied to examining the design of services and interventions.
The model is a development on a preliminary framework developed during the Open Practices research and reported on in a research blog during February 2015. This initial framework was designed based on research by O’Rafferty (2012).
The tools is based a round a model of behaviour that focuses on the following three different levels: • Context - the operational and market
context within which the business is operating. This can include supply chain, subsidiaries, sub-contracting models as well as social enterprises.
• Capacity - this refers to the organisational capacity and the issues that are internal to the organisation
• Decision Making - this refers to the potential cognitive and social factors that have an effect on decision making
BEHAVIOURAL INTERVENTION TOOL
strategy& group think
rules of thumb/ heuristics
networks
purpose,culture &
norms
skills &knowledge
organisationstructure
businessmodel(s)
trust &history
operationalcontext
CAPACITY
CONTEXTDECISIO
N MAK
ING
How w
e mak
e de
cisi
ons
Who we are & how we organise ourselves
The context we’re working in
BUSINESSBEHAVIOUR
DEVELOP STAGE (SERVICE PROTOTYPES)
CONCEPT 1
FINDINGS
structural Some companies struggle to understand how to navigate the system of support that is available
Service providers rely on personal knowledge to know “who is who”.
There is no structured way for service providers to share data on who has been supported, what support they provided and the outcome of this.
It can be difficult to monitor and evaluate the support companies receive and the activities they undertake once they leave a formal service
FINDINGS
behavioural there are "optimal moments to influence the behaviour of businesses" (e.g. when capital expenditure is being planned, merger, start-up).
impossible to achieve in the current context of generic information, advice and financial instruments
making the issue of resource efficiency salient is key to determining whether it becomes a strategic or investable issue for a company.
Increasing salience can be supported by highlighting the strategic value of the issue in relation to the wider activities
DESIGN BRIEF
Design a service that:
• changes the data architecture around enterprises receiving public support
• allows service providers to share data around companies they are supporting
• creates a single record to ensure there is no overlap or duplication of support
• allows different levels of access to the company record depending on the provider
• allows the support services to provide support at optimal moments
ADVISORS FROM DIFFERENT AGENCIES CAN LOG INTO SERVICE
ADVISORS ACCESS DIFFERENT DATA DEPENDING ON CLIENT RELATIONSHIP
PLATFORM CAN BE ACCESS VIA MOBILE WHEN OUT ON SITE VISITS/AUDITS
CONCEPT 2
FINDINGS
structural The EPA Green Business programme is restricted in the number of companies they can support because of financial resources
The administration of the Green Business can be labour and time intensive.
There is also a weak incentive to act upon the support provided.
There is a long process of filtering the information resources available to find a resource that is relevant to the search requirements of a company
FINDINGS
behavioural Companies, in particular SMEs, rely on trusted sources that have similar characteristics to them. These trusted sources are more likely to be from the private sector
Evidence from the desk research (e.g. Eurobarometer survey) and interviews suggested that companies are willing to pay for resource efficiency advice
Companies benefit from learning in networks even if the network is not particularly local or in the same sector
DESIGN BRIEF
Design a service that:
• Disrupts the existing models of support e.g. consider open source and “many-to-many”
• Connects those companies who have successfully implemented resource efficiency initiativec
• Adds value to the knowledge that exists in the Irish Innovation system
• Removes frictions preventing companies choosing appropriate support (from any provider)
• Frees up time so that EPA and Green Business teams could focus on strategy, administration, verification, evaluation.
BUSINESS LOGS ONTO WEBSITE
SEARCHES FOR SUPPORT REQUIRED & RECEIVES RELEVANT RESULTS
IS PROVIDED WITH A MAP OF SUPPORT PROVIDERS
CAN REVIEW PROFILES OF SUPPORT PROVIDERS
POSSIBLE TO SUGGEST EXPERTS
CONCEPT 3
FINDINGS
structural There is a resistance to move beyond the “low hanging fruit” of resource efficiency and to move projects to scale.
The EPA/GB need exemplars that can inspire and motivate other companies to move beyond the “low hanging fruit”
Due to resource constraints the support is spread thinly across the client companies
This makes it difficult to create momentum and scale.
There is no pipeline for identifying, nurturing and developing innovative solutions and the focus is on generic support.
FINDINGS
behavioural there are "optimal moments to influence the behaviour of businesses" (e.g. when capital expenditure is being planned, merger, start-up)
The framing of resource efficiency as a “cost saving” can be a weak driver as the savings may be low in relation to overall cost base. This is exacerbated by weak market signals
The framing of resource efficiency as “green” can be problematic because is frames the issue in a way that does not necessarily align with how the business sees itself.
DESIGN BRIEF
Design a service that:
• combines the behavioural incentives of a competitive process and the motivation to invest in the productive capacity of a company
• provides a structured process for developing exemplar innovations
• combines common goals that relate to the broader strategic objectives of the EPA
• builds networks to foster social norms