The IKEA Effect for Contractors

The IKEA Effect goes way beyond kitting, prefab, and modularization for contractors. The IKEA Effect is a cognitive bias that impacts how teams align and execute from market strategy to business plans, processes, and projects up through succession.

D. Brown Management

January 1, 0001 1 minute read

Those impacts can be positive or negative depending on how leaders and managers leverage the effect.

The IKEA Effect is a cognitive bias where people place disproportionately high value on things they helped create, even if the end product is low quality. Multiple experiments have been run to validate this in various situations and from the perspective of a seller and a buyer.

Depending on the situation and perspective, the person who helped create something valued it between 50% more and five times more.

Root Cause Analysis to Behavior Level

Contracting businesses and projects always have problems. What’s important is that a team develops the skills and routine habit for continuously improving. When troubleshooting a problem it’s important to do Root Cause Analysis (RCA) down to behaviors.

Structure and Strategy - Sustainable Growth Through Balanced Execution

As a contractor grows there are inflection points where their market strategy and organizational structure must be evaluated and refined. These changes are just part of the cycles every business goes through. They are never easy but are always necessary.

Management Role Promotion Checklist (8 Steps)

Are you responsible for or involved in making the decisions about moving a person into a management role? Are you considering a move into a first-time, different, or higher-level management role? Use this 8-step checklist to help you evaluate.

business management Organizational Development Talent