Glossary
Sludge
What is sludge?
Sludge is excessive or unjustified friction that makes an action harder to complete. Unnecessary forms, repeated steps, and needlessly difficult cancellations are familiar examples. The burden may be deliberate or the result of poor design.
Example
You want to cancel a service. One representative sends you to another, who asks you to repeat information you already supplied. If those steps serve no useful purpose, they may be examples of sludge.
A rebate process can raise the same question if it requires repeated documents or unnecessary steps before a customer can receive the promised benefit.
How to assess it
In Sludge Audits, Sunstein proposes identifying burdens, estimating their costs, and deciding whether they are justified. Time, effort, and psychological costs matter alongside money.
Some requirements have a purpose, such as protecting account security. The question is whether the benefit justifies the burden. Removing every step is not the same as improving the service.
Also ask who carries the burden. A process requiring several calls during working hours may be especially difficult for someone with little schedule flexibility. Count the time and effort required, and check whether the service can achieve its legitimate purpose with fewer obstacles.