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Employee performance and happiness talk (Gartner)

Our latest talk was on applying behavioural science for improving employee performance and happiness at the Gartner Symposium ITXPO, Goa for India’s Top 300 CIOs.

Behavioural science experiments on employee performance and happiness show that businesses often operate in ways that are not aligned to principles of human psychology, leading to engagement and motivation levels that are disappointing.
For example, when performance appraisals are done annually, employees are also given feedback on improvement and learning. But behavioural science shows that the focus of employees at that stage is on earning, while learning shuts down. Companies can benefit to a great extent if the ‘scope of improvement’ conversation is done as a separate exercise at a separate time than the performance review and appraisal.
The talk covered behavioural science findings on rewards, recognition, incentives – monetary, non-monetary, experiential; performance appraisal, feedback, teams, collaboration, workplace design, change management, productivity, culture and core values.
Like we always do, the talk focussed on simple but innovative and practical Behavioural Design nudges that could make a big difference in employee performance and happiness.

 

Investor biases and behaviour

We were in Goa over the weekend for delivering a talk on investor biases and behaviour for SBI Mutual Fund’s financial advisors. We spoke about several biases and how advisors need to be aware of them for handling their own portfolio as well as for managing their client’s expectations and behaviour. Biases like action bias, loss aversion, mental accounting, choice paradox, social proof, etc. make people their own worst enemies in investing. That’s why markets multiply money by hundred times but investors don’t get such returns. It was also fun interacting with fund managers and understanding their perspective on investing. Since these are commissioned talks they can’t be shared. However you can read all about investor behaviour and how to not make investing mistakes by clicking ‘Investor Behaviour’ in ‘Click on your topic of interest’ on the homepage right hand column. Happy reading, learning and investing!

Post-edit: The second round of the talk happened in Hyderabad.

All we need is a nudge

All of us need encouragement from time to time because species of our kind is known to get easily demoralised. That’s why motivating ourselves or others is so bloody challenging. Especially, when we are on the path of changing a habit or achieving some kind of goal. Sense of progress becomes critical to get us moving. If we don’t get feedback, we could easily get derailed. And that brings us on to one of the most interesting studies we’ve read.

In 2007 researchers Alia Crum and Ellen Langer published their study of hotel maids and their exercise habits. They figured that an average hotel maid cleaned fifteen rooms a day, and each room took 20-30 minutes to complete. Now visually imagine them doing it. Walking, bending, pushing, lifting, scrubbing, dusting for 7-7.5 hours. That’s heavy duty exercising. But before the study began 67% of the maids said they didn’t exercise much! That’s like Arnab Goswami of Republic. complaining that he doesn’t get a chance to speak on air.

As part of the study one group of maids received a document describing the benefits of exercising and were told that their daily work was sufficient to get those benefits – that exercising didn’t only mean hitting the gym – it simply required moving of muscles to burn calories. The maids were also given a list of type of their work activity and calories burned. The maids in the second group were only given the document describing the benefits of exercising.

One month later maids who had been told that they were good exercisers lost an average of 1.8 pounds (about 0.8 kg). The other maids hadn’t lost any weight. Crum and Langer investigated possible explanations. Group one maids weren’t exercising outside of work nor working more hours nor had they changed their diet in any way. So Crum and Langer assigned the weight loss to the placebo effect – awareness of the ‘exercise value’ of their daily work triggered the weight loss – the maids got a mental boost from the ‘daily work is exercise enough’ knowledge.

Chip and Dan Heath, authors of Made to Stick, Switch and Decisive, argue that in placebo effect situations apply to conditions that are self-reported. For instance, instead of a pain medicine, you take an anti-depressant and the doctor asks you “How do you feel?” and report saying you feel better. But in the case of the maids losing weight, the scale reported real weight loss – not just a feeling of the maid. The Heath brothers say “The maids having gotten a jolt of enthusiasm from the good news, may have started scrubbing the showers a little more energetically than previously and maybe started walking a bit more and took the stairs. They exerted extra effort because now they believed they were perhaps closer to their goal of exercising and losing weight than before.”

All we need is a nudge. Nudge is all we need.

Source: Alia Crum and Ellen Langer – Mind-set matters: Exercise and the Placebo Effect – Psychological Science – 18 – 165-171 (2007)

Was a privilege to talk at Harsh Mariwala’s Ascent + INK conclave, along with industry stalwarts like Harsh Mariwala, Chairman, Marico and Uday Kotak, Executive Vice Chairman, Kotak Mahindra Bank.

Topics included irrational behaviour of masses, doctors, air travellers, car drivers; inefficacy of campaigns like Swachh Bharat at changing behaviour; why our government and companies in India need to adopt behavioural design; public behaviour change; Bleep, People Power and how Nudge units are being implemented by governments around the world.

Comedian Cyrus Broacha interviews us on funny behaviours and Behavioural Design.

Cyrus’s nonsense makes a lot of sense.

Super witty and sharp Cyrus knows more about Behavioural Design than anyone who has interviewed us.

Mirror, mirror on the wall

(The image is an exception to positive ways of using mirrors)

This article first appeared in The Economic Times (ET) on 31st March, 2017

A greater degree of self-awareness can make us conscious of what we think, say and do. Self-awareness seems to originate somewhere in the mind. It feels like we become aware of something when we look inside.

But there’s another way of making ourselves self-aware, and that’s literally by looking at ourselves in the mirror. Doing so causes us to reflect on our behaviour and act in more socially desirable ways. Several behavioural science studies validate this phenomenon.

In an interesting experiment, behavioural scientist Arthur Beaman and his colleagues called children to a known local house in the neighbourhood. Aresearch assistant pointed to a large bowl of candies on a nearby table and told the children that they could take one of the candies.

The research assistant then mentionedthat she had some work to do and exited the room, while another research assistant was secretly watching the kids through a hidden peephole. The experiment revealed that over a third of the kids (33.7 per cent) in this control group took more candy than they should have.

The behavioural scientists then called another bunch of kids to the house and repeated the same experiment.

For this test group, they angled a large mirror by the candy bowl in such a way that the kids had to look at themselves in the mirror when they took the candy. Theft rate in the test group was only 8.9 per cent compared to 33.7 per cent in the control group.

Says behavioural scientist Robert Cialdini, “Mirrors could reduce stealing or dishonesty and could even be seen as a good alternative to video surveillance, which is not only costly but sends a signal to people that they’re not trusted.”

In another experiment, led by behavioural scientists Carl Kallgren, Cialdini and R Reno, when participants arrived at their laboratory, half were exposed to a CCTV featuring their own image — it was almost like seeing themselves in a mirror — while the other half watched a CCTV featuring random geometric shapes. The participants were told that their heart rate was to be monitored, which involved placing some gel on their hand.

Once participants believed they were done with the study, they were given paper tissues to wipe off the gel and asked to exit by taking the stairs. The researchers were looking to see whether the participants dropped the paper tissues in the stairs on their way out. The experiment revealed that 24 per cent of participants who saw themselves in the CCTV littered, compared to 46 per cent of those who didn’t see themselves in the CCTV.

There are many studies including two more done by Melissa Bateson and Stacey Sentyrz-Brad Bushman, which have found that mirrors — or other possibilities that produce mirror-like effects — persuade us to behave in more socially desirable ways. People made self-aware are less likely to cheat.

Those made self-aware by acting in front of a mirror or TV camera exhibit increased self-control, and their actions more clearly reflect their attitudes. In other experiments done in front of a mirror, people taste-testing cream cheese have found to have eaten less of the high-fat variety.

We wouldn’t possibly be digging our noses if we saw ourselves in the mirror, would we? On a serious note, two practical behavioural design solutions come to my mind, based on such behavioural science experiments.

One is that customer service executives in face-to-face retail environments have to sometimes deal with customers who are not particularly considerate, or are even rude. Only an experiment can tell if a mirror placed behind the customer service desk could get such customers to behave better. On the other hand, mirrors could also help customer service executives be more conscious of their own appearance, speech and sincerity, thus improving the customer experience.

A second behavioural design solution could be placing mirrors in the corners of staircases of buildings that have stain marks caused by people spitting. Spitting is often an unconscious act where the spitter spits out of habit. A mirror is likely to make people who spit at corners of staircases conscious of their action, preventing them from spitting at those spots.

Sure, spitting in the outdoor environment needs a different behavioural design solution. But for spitting in staircases of buildings, mirrors could be tested to see if they reduce spitting.

Behavioural solutions for road safety

This editorial article first appeared in Mint on 21st March, 2017

Making roads better should reduce the number of accidents. Yet that’s exactly the opposite of what’s happening in India. Despite measures being taken by the government on improving roads, there has been a continuous increase in road crash deaths since 2007, with a brief annual reduction in 2012. Between 2010 and 2015, incidence of road accidental deaths increased by an annual average rate of 1.2%. There were over 500,000 road accidents in 2015, up from 489,000 in 2014. More than 500,000 people were injured in road accidents in 2015, up from 493,000 in 2014. A total of 146,000 people died in road accidents in 2015, up from 139,000 in 2014. According to the National Crime Records Bureau, out of 146,000 deaths, only 0.8% of the cases were due to lack of road infrastructure.

Road safety is not just about creating infrastructure. It is about designing behavioural solutions that take human biases and irrational behaviour into consideration. When the roads are smooth, wide and empty, drivers are likely to speed. If the car being driven is big and tough, the driver feels much safer compared to driving say, a small hatchback. That makes drivers over-compensate and take undue risks. Regular speed limit signs are ineffective at getting drivers to slow down, because drivers don’t choose the speed based on speed limit signs. Rather, drivers simply go with the flow depending upon the width and smoothness of the road and traffic conditions.

To get drivers to reduce speeding, there have been several effective behavioural design nudges implemented around the world. At the curve of Chicago’s Lake Shore Drive and Oak Street, a series of horizontal white stripes have been painted on the road, that get progressively narrower as drivers approach the sharpest point of the curve, giving them the illusion of speeding up, and nudging them to tap their brakes.

According to an analysis conducted by the city’s traffic engineers, there were 36% fewer crashes in the six months after the lines were painted compared to the same six-month period the year before. Similar behavioural design nudges are now being applied in China and Israel to curb speeding.

In another trial in the UK conducted by Norfolk County Council, more than 200 trees were planted on the approach roads in north Norfolk which had a history of speeding problems. Results found that drivers reduced their speed by an average of 2 miles per hour. Again, as the car approached the village, the trees, planted closer and closer together, gave the impression that the vehicle was moving faster. This encouraged the motorists to slow down.

In another experiment in the US, the Virginia department of transportation painted zigzag white markings instead of the familiar straight dashed lines, to caution drivers approaching the road-crossing intersection used by pedestrians and bicyclists. They found that zigzag markings slowed average vehicle speeds and increased motorists’ awareness of pedestrians and cyclists. They also noted that the effects of the behavioural design didn’t wear off once motorists became used to it—they still slowed down a year after installation.

Building infrastructure like traffic signals doesn’t mean people will always follow them. But creating behavioural design nudges like displaying the seconds remaining for the traffic signal to turn green, is likely to reduce the number of people who break the signal. Such behavioural design takes into account that people are usually in a rush.

Rationally speaking, people shouldn’t be breaking signals because they wouldn’t be acting in their self-interest by putting themselves in harm’s way. But human behaviour is not rational. Drivers honk even when there is no way that honking could clear a traffic jam. Even when the signal is still red, there are drivers who honk. Therefore, rational ways of changing behaviour like educating people or creating awareness-based campaigns are ineffective. What’s effective at getting people to reduce honking is “bleep”—a red button on the dashboard of a car that beeps and flashes when the driver presses the horn. To switch off the red button, the driver has to press it. This behavioural design nudge breaks the habit of drivers’ honking because now each time drivers want to honk, “bleep” makes them deliberate whether they should honk or not. Bleep has been shown to reduce drivers honking by 61% in a six-month and 3,800km-long experiment in Mumbai.

Behavioural design needs to be applied at pedestrian crossings at traffic-signal junctions. At various traffic junctions, there are two signals in view—one signal placed just after the zebra crossing and the second signal on the other side of the junction once you’ve crossed it. That makes drivers keep inching forward, not stopping at the zebra crossing and thus not allowing pedestrians to cross. So to get cars to stop at the zebra crossing, only one traffic signal needs to be placed just before the zebra-crossing stripes begin, so that drivers have no option but to stop to get a view of the one and only traffic signal.

It’s time authorities stopped relying on ineffective money-draining campaigns, driver education and enforcement of laws. Instead, we should test simple, practical, scientific behavioural design nudges to improve road safety.

Behavioural Design & Road Safety

Our latest series of talks is how Behavioural Design can solve key road safety issues like accidents, speeding, honking, making pedestrian friendly traffic junctions, motorbike lanes and ensuring safety for all stakeholders. These talks are being done for Mercedes Benz. If we do get permissions we’ll try to upload the talks. Nevertheless we will write about the Behavioural Design nudges soon.

Part 5 of Behavioural Design interview with Hrishi K of 94.3 Radio One (last one in the series).

 

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