Enabling Culture

 

 

Culture is the key to outstanding and sustainable performance in any organization.

Building that culture depends on team members’ behavioral tendencies, including their beliefs and motivations.  Understanding their behavioral tendencies can help identify the data needed to tailor those tendencies toward logical decision-making. This data validation is done using choice architectures.    Some examples of behavioral tendencies and choice architectures are below:

Behavioral Tendency

Organizational Management of Tendencies: Neutralize, Balance, and/or Leverage

Use of Measurement?

Risk and loss aversion

Seeing and experiencing individual and collective value of longer term impact

Endowment effect

Seeing and experiencing the individual value of “giving to get” proposition

Narrow framing

Having and experiencing a contextual understanding of the impact to the larger picture/environment

Assuredness of Gains

Understanding and experiencing the incremental progression toward value creation

Mental accounting

Envisioning and promoting half-full versus half-empty scenarios

Transaction utility

Understanding and experiencing the value of delayed gratification

Fairness

Seeing and experiencing collaborative value in long term relationships

Inertia, status quo, “yeah, whatever”

Seeking intentions to shape/suggest econ choices; default options

Choice  Architecture    

Formative Statements and/or Questions

Use of Measurement?

Framing

Build awareness of biases and blunders, mindless choosing, use of autonomic and reflective systems

Mental Accounting

Suggest self-control measures to resist temptations, encourage big picture awareness

Priming

Measure intentions to affect people’s conduct toward their expressed intentions, give a range of contextual parameters for choices when decisions are to be made

Peer pressure

Incent actions as others have acted before you

Following the Herd

Share history of others’ previous actions, information on others’ behaviors; the spotlight effect

Channel factors

Eliminate obstacles to facilitate econ behavior, make econ decisions less cumbersome and easier to make

Artifacts and cues

Provide symbols that spark and encourage econ decisions

Default options

Shape choices with “opt in” or “opt out” compliance; answer to inertia, “whatever” modes; offers path of least resistance

Expect error (forcing function)

Avoids human errors by structuring a solution )an econ decision) into the process, e.g., avoid a “postcompletion” error by requiring the last, necessary step before the completion step

Give feedback

Build into a process a warning of good and bad performance that will lead to problems

Mappings for understanding

Make choices more accessible through better understanding of pros and cons

Structure complex choices

Eliminate choices through categorization of aspects, prioritize aspects by importance, make parameters and criteria for decisions

Incentives

Keep the beneficiary and payer aware of costs and benefits