Our presentation from the 2017 Total Rewards session that showed how we used behavioral science to change the incentive and total reward framework for Lilly.
Behavioral economics overview presentation at TGASKurt Nelson, PhD
The following was the presentation that I gave at the TGAS conference in Texas this spring. Highlighting some of the behavioral science principles that can be used to help improve your incentives and sales operations.
How to convince your boss to use insights and strategies from Behavioral Econ...beworks
Behavioral Economics has revolutionized our understanding of decision making.
We now know that humans are far from perfectly rational. Instead, there are psychological biases that strongly influence people’s choices.
The result is a more accurate prediction of human behavior, which can facilitate desirable business outcomes.
Once you understand the drivers of behavior, you can change behavior.
Behavioural economics (and beyond: a presentation to Which? magazineJames Caig
A presentation to Which? magazine covering the main ideas behind Behavioural Economics and the way advertisers are using it. The deck also touches on how the theory fits with current government thinking, and how technology is helping brands apply nudge theory even more easily
Influencer by Al Switzler & Co describes how to engender a behavioral change in people and organisations. This entails actions in 6 fields. This document provides an overview
Today’s leaders are poorly served by conventional management theories and practices. Instead of helping executives manage the growing complexity of business, the supposed solutions only seem to make things worse. A new book from BCG outlines a better approach to managing complexity. The approach is called smart simplicity, and it hinges on six simple rules.
Multi-rater leadership assessments are an invaluable tool for leadership coaching. In particular, they allow one to view a leader from the perspective of different groups of observers (e.g., bosses, peers, direct reports). Each rater has a different relationship and set of experiences with the leader they are evaluating, and those relationships influence their perceptions of that leader’s behaviors. Understanding those differences can help us interpret 360 assessments in a more nuanced and effective way, allowing us to help leaders gain a clearer understanding of how their behaviors are perceived and construed by those around them.
In this one-hour webinar, MRG’s David Ringwood and Maria Brown will share new research and insights that shed light on the following questions:
What behaviors do different observer groups associate with effective leadership?
Are there differences in the behaviors perceived by different observer groups?
What do self and observer perceptions tell us about leader blind spots?
How can we use this information to interpret feedback more effectively and to inform the way we coach and develop leaders?
Our discussion will center on insights obtained from a recent global sample of leaders who were rated by their bosses, peers and direct reports using MRG’s LEA 360™.
Convincing the bear - Influence without authority
After hiking towards a glacier in Denali National Park Alaska, we were making camp near a small lake. Suddenly I heard my friend saying “Michael there’s a bear here, it is on this side of the lake”. And there he was, a ‘young’ 200 Pound Grizzly no more than 10 feet away… Influencing a bear in the Alaskan outback is quite similar to handling the bears or rather stakeholders of the modern organization – both have their own agenda, and will have you for lunch if they think it serves their interests and appetites.
In this presentation we learn best practices for leading and influencing without authority, including the three essentials model: stakeholder leadership, team orientation and individual adjustment. Do you have the proper toolset to influence the bears when you lack the authority?
After Michael’s presentation you will be able to:
• Use your personal power to lead and influence without authority
• Align your leadership with the team situation
• Make individual adjustments to influence through difficult project and business situations
Behavioral economics overview presentation at TGASKurt Nelson, PhD
The following was the presentation that I gave at the TGAS conference in Texas this spring. Highlighting some of the behavioral science principles that can be used to help improve your incentives and sales operations.
How to convince your boss to use insights and strategies from Behavioral Econ...beworks
Behavioral Economics has revolutionized our understanding of decision making.
We now know that humans are far from perfectly rational. Instead, there are psychological biases that strongly influence people’s choices.
The result is a more accurate prediction of human behavior, which can facilitate desirable business outcomes.
Once you understand the drivers of behavior, you can change behavior.
Behavioural economics (and beyond: a presentation to Which? magazineJames Caig
A presentation to Which? magazine covering the main ideas behind Behavioural Economics and the way advertisers are using it. The deck also touches on how the theory fits with current government thinking, and how technology is helping brands apply nudge theory even more easily
Influencer by Al Switzler & Co describes how to engender a behavioral change in people and organisations. This entails actions in 6 fields. This document provides an overview
Today’s leaders are poorly served by conventional management theories and practices. Instead of helping executives manage the growing complexity of business, the supposed solutions only seem to make things worse. A new book from BCG outlines a better approach to managing complexity. The approach is called smart simplicity, and it hinges on six simple rules.
Multi-rater leadership assessments are an invaluable tool for leadership coaching. In particular, they allow one to view a leader from the perspective of different groups of observers (e.g., bosses, peers, direct reports). Each rater has a different relationship and set of experiences with the leader they are evaluating, and those relationships influence their perceptions of that leader’s behaviors. Understanding those differences can help us interpret 360 assessments in a more nuanced and effective way, allowing us to help leaders gain a clearer understanding of how their behaviors are perceived and construed by those around them.
In this one-hour webinar, MRG’s David Ringwood and Maria Brown will share new research and insights that shed light on the following questions:
What behaviors do different observer groups associate with effective leadership?
Are there differences in the behaviors perceived by different observer groups?
What do self and observer perceptions tell us about leader blind spots?
How can we use this information to interpret feedback more effectively and to inform the way we coach and develop leaders?
Our discussion will center on insights obtained from a recent global sample of leaders who were rated by their bosses, peers and direct reports using MRG’s LEA 360™.
Convincing the bear - Influence without authority
After hiking towards a glacier in Denali National Park Alaska, we were making camp near a small lake. Suddenly I heard my friend saying “Michael there’s a bear here, it is on this side of the lake”. And there he was, a ‘young’ 200 Pound Grizzly no more than 10 feet away… Influencing a bear in the Alaskan outback is quite similar to handling the bears or rather stakeholders of the modern organization – both have their own agenda, and will have you for lunch if they think it serves their interests and appetites.
In this presentation we learn best practices for leading and influencing without authority, including the three essentials model: stakeholder leadership, team orientation and individual adjustment. Do you have the proper toolset to influence the bears when you lack the authority?
After Michael’s presentation you will be able to:
• Use your personal power to lead and influence without authority
• Align your leadership with the team situation
• Make individual adjustments to influence through difficult project and business situations
Using Behavioral Science to Secure Your OrganizationMasha Sedova
For decades security awareness programs have been based on the assumption that employees don’t know the correct course of action and with the right training, they will start performing more securely. However, this approach has not proven to be effective. A second dimension needs to be considered in security behavior change: motivation. This talk will explore how and when to motivate employees to security action. It will also discuss how to “surf” motivation generated by both predictable and unpredictable security events to drive security behavior change in a workforce. Finally, this talk will explain how to measure changes in employees’ security behaviors and how practitioners can create meaningful metrics. This was the keynote for Source Boston 2018.
The motivational predispositions we possess inform the way we experience the world – and they are with us through good times and bad. Developing a deeper awareness of our motivational drivers can help us with the essential and difficult work of self-regulation: making conscious choices to manage our emotional impulses and respond more objectively (and productively) to life’s challenges.
In this webinar, we will explore:
- The fundamentals of motivation: recognizing our drivers, as well as their complexities and contradictions
- How motivation can manifest in our lives - in ways that may help us or challenge us
- The cycles of reaction: identifying what our sensitivities are, how we react, and what we can do to mitigate their impact.
When we are young, we learn things like manners, social cues and social values and incorporate them into our daily actions to the point that we don’t even think about them. How useful would it be to have a collaboration and influencing framework, a tool to improve your social awareness to the point that advanced leadership skills become second nature to you? Today we’re going to explore one such model, the SCARF® model.
The SCARF Model was developed by David Rock in 2008 and is described as a brain based model, as it leverages detailed neuroscience research.
The 3 Themes of the SCARF Model
SCARF centres around three core themes or ideas. Our rough translation of those themes is:
1 - ‘Social threats’ are perceived by the brain with the same intensity as actual physical threats.
2 - When are under threat, our ability to solve problems or make decisions or interact with others is diminished. When we are in a ‘reward environment’ our abilities are enhanced.
3 - The threat response, or the desire to avoid pain, is more common and always outweighs the desire to seek pleasure. Thus the more pain we can avoid in social situations, the more effective we can be.
Utilizing recent neuroscience research, this presentation builds awareness of 5 key factors which enable leaders to more effectively communicate in ways that build connection through the establishment of safety and respect.
The presentation condense the insights from neuroleadership and business psychology into ten principles, that help managers to lead, motivate, direct and organize their staff and co-workers.
Why Millennials Are Leaving the Church and How to Win Them BackPaul Sohn
This presentation demystifies the millennial generation. I share specific tools, strategies, and tactics on how the church can reach the millennial generation.
When the concept of Emotional Intelligence (EQ) rose to prominence, assessing it had an irresistible appeal. And while many continue to find it valuable, many coaches have found that there are some limitations. The EQ can reveal interesting individual characteristics – but how does motivation relate to these characteristics? And how does a coach take these very personal insights and use them effectively to support and guide teams?
When traditional EQ assessments are paired with an assessment that reveals deeper motivations, a more complete profile of the individual is revealed. Motivational assessments also help uncover underlying tensions and conflicts, which often give rise to some of the observations measured using EQ tools.
In this one-hour session, MRG’s David Ringwood explores the benefits of pairing an EQ assessment with MRG’s Individual Directions Inventory (IDI). Topics include:
- Applying EQ learnings to more effectively influence behavior
- Tackling the challenge of transitioning from individual conversations to team interventions
- Thinking about EQ and motivation in the context of team dynamics
- Expanding the options available to you as a coach or facilitator
Using Behavioral Science to Secure Your OrganizationMasha Sedova
For decades security awareness programs have been based on the assumption that employees don’t know the correct course of action and with the right training, they will start performing more securely. However, this approach has not proven to be effective. A second dimension needs to be considered in security behavior change: motivation. This talk will explore how and when to motivate employees to security action. It will also discuss how to “surf” motivation generated by both predictable and unpredictable security events to drive security behavior change in a workforce. Finally, this talk will explain how to measure changes in employees’ security behaviors and how practitioners can create meaningful metrics. This was the keynote for Source Boston 2018.
The motivational predispositions we possess inform the way we experience the world – and they are with us through good times and bad. Developing a deeper awareness of our motivational drivers can help us with the essential and difficult work of self-regulation: making conscious choices to manage our emotional impulses and respond more objectively (and productively) to life’s challenges.
In this webinar, we will explore:
- The fundamentals of motivation: recognizing our drivers, as well as their complexities and contradictions
- How motivation can manifest in our lives - in ways that may help us or challenge us
- The cycles of reaction: identifying what our sensitivities are, how we react, and what we can do to mitigate their impact.
When we are young, we learn things like manners, social cues and social values and incorporate them into our daily actions to the point that we don’t even think about them. How useful would it be to have a collaboration and influencing framework, a tool to improve your social awareness to the point that advanced leadership skills become second nature to you? Today we’re going to explore one such model, the SCARF® model.
The SCARF Model was developed by David Rock in 2008 and is described as a brain based model, as it leverages detailed neuroscience research.
The 3 Themes of the SCARF Model
SCARF centres around three core themes or ideas. Our rough translation of those themes is:
1 - ‘Social threats’ are perceived by the brain with the same intensity as actual physical threats.
2 - When are under threat, our ability to solve problems or make decisions or interact with others is diminished. When we are in a ‘reward environment’ our abilities are enhanced.
3 - The threat response, or the desire to avoid pain, is more common and always outweighs the desire to seek pleasure. Thus the more pain we can avoid in social situations, the more effective we can be.
Utilizing recent neuroscience research, this presentation builds awareness of 5 key factors which enable leaders to more effectively communicate in ways that build connection through the establishment of safety and respect.
The presentation condense the insights from neuroleadership and business psychology into ten principles, that help managers to lead, motivate, direct and organize their staff and co-workers.
Why Millennials Are Leaving the Church and How to Win Them BackPaul Sohn
This presentation demystifies the millennial generation. I share specific tools, strategies, and tactics on how the church can reach the millennial generation.
When the concept of Emotional Intelligence (EQ) rose to prominence, assessing it had an irresistible appeal. And while many continue to find it valuable, many coaches have found that there are some limitations. The EQ can reveal interesting individual characteristics – but how does motivation relate to these characteristics? And how does a coach take these very personal insights and use them effectively to support and guide teams?
When traditional EQ assessments are paired with an assessment that reveals deeper motivations, a more complete profile of the individual is revealed. Motivational assessments also help uncover underlying tensions and conflicts, which often give rise to some of the observations measured using EQ tools.
In this one-hour session, MRG’s David Ringwood explores the benefits of pairing an EQ assessment with MRG’s Individual Directions Inventory (IDI). Topics include:
- Applying EQ learnings to more effectively influence behavior
- Tackling the challenge of transitioning from individual conversations to team interventions
- Thinking about EQ and motivation in the context of team dynamics
- Expanding the options available to you as a coach or facilitator
ORGB 300-005Organizational BehaviorLeBow College of Business.docxgerardkortney
ORGB 300-005
Organizational Behavior
LeBow College of Business
Spring 2016
Week 3
1
Agenda
Turnitin Direct Assignment Update
Finish lecture on Ethics
Chapter 7
Reminders for next class
2
Turnitin Direct Assignment Update
Upload coursework through Turnitin Direct Assignment. After submitting, you can view the submission status by going to the assignment and clicking on “View Assignment.” You will then see the unique paper id and the date and time submitted.
Emails are no longer sent by Turnitin
Updates have been made to the syllabus and the various submission locations in Bb Learn under “assignment description.”
3
Ethics
Research on ethics:
Seeks to explain why people behave in accordance with accepted moral norms.
Unethical acts are common in organizations.
Whistleblower Protection Act
6-4
4
Why Are We So Cynical?
The cynicism is not just caused by corporations
Government employees have stolen or misused funds
Academics have falsified research results
Ministers have stolen from congregations
Athletes take bribes and use performance enhancing drugs
5
Why Are We So Cynical?
Societal Pressures May Be To Blame
Society emphasizes money & material success & winning at any cost
Business & leaders are depicted as unethical in movies & on TV (e.g., Wall Street, Erin Brockovich, Avatar, Glengarry Glen Ross, Boiler Room)
6
However…there is Hope…
There are many examples of doing what’s right
During the financial crisis, many corporations operated with responsibility, transparency, & fairness
After 9/11, many organizations did the right thing, helping those in need
Organizations are becoming active in the community
Student organizations are taking action to prevent cheating (e.g., HBS’s MBA Oath)
7
Teaching Business Ethics
Can Business Ethics be Taught?
People have predispositions to behave (un)ethically
The environment matters
Most people look outside themselves for cues about how to think & behave
Ethical conduct can be influenced by the company’s environment (e.g., corporate culture, behavioral norms/expectations, reward systems, leaders’ actions)
So, YES, business ethics can be taught
8
The Four Component Model of Ethical Decision Making
9
Moral awareness - when an authority recognizes that a moral issue exists in a situation.
Depends on characteristics of the authority & of the issue itself.
Ethical sensitivity - ability to recognize that a decision has ethical content.
Moral intensity - degree to which the issue has ethical urgency.
10
Moral judgment - when the authority identifies the morally “right” action.
Theory of cognitive moral development argues that as people age and mature, they move through several stages of moral development.
11
Stages of Cognitive Moral Development
6-12
12
Moral intent – authority’s degree of commitment to the moral course of action.
Many unethical people know what they do is wrong.
What influences m.
Leadership mamagemenet training is developed as a solution to people who need to reinforce their leadership skills development. Such someone is searching for ways that to attain the utmost results from the individuals whom she is predicted to guide and lead expeditiously by example.
The Social Side of Behavioural EconomicsDavid Perrott
Understanding how deeply hardwired our brains are to be social gives us a better understand of how we make judgments and decisions, creating the right foundation for new forms of communication and design.
Employees face friction all the time - structurally, socially, mentally. Companies can increase performance by removing those unwanted friction points - and behavioral science can help.
The Lantern Group is a behavioral design and communication agency that ethically uses behavioral science to help companies improve their employee motivation, enhance their corporate culture and reduce unwanted employee friction.
Outlines a communication campaign that can be used to help organizations move past Covid-19 and start back into work. We apply a behavioral science perspective to inform how this communication campaign is rolled out.
Slides from a webinar I did for small business owners and managers on how to increase employee motivation. Section in the middle has some helpful hints on using the 4-drive model of employee motivation.
A short overview of how organizations can impact the motivational power of their incentive compensation through a few key design principles. A few key tips for anyone who creates incentive programs or contests.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
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Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
5. We wanted to use the latest
behavioral science
to drive the
process
6. We asked 4 Questions
1. What was the strategic intent
2. How did it impact motivation
3. How was behavior impacted
4. Cost of the program
7. The Four Drive Model of
Employee Motivation
Lawrence & Nohria, 2002
8. Acquire & Achieve
Driven to acquire things,
money, status, rewards and
resources
Bond & Belong
Driven to create positive
relationships, engage with others
and “fit in”
Create & Challenge
Driven to create, improve,
master, learn and overcome
challenges
Define & Defend
Driven to define our beliefs and
purpose and defend our status,
ideas, relationships and “tribes”
4-Drive Model
12. Acquire & Achieve
Driven to acquire things,
money, status, rewards and
resources
Bond & Belong
Driven to create positive
relationships, engage with
others and “fit in”
Create & Challenge
Driven to create, improve,
master, learn and overcome
challenges
Define & Defend
Driven to define our purpose and
defend our status, ideas,
relationships and OUR “tribes”
4-Drive Model
13. What we found out
Mostly focused on satisfying the drive to Acquire & Achieve
Inhibiting drive to Bond & Belong and patient focus
Not leveraging behavioral principles:
• Hedonic Motivation
• Perceived unfairness
• Idiosyncratic Fit
Not leveraging communication aspects:
• Framing
• Social proof
• Cognitive load
18. Behavioral Economic Principles
Hedonic motivation – hedonic (luxurious) awards are more
motivating than equivalent cash or other rewards. These types of
awards do not result in “indulgence guilt”, fulfill our desire for
pleasure, and are perceived as more valuable than their
economic cost.
19. Behavioral Economic Principles
Perceived Fairness – people are highly influenced by a sense of
fairness (or really perceived lack of fairness). This impacts both
behavior and attitude.
“Fairness seems a bit like air – its absence is a lot more noticeable than its
presence.”
Mathew Liebermann, PhD
Research: Ultimatum Game – 2 players split $10. One person makes offer
of split, the other decides yes or no to accept.
How much do you usually have offer for the 2nd person to accept?
≥$3
21. Behavioral Economic Principles
Idiosyncratic fit – When we feel we have a unique advantage in a
program or that a program is tailored specifically to us we are more
motivated. This sense of unique fit to us fuels our desire to perform –
even if the requirements to achieve success are more difficult.
Low cost entry fee
MeanJoiningLikelihood(0-10)
6
5
4
3
2
High cost entry fee
Likelihood of Joining Credit Card Program
Ran Kivetz
22. Goal gradient theory – Goal motivation increases as people move
closer to target. The closer you get to the target, the greater the
motivation is to achieve it.
Behavioral Economic Principles
Research: Buy 10 coffees – get one free!
10 coffee punch card
Average 15.6 days
12 coffee punch card
with 2 pre-punched
Average 12.7 days
Ran Kivetz, 2006
Illusionary goal progress – Goal motivation increases even when
the progress towards the goal is illusionary.
Buy 10 get 1 free
FREE
X
X
Buy 12 get 1 free
FREE
23. How we applied
Incentive Design
Team based incentive
Focus on fairness
Customize to individuals
Anchor desired performance
Enhance with hedonic motivators
25. Behavioral Economic Principles
Percent that registered before deadline
Framing – People react differently to a particular choice or option
based on how it is presented (e.g., loss or gain, certainty or uncertain,
etc…).
Penalty
93%
67%
Discount
Research: Framing of early registration discount as a penalty or discount?
26. Behavioral Economic Principles
Social proof (the bandwagon effect) – Tendency of people to
assume the actions of others reflect the correct behavior in a given
situation. People are more likely to take action or behave in a
specific manner if they see others doing the same thing.
A
B
C
Research: Which line matches the test line?
75% of participants
conformed to the majority
view at least once, even
when it was clearly incorrect.
Solomon Asch
Test Line
27. Behavioral Science Principles
Cognitive Overload – Our short-term memory can only process a
limited amount of information. Too much information in too short of
period results in information being discarded and memory/processing
shutting down.
Research: How information is presented can have significant impact on
comprehension, processing and retention.
Before – 32% retention
of key data items
After – 67% retention
of key data items
28. How we applied
Incentive Communication
Used campaign approach
Graphically enhanced to clarify and drive behaviors
Framing of communications accordingly
Normative vs. Descriptive
Present vs. Future
Use testimonials/numbers to drive social proof
Communicated desired performance to anchor it in
29. How we are using behavioral science today?
Rewards & Recognition
Fleet Safety
Patient Adherence
Manager Training
Sales Operations
Kurt
Welcome
James and I are excited to be here to talk about how James company, Eli Lilly transformed its total rewards program using behavioral science principles
We will start with some of the background to set the stage
Then we’ll quickly talk about the process that we used
From there our journey will take us into an examination of some of the behavioral science principles and how they were incorporated
And we will wrap up with a quick review of how Lilly has expanded the role of Behavioral Science today
James:
Back story on Lilly’s strategy changing
James:
Overview what the key strategic drivers were
James:
Discussion on how R&R had not kept pace
James:
Talk about bringing in Kurt and BIW
Kurt w/James color commentary:
We started the process by doing what we call a behavioral audit which is designed to understand the underlying root drivers of motivation and behavior
This goes beyond survey and questions and included in-depth interviews with custom questions and probes designed to peel back the real drivers
We needed to do this since because of the say/do problem. You all know about the say/do problem, right? NO?
The say-do problem is the fact that we often answer surveys or questions one way, but behave in a very different manner. This is particularly true when we think or answer questions about what motivates us.
There is a multitude of psychological reasons for this – one major one is we don’t really know ourselves and our motivators as well as we think we do
Anyway, back to the audit. We analyzed information and interviewed key stakeholders and sales people throughout the company
We asked 4 key questions
What was the strategic intent
How did it impact motivation
How was behavior impacted
Cost of the program - [James – add in comment here]
Kurt:
We used a number of tools to analyze and assess the information
One of the key tools we used was a model of motivation that was originally developed in 2002 by Harvard professors Lawrence and Nohria, I believe this model is the most comprehensive model of employee motivation to date.
Kurt:
So let’s look a little closer at each of the different drives
Note – that these are different than Lawrence & Nohria’s original – we modified them based on our own research and work with organizations.
Kurt
Kurt:
So let’s look a little closer at each of the different drives
Note – that these are different than Lawrence & Nohria’s original – we modified them based on our own research and work with organizations.
James with color commentary by Kurt
So what did we find with the audit?
James:
This quantification of information and behavioral drivers led us to work closely with Sr. Management to revamp our R&R framework
James:
First – on our incentive plan…
Kurt with color commentary by James:
We worked well beyond just the incentive plan.
It was important for us to ensure that we were satisfying each of the four drives as much as we could.
We know that the IC plan by itself was not enough to do this. Let me repeat that – the IC plan could not do this on its own.
We looked at a R&R Framework – using different methodologies to tap into the different drives
As you can see the IC satisfied
Kurt with color commentary by James:
Kurt with color commentary by James:
Luxurious rewards provide higher motivation – we often feel guilty for spending money on hedonic or luxurious things – but incentive rewards remove that guilt. Also people tend to perceive the value of those rewards as higher than they actually are. Goods also tend to make more of an impression in our memories than cash – providing greater recall and motivation. In US – we tend to not discuss money – but we will discuss (brag) about winning trips, merchandise, etc (Trophy effect).
Kurt with color commentary by James:
Changes to plans that decrease the perception of fairness can have significant negative impact on performance and overall plan satisfaction.
Incentive plans need to ensure that differences between territories or roles be explained and that people understand why they are different.
Reward & recognition implications:
Compare new plan to last year’s plan
My payout compared to peers (perceived fairness)
Relativity (internal equity)
we judge a thing based on how we think it compares to others
Ultimatum Game: the first player (the proposer) receives a sum of money ($10) and proposes how to divide the sum between the proposer and the other player. The second player (the responder) chooses to either accept or reject this proposal. If the second player accepts, the money is split according to the proposal. If the second player rejects, neither player receives any money. The game is typically played only once so that reciprocation is not an issue.
Responder usually rejects offer unless it is over $3 - throwing away money just because they feel slighted and not a fair distribution of funds.
See what happens when researchers provide two different rewards to monkeys doing the same thing.
First monkey happy with cucumber to begin
2nd monkey gets grape – 1st monkey sees this
1st monkey now not happy with cucumber when still gets this as reward
Kurt with color commentary by James:
Research – loyalty program for credit card – looked at the likelihood of joining the program – four conditions: 1) low entry fee and double your points when use the card at only YOUR specific grocery / gas chains, 2) low entry fee and double your points when use the card at only ANY grocery / gas chains, 3) high entry fee and double your points when use the card at only YOUR specific grocery / gas chains and 4: high entry fee and double your points when use the card at only ANY grocery / gas chains. Contrary to what you would think – more likely to join when the double points are limited to your specific stores AND even more likely to join if the fee is higher. Irrational belief that the program is customized and limited to YOU.
Study done with a coffee shop. Two scenarios each focused on buy 10 coffees get 1 free. However, one card had 10 spots on it, one had 12 spots (with 2 pre-filled). The research found that the cards that had the two sections already filled in were turned in faster (15.6 days versus 12.7 days).
Over 10,000 cups of coffee were redeemed