Category

Organisational Design

Pitcture depicting the Kock Brothers

The behavioural design of the economy. On incentives and rewards

By | Citizen Behaviour, Government & Politics, Organisational Design

To get the rich and powerful to change their behaviour,
is the most wicked design problem of our time

Pitcture depicting the Kock Brothers

I have been thinking a lot lately about society’s inability to tackle the biggest challenges of our time. I don’t know about you but climate crisis, income inequality and radicalisation is scaring the hell out of me. We can’t seem to change the behaviour of those who are running the show. This is the most wicked problem of our time. I want to argue that the solution to change the course of history can be found in applying some Behavioural Design Thinking to this wicked problem.

The economy is a behavioural design

The best way to think about behavioural design is to think of it as the design of choices. The way you design a choice will largely determine the behaviour that follows from that choice. This simple and powerful first principle of Behavioral Designworks on all levels of human decision making, from small consumer decisions to big societal decisions. Let me illustrate this with a couple of examples:

  • If you want to sell an item, it matters a great deal if you give two or three options. You can change the value perception of a cake + coffee of € 5,- in comparison to a € 2,5 coffee instantly if you would introduce a decoy option of a € 4 cake in the middle. The introduction of the € 4 cake makes the € 5 coffee + cake suddenly look like a bargain.
  • You can change the value perpection of something if you don’t call it “cheap” but “great value for money”.
  • If you want to get a sales team to run like hamsters in a treadmill, introduce sales targets and continuously give them feedback on how they’re performing in comparison to their colleagues. With these simple interventions, you will have designed a choice system that triggers hyper-competitive game behaviour.

These applications of the lens of behavioural economics to human decision making is nothing new. What fascinates me is the idea that could also look at the economy through this lens. The economy is a behavioural design system that rewards particular behaviour with power and profits and punishes other behaviours with taxes and fines. If you want to transform the economy, you have to tweak the behavioural design in such a way that it rewards and incentives different behaviours.

(BTW: In this post we explore the concept of Behavioural Design in dept)

Behavioural Design is the missing layer

Join our Behavioural Design Academy and learn how to positively influence minds and shape behaviour

It’s all about the incentives.

The problem with the current behavioural design of the economy is that it consistently rewards destructive behaviours, both with money, power and social status.

Society glorifies being rich and being powerful. To the extent that it rewards sociopaths like Donald Trump, Mark Zuckerberg, Jeff Bezos, Peter Thiel and Charles and David Koch (see picture above. BTW: David died this week) with power, prestige, admiration, etc.… The summit of social status in western capitalist society is “being rich”.

Society also rewards them with unlimited power to do whatever they want. Think about how Bezos played out communities against each other to fight for hosting the next HQ of Amazon. Amazon was offered 2.2 billions in tax cuts by the city of New York.

The third reward is financial. If you’re rich, you have access to all the tools to get even richer. The (capitalist) behavioural design of the economy offers unlimited financial rewards to people with capital. Every valuable thing in the marketplace is being sucked dry by the owners of capital. There’s so much cheap capital in the hands of investors that they can buy everything to help them to grow their wealth even further: They buy up houses in cities, they buy kindergartens, elderly homes, entertainment franchises, etc. They own more than 90% of all fortune 500 companies through the stock market, and instead of using profits to reinvest them in the companies, they use it to pay themselves high dividends.

This process is called the financialisation of the economy and explains why everything of value is rapidly becoming more expensive.

 

The solution: Change the incentives


If you want to understand the economy, understand incentives. If we’re going to change the economy, we’ll have to change the incentives. It’s as simple as that. If we want to fight inequality and climate catastrophe, we will need to change the social, financial and power rewards.

Governments and economist only tend to focus on tax incentives today, but I think we could have a far more significant impact if we work on the psychological rewards of social status and power.

We will need to challenge the social status of those who are destructing the planet and extracting wealth out of the economy. We will need to reward those with bold and brave ideas about the future with power.

A great example of this behavioural design change is the work that the Sunrise Movement in the US is currently doing. They are the movement that came up with the New Green Deal. They did a fantastic job of reframing the climate crisis story. Instead of talking about “saving the planet” and scaring the hell out of people, they turned climate action into a narrative about investing in wealth creation, job creation and the investment in thriving communities where kids have access to good education, clean water clean air and health care. That’s a story for which they’re getting bi-partisan support.

As a consequence, this broad support incentives politicians to embrace the New Green Deal, because it increases their chances of being elected. Meanwhile, they do a great job in glorifying business and community leaders who step up and take action and vilify those who are bringing the world on the verge of climate catastrophe.

Even the very rich are suckers for social status and recognition


In the end, no matter how rich we are, we all crave for recognition and social status. If we as a society succeed in taking those away from the current “heroes” of financial fame and instead reward the new heroes that bring society further through investing in a sustainable economy and a sustainable planet, we might succeed much faster in turning things around.  Saving the world is all about redesigning the incentives.

It’s as simple as that.

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Nassim Taleb's great thinking on hedging against group-think

The psychological price of being rational is being unlikeable

By | Organisational Design

Rational decision makers have to dare to
fight common sense and social norms.

Nassim Taleb's great thinking on hedging against group-think

This blogpost is about how being rational in organizations is actually pretty difficult. It comes at a high social cost. Because rational people need to defy groupthink, defy authority-based decision making and defy social pressure. That’s one of the reasons why innovation is so difficult to pursue.

When do you pull the Goalie?

Imagine you’re a coach of a hockey team. Your team is one goal behind and we’re approaching the end of the game. You know you need to take a gamble and change the goalie for a field player. Butthe question is when. When do you pull the goalie?

If you approach it rationally, the answer would be 5-10 minutes before the end of the game. That’s how you maximize the chance of making a difference. But no coach would dear to do this. Because if it goes wrong, everyone will blame the coach for the mad and unexpected move.

The example was told by Malcolm Gladwell in an episode of his podcast Revisionist History. It reminded me of another story, told by Nassim Taleb in the Black Swan. Before Taleb (see picture) turned philosopher, he used to work as a trader on Wall Street. His strategy was to bet against improbable events. He would take the money of his clients and he would put it all in insurance that would pay out in the case something unexpected happened, like a crisis. He knew the money would eventually pay out big time, he just never knew when the improbable “black swan” event would happen. But he just waited and did absolutely nothing.

It drove his managers and his clients mad. They expected him to work actively to make money for them. The idea that he would sit on his ass to wait for a crisis event to happen – which would pay out enormously – was just unbearable to them. It was a perfectly rational strategy, but Taleb had to develop a very thick skin in order to be able to stick to it.

Behavioural Design is the missing layer

Join our Behavioural Design Academy and learn how to positively influence minds and shape behaviour

To be rational is to be unlikeable

The problem with acting rational is that it very often clashes with social norms. You will get much less problems for failing by following a strategy everyone else would follow, then you would if you followed an unexpected path, even though it makes sense from a rational point of view.

My partner Astrid decided to stop working at the office a couple of months ago. She realized that being at the office prevented her from doing the things she should be doing to create value for SUE. The constant distractions were killing for her productivity and her mood. So she started working at home. It took her three months to stop feeling guilty about it.

Warren Buffett and Charlie Munger, the smartest investors in the world, spend most of their time in the office on reading. They figured that investing most of their valuable time in understanding more about the world, would eventually pay off in smarter decisions. Berkshire Hattaway made 242 Billion Dollars of profit in 2017.  Unlike most investors, they buy companies with the intention to hold on to them forever. They are in the business for the long run.

Corporate culture doesn’t like the crazy ones

The problem with acting hyper-rational is that you need to be able to deal with social pressure. Very often, people will not like you for breaking the social norm. And when your choice leads to failure, they will find it very easy to blame you for your stubbornness. I think that’s one of the reasons why it’s so difficult for corporations to innovate. Innovation needs stubborn people who don’t mind the social pressure to conform to corporate norms. “Think Different”, probably the best commercial ever made, actually pays tribute to those people with the following legendary quote:

“Here’s to the crazy ones. The misfits. The rebels. The troublemakers. The round pegs in the square holes. The ones who see things differently. They’re not fond of rules. And they have no respect for the status quo. You can quote them, disagree with them, glorify or vilify them. About the only thing you can’t do is ignore them. Because they change things. They push the human race forward. And while some may see them as the crazy ones, we see genius. Because the people who are crazy enough to think they can change the world, are the ones who do.”

sue behavioural design

Learn how to make the science of influence work for you

Join our Behavioural Design Academy and master the skills to shape minds and influence behaviour. We trained people over 30+ countries and have a 9,2 satisfaction rate. Check out our free brochure. Don’t miss out on making your growth a success.

sue behavioural design

How to influence the perception of value?

By | Behavioural Science, Organisational Design, SUE Amsterdam & Behavioural Design Academy originals

In this blogpost I want to explore the concept of value. I want to argue that Behavioural Design is as much about influencing how people perceive and experience things, as it is about changing actual behaviour. The design of psychological value is in my opinion a great concept to think about how to change perception and experience.

Value is a critical concept in economics. Peter Drucker famously said: “The purpose of a business to create a customer”. And the only way to create a customer, is to make him appreciate the value of what the company is offering for a reasonable price. But what is value really? And are we good at calculating the value or something?

We are price clueless

Well, it turns out we’re terrible at understanding value. In the book Priceless, William Poundstone explains the concept of “Price Cluelessness”. Because we have no idea of what something should cost, our System 1 – or automatic brain – is always relying on shortcuts to figure out the value of something. If we see a nice pair of sunglasses in a Chanel store, we expect them to cost € 200. But in an H&M store, these € 200 sunglasses would never sell. Even worse: people would be outraged. The context determines how to decode the value.

We even take price as a clue

Our incompetence for understanding value gets even worse: We tend to look for the price itself to find a clue whether something must be valuable. Something is priced high; therefore it must be excellent, otherwise, they would never price it this high. Also, when we really want the high-priced item, we tend to look for explanations, to trick ourselves into believing it’s actually a bargain. Stella Artois once campaigned around this idea. You could buy a coupon to pay even more for your Stella, thereby underscoring its brand promise “reassuringly expensive”. What most people in Britain don’t know is that in Belgium, Stella Artois’ home country, Stella is just an ordinary beer.

Popularity as a shortcut for value

The fact that something is popular is also a classic “System 1”-shortcut for determining the value of something: Many people want this item, therefore it must be good. Popularity helps you to decide without having to think about that decision. This is probably one of the most critical roles of branding: You know you can’t miss with buying a Jack Daniels, because you know everybody knows Jack Daniels.

Psychological value

The examples above are classic behavioural psychology tricks on how to influence the perception of value. But that’s the easy part. It gets much more interesting when you approach value from a human-centred point of view. Human-centred designers take irrational humans as their point of departure, for which they design answers and solutions. And when you depart from humans, you ask yourself questions like ‘How might we help people to…’:

  • Achieve their goals and realize their dreams?
  • Build positive long-term habits?
  • Resist their impulses and temptation?
  • Look at reality in new ways to trigger positive action?
  • Feel appreciated and respected?
  • Take away pain or frustration in their current experience?

Behavioural Design is fascinated with humans, their dreams, their fears, their bad habits, frustrations and their desire for happiness. And if we can understand them and design solutions form them, we will create psychological value.

Psychological Innovation

Once you start looking at reality through the lens of psychological value, you can see it everywhere:

  • Mom in Balance makes it much easier to stick to your workout habit because you meet up every time with the same group of mums like you.
  • The value of your restaurant experience goes through the roof if the chef decides to have a drink at your table
  • The € 10 you pay extra to sit in one of the front rows in an Easyjet-flight is the cheapest possible way to feel subjectively richer than the majority of people.
  • Airbnb is selling you the feeling that you are experiencing the city like someone who lives there. That’s priceless.
  • Uber makes a taxi experience 100x less frustrating because you know exactly when your car will show up, you know how much the ride will cost and you don’t need to have a transaction with the driver.
  • Would you prefer to work at the helpdesk or at the customer success team? Both jobs are exactly the same, but the second one feels so much better

Once you start thinking about creating psychological value for humans, you try to come up with ideas to help them to overcome stress, anxiety, insecurity, bad habits. Or to help them to achieve their goals, dreams and aspirations and to experience joy, fun and surprise. The number of things you can do to innovate are endless.

When it comes to innovation, we’re too often looking in the wrong direction. We think it’s about technology, but it’s really about creating psychological value.

PS: Our Behavioral Design Method is a method to spot opportunities for psychological value. It’s a fast-paced highly-structured process to turn hypothesis into ideas and to prototype and test what works and why it works. You can learn the method in our Behavioural Design Academy or apply the method to solve a business challenge in a Behavioural Design Sprint.

Want to learn more?

If you want to master the science of influence yourself, you could consider enrolling in our two-day course Behavioural Design at our SUE | Behavioural Design Academy. You can download the Academy brochure. Or maybe you currently have a challenge in which you want to influence choice or change behaviour. Please, take a look at our Behavioural Design Sprint. It might be the answer you’re looking for.

Or could be you just would like to get to know us a little better. We happily introduce ourselves here.

A cliche image of coaching

Personal coaching is pointless: four reasons

By | All, Organisational Design, Self Improvement

The lie at the heart of the coaching and Leadership-Industry

I’m fully aware that I will probably get hate-mail for this. But I honestly think personal coaching is a gigantic waste of time and money. Personal coaching is based on the assumption that changing the individual will lead to a change in the behaviour of the group and will benefit the company. A multi-billion dollar leadership-industry even emerged around this assumption. “If only I would become a better leader, my company would grow and my team would flourish”.

I think this assumption is complete nonsense, because of these four reasons

1. There’s a very weak relationship between knowledge and habits.

Most smokers know smoking is bad for them. Most smokers know they should quit. But with every crave for relaxation or fighting boredom, they can’t help themselves and light up a cigarette.

The same goes for coaching. Learning a lot about yourself is one thing. Being able to break your automatic interaction patterns with your environment is a whole different subject. You and your environment can’t help but repeating the same patterns over and over again. And the moment you try to change, your environment will push back hard to get you in line with what they expect you to be.

2. Individuals are overrated when it comes to making a difference

Only collaborations create breakthrough innovations. The central storyline of Michael Lewis biography of Daniel Kahneman and Amos Tversky is how these two Isreali psychologists, basically re-wrote the rules of psychology through their collaboration. which had all the characteristics of a creative-intellectual love affair. They could never tell who initiated a breakthrough insight or idea. It was the creative-intellectual tango between both of them, that generated idea after idea. Interestingly, their intellectual productivity dried up, when they got separated in the eighties.

By the same standards: There would be no Steve Jobs, without Steve Wozniak or Johny Ive. No Warren Buffet without Charlie Munger. Even the archetype of the lone genius, Albert Einstein, turned out to rely heavily on the genie of his wife Mileva Maric. I think it was Aristotle who said: “knowledge is dialogue”. So instead of looking inside for “unlocking hidden truths about yourself”, find yourself a creative partner and start playing.

In his new book “Trillion Dollar Coach: The Leadership Playbook of Silicon Valley’s Bill Campbell”, Google’s former chairman and CEO Eric Schmidt brings a homage to Bill Campbell, who both coached the Apple and Google Board at the same moment. Bill was famous for coaching the team, not the individuals of the team. As Schmidt puts it:

“You hear all the day that “I need a mentor.” Well, by the way, you need a mentor and I need a mentor; mentors are great. That’s not what Bill was. Bill was a coach and more importantly, he was the best coach of teams ever. And why do you need a team? Because a company is not an individual, it’s a team of individuals who need coaching to achieve their objective”.

 

3. You are the average of the five people you hang around with.

This is what Tim Ferris would write, if he would be given the chance to write copy on a public billboard.

The answer to becoming a better person is by surrounding yourself in your daily life with people better than yourself in different ways. I’m not saying that you shouldn’t have a mentor. But I do think that most of your uncertainties, flaws, ego-problems, bad habits and lack of energy can be attributed to the simple fact that you’re not surrounded by enough people, who push you to become the best possible version of yourself.

4. Change is about behaviour

Most of our limitations are the effect of the ecosystem we’re part of. As entrepreneurs, there was a time we worked day and night and frustrated our team because we couldn’t let go. The only way to solve this problem was to step out of this ecosystem for a while. This forced everyone in our team to step up and it provided an amazing opportunity for personal growth, and this includes Astrid and I. What changed us was an intervention that liberated everyone from a pattern we got locked into. No personal coaching could have solved this problem.

 

The Behavioural Design of Personal Growth

How does this relate to Behavioural Design? At SUE we think of Behavioral Design as a set of methods and principles to change behaviour, through the design of interventions that nudge people’s choices in a desired way. The more we work on big themes like happiness, excitement, creativity, productivity, etc… the more we discover that you can’t search for those values within yourself. They are the effect of the behaviour you are nudged into.

By the same standard we think of professional growth as just another Behavioural Design Briefing. If you want to grow as a person, simply create a context in which you are triggered into behaviors that lead to growth. The best way to achieve this is to come up with interventions that force a group to give more feedback. to engage in continuous learning and to experiment aggressively. Our Behavioural Design Sprintis an example of how the design of the process forces the group into these positive behaviours.

Want to learn more?

If you want to master the science of influence yourself, you could consider enrolling in our two-day course Behavioural Design at our SUE | Behavioural Design Academy. You can download the Academy brochure.

Or maybe you currently have a challenge in which you want to influence choice or change behaviour. Please, take a look at our Behavioural Design Sprint. It might be the answer you’re looking for.

Or could be you just would like to get to know us a little better. We happily introduce ourselves here.

3 techniques that will supercharge your team’s creativity

By | All, Organisational Design, Self Improvement, SUE Amsterdam & Behavioural Design Academy originals

Brainstorms must die

Before we get to the goods of supercharging your team’s creativity, there’s one thing that needs to be taken care of first: Dead to the brainstorm. Maybe it sounds a bit harsh, but sorry, there’s no pardoning act. Brainstorms should die. The ‘inventor’ of the brainstorm Alex F. Osborn gave birth to brainstorms in 1939. So, it’s about time for a makeover. But let’s not question his intentions. According to Wikipedia Mr. Osborn “Was frustrated by employees’ inability to develop creative ideas individually for ad campaigns, in response, he began hosting group-thinking sessions.” And it still holds true: Solitary creative processes have an entirely different dynamic and output than a process in which great minds collide.

But why, oh why, are we then all still trapped in those everlasting flip-over led sessions that feel like such a waste of time and resources and where great minds tend to collapse instead of connecting?

But why, oh why, are we then all still trapped in those everlasting flip-over led sessions that feel like such a waste of time and resources and where great minds tend to collapse instead of connecting? Looking at brainstorms from a human psychology perspective, there’s a quite simple explanation. When a group engages in a group think process, the leader of the pack prevails. It is just nature. The one who is the loudest is heard the most. And the highest in rank at the table is often followed. The real problem with this is that a group only delivers a fraction of the possible number of ideas in a brainstorm.

 

How to supercharge the creative capital of a group

But there’s an upside to this: Research shows that teams are terrible in coming up with ideas but great in selecting ideas. So, if we fix the ideation part of the process, we can create magic. In fact, three simple behavioural design techniques can have a massive impact on the creative output of a group. They will help you to unlock the creative potential of a group, even of presumed non-creatives.

Research shows that teams are terrible in coming up with ideas but great in selecting ideas.

 

How Might We Questions

The first technique has to do with a human psychology principle that’s called the Framing Effect: How information is presented shapes our opinions about it. In this case, it is the question from which you jump-start your creative thinking. You can drive creative output by designing the problem using these three magic words: “How Might We?” Feel how the “Might” instantly liberates you: It urges you to go ahead and explore, to free your mind, be boundary-less, an explorer or pioneer even. Compared to its tight ass brother ‘Can’ it makes a world of difference. Just feel what it does to you when you frame the question as ‘How Can We?”. The ‘Can’ immediately forces you to think about the possibilities and even worse the impossibilities; practicalities also, harshly limiting the number of ideas already at the start of the process.

 

Brainwriting

When getting to the ideation part of the creative process we’ve to keep a few human psychology principles in mind. The first is social proof: People tend to follow the lead of others. Sometimes this manifest itself in the social bias of Authority: We have a strong tendency to comply with authority figures. Or we adjust our behaviour to reflect positively on how peers see us: The Reputation bias. The job to be done in the ideation phase is to reduce the biases that could potentially reduce the creative output and install a free-flowing non-judgmental exchange and ideation process that sparks everyone’s creative fire.

You’ll be amazed by the number and diversity of ideas you as a group will come up with in such limited time. From everyone. The bold and the timid. The upper rankers and the climbing uppers. The creatives and the presumed non-creatives.

A technique to do so is Brainwriting. Instead of coming up with ideas as a group, you start by thinking about ideas as an individual. The method is simple. Determine a ‘How Might We Question’. Give every person a stack of post-its. Set a timer for a brief period, somewhere between 5 and 10 minutes, and then as an individual write down as many ideas as possible, no talking, just go wild by yourself. Write down every idea that pops into your mind on a separate post-it. After time’s up, everyone shares his/her ideas with the group. Stick them on a large piece of paper. Describe them if necessary. But don’t comment on each other’s ideas just yet. All you do is grouping the ideas that seem similar. You’ll be amazed by the number and diversity of ideas you as a group will come up with in such limited time. From everyone. The bold and the timid. The upper rankers and the climbing uppers. The creatives and the presumed non-creatives. Then use the third technique to select the ideas.

 

Dotmocracy

A fundamental concept in behavioural psychology is making target behaviour easier to do. A well-known psychological phenomenon in groups is social compliance. It’s very challenging for an individual to go against the norm, breaking the rules, to think differently. Social deviance is a hard behaviour to show, as it triggers another psychological principle: Loss Aversion. Humans prefer eliminating the risks of loss over increasing the odds of winning. And the most significant loss in a group process is rubbing against the hairs of the highest ranked person in the group and dealing with the personal retributions. But it’s precisely that kind of social deviance of going up against the top-ranked person in the group that helps to select the best ideas. A simple technique to eliminate this pressure and to fight compliance is called dotmocracy.

Loss aversion: Humans prefer eliminating the risks of loss over increasing the odds of winning.

 

The technique is simple: Everyone gets two same colored dots. Everyone groups around the paper with all ideas and at the same moment, you stick a dot on your two favorite ideas. Could be two dots at the same idea, could be dots on your ideas, could be dots on two different ideas. Just pick the ideas that you think have the most potential. Nobody can follow the lead of others, and you instantly get a clear overview of the best ideas. Usually, as a group, you discuss the selected ideas with two dots or more where people are asked to elaborate on the reason for picking the idea. After the explanation, the second round of dotmocracy should be done, placing dots on the ideas that came out as best in the first round. Although sometimes sticking dots at the same time is sometimes impossible (the best group size is therefore 5/6 people), the process shows people authority is not an issue. Everyone’s vote has the same weight. There are no larger dots. No different colored dots. No order of placing the dots.

 

If you only have 30 seconds of reading time, this is what you have to know:

  • Three behavioural psychology techniques can help you to boost the quality and diversity of your creative output;
  • It can help you make your creative output more qualitative as you can involve stakeholders from very different backgrounds, making your ideas more multi-layered and distinct;
  • It offers you a method to come up with ideas on your own without being distracted or disturbed, but at the same time the process involves interaction with others to make ideas better;
  • Instead of working for days on ideas, you come up with ideas fast, and you already get feedback after 15 minutes. Enabling you to make your ideas better or to kill the ideas that appeared not to be as good as you thought at first;
  • It offers new established multidisciplinary teams, such as scrum teams, easy to apply techniques to come up with creative output.

 


You might also like to read:

How to create change by design

 


Astrid is the founder of SUE Amsterdam and The Behavioural Design Academy. Our mission is to unlock the power of behavioural psychology to nudge people into making positive choices in work, life, and play.

In two days of high-end master classes, we train people as certified behavioural change directors. We teach them to unlock the powerful principles of behavioural psychology and use The Behavioural Design Method™ to translate this knowledge into actionable skills to influence personal behaviour or the behaviour of customers, employees, family members or the general public.

Cover image by BntOman ♥ Ƹ̵̡Ӝ̵̨̄Ʒ✿ under Creative Commons license.

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How To Make an Agile Team Customer-Centric?

By | All, Organisational Design, SUE Amsterdam & Behavioural Design Academy originals

Digital Transformation, Agile Transformation, and Customer Centricity are the three major challenges that are causing sleep deprivation of managers nowadays.

You could summarise that Digital Transformation is meant to be the driving force to be able to help a client faster, smarter and cheaper. Agile Transformation should give teams the speed and agility to catch up with this ever rapidly changing the client. And Customer-Centric Transformation should enable you to develop better product and services based on better client insights.

Recent research of FD (Financial Daily) and Vlerick Business school exposes all pains of digital and agile transformation projects. And basically, it all comes down to one thing: Where agile, digital and customer-centric transformation are initially started to gain a competitive advantage by becoming truly customer-centered, they turned out to be organizational oriented pitfalls.

Where agile, digital and customer-centric transformation are initially started to gain a competitive advantage by becoming truly customer-centered, they turned out to be organizational oriented pitfalls.

Chief Digital Officers complain they feel sabotaged by the traditional oriented management; managers complain that after investing in expensive SCRUM training, their teams keep doing what that have done before, but mask this by performing some SCRUM rituals; and teams complain that the bi-weekly SCRUM sprints deprive them of time to talk to consumers.

The only way out of this impasse is when you rigorously put the customer first in your Digital, Agile or Customer-Centric transformation.

The only way out of this impasse is when you rigorously put the customer first in your Digital, Agile or Customer-Centric transformation. If you make quantitative and qualitative insights into customer behaviour the starting point of the SCRUM team projects, of the digital innovations and the management team decisions, you’ll put the focus back on the actual purpose of the transformations: Gaining a competitive advantage by becoming customer-centric.

But unfortunately, that’s where things again tend to go sour, as organizations have outsourced this pivotal competence of gaining deep human insights to research agencies and marketing consultancies. The result being nobody in the team is still – literally – in touch with the client. It’s all secondhand information.

Adding a Customer Insight Lead to teams shifts the pain of organizational transformation to getting to knowing the pains of the consumer.

But one intervention could be the solution to all problems. Every SCRUM team, every Digital Transformation team, every Management Team or Board of Directors should get a Customer Insight Lead. Someone who’s responsible for delivering insights into customer behaviour on a continuous basis. This single intervention would shift the pain of organizational transformation to a focus on getting to know the pains of the consumer. Something people can comply with much easier.

Tom

 

 


You might also like to read:

How to create change by design

Lose weight using behavioural design

 


 

Tom is the founder of SUE Amsterdam and The Behavioural Design Academy. Our mission is to unlock the power of behavioural psychology to nudge people into making positive choices in work, life, and play.

In two days of high-end master classes, we train people in unlocking the powerful principles of behavioural psychology and teach them our Behavioural Design Method™ that translates this knowledge into actionable skills to influence personal behaviour or the behaviour of customers, employees, family members or the general public.

Cover image by Birger Kühnel under Creative Commons license.

Want free training, tools, and tips in your inbox?

Join 2500+ others. Sign up right here, right now for free.

Chief Behavioural Officer: It’s the new ‘must-have’ role

By | All, Customer Behaviour, Organisational Design

Step by step, behavioural economics, and psychological science have expanded their reach to become an established part of the business, policymaking, and regulation – for anyone seriously interested in both understanding and changing behaviour. And within marketing and market research, behavioural economics has become a required area of expertise and competency. We are now witnessing the next big step – the creation of the role of the Chief Behavioural Officer (CBO). This move will ensure that behavioural science has a voice at the highest level inside companies and institutions, a clear demonstration of the impact and value it is generating.

In this article, we look at how, within the last decade, this has become the new reality. We identify two main drivers and examine how behavioural science is increasingly being factored into everyday business, policy decisions, and common practice. First, though, we take a closer look at the trend of the CBO role and in-house behavioural insight teams.

Read the whole article

Author: Crawford Hollingworth
Published by: The Marketing Society UK
Date: 1 December 2014

 

Cover image by Thomas Angermann under Creative Commons License.

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