Who welcomes change? Basically, nobody – except maybe a baby with a dirty diaper! Behavioral science is an umbrella term that covers the realms of social psychology, behavioral economics, and sociology among other fields. As applied in business or government, behavioral science is often a matter of creating small “nudges” in designing changes to human behavior in hopes of achieving buy-in rather than resistance from those who are wedded to the status quo. Khan and Newman, who co-edited and contributed to this book, are candid about the challenges involved in enacting real change in organizations. Without executive buy-in, and a few quick wins to placate the doubters, the odds of enacting change get pretty long. For more tips, listen in as In this episode focuses on a pair of behavioral science applications relevant to business: running human resources (HR), and promoting innovation.
Released today: episode #102 of my podcast series “Dan Hill’s EQ Spotlight,” featuring Zarak Khan and Laurel Newman, discussing Building Behavioral Science in an Organization. Click this link to get to the new episode.
Zarak Khan is a Senior Behavioral Researcher at Duke University’s Center for Advanced Hindsight, as well as a Behavioral Science Fellow at the University of Pennsylvania and a board member of Action Design Network. Lauren Newman is a behavioral scientist at Edward Jones, and a former psychology professor at Fontbonne University.
What goes around, comes around—and that is especially true when it comes to behavioral economics. Who was quick to recognize that emotions drive people’s financial decisions and behavior? The answer is Adam Smith, who was both instrumental in creating the field of economics and a moral philosopher to boot. In that same vein is my guest this week, Nika Kabiri, who knows the Confirmation Bias is among the most important factors to navigate in helping her clients make their investment choices. Along the way, this conversation takes in the movie The Big Short, Federal Reserve Board chairman Jerome Powell, and what may lay ahead for an economy trying to emerge from the ravages of Covid-19. Five types of investors are likewise discussed in this episode, from the more-is-better investor to the what-has-always-worked investor. Figure out which type of investor you are, and how you can become more confident about your investment strategy.