Free Webinar - Three Rules for Getting Buy-In from Senior Management and Developing Superior Strategies from Human Capital

In order to make the best decisions possible, organizations need to corral all of their deep knowledge, including hard data, soft data, opinion, intuition, street smarts and gut feel. This seminar shows how a well-designed decision process can do this in a very effective way. The significant characteristics of such a process are clearly explained in this seminar hosted by Derek Johnson from Aurora WDC and featuring special guest, Dr. Niall Fraser, chief scientist at Open Options Corporation.

Register at:

https://www2.gotomeeting.com/register/712609143

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Comment by Dr Lewe Atkinson on April 12, 2009 at 8:16pm

BOOK REVIEW BY COLUMBO

Nudge
By
Thaler & Sunstein



What is it about?
We are all “choice architects” – that is any one who wants to influence the decisions of others – in other words EVERYONE!

The book takes the perspective of paternal liberalism – that is every one should have the opportunity to choose from unlimited options, but assistance and guidance should also be provided to those who would like it. That is the essence of choice architecture – providing the options along with the appropriate decision support framework.

The authors set the scene by identifying two thinking styles:
• Automatic – the “intuitive doer” or HUMANS – a la “Homer Simpson”
- Uncontrolled
- Effortless
- Associative
- Fast
- Unconscious
- Skilled
• Reflective – the “rational planner” or ECONS – a la “Dr Spock”
- Controlled
- Effortful
- Deductive
- Slow
- Self aware
- Rule following

The authors offer the six principles of good choice architecture combined into the acronym - NUDGES:
1. iNcentives
2. Understand mapping
3. Defaults
4. Give feedback
5. Expect error
6. Structure complex choices


Key points
1. Choice architecture is about “framing” options in order to eliminate the influence unhelpful cognitive biases (bad “nudges”) such as: Anchoring, Availability, Representativeness, Salience, Optimism, and Conformance
2. Choice architecture can also be about manipulation through media such as; selective information, peer pressure, thought priming (wedging), and safety in numbers (herd mentality)
3. The new spirit of democracy and egalitarianism provided by the intranet has enabled the right to choice by the classically underprivileged (women & minority groups). Choice is enabled through the application of simple decision support tools for example RECAP:
o Record (past history of activity)
o Evaluate (against possible alternative courses of action)
o Compare Alternative Prices

Why is this relevant to strategic partnerships?

Facilitating the development of sustainable strategic partnerships is all about developing better choice architecture to structure complex collaborative decision making processes.

Key lesson
- Freedom of choice is a curse to those who are not adequately enabled to make good decisions.

- Notwithstanding the above – “everyone has the right to be wrong!” – the paradox of liberalism.

- The transparency principle is best – That is “to eliminate complexity is to stifle innovation. A better approach is to improve transparency and disclosure”.

Comment by Dr Lewe Atkinson on April 11, 2009 at 8:18pm

I would love to participate but I have meeting clash - sorry.

Dr Lewe (alias COLUMBO)

Comment by Arik Johnson on April 10, 2009 at 9:59am

Hi Andrew - yes, there will be an archive, but we'll only send it to registered participants, so even if you know you can't make it live, please go ahead and sign up.

And hi Michael - thanks - hopefully others will agree!

- Arik

Comment by Andrew Beurschgens on April 10, 2009 at 9:39am

Welcome obtaining a recording of it in case I miss the whole time zone translation thing...

Comment by Michael M. Richardson on April 9, 2009 at 5:11pm

Very timely topic, looking forward to hearing the specifics.
MMR