Behavioural Economics fundamentals builds Ownership in People
HeartLinc® has partnered with the UCT School of Economics Research Unit in Behavioural Economics and Neuroscience (RUBEN), to create a multidisciplinary approach to improving Organisation Effectiveness using Behavioural Economics.
studies the effects of psychological, cognitive, emotional cultural and social factors on the economic decisions of individuals and institutions, and how those decisions vary from those implied by classical theory
Take your Change Leadership and Organisation Dynamics to unprecedented levels with Behavioural Insights
Globally, leaders are embracing the Fundamentals of Behavioural Economics, because it is bringing new insights and solutions to long-standing business, organisation and social problems. These problems include irrational governance decisions at board level, dysfunctional project or business teams failing to co-operate and co-ordinate their actions leading to poor strategy execution and finally, companies failing to retain existing customers or grow new customers, because they are not adding value or really showing that they care.
It is often the anxiety and fear of not delivering short-term scorecard results and its consequences, which derails the impact of a well thought-through strategy and our inability to sustain a high performance culture. Issues such as pressure on productivity, low staff and leader engagement and low accountability of executive boards will continue to make news headlines. How do we prevent the hidden behavioural dynamics at play in the workplace or the boardroom, from continuing to have the final say regarding delivery of the strategic intent of the organisation?
The emerging answers to this dilemma which continues to erode organisational effectiveness, is grounded in leaders investing time to gain insight and building their peoples’ capability in applying the Fundamentals of Behavioural Economics. The outcome will be delivering consistent and robust organisation and business results.
The Fundamentals of Behavioural Economics Programme is based on the ground-breaking research including work of Economics Nobel Prize Winners, Daniel Kahneman (2002) and recently Richard Thaler (2017). It builds practical capability in 3 key areas using the human-centered approach to changing key elements of an organisation’s culture. These are,
- Decision-making under Conditions of Uncertainty – it invigorates leaders at all levels, through self-discovery of preferences, biases and choice dynamics. It shifts leaders from only operating at a functional level, so they can embrace the human aspects of leading people. This capability will provide the “human lens” which unlocks effectiveness of individuals within project teams, executive teams and management boards.
- Unlocking Customer – Centric Behaviour and making it Visible – this capability will provide people the insights to uncover what it means to be truly customer-led and build enduring and long-term trusted relationships with their customers, who feel they are treated fairly, and not just to achieve profit objectives.
- Governing Dynamics in Groups/Teams – in a diverse universe of talent, recognition practices have fostered a culture of self-interest and competition, which destroys teamwork. Behavioural Economics advocates a culture of spontaneous co-operation and co-ordination, underpinned by trusted relationships, where “the whole is greater than the sum of the parts”. Individuals, who see themselves as “islands”, and need to fight for survival, can progressively and collectively be integrated into a coherent team who hold each other accountable at a human and functional level. It allows leaders to understand the relatedness of people to Others and their environment, valuing differences and embracing conflict. This frees up the leaders energy to visualise the future, rather than continue to be embroiled in solving relationship dynamics in their teams and with external stakeholders.
The above capabilities will be acquired through knowledge-based and experiential learning, ensuring that the required level of proficiency in applying the behavioural economics tools and practices has been achieved.
Participants in the programme will become advocates of the Behavioural Economics approach and practices, and will experience a personal growth beyond just knowledge. Our experience show that where Behavioural Economics fundamentals have been integrated into Organisation Development (OD) programmes, unprecedented levels of staff engagement levels and productivity, compared to the norm are achieved.
Applying the Fundamentals of Behavioural Economics is proving to be a game-changer for strategic organisation renewal beyond the use of conventional interventions, and is creating the next frontier of leadership formation for the digital era.