Dan Egan, Director of Behavioral Finance and Investing at Betterment, joins our hosts Erik and Zarak to discuss financial and investment behavior during times of crisis. What does today’s coronavirus pandemic have in common with previous crises that negatively impacted the economy and financial markets? What is unique to this particular situation? How have most investors responded so far? What roles do fear, control, and adaptability play? How can we better leverage basic behavioral science concepts such as nudging and mental accounting? What is the relationship between physical health, mental stress, and financial decision-making? What are some things we can be doing from home to help ourselves and others during this time?
These questions and more are answered in this latest episode. Take a deep breath, try to relax (maybe turn off the news and social media notifications for a few minutes), and enjoy!
Stephen Wendel is the Head of Behavioral Science at Morningstar, a leading provider of independent investment research. He and his team of behavioral scientists and practitioners specialize in savings and investing behavior, as well as digital products that help individuals manage their money more effectively. He founded the Action Design Network in 2012 and has authored three books, the most recent of which is titled “Spiritual Design: Enrich Your Spiritual Practice with Lessons from Behavioral Science.” He has graciously made free download of this book available at www.spiritualdesign.co/book.
Steve joins our hosts Zarak and Erik to discuss the unique application of behavioral science to spirituality and religion. Many individuals have certain values they want to live by, but fall into the classic trap of "All or Nothing." This happens when we think we need to go to the gym every day if we’re fit; save or invest every penny if we’re financially responsible; or constantly go to houses of worship and give to charity if we value certain beliefs. Since this approach usually isn’t sustainable for most people, Steve explains techniques to design environments for ourselves that are more conducive to following our beliefs and expressing our faith in ways that are doable and fulfilling.
Happy New Year! In the first installment of Action Design Radio in 2020, our hosts Zarak and Erik are joined by behavior designer David Ngo. After studying under B.J. Fogg at Stanford, David founded his own behavior design firm – Behavior Delta: www.behaviordelta.com.
In today’s episode, David and our hosts discuss the psychological power of expectation, the “Swarm of B's” technique, and how to apply the Fogg model of behavior to creating new habits and healthy, lasting behavior change. There are many, many different methods of achieving the same goal. David says it’s important to keep in mind – especially this time of year when New Year’s Resolutions abound – that if the first attempt (experiment) doesn’t work out, don’t be discouraged; in fact, don’t even be surprised. It’s just a matter of finding a methodology that makes sense for you.
Check out these links for more information on the Swarm of B's Behavior Design Method, as well as B.J. Fogg’s new book, “Tiny Habits: The Small Changes That Change Everything.”
Rory Sutherland is the Vice Chairman of Ogilvy UK, an advertising and marketing agency where he co-founded the behavioral science practice. He is a TED Global speaker and writes regular columns for The Spectator and The Behavioral Scientist. His latest book, "Alchemy: The Surprising Power of Ideas That Don't Make Sense," was published earlier this year.
Rory joins our hosts Erik and Zarak for a special two-part episode to share his unique perspective and expertise in identifying unseen opportunities in consumer behavior. Part Two topics include the power of reference points, whether we should be using more humor to prevent crime, and examples of when the opposite of a good idea... is another good idea.
Ho-Ho-Ho! It's a surprise holiday-themed mini episode of Action Design Radio! (Stocking stuffer sized, if you will -- we will.)
Erik and Zarak are joined by Jacob Mohrmann for some timely advice this holiday season on how to shop for gifts that are sure to go over well with your loved ones. Jacob is the Research and Insights Manager on the behavioral science team at Maritz, a company that specializes in employee experience solutions, incentive travel, customer loyalty and reward programs. Their history with gift giving goes back to the 1920's, when they created the tradition of giving people a gold watch at retirement.
In our latest episode, Aline Holzwarth joins Erik and Zarak to discuss the intersection of healthcare, behavioral science, and technology. Aline is a Principal at Duke University's Center for Advanced Hindsight, where she's worked alongside Dan Ariely for the past 10 years. She is also the Head of Behavioral Science at Pattern Health, a digital health platform designed to help people live happier and healthier lives.
Topics include the healthcare industry's tendency to take an information-based approach, a common mistake that assumes by simply giving people information (Smoking = Bad) that they will find the motivation on their own to implement healthy behavior change. Behavioral science can help bridge that gap by designing products and services that get people from information to action. And in a world where the smartphone is increasingly omnipresent, digital interventions have huge potential for real-world impact.
Zarak and Erik are joined by behavioral designer Nir Eyal, the Wall Street Journal bestselling author of “Hooked: How to Build Habit-Forming Products.” Nir has taught business and design at Stanford, founded two technology companies, and helps teams design more engaging products. His writing on technology, psychology, and business appears in the Harvard Business Review, The Atlantic, TechCrunch, and Psychology Today.
Nir discusses the themes and inspiration behind his latest book “Indistractable: How to Control Your Attention and Choose Your Life,” released September 10th, including why we struggle with distraction, the overuse of technology, and tips for overcoming those issues to live to the fullest extent of your values.
We've been getting a lot of questions lately about how to start a career in behavioral science. To shed some light on different career paths, we're doing a series of podcasts on different types of training that fall somewhere between a one-day workshop and a PhD. These aren't advertisements for the programs, but are meant to give you a sense of the kinds of options out there, should you decide to pursue a career in behavioral science.
In our second Behavioral Science Training installment, Erik and Zarak are joined by Christopher Nave, Associate Director of the University of Pennsylvania’s Master of Behavioral and Decision Sciences program. Chris shares his passion for bringing together graduate students from diverse industries, backgrounds, and disciplines in order to study decision-making and better understand sustainable behavior change. Chris explains how measurement, data science, and experimental design are crucial to applying academic concepts like cognitive biases and heuristics to the real world.
Spencer Greenberg is an applied mathematician, entrepreneur, and self-described “collector of powerful tools.” He is the Founder and CEO of multiple companies, including Spark Wave – a venture builder (a.k.a. a foundry, or startup studio) that creates software products with the goal of achieving large social impact. Spencer joins Erik and Zarak to discuss his unique perspective on psychology and behavior. He takes a background in technology and combines it with applied social science to build platforms that implement complex behavioral interventions.
How does one choose the right methodology when conducting a study? What’s the difference between testing a hypothesis and trying to accurately predict the future? How does fatigue change throughout the day? Are most people who suffer from depression aware of it? How can social media be utilized to inspire creative thinking in research? Why publish a paper when you can release an app that people can use?
All of those questions and more are addressed in our latest installment of Action Design Radio!
Adam Gilbert is a nationally-recognized health, fitness, and motivational expert and trainer. He is the Founder of MyBodyTutor, which helps people stick to their health and fitness goals. Adam is regularly featured in national media, and is a syndicated author on the topics of nutrition, emotional eating, the psychology of weight loss, exercise, willpower, behavior and habit change, commitment and motivation.
Adam joins our hosts Erik and Zarak to discuss his approach to creating long-term, sustainable behavior change. By nature, change is inherently uncomfortable, so how do we make it as comfortable as possible? After years of learning and incorporating psychology into his work, Adam’s philosophy is that the only way to really help someone get through that initial discomfort is through heavy support and accountability. He also stresses the importance of avoiding the all-or-nothing mindset: The 20-minute workout you do is better than the hour-long workout you don’t do, and the good diet you can stick with is better than the perfect diet you can’t sustain.
By utilizing daily and personal accountability, Adam and MyBodyTutor use MPH (Mindset, Psychology & Habits) to help their clients take their behavior change goals from concept to reality.
Elizabeth Kim is an Applied Behavioral Scientist at the e-commerce company Jet.com, where she designs and conducts experiments to make better products for users. She is also founder of the Duke Behavioral Science Group, a community of Duke University students and faculty dedicated to applying behavioral science to policies, products, and businesses for social good.
Our hosts Zarak and Erik chat with Elizabeth about her BeSci origin story, including how a meaningful conversation with Dan Ariely led to a partnership where they tested the behavioral effects of just that: having meaningful conversations. They discuss the importance of acting on your curiosity, being versatile, and taking the initiative in a world where there’s currently more interest in behavioral science than there are jobs specifically made for BeSci experts.
Elizabeth offers inspiration and advice to individuals – from students to experienced professionals – who want to integrate behavioral science into what they do but are unsure where to start. Examples are discussed and tips are shared about how to take action and build something even when the factors aren’t in place for a formal BeSci intervention.
Ruth Schmidt is a Visiting Industry Professor and Director of Strategic Initiatives at the Illinois Institute of Technology – Institute of Design. Prior to joining ID, Ruth served as a senior leader at Doblin/Deloitte for over eight years, where she led teams in applying design-informed innovation strategy to solve complex challenges and grow new innovation functions within client organizations, primarily in the health care and financial services industries. She has presented on behavioral economics and communication theory + design at multiple institutions, publications, and conferences.
In our Season Two opener, Ruth joins Erik and Zach to discuss the intersection of behavioral science and design. Ruth shares her perspective on the importance of considering the people for whom you are designing a product, service, or experience. They cover cross-industry examples of when to lead with a behavioral science lens and support it by design thinking, vice versa, and why.
Jeff Kreisler is just a typical Princeton educated lawyer turned author, speaker, pundit, comedian, and behavioral science advocate. He uses humor and research to understand, explain, and change the world. Winner of the Bill Hicks Spirit Award for Thought Provoking Comedy, he runs PeopleScience.com, writes for TV, politicians and CEOs, and shares witty insight on CNN, FoxNews, MSNBC, and SiriusXM.
In our latest episode, Jeff joins Zarak and Zach to chat about his journey from comedian to behavioral science thought leader. They discuss the most important takeaways from his latest book “Dollars and Sense” (co-authored with Dan Ariely) , as well as his current and future projects. Other topics include how people can use behavioral science to improve their everyday lives without being obsessive, and the importance of always having a sense of humor.
Kelly Leonard is the Executive Director of Insights and Applied Improvisation at The Second City and President of Second City Theatricals. He has worked at The Second City since 1988 and has overseen productions with such notable performers as Stephen Colbert, Tina Fey, Steve Carell, Adam McKay, Seth Meyers, Rachel Dratch, Amy Poehler, Jason Sudeikis, Keegan-Michael Key, Horatio Sans, Amy Sedaris and a host of others.
In our newest episode, Erik and Zarak chat with Kelly about his recent involvement with the Second Science Project – a partnership between Second City and the University of Chicago’s Booth School of Business. The Second Science Project utilizes cutting-edge behavioral science to better study, understand, and support improvisation in everyday life. By approaching behavioral science through the lens of improvisational comedy, they create executive training programs for businesses to improve innovation, creative thinking, and ways to challenge our instincts and assumptions.
Today’s guest is Kristen Berman, co-founder of Duke University’s Common Cents Lab, as well as co-founder (with Dan Ariely) of Irrational Labs. Kristen was on the founding team for the behavioral economics group at Google and has spoken at Facebook, Fidelity, Equifax, Stanford, and many more.
Erik and Zarak chat with Kristen about her philosophy of incorporating behavioral science into the Product Manager’s domain, creating what she dubs the Behavioral Product Manager. Kristen outlines how behavioral science gives us the missing pieces of the Product Manager’s toolkit.
For example, a BPM would prioritize measurement and experimental infrastructure sooner than a normal PM would, highlighting that you can’t move a company toward consumer outcome if you’re not properly measuring it. Most companies, as well as their Product Managers, use traditional methods like focus groups and interviews to find out what their customers “think” and how they “feel.” But the Behavioral Product Manager concentrates on things like behavioral mapping and identifying friction, because the behavioral world focuses more on what people do and less on what they say.
In this week’s episode, our hosts sit down with Linnea Gandhi, managing partner of the boutique consulting firm BehavioralSight and Adjunct Assistant Professor at the University of Chicago Booth School of Business. Linnea, Erik, and Zarak discuss the importance of following the scientific method. This process applies to all settings, including the corporate world where the demand is always for results – and getting them today (or yesterday, if possible). Avoiding gut reactions, intuition, and emotional responses – and instead replacing them with statistics, data, and algorithms – will lead to more optimal decision-making.
But how do we apply this process, especially in situations where important decisions are at stake? Linnea’s focus is on getting executives across industries to realize that we are all more capable of creating algorithms than we may think – even when it comes to decisions such as whether to merger with or acquire another company, or whether to lay off a significant amount of their workforce.
Linnea argues that research and psychological literature are not useful to most people unless you can apply it somewhere practical. So she urges us to make our brains work more like an algorithm by removing intuition from the equation as much as possible. Reduce the “noise” as much as you can and isolate the data. Then, translate your behavioral science improvements to the language of the stakeholders. That is what will truly grab attention.
And never forget to be painfully aware of your own confirmation bias.
Erik and Zarak are joined by Dr. Sarah Newcomb, behavioral economist at Morningstar, an investment research firm committed to improving the wellbeing of investors through the use of research and software. Sarah’s personal passion and professional goal is to bring independent financial advice to populations that are currently underserved by the financial services industry, namely: women, low/moderate income households, and younger investors.
Sarah discusses the psychology of money and explores why smart people can make poor financial decisions. She outlines techniques to change one’s thinking, such as distinguishing between a “need” and a “strategy” to meet that need. A person may not need a car. What they need is transportation, and a car is one of several strategies to meet that need – all of which come along with a different price tag. Zarak doesn’t necessarily need to go to Starbucks every day. What he needs is to get out of the office for 15 minutes every afternoon, and Starbucks is just one strategy to meet that need. Sarah invokes Maslow’s hierarchy of needs to help us reevaluate what our true needs are, and why that can help us financially.
How can we create better habits? This is a question many of us ask ourselves as we enter the New Year and try to implement our resolutions (and stick with them). Life outcomes like exercising regularly, flossing, eating a healthy diet, studying hard in school, making wise financial decisions – why are better habits so hard to maintain? And what can we do in order to improve our chances of meeting these goals for ourselves?
In this week’s episode, Erik and Zarak tackle these questions with Dr. Katy Milkman, associate professor of behavioral economics at The Wharton School at the University of Pennsylvania. They discuss behavioral concepts like habits, incentives, motivation, rewards, consequences, accountability, and commitment devices. Katy brings an engineering background to her current focus on quantitative social science research, such as how to help people create lasting and positive behavior change.
One of the most relevant behavioral concepts to New Year’s is the fresh start effect – how at the start of new cycles in our lives, we feel extra motivated to tackle new goals. Entering a new period makes us feel like we have a separation from our past failures, and we have a renewed optimism to finally do the things we want to do but never got around to. According to Katy, emphasizing milestones or life events (big or small) can be effective motivators for behavior change.
Join Erik and Zarak for a new episode with guest Dr. Julian Jamison, member of the Mind/Behavior/Development (eMBeD) Team at the World Bank. Julian’s focus is on behavioral applications in international policy development in economics, health, and finance. His background includes a Ph.D. in Economics from M.I.T. and experience working with the Federal Reserve Bank of Boston, as well as the Consumer Financial Protection Bureau in Washington, D.C.
In 2015 the World Bank came out with a World Development Report titled “Mind, Society, Behavior.” Since then, there’s been an overt focus on using behavioral science in order to improve the way the World Bank attempts to fulfill its mission around the world. Julian discusses how the World Bank utilizes behavioral economics to tackle global issues such as poverty, early childhood development, household finance, health, and climate change. Follow the eMBeD Team’s current projects and publications on their website: http://www.worldbank.org/en/programs/embed.
Julian also shares the behavioral similarities that are essentially universal to all human beings, and others that differ from culture to culture. He also discusses the history of field experiments and how his team utilizes them in their work.
Dr. Rory Gallagher is a member of the Behavioural Insights Team and co-author of “Think Small: The Surprisingly Simple Ways to Reach Big Goals." His interview focuses on the application of behavioral concepts to government, to create better public policies and services that benefit citizens in myriad ways, and personal development. His new book co-authored with Owain Service, “Think Small: The Surprisingly Simple Ways to Reach Big Goals,” details how behavioral science can help people achieve their goals.
Mariel Beasley, Senior Applied Researcher at the Center for Advanced Hindsight and Co-Director of the Common Cents Lab, covers various behavioral science topics, such as the pros and cons of mental accounting and simple ways local governments can get citizens to recycle more. Her research and application experience, coupled with studies she’s run with Dan Ariely, make for a wide-ranging and fascinating conversation with the Action Design Radio hosts.
Behavioral Scientist Matt Wallaert joins Erik and Zarak to chat about how and why organizations should create a Chief Behavioral Officer position. Matt shares insights and examples from his 15+ years of behavioral science experience to explore how academic concepts can be practically and efficiently applied to businesses. Ethical considerations are discussed, always keeping the public good in mind. Low operational costs and high efficacy make the creation of a CBO position a savvy idea for businesses.