behavior function strategy

One reason it’s important to embed these practices in recurring procedures is that everything we know about the tendency toward overconfidence suggests that it is unwise to rely on one’s instincts to decide when to rely on one’s instincts! For example, in an effort to improve US military effectiveness in Iraq in 2004, Colonel Kalev Sepp—by himself, in 36 hours—developed a reference class of 53 similar counterinsurgency conflicts, complete with strategies and outcomes. Leaders who want to shape the decision-making style of their companies must commit themselves to a new path. We asked respondents to assess outcomes along four dimensions: revenue, profitability, market share, and productivity. See John T. Horn, Dan P. Lovallo, and S. Patrick Viguerie, “Learning to let go: Making better exit decisions,” McKinsey Quarterly, May 2006. Open discussion of the biases that may be undermining decision making is invaluable. See Charles Roxburgh, “Hidden flaws in strategy,” McKinsey Quarterly, May 2003; and Dan P. Lovallo and Olivier Sibony, “Distortions and deceptions in strategic decisions,” McKinsey Quarterly, February 2006. Whenever analogies, comparisons, or salient examples are used to justify a decision, and whenever convincing champions use their powers of persuasion to tell a compelling story, pattern-recognition biases may be at work. And at the time of a major decision, it’s critical to discuss which metrics need to be monitored to highlight necessary course corrections quickly. 170–93. It is through teamwork, and the process that organizes it, that we seek a high-quality outcome. Every behavior serves a function and provides a consequence or reinforcement for the behavior. We discovered this by asking managers to report on both the nature of an important decision and the process through which it was reached. If that percentage is stable but the divisions’ growth opportunities are not, this finding is cause for concern—and quite a common one. The second set includes repetitive but high-stakes decisions that shape a company’s strategy over time. According to Kleiner Perkins partner Randy Komisar, for example, a contentious discussion over manufacturing strategy at the start-up WebTV11 11. After controlling for factors like industry, geography, and company size, we used regression analysis to calculate how much of the variance in decision outcomes7 7. For example, try mapping the percentage of total new investment each division of the company receives year after year. A person may engage in a certain behaviour to gain some form of social attention or a reaction from other people. tab. In the discussion that follows, we focus on the subset of biases we have found to be most relevant for executives and classify those biases into five simple, business-oriented groupings. The size of this prize makes a strong case for practicing behavioral strategy—a style of strategic decision making that incorporates the lessons of psychology. The prevalence of biases in corporate decisions is partly a function of habit, training, executive selection, and corporate culture. In last week’s blog, I put the spotlight on Strategies for Power and Control behaviors. We do not suggest that CEOs should become humble listeners who rely solely on the consensus of their teams—that would substitute one simplistic stereotype for another. Social biases also are likely to prevail in discussions where everyone in the room knows the views of the ultimate decision maker (and assumes that the leader is unlikely to change her mind). For instance, one company we know counters social biases by organizing, as part of its annual planning cycle, a systematic challenge by outsiders to its business units’ plans. People create and sustain change. Strategy& works with the world’s leading businesses, governments, and organisations. The third function of behavior seems to be the one that we most often think of when we see inappropriate behaviors. An alternative is to start by reducing each reporting unit’s budget by a fixed percentage (for instance, 10 percent). Recently she has added biting. 31–35. ABA uses a simple acronym, while ABC (Antecedent-Behavior-Consequence) defines the three pivotal parts of behavior. This function is seen when behavior is to gain access to something tangible. 2. It can also leverage tools, such as competitive war games, that promote out-of-the-box thinking. She clears her desk with a sweep, knocks it over, and throws herself to the floor. For example, drivers laid up in hospitals for traffic accidents they themselves caused overestimate their driving abilities just as much as the rest of us do.9 9. For example, it often helps to make a clear and explicit distinction between decision meetings, where leaders should embrace uncertainty while encouraging dissent, and implementation meetings, where it’s time for executives to move forward together. When one successfully identifies the function of the behavior, one can reinforce an alternate, acceptable behavior that will replace it. Here, the function is attention. Building such a process for strategic decision making requires an understanding of the biases the process needs to address. tab, Travel, Logistics & Transport Infrastructure. The size of this prize makes a strong case for practicing behavioral strategy—a style of strategic decision making that incorporates the lessons of psychology. You adjust your lesson plans to meet your students’ needs. A timer could be used. Some students feel particularly powerless and a problematic behavior may give them a sense of power or control. He needs to learn to greet girls appropriately to get their attention. Adopting behavioral strategy means not only embracing the broad principles set forth above but also selecting and tailoring specific debiasing practices to turn the principles into action. Then talk with the student about how to address the need behind the behavior, like a sensory need requiring a quiet space. Behavior is what humans do, and it's observable and measurable. So, when we talk about the “function” of behavior, we are talking about operant behavior that changes the environment in some way. Eight of these practices had to do with the quantity and detail of the analysis: did you, for example, build a detailed financial model or run sensitivity analyses? But we do believe that behavioral strategy will founder without their leadership and role modeling. To use a judicial analogy, we cannot trust the judges or the jurors to be infallible; they are, after all, human.

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