Leveraging
IrrationalityMargaret Hudacko
College of Engineering
NC State University
Behavior Framework
Clout
Commitment
Value Attribution
Diagnostic Bias
Perception of Fairness
Aversion to Losses
Value of Dissenting Opinion
Motivation
Commitment
Commitment
If once you start down the dark
path, forever it will dominate
your destiny.
Commitment
People stick with a course of action
even though it’s not working.
Commitment
Balance Your Arguments
People stick with a course of action
even though it’s not working.
Commitment
Balance Your Arguments
Ditch Bad Directions
People stick with a course of action
even though it’s not working.
Value Attribution
Value Attribution
My Precious!
Value Attribution
People place a value based on the cost, previous
reputation, physical attractiveness or current setting
that has nothing to do with the actual value.
Value Attribution
Be Mindful of the Why
People place a value based on the cost, previous
reputation, physical attractiveness or current setting
that has nothing to do with the actual value.
Value Attribution
Be Mindful of the Why
Recommendation Comparison
People place a value based on the cost, previous
reputation, physical attractiveness or current setting
that has nothing to do with the actual value.
Diagnostic Bias
Diagnostic Bias
They call it a Royale with cheese.
Diagnostic Bias
People live up to however they are
labeled.
Diagnostic Bias
Avoid Negative Language
People live up to however they are
labeled.
Diagnostic Bias
Avoid Negative Labels
Collect Objective Data
People live up to however they are
labeled.
Diagnostic Bias
Avoid Negative Labels
Collect Objective Data
Set a Waiting Period
People live up to however they are
labeled.
Perception of Fairness
Perception of Fairness
You cheated!
Pirate.
Perception of Fairness
People will sabotage their own goals to “teach”
someone a lesson.
Perception of Fairness
Focus on Goals
People will sabotage their own goals to “teach”
someone a lesson.
Perception of Fairness
Focus on Goals
Share the Process
People will sabotage their own goals to “teach”
someone a lesson.
Motivation
Motivation
Fortune and glory, kid.
Fortune and glory.
Motivation
People will work harder for free than
they ever will for cash.
Motivation
Close doors
People will work harder for free than
they ever will for cash.
Motivation
Close doorsDrop the price to zero
People will work harder for free than
they ever will for cash.
Motivation
Close doorsDrop the price to zero
Let me help
People will work harder for free than
they ever will for cash.
Value of Dissent
Value of Dissent
That rug really tied the room
together, did it not?
Value of Dissent
People always think they know best.
Value of Dissent
Cultivate Dissenters
People always think they know best.
Value of Dissent
Cultivate Dissenters
Ask Every Customer
People always think they know best.
Aversion to Losses
Aversion to Losses
Yes, brave Sir Robin turned about, and
valiantly, he chickened out.
Aversion to Losses
Take the Long View
People will act far more aggressively to avoid a
potential loss than for a potential gain.
Aversion to Losses
Take the Long View
Frame Risks as Loss Mitigations
People will act far more aggressively to avoid a
potential loss than for a potential gain.
Aversion to Losses
Take the Long View
Frame Risks as Loss Mitigations
Craft Balanced Ownership
People will act far more aggressively to avoid a
potential loss than for a potential gain.
Conclusion
Conclusion
Conclusion
Conclusion
Conclusion
Conclusion
Conclusion
Conclusion
Conclusion
Conclusion
Conclusion
Conclusion
Conclusion
Conclusion
Conclusion
Resources
• Summary mind-map - Michelle Labrossehttp://www.qualitydigest.com/inside/metrology-column/using-irrational-behavior-your-advantage.html
• Review of Sway – John Groholhttp://psychcentral.com/lib/sway-the-irresistible-pull-of-irrational-behavior/0001385
• Forbes Article – Ron Ashkenashttp://www.forbes.com/sites/ronashkenas/2012/07/23/how-to-make-sense-out-of-irrational-behavior/
• How to Persuade People – wikiHowhttp://www.wikihow.com/Persuade-People
• A Beginner's Guide to Irrational Behavior – Dan Arielyhttps://www.coursera.org/course/behavioralecon
• 12 Ways That People Behave Irrationally – Vivian Gianghttp://www.businessinsider.com/predictably-irrational-2012-6
Bonus Tracks
Don’t try to fight irrationality with rationality.
It will only make you more frustrated and the other person
more defensive. No matter how many well-constructed
arguments you offer, you won’t make headway until you
understand the underlying motivation that is driving the
other person.
Bonus Tracks
Focus on discovering, understanding, and embracing the other person’s rationale. Even if your adversary is being driven by unconscious motivations, it’s important to try to figure them out. Resistance to apparent logic always comes from somewhere, and you won’t be able to break through until you understand the reason. For example, sales people often resist logical and straightforward sales-model changes because they fear that compensation will be affected, or that customer relationships will be harmed. Until you understand and deal with those underlying issues it’s difficult to make headway.
Bonus Tracks
• What commitments drive your current behavior? How can you change your commitments?
• What value do you place on achieving your goals? How can you increase the value for yourself?
• What labels can you give yourself that will help you achieve your goal?
• How can you make it a “fair” game to achieve your goal?
• What intrinsic motivators get you fired up to go for your goal?
• Who challenges you? How can you get them to do it more so you get that fire in your belly to go for it?
• What will you lose if you fail to reach your goal? How can you avoid experiencing that loss?