There's lots of talk about behavioural economics. But how do you practically apply it to sustainability? Many books and presentations focus on specific aspects and heuristics, such as social norms and reframing. This deck doesn't attempt this. Instead it provides initial guidance and suggestions for CSR and Sustainability professionals who want to start applying behavioural economics within their organisations. What should they do differently? Which practical steps should they take? We hope it gets you thinking. For a copy of the deck, please get in touch via: http://prime-decision.com/contact/

1. Think Behaviour
Practical tips for CSR and Sustainability
February 2012
Copyright © 2012 PrimeDecision

2. You’re aware of behavioural economics
It graces mainstream bookshelves, conferences and government initiatives
social
nudging
norms
framing biases
heuristics
Copyright © 2012 PrimeDecision

3. So now what?
You may have heard some fascinating anecdotes, but…
 Where does it fit within your existing
sustainability or CR strategy?
 What practical steps can you take in
order to start applying behavioural
economics within your business?
Copyright © 2012 PrimeDecision

4. This slide deck:
 Provides 8 pieces of
practical advice
Copyright © 2012 PrimeDecision

5. This slide deck:
 Provides 8 pieces of
practical advice
 explains behavioural economics
 goes into specific heuristics or
behavioural biases
Copyright © 2012 PrimeDecision

6. Our advice:
1 Seek out shades of grey 5 Fight siloes
2 Re-categorise 6 Find the action
3 Observe 7 Post-rationalise
4 Create paths of [least] resistance 8 Keep it in context

7. #1
Seek out shades of grey

8.  CSR folks tend to be highly committed and aware
of the social and environmental consequences of
their actions. They behave as they do because
they genuinely care…

9.  CSR folks tend to be highly committed and aware
of the social and environmental consequences of
their actions. They behave as they do because
they genuinely care…
…and so believe
caring is necessary
for behaviour
change to happen.

10. Spectrum of attitudes…
I care deeply Um, sure I agree, I just F#%k the
about it. forget sometimes… OK planet!
most times…

11. Spectrum of attitudes…
I care deeply Um, sure I agree, I just F#%k the
about it. forget sometimes… OK planet!
most times…
 If people are in this grey area, then contextual
factors are likely to hold more sway over their
actions. So park ‘changing their attitudes’ and
instead focus on facilitating their new behaviours.

12. #2
Re-categorise

13. Your sustainability objectives are
probably sliced up by theme.
 Energy conservation
 Waste reduction
 Recycling
 Philanthropy
 Transport
 Responsible sourcing
 Employee engagement
 Etc.

14. Why not experiment with
those categories?

15. For example…
What behaviour
changes can our
people make?
Investments
Behaviours
What technologies
and infrastructure
changes do we
Influence need to invest in?
Which behaviours and
choices should we
encourage in others?

16. It may help you see opportunities differently.
Try asking:
 What are the most impactful Investments
Behaviours
behaviour changes that
employees or customers could
conceivably make overnight?
Influence
 Which behaviours occur within
a context that I control?
 What are the recurring actions
that lead to excessive wastage
or energy consumption?

17. #3
Observe

18.  We know you’re busy.
 Deadlines, meetings,
emails… SlideShares…
 But simple exercises can be
surprisingly useful.

19.  Pick a nearby environment associated with
one of your objectives – it could be the
office canteen.
 Make time to sit there for 20 minutes.
 Watch at a distance.
 Observe what people do.

20. Just 20 minutes can change
your perspective.

21. #4
Create paths of [least] resistance

22. Don’t assume all change is hard.
Deciding to eat
cake is easy when
your colleagues are
scoffing some.

23. It’s often a question of ease…
What are the What are the
barriers to doing barriers to doing
it the ‘new way’? it the ‘old way’?

24. It’s often a question of ease…
What are the What are the
barriers to doing barriers to doing
it the ‘new way’? it the ‘old way’?
 Put energy into identifying and removing obstacles to the
sustainable behaviours you want to promote.
 Even the smallest changes can be significant enablers.

25. It’s often a question of ease…
What are the What are the
barriers to doing barriers to doing
it the ‘new way’? it the ‘old way’?
 Tread carefully when creating obstacles to existing habits.
 Although potentially disruptive, this approach should be
used very sensitively.

26. #5
Fight siloes

27. Do you have a gulf between insight
and application?

28. Behavioural insights are
generated through
surveys and analysis.
Market research

29. A totally separate team reads
the research findings and
comes up with strategies that
communicate messages to
the target audience, in order
to change behaviour.
Public
A brief or engagement
Market research report and/or
marketing

30. Insight is
lost in
translation
+ The campaigns add
new variables into
the mix
(communication
vehicles, messaging,
design etc.)
before the validity of
the original insights
has been tested.

31. A better approach?
One unified process
Analyse behaviours
Develop hypotheses
Pilot strategies
Monitor the impact on behaviour
Continue to refine…

32. #6
Find the action

33. Business metrics with quantifiable impact

34.  Attitudes are notoriously hard to measure – and
surveys can be subject to misuse and abuse.
 While action-based metrics don’t capture all the
subtleties, they have some discernible advantages…

35.  Fewer variables
The actions people take in any
particular situation are finite –
did they do X or not?
 Less complexity Knowing ‘why’ and ‘what’ people
feel is incredibly complicated.
Implications of actions can be
 More efficiency measured and so can their
value to the business.
 Taken seriously ‘Resources’, ‘waste’ and ‘cost’
require no translation.

36. #7
Post-rationalise

37. Think about a recent holiday booking. Yet after the trip you find
yourself saying:
You may have chosen the hotel because
you were absolutely shattered after four “Ah yes, the hotel was
hours of internet searching and ended up amazing. It was all about the
going for the review you saw first on Trip food really – they have an
Advisor which mentioned a nice balcony... absolutely incredible chef”
The beauty of narratives

38. Behaviour is widely recognised as
being shaped by attitudes.
Yet behaviour also shapes
and reinforces attitudes.

39. Your customers might not have
chosen your product – or a
behaviour – because of its
sustainability credentials.
But it can still become a part of
their narrative and justification.

40. #8
Keep it in context

41.  Neuropsychology teaches us that behaviours are
fluid. People modify how they act according to
their environment.

42. Be wary of relying on behavioural profiles
which treat people in a vacuum.
Remember: people are always in a context.

43. To recap:
1 Seek out shades of grey 5 Fight siloes
2 Re-categorise 6 Find the action
3 Create paths of [least] resistance 7 Post-rationalise
4 Observe 8 Keep it in context

44. Thank you for your time.
PrimeDecision specialises in helping organisations to
create sustainable behaviour change.
prime-decision.com
twitter: @primedecision
Copyright © 2012 PrimeDecision