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Keynote #2 applying behavioural insights to public policy by Rory Gallagher

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Behavioural insights (BI) helps us understand human behaviour and decision making. We know from our own lives that we often fail to do what’s best for us, despite our good intentions – whether it be exercising more, saving money or eating healthily. We can use this understanding of how humans actually behave in everyday life to help people make better decisions for themselves and society.

This session will introduce participants to the evidence from the behavioural sciences and the key methods for designing and evaluating behavioural interventions.

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Keynote #2 applying behavioural insights to public policy by Rory Gallagher

  1. 1. © Behavioural Insights ltd Applying behavioural insights to public policy Dr Rory Gallagher
  2. 2. © Behavioural Insights ltd What are Behavioural Insights (BI)? How can I apply BI? Where next?
  3. 3. © Behavioural Insights ltd Attention depletion … Let’s start with a game (Danziger et al. 2010)
  4. 4. © Behavioural Insights ltd Memory game
  5. 5. © Behavioural Insights ltd Memory test: How did you do? 1. Apple 2. Policeman 3. Cake 4. Helicopter 5. Doctor 6. Cow 7. Golfer 8. France 9. Music Notes 10. Wheat 11. Washing Machine 13. Money 14. Clock 15. Dog
  6. 6. © Behavioural Insights ltd Ordering effects Primacy Recency Time Recall
  7. 7. © Behavioural Insights ltd System 1 Fast thinking/Automatic intuitive, effortless 2x2 Taking your daily commute System 2 Slow thinking/Reflective deliberate, analytic 24x17 Planning a trip overseas “It turns out that the environmental effects on behavior are a lot stronger than most people expect” Daniel Kahneman We need to think differently about behaviour
  8. 8. © Behavioural Insights ltd Mental shortcuts or ‘heuristics’
  9. 9. © Behavioural Insights ltd Choosing portion size
  10. 10. © Behavioural Insights ltd Proximity and visibility 3.1 4.6 5.6 7.7 "far" and not visible Close and not- visible Far and visible Close and Visible Number of Sweets Consumed
  11. 11. © Behavioural Insights ltd Most policy involves behaviour, but we often focus on the wrong things
  12. 12. © Behavioural Insights ltd Applying Behavioural Insights in government Behavioural Insights Psychology Economics Cognitive Sciences Methods eg ethnography & RCTs Understanding how people behave in practice, so that we can design better policies & services = Human centric services
  13. 13. © Behavioural Insights ltd Both BehaviouraI Insights and Design Thinking support the development of more human-centric services Behavioural Insights Design Thinking & UX Human – centric services
  14. 14. © Behavioural Insights ltd BI: more nuanced understanding of human behaviour and additional tools for policymakers Regulation Incentives Information Behavioural Insights
  15. 15. © Behavioural Insights ltd “Our government will find intelligent ways to encourage, support and enable people to make better choices for themselves.”
  16. 16. © Behavioural Insights ltd “David Cameron’s Vanity Project”
  17. 17. © Behavioural Insights ltd Press coverage
  18. 18. © Behavioural Insights ltd BIT has grown from a small team in the heart of the UK Government…
  19. 19. © Behavioural Insights ltd Now 80+staff in 5 offices – London, Manchester, Sydney, NY, and now … Singapore
  20. 20. © Behavioural Insights ltd
  21. 21. © Behavioural Insights ltd Guatamala: Guatamalan tax administration UK: (i) The Behavioural Insights Team (BIT) & (ii) nudge units in 10 departments Singapore: (i) Prime Minister’s Office (ii) Ministry of Manpower iii) MHA + transport, HDB, HPB etc ‘Nudge Units’ around the world Denmark: The Danish Nudging Network Norway: Greenudge Finland: Prime Minister’s Office Sweden: Swedish Nudging Network Netherlands: (i) Ministry of Economic Affairs & (ii) Ministry of Infrastructure & the Environment Canada: Policy Horizons Canada Chicago: Chicago Nudge Unit US: White House Social and Behavioral Sciences Team NYC: (i) BIT North America & (ii) ideas42 Commonwealth Government: BETA Sydney: (i) BIT Australia & (ii) Behavioural Insights Unit, New South Wales European Commission: Behavioural Science and Foresight TeamWorld Bank: Development Report and behavioural trials OECD: Behavioural science coordination Germany: Chancellor’s Office Moldova: UNDP/BIT collaboration Jamaica: Finance Ministry (UNDP/BIT) Rio de Jeneiro: Mayor’s Office Mexico: President’s Office Victoria: DPC NZ?
  22. 22. © Behavioural Insights ltd We have collaborated with a wide range of government agencies in Singapore The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again.
  23. 23. © Behavioural Insights ltd Studying behaviour “can lead to better results for schemes and policies”
  24. 24. © Behavioural Insights ltd What are Behavioural Insights (BI)? How can I apply BI? Where next?
  25. 25. © Behavioural Insights ltd Our methodology
  26. 26. © Behavioural Insights ltd SOCIAL TIMELYATTRACTIVE EASY
  27. 27. © Behavioural Insights ltd Easy Defaults Simplification Remove friction
  28. 28. © Behavioural Insights ltd Easy: Auto-enrolment in pensions 61% 83% 44% 76% Before auto-enrolment After auto-enrolment Large employers Medium employers 22 percentage point increase 32 percentage point increase
  29. 29. © Behavioural Insights ltd 5.4 million people automatically enrolled so far … …once fully rolled out: 8-9 million people £11 billion additional savings Easy: Auto-enrolment in pensions
  30. 30. © Behavioural Insights ltd Easy: HDB redesigned letters to encourage channel migration
  31. 31. © Behavioural Insights ltd Easy: The new reminders did not increase payment rates 0 10 20 30 40 50 60 70 80 90 100 110 120 No. of days after letter sent 1st Reminder 2nd Reminder
  32. 32. © Behavioural Insights ltd Easy: But many more people paid online N=2,510 11% 31% Old Letter New Letter
  33. 33. © Behavioural Insights ltd Easy: This was effective even in older age groups 46% 23% 15% 6% 6% 5% 71% 53% 35% 26% 21% 20% 25-34 35-44 45-54 55-64 65-74 >75
  34. 34. © Behavioural Insights ltd SOCIAL TIMELYATTRACTIVE EASY
  35. 35. © Behavioural Insights ltd Attractive Salience Messenger Personalisation Affect Incentive design
  36. 36. © Behavioural Insights ltd Attractive: placement of drinks in the hospital cafe
  37. 37. © Behavioural Insights ltd Attractive: Changing prices of soft drinks in vending machines 49.1% 44.1% Standard pricing 20% red drink price increase
  38. 38. © Behavioural Insights ltd SOCIAL TIMELYATTRACTIVE EASY
  39. 39. © Behavioural Insights ltd Social Norms Networks Reciprocity Active commitments Eyes & faces
  40. 40. © Behavioural Insights ltd Innovative use of data: reducing anti-microbial resistance by targeting over-prescribing GPs 100 110 120 130 140 150 160 July August September October November December January February March Antibioticitemsdispensedper1000weightedpopulation (3,300GPs) Control Treatment
  41. 41. © Behavioural Insights ltd SOCIAL TIMELYATTRACTIVE EASY
  42. 42. © Behavioural Insights ltd Timely Priming Framing Key moments
  43. 43. © Behavioural Insights ltd Two different conversations between a parent and child What homework do you have this weekend? Not much, couple of small things. Usual really. Conversation 1 (no text condition) Conversation 2 (text condition) So you have a Maths test on Friday. How much revision will you need to do?
  44. 44. © Behavioural Insights ltd The impact of pre-informing parents about upcoming tests •  Texting parents about a Maths test improved grades by the equivalent of 1 month of schooling •  Effect for bottom ability quartile was twice as big •  The intervention created demand for its repetition: treatment group pupils more likely to say ‘text my parents next time’
  45. 45. © Behavioural Insights ltd How can you help people to find employment?
  46. 46. © Behavioural Insights ltd We started in Loughton JCP and co- designed interventions with front line staff Combining EAST: Loughton JCP trial
  47. 47. © Behavioural Insights ltd Increase in job seeker being off benefits at 13 weeks 51% 60% Control Treatment Treatment Adjusted 4% Benefit history difference 5% Treatment effect
  48. 48. © Behavioural Insights ltd BIT Coach JCP Trainer JCP Trainer JCP Trainer JCP Trainer JCP Trainer JCP Trainer JCP TrainerDeveloped a training model in NE England. And rolled it out nationally to 25,000 workers Successfully replicated and adapted in both Singapore and Australia Rolled out across the UK
  49. 49. © Behavioural Insights ltd Replicated and adapted in Singapore
  50. 50. © Behavioural Insights ltd With similarly impressive results 32% 49% Control Intervention This translates to about 4,000 more job seekers per year finding jobs within 3 months
  51. 51. © Behavioural Insights ltd What are Behavioural Insights (BI)? How can I apply BI? Where next?
  52. 52. © Behavioural Insights ltd Data and personalisation 37.8 32.9 34.6 37.8 42.4 39.3 42.5 39.3 40 36.8 31.9 25.7 39.4 34.2 35.9 39.9 44.1 47 39.4 35.4 35.5 39.4 45.9 56.3 Bottom quartile 2nd quartile 3rd quartile Top quartile Top 5% Top 1% Control Minority norm Gain-framed public services Loss-framed public services Minority norm effective Minority norm backfires
  53. 53. © Behavioural Insights ltd Public engagement and accountability
  54. 54. © Behavioural Insights ltd ‘Nudging’ ourselves
  55. 55. © Behavioural Insights ltd Stronger together Re-framing problems Qual & quant data User & systems focus Test, learn, adapt Behavioural Insights Design Thinking & UX Human – centric services
  56. 56. © Behavioural Insights ltd Thank you! Contact: Rory.gallagher@bi.team Samuel.hanes@bi.team