Category Archives: Psychology

Behavioural Insights: From Nudge to Push?

Incestuous bureaucracies rarely produce anything of genuine value to the wider world, but the case of the Behavioural Insights Team – a July 2010 establishment with its home deep in the bowels of Her Majesty’s Treasury in London – may be the exception that proves the rule. This entity was inaugurated to come up with ways of changing people’s behaviour with the primary purpose of increasing government revenue at a time when the United Kingdom’s finances are experiencing extraordinary stresses. These methods of behavioural change – one example being the inclusion of a line in bold formatting reading ‘Pay your tax or lose your car’ in car tax payment reminder letters – are small, but surprisingly effective: the bold format line has been credited with doubling car tax payments, while sending personalised text messages instead of letters to people who are the subject of a court fine saw a 600% increase in those settling their dues.

The Behavioural Insights Team (colloquially known as the ‘Nudge Unit’) is a practical manifestation of the theory popularised by American academics Richard Thaler and Cass Sunstein, authors of the late 2000s classic Nudge: Improving Decisions About Health, Wealth, and Happiness. The central idea of this work is that via ‘enlisting the science of choice’, humans can be gently bumped into making more optimal decisions. Placing healthier foods in positions of promise in a school dining hall should engender greater uptake of said foods; positioning exercise equipment in accessible public places may encourage those who would not otherwise partake in a cardiovascular workout to exert their bodies.

So far so good. But we feel that given the current and foreseeable socio-economic context, this theory can and should be extended to incorporate slightly more forceful ‘pushes’, since it has long been proven that sometimes a nudge in the right direction is simply not enough:

1. White Collar Adventures. Multinational corporations have long enjoyed a position in which, as the Financial Times recently noted, paying tax is ‘a largely voluntary gesture‘. But would the likes of Starbucks be so keen to employ the crude panoply of accounting expertises if their CEOs were sent a ‘pushy’ letter promising them criminal charges and exemplary fines in the event of taxation irregularities?

2. Drink Aware. The alcohol industry in the United Kingdom has – in the face of a (largely hypothetical) mild increase in regulation – recently stepped up its efforts to make consumers aware of some of the possible negative effects – a spotty face, suspect bodily odour – of their products through the drinkaware.co.uk website. But wouldn’t a reference to the World Health Organisation’s estimated 2.5m deaths per year from alcohol – more than those from violence – cut through the bluster? 

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Life’s a Beach: French Workers ‘Best Rested’ in the World!

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Beverly Hills, CA? Or is it London, England?

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It’s Good Not to Talk: Calls ‘Displaced’ By Text, Pictures

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Walking on the Moon – Soon! China Completes First Space Manual Docking

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Mind the Gap! Euro 2012 Evinces Razor-Thin Success/Failure Margins

Most football analysts, commentators and pundits have expended considerable energy on evaluating what the consensus within the global footballing public has determined as the favourites for UEFA Euro 2012: acres of paper and serious screen real estate has concentrated on the squads and tactics of nations such as Spain and Germany, with the odd reference to countries such as France, Italy and Russia thrown in for good measure. But we at Mediolana have discerned an equally fascinating topic of discussion, illustrated by that most curious of contenders, England: the growing importance of infinitesimal, barely-discernible margins in determining success and failure.

To date, England have played two matches at these finals (8th June 2012 – 1st July 2012, Poland and Ukraine): an opening encounter against France (11th June 2012) and last night’s second fixture, an extremely tense game against the Zlatan Ibrahimović-defined Sweden. In England’s first match, they were outshot by their French counterparts in terms of efforts on target by a ratio of 15:1, yet the final score was somehow 1-1. Against Sweden, England needed the assistance of a quite inexplicable error from a goalkeeper with over 90 international caps in order to come back from 2-1 down and almost-certain elimination. Yet at the end of both these games, England were unbeaten with four points on the board and an at least fair chance of proceeding to the knockout stages of the tournament.

A comparison with Group D rivals Sweden is instructive. Sweden convincingly led Ukraine in their first assignment and were by all accounts most unfortunate to come away from the match with a loss; the Swedes also mounted a terrific comeback against England in the first third of the second half, again constructing a winning position in difficult circumstances. But at the time of writing, they are one of only two sides whose removal from Euro 2012 is assured.

How has this state of affairs arisen? Attention to (and luck pertaining to) the tiniest of details appears to be determining destinies. Had England not benefitted from manager Roy Hodgson’s exceptionally astute utilisation of pacy (and mostly inconsistent) substitute Theo Walcott – one fringe player out of twenty-two squad members – large sections of the UK media would doubtless already be baying for his blood; had Sweden captain Ibrahimović given his team a first-half lead against Ukraine instead of seeing his header trickle agonisingly against a post and out of play, the Scandinavians might well be preparing for the quarter-finals instead of flying back home for an extended summer of leisure. Razor-thin success/failure margins are likely to have a very large say in the ultimate destination of the Henri Delaunay Trophy this summer.

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Negative Creep: Iraq Now Emotional Distress World #1!

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The Real CEO Fallacy: Viability

There are many reasons to purchase a copy of the weekend edition of London’s Financial Times, but Simon Kuper‘s sublime column in the FT’s Weekend Magazine is indubitably one of the best. A recent article – the provocatively titled Why CEOs shouldn’t run the world (21st April 2012) – sees Kuper skilfully subvert the achingly fashionable notions that business constitutes ‘the real world’; that businesses are good metaphors for national governments; and that politicians should be guided by, or preferably be, figures from the domain of commerce.

Kuper makes a number of highly astute points, including the wonderful illustration of how the contemporary trend of idolising businessmen is merely the latest manifestation of the historical fetishisation of different occupational classes (clergymen, military personnel) in the context of statecraft. But we at Mediolana feel that his brilliant argument may have one fundamental weakness: the idea that ‘a CEO typically only has one target: to make a profit. A president has many targets.’

Once in the not so distant past this may have been a reasonably accurate assessment of the function of the CEO, and in a sense it still is: company heads are to some degree defined by the red ink (or absence thereof) on the balance sheet. However – and perhaps ironically at least partly as a result of the ever-intensifying cult of the business executive – the role of top-tier staff at corporations is increasingly disconnected from their actual performance. One cannot explain the financial collapse of 2007 to date through the prism of the rationally assessed CEO. Too many company leaders, particularly though by no means exclusively in the banking sector, have led their corporations (and, via the now ubiquitous bailouts, countries) off the cliff of fiscal abyss, let they have remained in handsomely-remunerated positions of command.

Additionally, the demands of the media and the burgeoning ethical demands on economic entities in an era where CEOs are becoming synonymous with their efforts (or lack of them) in the field of CSR – corporate social responsibility – mean that, conversely, the post of CEO is in danger of becoming politicised at least as much as political leadership is becoming corporatised.

In fact, we would contend that at the highest levels, the worlds of business and politics are intertwining, with each borrowing elements from the other. Both CEOs and heads of state alike enjoy the ability to deploy armies of functionaries which they only have the faintest perceived financial responsibility towards; both benefit from extraordinary privileges, not least easy debt and the ability to default without almost any personal financial consequences, that are solely the province of government and large corporations. The real CEO fallacy might not be that they are paradigms for political leaders, but that, in many cases, both are viable models at all.

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Exorcising His Demons: Is Fernando Torres the New Fyodor Dostoyevsky?

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Shiny Happy People Laughing: Optimistic People ‘Less Disease Prone’

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