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© Behavioural Insights ltd The Behavioral Foundations of Policy… lessons from BIT Elspeth Kirkman Head of BIT North America

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Page 1: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

The Behavioral Foundations of Policy…

lessons from BITElspeth Kirkman

Head of BIT North America

Page 2: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

Session goals

1. Understand what we mean when we talk about “Behavioural Insights”

2. Understand the implications in a policy context

3. Get familiar with a new framework to consider problems from a behavioural angle

Page 3: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

So what are Behavioural Insights?

Simply put, behavioural insights are gleaned from the study of what makes people do the things they do. Some of it is really intuitive… and some of it is pretty surprising.

Academics study human behaviour in a whole range of fields:PsychologyEconomicsAnthropologyMarketingSociology… and beyond!

The Behavioural Insights Team applies lessons from this research to public policy problems.

Page 4: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

1. Regulation

Page 5: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

How did China get businesses to pay taxes by making receipts attractive?

Page 6: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

Sales tax grew considerably; a corollary for the reduction of underground economic activity

17.1%

Page 7: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

1. Regulation

2. Incentives

Page 8: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

How did we get bankers to donate £500,000 to charity in one day?

Page 9: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

Proportion giving away a day’s salary to charity

Page 10: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

1. Regulation

2. Incentives

3. Information

Page 11: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

How did better forms reduce prescription errors?

Old chart

New chart

Page 12: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

Better forms can save lives! Dosage errors were reduced and key information included more often

Page 13: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

1. Regulation

2. Incentives

3. Information

Behavioural Insights

Page 14: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

We get asked to apply behavioral insights all over government and beyond

Can you help us…

Get people to pay their taxes?

Reduce corruption?

Understand how social workers make

decisions?

Reduce obesity?

Improve racial diversity in the

police?

Get welfare recipients back into

work faster?

Increase medical compliance in poor communities with

infectious disease?

Page 15: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

How do we know if something worked?

We start with a group of people (or

organisations) we want to try something

new with

Quite simply, we run an experiment!

Page 16: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

How do we know if something worked?

“CONTROL”

“TREATMENT”

We randomly allocate them to receive different versions of

the service

Page 17: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

How do we know if something worked?

CONTROL

TREATMENT

We measure what happens

Page 18: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

SOCIAL

TIMELYATTRACTIVE

EASY

Page 19: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

How did we help HMRC boost its customer response rate?

Direct to form

Webpage

Page 20: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

Changing the default can make a disproportionate difference

Page 21: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

SOCIAL

TIMELYATTRACTIVE

EASY

Page 22: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

How did we help HMRC boost its customer response rate?

Direct to form

Webpage

Page 23: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

Changing the default can make a disproportionate difference

Page 24: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

SOCIAL

TIMELYATTRACTIVE

EASY

Page 25: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

How could the UK courts’service to recover an extra £860,000 per week?

Page 26: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

Average amount repaid per message sent out

Page 27: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

SOCIAL

TIMELYATTRACTIVE

EASY

Page 28: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

How did we help HMRC collect an extra £200m in tax debt in a year?

Page 29: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

Social norms to increase tax payment rates

Page 30: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

How did we connect jobseekers to employment opportunities?

Page 31: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

Control text messageControl text message

Connecting the unemployed with jobs more effectively…

Page 32: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

Text message with claimant nameText message with claimant name

Page 33: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

Text message with claimant and advisor name

Text message with claimant and advisor name

Page 34: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

Text message with claimant and advisor name and reciprocity/ luckText message with claimant and

advisor name and reciprocity/ luck

Page 35: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

Social norms to increase tax payment rates

Page 36: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

SOCIAL

TIMELYATTRACTIVE

EASY

Page 37: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

Asking people to choose a time tomorrow appears to be more effective

42%44%

41%

45%

Page 38: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

We tackle large problems by breaking them down into the small decisions points and actions that drive success…

Example: not exhaustive

Page 39: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

How did we get jobseekers back into work faster?

Page 40: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

Too much paperwork =

focus on benefit and impossible to understand

Notes from the field

Low anchors: minimum three job searches

Morale falls quickly

Getting a job can seem a very

daunting goal

Page 41: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

Redesigning the process

1. Refocus the process 2. Commitments  3. Morale boosting 

Page 42: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

Back to work: % people off benefits by 13 weeks

UNCLASSIFIED

Page 43: The Behavioral Foundations of Policy… lessons from BIT · Microsoft PowerPoint - Ppt0000001.ppt [Read-Only] Author: XPMUser Created Date: 7/7/2015 10:31:38 AM

© Behavioural Insights ltd

Elspeth [email protected]

www.behavioralinsightsteam.com