Behavioral Approaches to Business and Public Policy
Business and management scholars have been studying how to optimize human performance in organizations for decades through a mix of “hard” and “soft” mechanisms. In recent years, many pre-existing assumptions and orthodoxies have been challenged by new thinking and new experiences – most recently the pandemic and the expanded use of remote and hybrid working, as well as the growing use of analytics and artificial intelligence.
The changing nature of work has profound implications for public policy and for the relationship between business, government, and civil society. The Center’s research focuses on increasing our understanding of how individuals and organizations interact now and how they will do so in the workplaces of the future. We focus on the “last mile” aspect of policy development and implementation, taking the ideas rooted in economic analyses, sociological and psychological research and explore the behavioral implications of how to ensure successful policy implementation and maximum impact.
The challenge in some organizations is not enough risk-taking: Employees are too cautious and not willing to try new things even when they’d be beneficial, on average, for the organization. In other organizations, the problem is excessive risk-taking: Risky behavior spreads through an organization until something goes wrong.…