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Diciembre 2016 © Copyright Insitum 2016
Think Before you Do: Service Design and Behavioral EconomicsService Experience Chicago, Aug 2016
Luis Arnal
#designthinking @insitum@luisarnal
INSITUM HELPS ORGANIZATIONS SOLVE COMPLEX, STRATEGIC, AMBIGUOUS PROBLEMS THROUGH PEOPLE-CENTERED APPROACHES
MOST OF THESE PROBLEMS CAN BE SOLVED BY INNOVATING PRODUCTS, SERVICES, BRANDS, PROCESSES, EXPERIENCES.SUCH AS: DESIGN THINKING, LEAN
PROCESSES, ETHNOGRAPHIC RESEARCH, USER EXPERIENCE DEFINITION, BEHAVIORAL SCIENCE, INNOVATION CONSULTING, ETC.
CHICAGOBARCELONAMÉXICO CITYBOGOTÁLIMASÃO PAULOBUENOS AIRES
WE WORK WITH LEADING COMPANIES
Diciembre 2016 © Copyright Insitum 2016
A few years ago...
CREDIT: FOLLYGRAPH, 38 WAYS TO MAKE A PERFECT COFFEE - 2ND EDITION
Diciembre 2016 © Copyright Insitum 2016
Today
CREDIT: FOLLYGRAPH, 38 WAYS TO MAKE A PERFECT COFFEE (CROPPED IMAGE)
Diciembre 2016 © Copyright Insitum 2016
A few years ago...
Diciembre 2016 © Copyright Insitum 2016
Behavioral Economics Stoicism & other
philosophy schools
Positive Psychology
Design Research
Data ScienceData
Visualization
Art
Political Science
Service Design +
Organizational development
Diciembre 2016 © Copyright Insitum 2016
Behavioral Economics
Behavioral economics explores why people sometimes make irrational decisions, and why and how their behavior does not follow the predictions of economic models.
http://www.investopedia.com/terms/b/behavioraleconomics.asp#ixzz4IaP3ivr2
Diciembre 2016 © Copyright Insitum 2016
Diciembre 2016 © Copyright Insitum 2016
a) Both are the same sizeb) Blue is longerc) Red is longerd) I’d rather not respond now
Diciembre 2016 © Copyright Insitum 2016
Diciembre 2016 © Copyright Insitum 2016
Diciembre 2016 © Copyright Insitum 2016
Economía Psicología
“errare humanum est”
Diciembre 2016 © Copyright Insitum 2016
Today
As a Research tool (to explain observable behavior or plan for the best approach)As an Assessment tool (to evaluate current experiences / system)As an Ideation tool (to inspire the divergent thinking phase or purposefully embed principles in the design)
Diciembre 2016 © Copyright Insitum 2016
Why some patients are reluctant to switching to a new therapy in spite of having evidence that supports higher efficiency?
Research Assessment Ideation
Diciembre 2016 © Copyright Insitum 2016
Barrier to switching therapy: Switching treatment is hard because people have invested time, money, pain, and learned behaviors. Letting go means losing that investment.
Research Assessment Ideation
Sunk Cost Fallacy: The more you invest in something the harder it becomes to abandon it.
Diciembre 2016 © Copyright Insitum 2016
Chronic-disease patients can spend years expecting an unrealistic goal (finding a cure) instead of doing things that will make them happier or improve their quality of life (i.e. running a marathon)
Research Assessment Ideation
Diciembre 2016 © Copyright Insitum 2016
Study novice and advanced patients: When inquiring about patient needs, advanced patients have more manageable expectations and clearer priorities (but less quality of life) than novice patients.
Research Assessment Ideation
Intertemporal Choice: People make decisions (and have desires) based on their current situation, not their future one.
Diciembre 2016 © Copyright Insitum 2016
Research Assessment Ideation
Long periods of unresponsiveness and lack of decision making from the patient allows the tumor to advance and metastasize, leading to a vicious cycle of problems.
Diciembre 2016 © Copyright Insitum 2016
Loss Aversion: Losses hurt more than gains feel good
Attitude towards Chemotherapy: For women, losing hair or a breast makes them reluctant to therapy—even if such “losses” can save their life. This leads to more effort, stress, unhappiness or death.
Research Assessment Ideation
Diciembre 2016 © Copyright Insitum 2016
Research Assessment Ideation
Why some doctors prescribe the same therapy to all their patients?
Diciembre 2016 © Copyright Insitum 2016The Anatomy Lesson of Dr. Tulp, Rembrandt
Status Quo Bias: People tend to choose the default option because they are unwilling to assume the time, effort and risk of a different choice.
Using guidelines releases MD’s responsibility: Doctors rely excessively on guides when choosing a therapy, even when suspicious that other options might be more effective
Research Assessment Ideation
Diciembre 2016 © Copyright Insitum 2016
Research Assessment Ideation
Why do patients delay the process for obtaining a diagnosis—mostly when a chronic illness is involved?
Diciembre 2016 © Copyright Insitum 2016
Information avoidance: People avoid receiving information which may lead to negative emotions.
Delayed suffering: Instinct pushes people to delay / deny / disagree with bad news, such as a chronic disease, because of the additional resources (i.e. mental, time, money, emotional) this will demand.
Research Assessment Ideation
Diciembre 2016 © Copyright Insitum 2016
Research Assessment Ideation
Patients prefer to go to a hospital rather than a clinic, in spite of crowded halls, long lines, not guaranteed appointments, and other risks
Diciembre 2016 © Copyright Insitum 2016
Research Assessment Ideation
Rename clinics: Position clinics as hospital extensions will increase their reputation and patients will be more evenly distributed within the healthcare system.
Availability Heuristic: People rely on easy to access decisions (top of mind)Bandwagon Effect: People do and believe things just because others do or believe the same
Diciembre 2016 © Copyright Insitum 2016
Research Assessment Ideation
Patients stop treatment once they start feeling well , avoiding the doctor experience (potential bad news, reminding sickness, interrupt daily activities, cognitive stress, etc.)
Diciembre 2016 © Copyright Insitum 2016
Research Assessment Ideation
Super sticky adherence: Have someone else with positive attributes (friendly female) visit patient in their home and bond in order for positive attributes of the nurse/experience migrate to the therapy.
Halo effect: Attributes of a thing/person/experience will spread over if you put them together.
Diciembre 2016 © Copyright Insitum 2016
Wrapping up:
If you look closely, you will find that most experiences are affected—positively or negatively—by a number of BE principles.Identifying these allows you to understand [behaviors, thoughts, decisions, needs], dissect [problems, systems, consequences] and design [define, prioritize, ideate]Service designers should be proficient in these principles if they want to use them purposefully to help people live better experiences.
Diciembre 2016 © Copyright Insitum 2016
Behavioral Economics Stoicism & other
philosophy schools
Positive Psychology
Design Research
Data ScienceData
Visualization
Art
Political Science
Service Design +
As a Research tool (to explain observable behavior or plan for the best approach)As an Assessment tool (to evaluate current experiences / system)As an Ideation tool (to inspire the divergent thinking phase or purposefully embed principles in the design)
Organizational development
Diciembre 2016 © Copyright Insitum 2016
Nitrogenated coffee?[look for image]
Diciembre 2016 © Copyright Insitum 2016
Gracias!Thanks to Thomas Hahn, Olivia Radillo, Eyra Perez and Nathalie Cacheaux—most of the ideas presented here came from them
[email protected] @luisarnal