keynote #2 applying behavioural insights to public policy by rory gallagher

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© Behavioural Insights ltd Applying behavioural insights to public policy Dr Rory Gallagher

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  • Behavioural Insights ltd

    Applying behavioural insights to public policy

    Dr Rory Gallagher

  • Behavioural Insights ltd

    What are Behavioural

    Insights (BI)? How can I apply BI? Where next?

  • Behavioural Insights ltd

    Attention depletion Lets start with a game

    (Danziger et al. 2010)

  • Behavioural Insights ltd

    Memory game

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    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

  • Behavioural Insights ltd

    Ordering effects

    Primacy Recency

    Time

    Rec

    all

  • 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

  • Behavioural Insights ltd

    Mental shortcuts or heuristics

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    Choosing portion size

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    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

  • Behavioural Insights ltd

    Most policy involves behaviour, but we often focus on the wrong things

  • 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

  • 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

  • Behavioural Insights ltd

    BI: more nuanced understanding of human behaviour and additional tools for policymakers

    Regulation

    Incentives

    Information

    Behavioural Insights

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    Our government will find intelligent ways to encourage, support and enable people to make better choices for themselves.

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    David Camerons Vanity Project

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    Press coverage

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    BIT has grown from a small team in the heart of the UK Government

  • Behavioural Insights ltd

    Now 80+staff in 5 offices London, Manchester, Sydney, NY, and now Singapore

  • Behavioural Insights ltd

  • Behavioural Insights ltd

    Guatamala: Guatamalan tax administration

    UK: (i) The Behavioural Insights Team (BIT) & (ii) nudge units in 10 departments

    Singapore: (i) Prime Ministers 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 Ministers 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 Team World Bank:

    Development Report and behavioural trials

    OECD: Behavioural science coordination

    Germany: Chancellors Office

    Moldova: UNDP/BIT collaboration

    Jamaica: Finance Ministry (UNDP/BIT) Rio de Jeneiro:

    Mayors Office

    Mexico: Presidents Office

    Victoria: DPC NZ?

  • Behavioural Insights ltd

    We have collaborated with a wide range of government agencies in Singapore

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    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.

  • Behavioural Insights ltd

    Studying behaviour can lead to better results for schemes and policies

  • Behavioural Insights ltd

    What are Behavioural

    Insights (BI)? How can I apply BI? Where next?

  • Behavioural Insights ltd

    Our methodology

  • Behavioural Insights ltd

    SOCIAL

    TIMELY ATTRACTIVE

    EASY

  • Behavioural Insights ltd

    Easy Defaults Simplification Remove friction

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    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

  • 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

  • Behavioural Insights ltd

    Easy: HDB redesigned letters to encourage channel migration

  • 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

  • Behavioural Insights ltd

    Easy: But many more people paid online

    N=2,510

    11%

    31%

    Old Letter New Letter

  • 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

  • Behavioural Insights ltd

    SOCIAL

    TIMELY ATTRACTIVE

    EASY

  • Behavioural Insights ltd

    Attractive Salience Messenger Personalisation Affect Incentive design

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    Attractive: placement of drinks in the hospital cafe

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    Attractive: Changing prices of soft drinks in vending machines

    49.1% 44.1%

    Standard pricing 20% red drink price increase

  • Behavioural Insights ltd

    SOCIAL

    TIMELY ATTRACTIVE

    EASY

  • Behavioural Insights ltd

    Social Norms Networks Reciprocity Active commitments Eyes & faces

  • 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

    Ant

    ibio

    tic it

    ems

    disp

    ense

    d p

    er 1

    000

    wei

    ghte

    d po

    pula

    tion

    (3,3

    00 G

    Ps )

    Control Treatment

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    SOCIAL

    TIMELY ATTRACTIVE

    EASY

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    Timely Priming Framing Key moments

  • 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?

  • 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

  • Behavioural Insights ltd

    How can you help people to find employment?

  • Behavioural Insights ltd

    We started in Loughton JCP and co-designed interventions with front line staff

    Combining EAST: Loughton JCP trial

  • 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

  • Behavioural Insights ltd

    BIT Coach

    JCP Trainer

    JCP Trainer

    JCP Trainer

    JCP Trainer

    JCP Trainer

    JCP Trainer

    JCP Trainer Developed 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

  • Behavioural Insights ltd

    Replicated and adapted in Singapore

  • 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

  • Behavioural Insights ltd

    What are Behavioural

    Insights (BI)? How can I apply BI? Where next?

  • 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

  • Behavioural Insights ltd

    Public engagement and accountability

  • Behavioural Insights ltd

    Nudging ourselves

  • 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

  • Behavioural Insights ltd

    Thank you!

    Contact: [email protected] [email protected]