Category Archives: human brain, explained

Mint newspaper articles – ‘Behavior By Brain’

Wanted to update Blog readers on the series of articles in ‘The Mint‘ which I’ve been authoring. The articles, called ‘Behavior by Brain’, take a deep look at news and trends through the lens of ‘behavior’. Articles penned so far are linked below:

Hope you enjoy them. Do let me know your comments.

Dealing with Fraud


The incentive structure of Wells Fargo has been rightly criticized for the fake account scandal. The roasting of Wells Fargo CEO at the Senate panel hearing has also brought to question the responsibility of the senior executives. However, the overall narrative may be missing an important component – Perception of Risk.

We can safely assume that the front end employees, who carried out the transactions, were largely aware of the illicit nature of their actions. Most likely they also knew the potential consequences such as losing their job, facing charges or even serving prison time. How did the employee’s perceive these risks? What factors moderated their risk perceptions?

These are difficult questions. Unlike the incentive system that is tangible and easier to measure, risk perception is not. Risk is a feeling and feelings are hard to quantify. Our feelings may be moderated by our goals, our ability to deal with outcomes, our past experiences etc. They are also influenced by our social context. The social norms prevalent can easily override the written rules and policies. If people around us are performing deviant behaviors such as the one we are dealing with in this case, we are more likely to follow them. With over 5000 employees implicated, we can expect this issue to be present.

Alternatively, employees may be managing a very different kind of risk. For example, fear of losing their job in the immediate future. The temporal aspect of this risk may amplify it even further and employees might rate it significantly higher than the risk of getting caught in the far future.

So while we are discussing changes to structural aspects such as incentives and punishments, we also need to give adequate attention to the softer side of the issue. We need to design strategies to moderate the risk perceptions. Conventional tools such as awareness / education based trainings have limited impact. This is especially true when the behavior in question is fairly obvious. After all, there is nothing gray about opening a fraudulent bank account. Interventions that provide continuous feedback closer to the work context might be more effective.

This still leaves us with the question of measurement. One way to do that may be identifying lead behaviors. For example, are employees more forthcoming in discussing or informing potential issues? Are managers rewarding such positive behaviors? Are we seeing an increase in minor deviances? Measuring these behaviors can provide organizations the relevant prediction capabilities and also the time to activate preventative strategies. 

Managing organization risks requires focusing on both top-down and bottom-up issues. While we hold the executives responsible to develop the right kind of organization structures, we also need to design tools that ensure alignment of behaviors across the system.

Image Source: The Intercept

Irrationality in the face of imminent death

Emirates crash

The video on how the passengers of the Emirates plane that met with an accident at Dubai airport behaved, holds major lessons on how humans behave at times of high risk.

The foremost reaction to any risk by most humans is denial, unless the risk is very salient. Even with the best of information humans are not capable of evaluating the risk levels of most situations. This optimism bias in times of risk can lead to a ‘business as usual’ attitude and resultant behaviours that are inadequate and inappropriate for an emergency situation.

From the video it is clear that many passengers, instead of rushing to the nearest exit and heading for the escape chute, are more focused on opening the overhead lockers and carrying cabin luggage and laptops with them. In that process, they are causing the biggest hurdle for an evacuation process – blocking of the main aisles.  One can hear passengers reassuring each other that nothing critical has happened, and there is no need to worry. The feeling of danger is low in the voices and faces of passengers and there is no sense of urgency in their movements (so much so, that someone has taken his mobile to capture all this!). Then in the 55th second of the video, one hears the voice that is presumably of the flight attendant. In a raised tone, they repeatedly ask passengers to leave their bags and jump out of the plane. Immediately (and finally!) the passengers sense the emergency of the situation that we can hear fellow passengers rushing others to leave the bags behind and get out of the plane as fast as possible. Some are even seeking God’s help. Evacuation now happens at the right pace, in the right manner.

One can be complacent that all the passengers of this Emirates flight got out of the plane in time and that all are safe. But this was clearly a near-miss incident. One cannot be oblivious of some critical mistakes that happened, which could have led to a major disaster. The right behaviour expected of the passengers is – as soon as an emergency evacuation is signalled, all should realise that a dire mishap has occurred, and respond by immediately rushing to the nearest exit, leaving behind their belongings locked in the overhead storage. Instead, in this incident, it is only in the 55th second of the video that people stopped bothering about their bags and laptops and did what was required to do in order to save their lives and the lives of other passengers. The trigger for this change in behaviour of the passengers came from the flight attendant’s tone of voice and the content of the instructions. Which then makes one curiously ponder – why couldn’t have this intervention from the flight attendants happened 55 seconds earlier?

Human beings by nature are overconfident and tend to ignore most risks unless otherwise the proof of risk is very salient. In several situations, more so in emergency situations, the overconfidence of humans should be deflated to generate the right action in them. Merely communicating the information about a risk will not achieve this. Instead, communication about risk should be embedded with right levels of emotions. Humans are driven to immediate action only when there is a FEELING of risk. The first 55 seconds of the video clearly shows that the feeling of risk prevalent inside the airline was inadequate for an emergency situation of this kind.

During emergencies, every second counts. And humans will continue to behave as irrationally as seen here. Therefore, the critical inquiry required from this occurrence is: What can the airline industry learn about human behaviour from this incident? What in the inflight attendants’ training need to be altered, so that they generate the adequate feeling of risk in these emergency situations, which will refrain the passengers behaving either complacent or too panicky? What is the right script and tone of voice should flight attendants use, to initiate the right action among passengers, in emergencies like this? Finally, what is the ideal communication strategy to convey risk  that will motivate humans to take appropriate action even a second earlier?

Status Quo on Brexit

The world is eagerly waiting with bated breath for the Brexit referendum results. Battle lines are drawn, last campaigns have ended, politicians have made their pitch (David Cameron, Jeremy Corbyn on the “Remain” faction versus Boris Johnson on the “Leave” faction), world leaders have weighed in on the subject (Obama saying “I hope you will stay”) but the contest is still too close to call. This is proving more nail-biting than Euro 2016 football matches.

Brexit PollsThe poll of polls on the issue from ‘What UK Thinks’ show a 50-50 split between the “Remain” and “Leave” factions. The Economist puts it at 44% for the “Remain” and at 43% for the “Leave” factions with 11% undecided – it was 14% yesterday.

Which way the referendum will swing will depend a lot on these 11-14% undecided voters. What would the undecided voter do? One of the key factors will be a well studied bias – the status quo bias, the preference for the current state of affairs. Prospect Theory explains status quo bias as a result of people’s tendency to overweight losses from a change in the status quo when compared to the gains thus leading them not to prefer a change at all. To complicate matters for people already uncertain about the vote, the issue at hand is mightily complex; it has economic, political, and even racial impact. Uncertainty breeds status quo.

The easiest option for undecided voters is the one that allows them to go on with their lives with the least amount of disruption – not having to make the decision at all. On the other hand, if the undecideds do vote, these votes are likely to be for the “Remain” faction – the status quo option. So all that the “Remain” campaigners should do is to encourage the undecideds to vote and they should have it!

One thing is sure, framing of the Brexit question will not play a part in the decision because of wise moves by the Electoral Commission. We have already covered that aspect in our earlier blog – To B or not to B, that is the question.