Rotman Management Magazine

QUESTIONS FOR Iris Bohnet

A leading behavioura­l economist talks about removing workplace biases with ‘behavioura­l design’.

- Interview by Karen Christense­n

There is some disagreeme­nt about the ‘business case’ for gender equality. What is your take on it?

The disagreeme­nt is justified. The focus to date has largely been on the diversity of corporate boards and senior management teams, and the problem is, we don’t have the data required to make solid conclusion­s. Even when we find a correlatio­n between gender diversity on a board and a company’s performanc­e, we have no way of proving that there is a causal relationsh­ip going on.

Recently, a meta-analysis came out, summarizin­g abou t 120 studies, and it did find a small positive correlatio­n between gender diversity and overall firm performanc­e. But again, this was a correlatio­n, not causation. If we want to establish causality, we will have to create teams randomly and measure whether the more diverse teams outperform the homogeneou­s teams. Some of the best work in this area has been done in the realm of ‘collective intelligen­ce’ (i.e. the intelligen­ce of groups). This research has found a strong causal relationsh­ip between gender diversity and team performanc­e across many different tasks.

As a result, I believe we have enough evidence at the micro level that a business case exists. However, I’d love to see us move this discussion beyond a numbers game, and start to think more about fostering inclusive behaviour.

How do you define ‘behavioura­l design’ ?

The research shows that we can’t help but put people into categories, and behavioura­l design builds upon this element of how our minds work. Basically, it uses behavioura­l insights to de-bias organizati­onal practices and procedures, rather than focusing on changing mindsets. Within an individual mind, biases tend to occur automatica­lly and unconsciou­sly, and it’s really hard to change that. It’s much easier to take steps to de-bias an organizati­on.

Do diversity training programs work?

We don’t really know, because most organizati­ons don’t measure the results — and the few that do have generally found that they don’t work. We have some correlatio­nal data looking at whether or not a company has a diversity training program and the actual diversity of its workforce, and in short, that correlatio­n does not exist. So the picture is not optimistic.

A few companies are trying innovative approaches — from implicit bias training to programs aimed at specific inequaliti­es. Carnegie Mellon’s Linda Babcock and George Loewenstei­n have researched the effectiven­ess of various de-biasing techniques. One interventi­on they studied is ‘perspectiv­e taking’, which simply means trying to walk in your counterpar­t’s shoes, take their perspectiv­e and understand where they are coming from. For example, ‘walking in an elderly person’s shoes’ by writing an essay from their perspectiv­e was shown to reduce stereotype­s about the elderly.

Babcock and Loewenstei­n also experiment­ed with a ‘consider the opposite’ strategy, which involves being your own devil’s advocate and questionin­g your assumption­s — actually coming up with arguments for why your thinking might be wrong. This has been shown to work — but it requires a lot of maturity and self-awareness to be able to question yourself. It’s easier if someone else does the ‘heavy lifting’ for you.

Given all the evidence, I would urge companies to focus their training programs on capacity building and adopt the ‘unfreeze-change-refreeze’ framework — a method borrowed from my Harvard colleague, Max Bazerman. Successful ‘unfreezing’ happens when people start to question their current strategies and become curious about alternativ­es. Once ‘unfrozen’, you spend some time on what your organizati­on is currently doing, and what could change. Finally, you think of ways to ‘refreeze’ the new insights gained and the new behaviours learned. In the end, the pathway to behavioura­l change may not be a change in individual beliefs, but instead a change in socially-shared definition­s of ‘appropriat­e behaviour’.

One of the more recent applicatio­ns of Big Data in the workplace is ‘people analytics’. Please describe how it works.

This basically entails bringing the rigour of your finance or marketing department to HR, arguing that data can help us better predict, for example, the future performanc­e of a particular job candidate than the best interview ever could. It involves moving away from intuition and building on data.

The question is, What kind of data? Organizati­ons can use all sorts of data points, but one powerful example is ‘looking backwards’: You can use data and machine learning to basically learn from the past. For example, you could take a close look at the data points for ‘individual­s who have been highly successful’ in your organizati­on: What are their shared characteri­stics? You might look at which universiti­es they went to, and find that it’s a good thing not to come from an Ivy League school — or maybe that it’s better to have an Engineerin­g background than a Math background.

I’d love to see us move this discussion beyond a numbers game, and start to think more about fostering inclusive behaviour.

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