Behavioral Strategy Primer (PowerPoint PPT Slide Deck)

BEHAVIORAL ECONOMICS PPT DESCRIPTION

This product (Behavioral Strategy Primer) is a 22-slide PPT PowerPoint presentation slide deck (PPT), which you can download immediately upon purchase.

What is Behavioral Strategy?

First, to understand Behavioral Strategy, we must first examine the concept of Cognitive Biases. There are 2 different types of biases in people that cause them to stray from rational decision making: cognitive and emotional. Cognitive biases arise due to incomplete information or the inability to analyze the available data. These preconceived notions can be categorized as either Belief Persistence or Processing Errors.

This PowerPoint presentation on Behavioral Strategy begins with an explanation of Cognitive Biases and identifies the 9 most common Cognitive Biases. The purpose of Behavioral Strategy is to mitigate against our cognitive biases.

However, research reveals that executives tend to overlook human biases while making decisions. These biases cause the people to move away from rational decision making. In order to better manage these tendencies, executives need to identify the biases prevalent in their organizations and embrace practices to minimize their bearing on strategic decisions. This is where Behavioral Strategy comes in.

To understand and develop an effective Behavioral Strategy, we first examine the 5 building blocks of Behavioral Strategy. They provide key principles and practices to neutralize Cognitive Biases. These building blocks represent specific counter actions leaders should take to remove potential biases.

This Behavioral Strategy PPT also presents a 4-step approach to adopting Behavioral Strategy in Decision Making:

1. Determine the Decision That Warrants the Effort
2. Identify the Biases Most Likely to Impact Important Decisions
3. Select Practices and Tools to Counter the Most Relevant Biases
4. Embed and Operationalize Practices in Formal Processes

This approach leverages better decisions and engaged managers. Each step is explained in depth. To truly improve decision making and overcome biases, we need to follow this structured approach to formulate and implement an actual Behavioral Strategy.

This Behavioral Strategy PPT deck also includes some slide templates illustrating the 5 Building Blocks of Behavioral Strategy and the 4-step Approach to Behavioral Strategy. In fact, you can re-purpose the majority of these Behavioral Strategy slides in your own business presentations.

This presentation provides a comprehensive overview of the 9 most common cognitive biases and the 5 core building blocks to mitigate them. It also includes actionable templates that can be easily repurposed for your own strategic initiatives.

Source: Best Practices in Decision Making, Cognitive Bias, Behavioral Economics PowerPoint Slides: Behavioral Strategy Primer PowerPoint (PPT) Presentation Slide Deck, LearnPPT Consulting

BEHAVIORAL ECONOMICS PPT SLIDES

Key Principles to Mitigate Executive Decision Biases

This PPT slide outlines 5 foundational elements of Behavioral Strategy aimed at addressing cognitive biases that can hinder decision-making in executive roles. Each building block is presented with a brief description, emphasizing the importance of recognizing and mitigating these biases.

The first point focuses on "Counter Pattern Recognition Biases by Reframing the Perspective." It highlights common biases such as saliency bias, which prioritizes recent or memorable information, and confirmation bias, where evidence contradicting a hypothesis is overlooked. This section underscores the tendency of senior executives to rely on their experiences, which can lead to misleading narratives.

The second block, "Counter Action-oriented Biases by Recognizing Uncertainty," discusses how executives often act based on an overly optimistic view of the future. It notes that many strategic plans may either overestimate market potential or underestimate competition. The pressure to make quick decisions can exacerbate these issues, as overconfidence may compromise the quality of the decision-making process.

The third building block addresses "Counter Stability Biases by Changing Things Up." This section explains that stability biases can prevent executives from making necessary changes, as they often cling to the status quo. Anchoring on previous figures can skew budget discussions, while loss aversion can lead to reluctance in divesting underperforming assets.

Overall, the slide serves as a critical reminder for executives to be aware of these biases and to adopt strategies that promote more rational decision-making. Understanding these principles can lead to more effective leadership and improved organizational outcomes.

Core Building Blocks of Behavioral Strategy

This PPT slide presents a framework for Behavioral Strategy aimed at addressing cognitive biases that can skew decision-making in corporate environments. It highlights the importance of recognizing these biases, which stem from behavior, training, culture, and human nature, as they tend to resist feedback. The text emphasizes that effective strategic decisions require a conscious effort to mitigate these biases and implement a structured decision-making process.

Five core building blocks of Behavioral Strategy are outlined, each designed to counteract specific biases. The first block focuses on countering pattern recognition biases by reframing perspectives, encouraging decision-makers to view situations from different angles. The second block addresses action-oriented biases by recognizing uncertainty, which helps in making more informed choices. The third block emphasizes the need to counter stability biases by introducing variability, suggesting that changing routines can lead to better outcomes.

The fourth block aims to counter interest biases by making them explicit, ensuring that personal interests do not cloud judgment. Finally, the fifth block targets social biases by promoting depersonalization in discussions, which can help in reducing the influence of groupthink and personal relationships on decision-making.

The slide concludes with a note on the value of understanding these building blocks, asserting that a deep appreciation for Behavioral Strategy, combined with knowledge of cognitive biases, is essential for ensuring unbiased decision-making. This framework serves as a practical guide for executives seeking to enhance their strategic decision-making processes.

Identifying Key Decision Types in Behavioral Strategy

This PPT slide outlines the initial step in adopting a Behavioral Strategy, emphasizing the importance of identifying decisions that truly merit the effort involved. It categorizes decisions into 2 distinct types: One-off Strategic Decisions and Repetitive yet High-risk Decisions.

One-off Strategic Decisions are described as unique and infrequent, such as mergers and acquisitions or significant capital investments. These decisions typically require a small group from the executive team to finalize, often relying on informal or ad-hoc processes. The slide suggests that these decisions are critical and warrant careful consideration due to their significant impact on the organization.

On the other hand, Repetitive yet High-risk Decisions involve recurring choices that ultimately shape a company's strategic direction. These decisions, while repetitive, carry substantial risks and are often linked to essential processes within the organization, like research and development or capital expenditures. The slide notes that in many organizations, there are usually only a few of these vital processes that require consistent decision-making.

The concluding remark highlights that while formal processes exist to facilitate strategic decision-making, they are often vulnerable to biases. This susceptibility can lead to decision paralysis, where the organization struggles to make timely choices due to over-analysis or fear of risk. Overall, the slide serves as a guide for executives to focus their efforts on the types of decisions that will have the most significant impact on their organizations.