predictably irrational : Preview
February 29 - March 4, 2008
The Inn at Spanish Bay
2700 17-Mile Drive
Pebble Beach, CA 93953
(831) 647-7500
www.pebblebeach.com
Preview
Most executives, schooled in traditional economics, assume that customers behave rationally, that more choice is always better, and that people consistently act in their self-interest. Unfortunately, the data show that these business leaders are wrong. Furthermore, those few firms who understand how people really make decisions can gain an upper hand on the competition.
At this event, Dan Ariely, the Alfred P. Sloan Professor of Management at MIT, is debuting his book Predictably Irrational: The Hidden Forces That Shape Our Decisions. In this readable tome, Dan turns classical economic theory on its head and illustrates the many foibles of human decision making. More importantly, Dan proposes ways firms can change their thinking, to simultaneously help consumers, and their own bottom lines:
For example, what if property and casualty insurers could reduce the $30 billion a year attributable to claim fraud, simply by asking customers to verify the honesty of the claim at the top of the form instead of the bottom?
What if a firm's 401k plan changed from "opt-in" to "opt-out" - and thereby boosted employee participation by 50%?
What if reducing the number of cellular phone plans offered actually increased the conversion of shoppers to paying customers?
The possibilities are endless. On Sunday, Dan will introduce his rich body of work by sharing the fascinating findings of behavioral economics and delineating how we really make decisions. On Monday, we will break into smaller discussion groups so we can take the time to apply what we're learning to our own businesses. We will also hear from a panel of business leaders who have been working the science of behavioral economics into their product and service designs, and then John Sviokla, vice chairman of Diamond, will draw upon work Diamond has performed with a range of industries to apply behavioral economics to business - with Dan's help.
Because changing the thinking of an organization requires great leadership, we will end the day with a discussion on how to truly shift the direction and thinking of an organization. David Pottruck will share the story of how, while he was CEO of Charles Schwab, he radically changed how that organization thinks and operates.
On Tuesday morning, we will continue to pursue the theme of changing our thinking. Alan Kay, one of the greatest computer scientists of all time, will share with us lessons from science and history as he urges us to understand technology deeply so we don't inadvertently limit its potential. After that, we will hear from Vice Admiral John Morgan, who will share with us the new Maritime Strategy for the US Navy. He will give us the inside view of the challenges he faced in introducing a whole new approach to warfare in the world's most successful navy.
