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Using Behavioral Science to Improve Team Dynamics

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Jun 03, 2024

In the fast-paced world of business, understanding and optimizing team dynamics is crucial for success. The Decision Lab embarked on an innovative journey to explore how behavioral science can enhance decision-making processes within teams. Through a unique diagnostic approach, combining a Discrete Choice Survey and an Implicit Association Test, we gained profound insights into the biases affecting project prioritization in team settings. This article summarizes our approach, findings, and recommendations for leveraging behavioral science to improve group dynamics.

Approach

Our two hypotheses going into the analysis were that we could improve team dynamics by (i) minimizing the impact of individual biases in the decision-making process and (ii) ensuring that members are aligned on team goals so that they can all aim for the same target.

Therefore, to help the team we studied (composed of about six analysts, three managers, and one director) improve their decision-making, we analyzed their team dynamics along two different axes. The first axis focused on how each individual team member was affected by cognitive biases. The second axis was focused on understanding if the group was aligned on what their key markers of success were and how they should be prioritized. A clear understanding of these two axes could in turn inform the design of new processes to help the team improve cooperation and alignment.  

Axis 1: Understanding the individual

From running in-depth interviews with the team members, we uncovered three biases that directly impacted each team member: 

  1. Confirmation Bias: The tendency to favor evidence that confirms our existing beliefs. In our workplace context, this manifested as team members wanting to collaborate more with customers whom they had previously collaborated with, especially when positive outcomes were achieved in the past.
  2. Overconfidence Bias: The tendency to over-rely on our own judgments and abilities. In our workplace context, team members showed signs of this bias by prioritizing projects that fell within their realm of expertise or those where they were in charge of the main deliverable. 
  3. Emotional Bias: The tendency to depend on our emotions when making decisions. In our workplace context, this bias became clear when team members preferred customers with whom they already had positive, friendly relationships and found enjoyable to collaborate with. 

To develop adequate interventions, we needed to know how “strong” each of these biases was across the different group members. To do this, we designed and executed a customized Implicit Association Test. This quantitative tool measures subconscious attitudes and beliefs regarding project considerations that might not be readily self-reported due to a response bias

Axis 2: Aligning on key markers of success

To learn how aligned the team was in their priorities and preferences related to the key markers of success, we ran a Discrete Choice Survey. In this type of qualitative assessment, we simulated different project scenarios and asked the team members to state their preferences several times in a row. This aimed to understand how each team member considered project characteristics such as (i) alignment with the team's goals, (ii) past relationship with customers as well as (iii) personal expertise when making their project prioritization decisions.

About the Author

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Hector Alvarado

Hector Alvarado is a Director at The Decision Lab. He holds a Masters in Applied Statistics from the University of Oxford, an MBA from INSEAD and a Bachelors in Actuarial Science. He is very interested in applying insights and his past experience to generating meaningful impact for vulnerable populations around the globe. Prior to joining The Decision Lab, Hector worked about 5 years as a Private Equity investor in the Infrastructure Sector in LATAM and over 6 years as a Management Consultant with the Boston Consulting Group. Hector has lead large transformation, growth strategy and integration projects in the Pharma, Consumer Goods and Banking Industries both in North and Latin America.

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I was blown away with their application and translation of behavioral science into practice. They took a very complex ecosystem and created a series of interventions using an innovative mix of the latest research and creative client co-creation. I was so impressed at the final product they created, which was hugely comprehensive despite the large scope of the client being of the world's most far-reaching and best known consumer brands. I'm excited to see what we can create together in the future.

Heather McKee

BEHAVIORAL SCIENTIST

GLOBAL COFFEEHOUSE CHAIN PROJECT

OUR CLIENT SUCCESS

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Annual Revenue Increase

By launching a behavioral science practice at the core of the organization, we helped one of the largest insurers in North America realize $30M increase in annual revenue.

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Increase in Monthly Users

By redesigning North America's first national digital platform for mental health, we achieved a 52% lift in monthly users and an 83% improvement on clinical assessment.

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Reduction In Design Time

By designing a new process and getting buy-in from the C-Suite team, we helped one of the largest smartphone manufacturers in the world reduce software design time by 75%.

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Reduction in Client Drop-Off

By implementing targeted nudges based on proactive interventions, we reduced drop-off rates for 450,000 clients belonging to USA's oldest debt consolidation organizations by 46%

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