#45: Researching how people actually make decisions with Christian Madsbjerg
Aug 15, 2023
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Christian Madsbjerg, an expert in human perception and observation, discusses the importance of ethnographic practice in understanding decision-making. They explore the benefits of observing the world without forming opinions and discuss the shift towards algorithmic processes in areas like coffee and courtship. The concept of naturalistic decision making (NDM) is explored, emphasizing the study of real-life decision-making. The speaker also shares their love for travel and fascination with Seoul's transformation.
Combining observation, experimentation, and large datasets leads to insightful and accurate business decision-making.
Using storytelling techniques can effectively communicate research findings and enhance understanding and memory retention.
Deep dives
Christian Mansberg's Career and Approach to Business
Christian Mansberg is a professor and consultant with a wide range of experience in various fields, including applied humanities and global policy. He co-founded consultancy firm Red Associates and a health data startup, Lateral Data. Mansberg emphasizes the importance of bringing philosophical and anthropological tools into the world of business decision-making, similar to how psychologists adopt naturalistic approaches. He highlights the need for combining research methods, including observation and experimentation, to achieve insightful and accurate results. Mansberg discusses the limitations of relying solely on data-driven models, acknowledging the importance of observation before designing experiments.
The Paradigm of Economics and Psychology
Mansberg criticizes the paradigms of economics and psychology for their narrow focus and rigid methodologies. He explains how economics has strived for a physics-like scientific system, leading to oversimplification and inaccurate predictions. Psychology, in turn, developed an 'economics envy' by using experiments and isolating variables to generate empirical data, but often reached banal or incorrect conclusions. Mansberg advocates for a combination of methods, embracing observation, experiments, and large datasets. He underscores the need for open-ended, open-minded observation to generate hypotheses and guide experiments, in order to obtain insightful and reliable insights.
Applying Observational Research Methods
Mansberg discusses the power of observation in research and its potential to challenge existing beliefs and preconceptions. He describes the importance of sending students to observe phenomena they have strong opinions about or find unpleasant, as it helps them gain a deeper understanding and enhances their observational skills. Mansberg shares examples of student projects, such as studying the algorithms behind online dating or exploring the social significance of the simple act of having coffee. He emphasizes the value of ethnographic practice, combining observation with other research methods like experiments to ensure robust and insightful findings.
Storytelling as a Method of Communication
Mansberg highlights the significance of storytelling in effectively communicating research findings. He explains that stories can convey complex ideas in an engaging and relatable manner, making information more accessible to a wider audience. Mansberg recommends framing research outcomes as stories, even if the data is data-driven, as stories have a powerful impact on understanding and memory retention. He emphasizes the importance of organizing data-heavy research projects into coherent narratives using methods like Barbara Minto's Pyramid Principle. Mansberg believes storytelling is a crucial skill for researchers and highlights the success of incorporating storytelling techniques in his own work.
Christian is interested in human worlds, human perception and the skill of observation, which is reflected in the diversity of his professional experience. He has been a full time Professor of Applied Humanities at The New School for Social Research; a Senior Fellow at The Health and Global Policy Institute (HGPI) in Tokyo, Japan and a Distinguished Visitor at The Buffett Center for International Affairs at Northwestern University in Chicago. He co-founded ReD Associates, a pioneering consultancy with offices in Copenhagen, Paris, London and New York City, and a health data start-up Lateral Data based in Dallas TX. His board appointments include Chairman of the top-tier architectural firm Bjarke Ingels Group: BIG; Independent director of the luxury furniture manufacturer Fritz Hansen; Independent director and Nomination/Governance Committee chairman at the battery metals company The Metals Company; Member of the high-end home textiles manufacturer Kvadrat; and Board member at Red Associates Holding. His work has been featured in publications such as The Wall Street Journal, Washington Post, Financial Times, The Washington Post, Der Spiegel, and Bloomberg Business week. And he is the author of three books:
The Moment of Clarity - Using the Human Sciences to Solve Your Toughest Business Problems
Sensemaking - The Power of The Humanities in the Age of the Algorithm
And just released: Look - How to pay attention in a world of distraction.