Renowned authors Dan Simons and Christopher Chabris discuss inattentional blindness and cognitive blindspots in their groundbreaking research. They explore how scammers exploit mental shortcuts in frauds and offer strategies to resist deceptive tactics. Topics include avoiding deception in business, improving marketing efforts, and understanding consumer purchasing behavior.

Welcome to the 400th episode of The Brainy Business podcast! In this milestone episode, Melina Palmer delves into the intriguing concept of survivorship bias, a critical thinking error that can significantly impact decision-making in business and personal life. Through engaging storytelling, Melina takes us back to World War II to uncover the origins of this concept and how it played a crucial role in military strategy.  She then brings the concept into contemporary contexts, illustrating how survivorship bias leads us to overvalue success stories while ignoring the vital lessons from failures. This episode not only celebrates our podcast’s journey but also equips you with practical insights to recognize and overcome survivorship bias in your ventures. Join Melina as she explores this bias’s profound implications on entrepreneurship, business strategies, and everyday decisions, helping you make more informed choices.  In this episode: Understand how survivorship bias impacts business success and decision-making. Explore the powerful influence of behavioral economics on shaping strategic choices in business. Discover effective strategies to overcome survivorship bias and drive more informed decision-making. Differentiate between correlation and causation in business strategies to make more impactful choices. Uncover the success factors that extend beyond survivorship bias and drive sustained business growth. Show Notes: 00:00:00 - Introduction Melina introduces the concept of survivorship bias and its relevance to business decisions. She emphasizes the impact of this bias on entrepreneurs and its influence on decision-making in various roles across industries. 00:04:08 - Abraham Wald and World War Two Melina delves into the story of Abraham Wald, a mathematician who discovered survivorship bias during World War Two. She highlights the significance of Wald's analysis of bullet holes on planes and the crucial insights it provided on reinforcing strategic spots. 00:09:16 - The Fallacy of Survivorship Bias The discussion focuses on the fallacy of survivorship bias in seeking advice for success. Melina provides examples of how survivorship bias leads to misconceptions about causation and correlation, using narratives of successful individuals as illustrations. 00:11:31 - Business Applications of Survivorship Bias Melina explores the business applications of survivorship bias and its implications for decision-making. She emphasizes the complexity of success and the dangers of assuming a one-size-fits-all approach based on survivorship bias. 00:13:56 - Correlation vs. Causation The conversation delves into the distinction between correlation and causation, highlighting the misconceptions that arise from survivorship bias. Melina illustrates the importance of discerning causation for making informed decisions in business and life. 00:15:46 - Survivorship Bias in Conclusions Not all successful CEOs wake up at 05:00 a.m. Correlation doesn't imply causation. It's important to consider all data points and not draw conclusions based on one aspect. 00:16:21 - Success and Failure in Publishing For every popular book, there are a million unsuccessful books and authors. It takes trial and error and hard work to succeed. Learn from others' experiences and determine what works for your goals. 00:18:07 - The Illusion of the Best Product The best products don't always lead the market. Being the best or first doesn't guarantee success. Look at all possible data points and consider what's missing for your business venture. 00:19:55 - Customer Feedback and Satisfaction Customer satisfaction surveys may not capture all feedback. Consider the concerns of those who didn't choose your business. Look beyond extreme examples and aim for a complete data set for feedback. 00:23:49 - Openness to Unexpected Findings Be open to the things you aren't looking for. Anomalies and unconventional ideas could lead to valuable insights. Consider reframing questions and exploring untested areas to avoid survivorship bias. 00:24:48 - Conclusion What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn. Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.  I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. Let’s connect: Melina@TheBrainyBusiness.com The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brainy Business on LinkedIn Melina on LinkedIn The Brainy Business on Youtube Learn and Support The Brainy Business: Check out and get your copies of Melina’s Books.  Get the Books Mentioned on (or related to) this Episode: How to Change, by Katy Milkman What Your Employees Need and Can't Tell You, by Melina Palmer Alchemy, by Rory Sutherland The Invisible Gorilla, by Christopher Chabris and Daniel Simons Nobody's Fool, by Christopher Chabris and Daniel Simons Top Recommended Next Episode: David McRaney Interview (ep 336) Already Heard That One? Try These:  Hindsight Bias (ep 167) What Your Employees Need and Can't Tell You (ep 225) Jonah Berger Interview (ep 301) Warren Berger Interview (ep 340) Cass Sunstein Interview (ep 371) Other Important Links:  Brainy Bites - Melina’s LinkedIn Newsletter What Every Founder Needs to Know About Survivorship Bias Why It’s So Hard To Succeed – The Survivorship Bias You are missing something! – Survivorship bias 7 Lessons on Survivorship Bias that Will Help You Make Better Decisions How the Survivor Bias Distorts Reality Survivorship Bias: The Tale of Forgotten Failures Missing what’s missing: How survivorship bias skews our perception The College Dropout Problem Hilarious Graphs Prove That Correlation Isn’t Causation The 10 Most Bizarre Correlations

In this insightful episode of The Brainy Business podcast, host Melina Palmer welcomes Max Mawby, a seasoned expert in applied behavioral science at Thinks Insight & Strategy. Max shares his unique journey from working in the UK government to founding the financial behavior team at the Behavioral Insights Team, exploring the significant impact of behavioral science in both private and public sectors. With a focus on simplifying complex information for better consumer understanding, Max discusses his collaboration with plain numbers, a social enterprise dedicated to making numerical communications more accessible.  Delve into practical strategies like the EAST framework to enhance decision-making processes. Max emphasizes the necessity of clear, effective communication to empower informed choices without compromising freedom. This episode is a treasure trove of insights for anyone interested in how behavioral science can drive positive financial behaviors and facilitate informed, sustainable decisions. Tune in to learn how to implement these practices in your organization and make a lasting impact. Don't miss this episode’s engaging discussion on the power of behavioral insights in real-world applications.  In this episode: Apply behavioral science principles to drive business success and enhance customer understanding. Influence positive financial behaviors to unlock new opportunities for financial growth and stability. Conduct online experiments to inform strategic business decisions and optimize customer experiences. Utilize behavioral insights to design inclusive products that resonate with diverse consumer needs and preferences. Simplify financial communication to empower consumers and foster better financial decision-making. Show Notes: 00:00:00 - Introduction Max Mawby, managing director of applied behavioral science at Thinks Insight & Strategy, shares his insights on driving positive change using behavioral science in various sectors. 00:05:58 - Starting in Behavioral Science Max shares a personal story about his early attempts to introduce behavioral science in the UK civil service. He emphasizes the importance of perseverance and finding opportunities to apply behavioral science. 00:10:30 - Experimental Projects Max discusses a project on improving financial decision making for pensions in the UK. By using personalized guidance in a digital journey, they were able to significantly increase the number of people making good financial decisions. 00:14:46 - Behavior and Technology Max highlights the potential of leveraging technology to provide personalized advice, reducing the need for expensive human resources. He emphasizes the importance of using empirical evidence to make an investable case for implementing behavioral science solutions. 00:16:34 - Importance of Persuasive Evidence in Experiments Max discusses the importance of persuasive evidence in experiments, highlighting the need to understand the context and literature. He emphasizes the significance of high confidence in experiment results. 00:17:22 - Designing Experiments Based on Context Max emphasizes the importance of understanding contextual pieces when designing experiments. He discusses the need to translate research findings to different situations and adapt methods accordingly. 00:18:30 - Structuring Problem Solving in Projects Max explains the process of structuring problem-solving in projects, including setting a structure around the specific problem, forming research questions, and selecting appropriate methods to answer those questions. 00:22:13 - Exploring Behavioral Interventions Max discusses the exploration of behaviorally informed interventions and projects, highlighting the importance of frameworks like EAST (Easy, Attractive, Social, Timely) for driving change and evaluating impact. 00:28:57 - Discovering New Research Max shares his approach to discovering new research through social media platforms like Twitter, emphasizing the importance of engaging with a community to stay updated on the latest research in a specific field. 00:31:43 - The Power of Plain Numbers Approach Max discusses the effectiveness of the plain numbers approach in simplifying complex information for consumers, citing examples from water bills and credit card statements. The approach focuses on making financial outcomes understandable to customers. 00:32:30 - Impact of Plain Numbers Approach in Regulation Max highlights the impact of the plain numbers approach in UK regulation, specifically the consumer duty, which shifts regulatory duties to focus on the financial outcomes of customers rather than broad disclosures. The approach simplifies complex algorithms and information for better customer understanding. 00:33:05 - Making Information Easier to Understand Max emphasizes the importance of simplifying information for consumers, especially in financial and utility companies. The approach aims to make it easier for people to understand complex calculations, such as interest rates and water bills, in a minimal amount of time. 00:34:17 - Humanizing Communication in Finance Melina and Max discuss the importance of humanizing communication in the financial industry and the role of behavioral science in helping people make better choices. They emphasize the need to communicate in plain language and numbers to empower consumers. 00:35:51 -  Conclusion What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn. Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.  I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. Let’s connect: Melina@TheBrainyBusiness.com The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brainy Business on LinkedIn Melina on LinkedIn The Brainy Business on Youtube  Connect with Max: Thinks Insights & Strategy  LinkedIn  X  Learn and Support The Brainy Business: Check out and get your copies of Melina’s Books.   Get the Books Mentioned on (or related to) this Episode: Nudge, by Richard Thaler & Cass Sunstein How to Change, by Katy Milkman Behavioral Insights, by Michael Hallsworth Sludge, by Cass Sunstein The Friction Project, by Robert Sutton and Huggy Rao Top Recommended Next Episode: Jo Evershed Interview (ep 353) Already Heard That One? Try These:  The Overwhelmed Brain and its Impact on Decision Making (ep 32) NUDGES and Choice Architecture: Introduction (ep 35) Color Theory (ep 61) The Most Important Step In Applying Behavioral Economics: Understanding the Problem (ep 126) Michael Hallsworth Interview (ep 218) Other Important Links:  Brainy Bites - Melina’s LinkedIn Newsletter

Dr. Michael Hallsworth discusses applying behavioral science to public policy, sharing projects on reducing antibiotic prescriptions and combating obesity. Lessons on replicating strategies, evolving interventions, and addressing societal issues are highlighted. The episode showcases the power of behavioral economics in creating significant societal shifts through small nudges.

Jeff Kreisler, Head of Behavioral Science at JPMorgan Chase, discusses the impact of behavioral economics on financial decision-making, the role of humor in enhancing outcomes, and the evolving use of AI in wealth management. The episode delves into Jeff's career transition, the intersection of comedy and science, and the importance of incorporating behavioral science into decision-making processes for better financial outcomes.

Explore how our memories can deceive us with hindsight bias, survivorship bias, and cognitive distortions. Learn practical strategies to combat these biases and make better decisions in business and personal life.

Explore negotiation strategies and techniques with Kwame Christian, host of Negotiate Anything podcast. Learn about Compassionate Curiosity framework, affect labeling, and anchoring tactics. Discover the synergy between sales and negotiation skills for successful outcomes.

Learn how anchoring and adjustment impact consumer behavior and decision-making in various industries such as retail and real estate. Discover strategies to set compelling price anchors and leverage behavioral economics techniques to boost sales. Dive into the world of anchoring to unlock success in your professional and personal life.

Esteemed author Karin Hurt shares strategies for mastering workplace conflict by embracing the four C's: Connection, Clarity, Curiosity, and Commitment. Learn practical phrases and tactics to navigate office disputes, foster collaboration, and enhance conflict resolution skills. Gain insights on human-centered leadership, setting clear expectations, and handling conflicts with grace and resolve.

Join host Melina Palmer and guest Tim Houlihan, an expert in motivation and incentives, as they delve into the world of non-monetary rewards and personalized goal-setting. They challenge traditional views on motivation, emphasizing the power of recognition and thoughtful goal planning. Discover how incentives and motivation can impact employee engagement and performance, and gain practical insights on applying behavioral science in personal and professional realms.