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Six Useful Ideas (Maybe!)
       on Health Decision-Making


Healthcare Unbound 2011
July 11, 2011



                            Michael J. Barrett
                            Managing Partner
                            Critical Mass Consulting
                            www.CriticalMassConsulting.com


                © Critical Mass Consulting 2011
Your basic shameless grab for credit




11/1/2011     © Critical Mass Consulting 2011   2
Six ideas




11/1/2011   © Critical Mass Consulting 2011   3
Six useful ideas




11/1/2011      © Critical Mass Consulting 2011   4
Six useful ideas (maybe – let’s keep
                    watching)
•   From the social, behavioral and economic (SBE) sciences …

•   … useful in health technology strategy and design.




11/1/2011                    © Critical Mass Consulting 2011    5
Six useful ideas

Behavior
•   Decision-making
       1. Choice architectures and nudges
       2. Negative incentives
       3. Ubiquitous computing and passive selves
       4-6. Social networks and decision-making
            4.   How networks operate (i): loose vs. tight
            5.   How networks operate (ii) peer support / peer pressure
            6.   How networks operate (iii): norms




11/1/2011                            © Critical Mass Consulting 2011      6
Behind the matter of usefulness,
        a question looms in the background


               As good outcomes begin to determine
                           provider incomes,
              as cost containment pressures intensify
              for all of us, and as technology enables
              us to assign accountability, what do we
                    ask of the patient/consumer?




11/1/2011               © Critical Mass Consulting 2011   7
Looming in the background …




                     “What’s the future of
                    patient responsibility?




11/1/2011             © Critical Mass Consulting 2011   8
Two ideas that didn’t make the cut

•   Do Malcolm Gladwell-style connectors route our communications with one
    another?
           Contra: See Duncan Watts, Everything is Obvious, Once You Know the Answer (2011)


•   Do Facebook-style social networks affect our views of choices and preferences?
           Contra: See Nicholas Christakis and James Fowler, Connected: The Surprising Power
            of our Social Networks and How They Shape Our Lives (2009)




11/1/2011                           © Critical Mass Consulting 2011                      9
Possibly useful idea #1:
       ID choice architecture, insert nudge




11/1/2011          © Critical Mass Consulting 2011   10
Choice architecture

•    “A choice architect has the responsibility for organizing the context in which people
     make decisions.”
         1. “If you are a doctor and must describe the alternative treatments available to a
            patient, you are a choice architect. “
         2. “If you design the form new employees fill out to enroll in the company health
            care plan, you are a choice architect.”


•    “ … seeming small features of social situations can have massive effects on people’s
    behavior…”


•    “It is legitimate for choice architects to try to influence people’s behavior in order to
     make their lives longer, healthier and better.”


•    “There is no such thing as neutral design.”

                                                 Source: Richard Thaler and Cass Sunstein, Nudge
    11/1/2011                                    (updated paperback edition, 2009) at 3 and 5. 11
“There is no such thing as neutral design”




11/1/2011      © Critical Mass Consulting 2011   12
Nudges



            “… any aspect of the choice
            architecture that alters people’s
            behavior in a predictable way without
            forbidding any options or significant
            changing their economic incentives.”




                                  Source: Richard Thaler and Cass Sunstein, Nudge
                                  (Updated Penguin paperback edition, 2009) at 6.



11/1/2011                © Critical Mass Consulting 2011                            13
Nudges in the break room

•   Experiment: In the break room at Manhattan Mortgage Company, Good
    Morning America elevates the fruit plate closer to eye level
•   Result: Fruit gets eaten in less than a third of the time it normally takes.

•   Experiment: GMA moves donuts away from the center, off to the side.
•   Result: Donut consumption drops by 10%.




                                     Source: http://abcnews.go.com/GMA/story?id=7127723&page=1




11/1/2011                                                                              14
Anxiety about neo-nudges in the 1950s




11/1/2011    © Critical Mass Consulting 2011   15
Anxiety about neo-nudges in the 2000s




11/1/2011    © Critical Mass Consulting 2011   16
Anxiety about neo-nudges intensifies




              © Critical Mass Consulting 2011   17
Anxiety about real nudges fuels politics




11/1/2011      © Critical Mass Consulting 2011   18
Possibly useful idea #2:
            Let’s have a big hand for penalties?




11/1/2011               © Critical Mass Consulting 2011   19
At first it’s all about rewards




11/1/2011            © Critical Mass Consulting 2011   20
But feelings about personal responsibility
            are complicated …
Who gets hurt when I over-eat?

                     Good question. We’re not sure.

•   “the causes are too complex”
•   vs. “no one can save you if you don’t save yourself”

•   “obesity is a disease”
•   vs. “so get a grip on the disease”

•   “I’m only hurting myself”
•   vs. “well, actually, you’re costing us, too”
11/1/2011                      © Critical Mass Consulting 2011   21
… and frustrated doctors are talking
               about negative incentives …




11/1/2011              © Critical Mass Consulting 2011   22
Possibly useful idea #3:
  Post-mobile, it’s all about ubiquitous …



                As computing becomes
                     more ubiquitous,
            doesn’t the quantified self become
                      more passive?




11/1/2011             © Critical Mass Consulting 2011   23
If it can stick, it’ll sense

                                                   June 7, 2011:

                                                   “Proteus’ personal
                                                   monitoring technology
                                                   [measures] heart rate,
                                                   physical activity and sleep
                                                   patterns. “

                                                   “Avery Dennison Medical
                                                   Solutions is providing
                                                   adhesive and material
                                                   technologies and
                                                   developing the
                                                   manufacturing platform to
                                                   mass produce the
                                                   wearable sensors for the
                                                   companies’ respective
                                                   customers.”


11/1/2011        © Critical Mass Consulting 2011    Source: Joint press release,
                                                    June 7, 2011
As computing becomes ubiquitous,
won’t the quantified self become passive?




11/1/2011     © Critical Mass Consulting 2011   25
Possibly useful idea #4: Networks --
            (i) sort out loose from tight




11/1/2011           © Critical Mass Consulting 2011   26
Possibly useful idea #4: Networks --
            (i) sort out loose from tight




11/1/2011           © Critical Mass Consulting 2011   27
Possibly useful idea #5: Networks –
(ii) in tight networks, harness peer effects




11/1/2011       © Critical Mass Consulting 2011   28
… and master the tipping points

New research:
• Initiation: At the onset of a new interest or “market,” researchers find
  that variety-seeking prevails

•   Contagion: When a specific approach draws the support of 30% of the
    group, adoption takes off

•   Saturation: But when group adoption hits 80%-90%, individualism
    re-surfaces; the adoption curve flattens out

•   Takeaway: When something new gathers steam, people join in (at least
    until the new practice builds to stifling conformity)
                            Source: Pascale Quester and Alexandre Steyer, “Revisiting Individual
                            Choices in Group Settings: The Long and Winding (Less Traveled)
                            Road?” Journal of Consumer Research, Vol. 36, No. 6 (April 2010)
11/1/2011                                                                                   29
Obesity’s on the rise?
   So I’m not an outlier if I’m over-weight!




11/1/2011        © Critical Mass Consulting 2011   30
Harnessing peer effects: If the norm
       seems legit and I am an outlier …




11/1/2011         © Critical Mass Consulting 2011   31
Possibly useful idea #6: Networks --
     (iii) segue from peer effects to norms




11/1/2011         © Critical Mass Consulting 2011   32
Mechanisms of transmission

•   When peer pressure operates, people externalize others’ behavior …
•   But when norms take hold, people internalize others’ values and beliefs.

Behavioral economists performed the experiments:
      1. Priming: Exposing people to small but well-timed cues can change behavior
      2. Conformity effects: People look to others for such cues
      3. Anchoring and adjustment (inertia): Once people have a point of reference, they don’t
         depart from it very much


Neuroscientists find preliminary indications of “hard wiring” for norms
      1. Mirror neuron system: Watching lights up the same part of the brain as doing
      2. Agreement alone lights up the ventral striatum, strongly associated with emotional
         and motivational aspects of behavior.
                                           Source: See, e.g., Campbell-Meiklejohn et al, “How
                                           the Opinion of Others Affects Our Valuation of
                                           Objects,” Current Biology 20, 1-6, July 13, 2010.
Mechanisms of alteration?



                   How do you change a
                         norm?
                    And how do you
                    change it back?




11/1/2011           © Critical Mass Consulting 2011   34
Behind the issue of usefulness,
        a question looms in the background


               As good outcomes begin to determine
                           provider incomes,
              as cost containment pressures intensify
              for all of us, and as technology enables
              us to assign accountability, what do we
                    ask of the patient/consumer?




11/1/2011               © Critical Mass Consulting 2011   35
My standard disclaimer


                                  “I have opinions of my own,
                                  strong opinions, but I don’t
                                  always agree with them.”




11/1/2011        © Critical Mass Consulting 2011                 36
Thank you!


            Michael J. Barrett
            Critical Mass Consulting
            781-674-0097
            mbarrett@criticalmassconsulting.com
            visit criticalmassconsulting.com




11/1/2011                 © Critical Mass Consulting 2011   37
… targetting “outlaws” and free riders




11/1/2011       © Critical Mass Consulting 2011   38

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Six useful ideas for health decision making

  • 1. Six Useful Ideas (Maybe!) on Health Decision-Making Healthcare Unbound 2011 July 11, 2011 Michael J. Barrett Managing Partner Critical Mass Consulting www.CriticalMassConsulting.com © Critical Mass Consulting 2011
  • 2. Your basic shameless grab for credit 11/1/2011 © Critical Mass Consulting 2011 2
  • 3. Six ideas 11/1/2011 © Critical Mass Consulting 2011 3
  • 4. Six useful ideas 11/1/2011 © Critical Mass Consulting 2011 4
  • 5. Six useful ideas (maybe – let’s keep watching) • From the social, behavioral and economic (SBE) sciences … • … useful in health technology strategy and design. 11/1/2011 © Critical Mass Consulting 2011 5
  • 6. Six useful ideas Behavior • Decision-making 1. Choice architectures and nudges 2. Negative incentives 3. Ubiquitous computing and passive selves 4-6. Social networks and decision-making 4. How networks operate (i): loose vs. tight 5. How networks operate (ii) peer support / peer pressure 6. How networks operate (iii): norms 11/1/2011 © Critical Mass Consulting 2011 6
  • 7. Behind the matter of usefulness, a question looms in the background As good outcomes begin to determine provider incomes, as cost containment pressures intensify for all of us, and as technology enables us to assign accountability, what do we ask of the patient/consumer? 11/1/2011 © Critical Mass Consulting 2011 7
  • 8. Looming in the background … “What’s the future of patient responsibility? 11/1/2011 © Critical Mass Consulting 2011 8
  • 9. Two ideas that didn’t make the cut • Do Malcolm Gladwell-style connectors route our communications with one another?  Contra: See Duncan Watts, Everything is Obvious, Once You Know the Answer (2011) • Do Facebook-style social networks affect our views of choices and preferences?  Contra: See Nicholas Christakis and James Fowler, Connected: The Surprising Power of our Social Networks and How They Shape Our Lives (2009) 11/1/2011 © Critical Mass Consulting 2011 9
  • 10. Possibly useful idea #1: ID choice architecture, insert nudge 11/1/2011 © Critical Mass Consulting 2011 10
  • 11. Choice architecture • “A choice architect has the responsibility for organizing the context in which people make decisions.” 1. “If you are a doctor and must describe the alternative treatments available to a patient, you are a choice architect. “ 2. “If you design the form new employees fill out to enroll in the company health care plan, you are a choice architect.” • “ … seeming small features of social situations can have massive effects on people’s behavior…” • “It is legitimate for choice architects to try to influence people’s behavior in order to make their lives longer, healthier and better.” • “There is no such thing as neutral design.” Source: Richard Thaler and Cass Sunstein, Nudge 11/1/2011 (updated paperback edition, 2009) at 3 and 5. 11
  • 12. “There is no such thing as neutral design” 11/1/2011 © Critical Mass Consulting 2011 12
  • 13. Nudges “… any aspect of the choice architecture that alters people’s behavior in a predictable way without forbidding any options or significant changing their economic incentives.” Source: Richard Thaler and Cass Sunstein, Nudge (Updated Penguin paperback edition, 2009) at 6. 11/1/2011 © Critical Mass Consulting 2011 13
  • 14. Nudges in the break room • Experiment: In the break room at Manhattan Mortgage Company, Good Morning America elevates the fruit plate closer to eye level • Result: Fruit gets eaten in less than a third of the time it normally takes. • Experiment: GMA moves donuts away from the center, off to the side. • Result: Donut consumption drops by 10%. Source: http://abcnews.go.com/GMA/story?id=7127723&page=1 11/1/2011 14
  • 15. Anxiety about neo-nudges in the 1950s 11/1/2011 © Critical Mass Consulting 2011 15
  • 16. Anxiety about neo-nudges in the 2000s 11/1/2011 © Critical Mass Consulting 2011 16
  • 17. Anxiety about neo-nudges intensifies © Critical Mass Consulting 2011 17
  • 18. Anxiety about real nudges fuels politics 11/1/2011 © Critical Mass Consulting 2011 18
  • 19. Possibly useful idea #2: Let’s have a big hand for penalties? 11/1/2011 © Critical Mass Consulting 2011 19
  • 20. At first it’s all about rewards 11/1/2011 © Critical Mass Consulting 2011 20
  • 21. But feelings about personal responsibility are complicated … Who gets hurt when I over-eat? Good question. We’re not sure. • “the causes are too complex” • vs. “no one can save you if you don’t save yourself” • “obesity is a disease” • vs. “so get a grip on the disease” • “I’m only hurting myself” • vs. “well, actually, you’re costing us, too” 11/1/2011 © Critical Mass Consulting 2011 21
  • 22. … and frustrated doctors are talking about negative incentives … 11/1/2011 © Critical Mass Consulting 2011 22
  • 23. Possibly useful idea #3: Post-mobile, it’s all about ubiquitous … As computing becomes more ubiquitous, doesn’t the quantified self become more passive? 11/1/2011 © Critical Mass Consulting 2011 23
  • 24. If it can stick, it’ll sense June 7, 2011: “Proteus’ personal monitoring technology [measures] heart rate, physical activity and sleep patterns. “ “Avery Dennison Medical Solutions is providing adhesive and material technologies and developing the manufacturing platform to mass produce the wearable sensors for the companies’ respective customers.” 11/1/2011 © Critical Mass Consulting 2011 Source: Joint press release, June 7, 2011
  • 25. As computing becomes ubiquitous, won’t the quantified self become passive? 11/1/2011 © Critical Mass Consulting 2011 25
  • 26. Possibly useful idea #4: Networks -- (i) sort out loose from tight 11/1/2011 © Critical Mass Consulting 2011 26
  • 27. Possibly useful idea #4: Networks -- (i) sort out loose from tight 11/1/2011 © Critical Mass Consulting 2011 27
  • 28. Possibly useful idea #5: Networks – (ii) in tight networks, harness peer effects 11/1/2011 © Critical Mass Consulting 2011 28
  • 29. … and master the tipping points New research: • Initiation: At the onset of a new interest or “market,” researchers find that variety-seeking prevails • Contagion: When a specific approach draws the support of 30% of the group, adoption takes off • Saturation: But when group adoption hits 80%-90%, individualism re-surfaces; the adoption curve flattens out • Takeaway: When something new gathers steam, people join in (at least until the new practice builds to stifling conformity) Source: Pascale Quester and Alexandre Steyer, “Revisiting Individual Choices in Group Settings: The Long and Winding (Less Traveled) Road?” Journal of Consumer Research, Vol. 36, No. 6 (April 2010) 11/1/2011 29
  • 30. Obesity’s on the rise? So I’m not an outlier if I’m over-weight! 11/1/2011 © Critical Mass Consulting 2011 30
  • 31. Harnessing peer effects: If the norm seems legit and I am an outlier … 11/1/2011 © Critical Mass Consulting 2011 31
  • 32. Possibly useful idea #6: Networks -- (iii) segue from peer effects to norms 11/1/2011 © Critical Mass Consulting 2011 32
  • 33. Mechanisms of transmission • When peer pressure operates, people externalize others’ behavior … • But when norms take hold, people internalize others’ values and beliefs. Behavioral economists performed the experiments: 1. Priming: Exposing people to small but well-timed cues can change behavior 2. Conformity effects: People look to others for such cues 3. Anchoring and adjustment (inertia): Once people have a point of reference, they don’t depart from it very much Neuroscientists find preliminary indications of “hard wiring” for norms 1. Mirror neuron system: Watching lights up the same part of the brain as doing 2. Agreement alone lights up the ventral striatum, strongly associated with emotional and motivational aspects of behavior. Source: See, e.g., Campbell-Meiklejohn et al, “How the Opinion of Others Affects Our Valuation of Objects,” Current Biology 20, 1-6, July 13, 2010.
  • 34. Mechanisms of alteration? How do you change a norm? And how do you change it back? 11/1/2011 © Critical Mass Consulting 2011 34
  • 35. Behind the issue of usefulness, a question looms in the background As good outcomes begin to determine provider incomes, as cost containment pressures intensify for all of us, and as technology enables us to assign accountability, what do we ask of the patient/consumer? 11/1/2011 © Critical Mass Consulting 2011 35
  • 36. My standard disclaimer “I have opinions of my own, strong opinions, but I don’t always agree with them.” 11/1/2011 © Critical Mass Consulting 2011 36
  • 37. Thank you! Michael J. Barrett Critical Mass Consulting 781-674-0097 mbarrett@criticalmassconsulting.com visit criticalmassconsulting.com 11/1/2011 © Critical Mass Consulting 2011 37
  • 38. … targetting “outlaws” and free riders 11/1/2011 © Critical Mass Consulting 2011 38