The Dynamics of Business Behavior: An Evidence-Based Approach to Managing Organizational Change
Beirem Ben Barrah and Philip Jordanov, Wiley, 2024

The term ‘behavioural science’ emerged in the mid-20th century to describe the interdisciplinary study of human behaviour, with American psychologist BF Skinner a notable player in the development of the ‘movement’ between the 1930s and 1970s. More recently, the establishment of behavioural science as a distinct field of study can be attributed to the work of numerous other psychologists, sociologists and economists, amongst them Ivan Pavlov, John Watson and the late, Nobel Prize-winning Israeli-American author, psychologist and economist, Daniel Kahneman.

Now a field of study in its own right – featuring on course lists at Russell Group universities and other highly regarded academic institutions around the world – behavioural science encompasses a much broader scope than psychology alone, although psychology is a significant component.

Its application in an organisational context is the subject of this book. In The Dynamics of Business Behavior, authors Beirem Ben Barrah and Philip Jordanov set out to deliver practical insights from behavioural science that can be applied to the management of change in organisations, arguing that behavioural science can, and should, significantly improve the success rate of organisational change initiatives, whilst making it more human-centric.

Written for managers and executives who are responsible for driving change across organisations, Dynamics examines novel brain and behavioural science developments and considers their use in the business context through behavioural insights, evidence-based interventions and insights from industry leaders.

Whilst this book considers how these concepts relate to a range of areas of business – which will interest readers looking for a more rounded understanding of the field – readers of this magazine may find the chapters on planning and risk management of particular interest. In this chapter, the authors examine current approaches to planning and risk management in organisational change initiatives, which can often rely on road-mapping, linear planning and an overall rational view and approach to managing risk. Whilst theoretically sound, the authors suggest that this approach can lead to a number of problems, including planning fallacies and biases, risk aversion, volatile and disappointing returns, and a failure to account for black swans. The chapter goes on to introduce behavioural insights that may help improve planning and risk management processes by taking the human factor into account through three evidence-based interventions that, by mitigating bias, the authors believe can lead to more realistic planning, better risk governance and mitigation, as well as improved ownership and accountability – outcomes that appear to be in increasingly short supply.

For risk professionals looking to think outside the box, The Dynamics of Business Behavior could offer some much needed inspiration.

---