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Dr. John Kenagy

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Neurophysiology of Decision Making

Behaviors are driven by beliefs. To change behavior, you must first change beliefs and understand how the neurophysiology of decision making comes into play. In testing and validating the methods of Adaptive Design over the last 12 years, many organizations have discovered that data and aligned incentives are helpful but not sufficient to change behavior. Most people don’t think their way into a new way of acting. Instead, they act their way into a new way of thinking. Thus, Management Innovation is innovation in action, rather than sitting in a meeting thinking about innovation.

Recent research on the neurophysiology of human decision making offers insights that back up these discoveries. Most importantly, human decision making is commonly not rational. That is, humans don’t rationally analyze all options when deciding to do something. Instead, past experiences create predetermined pathways for behavior that people repeat — even when those actions may not be in their best interests. We've all seen it — very intelligent people making the wrong choice over and over again.

F-MRI studies show our beliefs come from specific firing patterns of neurons, hormones, and neurotransmitters. This brain activity is developed by experience and linked to the feelings that experience engenders. The feelings themselves are specific neuronal firing patterns deep in the brain. In other words, humans aren’t rational, but sentient. Our beliefs are hardwired by experience and feelings. The stronger the feeling and more frequent the experience, the more we become neurologically hardwired to respond in the same way.

Therefore, to change behavior you must first use experience to change beliefs; you have to act, not think. The more frequent the experience and positive feelings, the faster beliefs change. When beliefs change, behavior changes. Management Innovation creates those experiences using “innovation incubators.”

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