BEWARE AGILE ISMANIPULATING

YOU!!!

Introduction to behavioral economy & its application in Agile

#XPDAYSBENE

Pierre Hervouet

@agilelebanon

Before : Financial Controler

Since 2009: Agilitator

Pierre Hervouet

2009

2001

@agilelebanon

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Agenda Quizz

Evidence of the Agile practices?

System 1 & System 2

Conclusion

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Quiz

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A

B

Quiz / #1 The longest line

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Quiz / #2

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Quiz / #3Mental Calculation

If it takes 5 machines 5 minutes to

make 5 shirts, how long would it take

100 machines to make 100 shirts?

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Quiz / #4Who is Mark?

Mark is very shy and withdrawn, invariably

helpful, but with little interest in people, the

world or reality.

He spend most part of his free time by

reading books.

He has a docile and reserved personality .

He has a need for order and structure, and a

passion for detail.

Is Mark more likely to a be librarian or a

farmer?

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Quiz / #5Mental Calculation

A bat and ball cost 11 Euros,

The bat costs 10 euros more than the

ball.

How much does the ball cost?

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Quiz / #6Mental Calculation

In a lake, there is a patch of lily pads.

Every day, the patch doubles in size.

If it takes 48 days for the patch to

cover the entire lake, how long would

it take for a patch to cover half of the

lake?

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Quiz / #7 Joe

A) Joe seemed to have a good

marriage. He killed his wife to get the

life insurance.

B) Joe seemed to have a good

marriage. He killed his wife.

What is the most likely sentence?

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Quiz / #8 Hitler

A- Adolf Hitler was born in 1892

B- Adolf Hitler was born in 1887

Which one of these two

sentences is correct?

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INTRODUCTION

A

B

A

B

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Evidence of Agile practices

Persona

Bionicles

Hum Hum

The ancor

Ikea Effect

All of us are dishonest

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Quiz / #3Mental Calculation

Answer:

5 minutes

If it takes 5 machines 5 minutes to

make 5 shirts, how long would it take

100 machines to make 100 shirts?

ROKIA

“the death of one is a tragedy the death of millions is a statistic”

Would you liketo help Rokia?

Zambia1,000,000 don’t have access to drinking water.We need your help

Would you liketo help Rokia?

• Rokia is 6 years old

• She lives in a small village in Zambia

• She doesn’t have access to drinking water, which is making her regularly sick

• Rokia needs your help!

Radiologist

End-users

DAVID

HELLENE

JOHN

DAMIEN

STEPHANIECAROLINE

ERIK

FREDERIC

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ROKIA Asking help one particular person, Rokia is more

effective than asking for help for a general cause

(thousands who do need have access to drinking

water)

«The identifiable Victim effect »: Rokia has a story

Individual engages emotionally people

Having the patient’s photo near the Xray,

increases the level of incident findings by 80%Agile Practices:

Persona

Users story

Client proxy

Iteration review

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Quiz / #4Who is Mark?

Answer:

Farmer

Don’t forget

demographic

Mark is very shy and withdrawn, invariably

helpful, but with little interest in people, the

world or reality.

He spend most part of his free time by

reading books.

He has a docile and reserved personality .

He has a need for order and structure, and a

passion for detail.

Is Mark more likely to a be librarian or a

farmer?

BIONICLESEXPERIENCE

+ + +

3.0$

2.7$

2.4$

…

0.3$

4

Meaningful Sisyphus Consultant

= 1.2$

ET CEUX QUI AIME LES LEGOS?

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BIONICLEEXPERIMENT

The neo classical economic theory about

motivation says that:

We are like laboratory mice in maze looking for

tangible rewards such as food…but even mice are

looking for meaning.

Under estimation of the economic effect of the

motivation related to meaning (intrinsic

motivation).

The impact of demotivation due to the loss of

meaning, is more important for those who like

their job.

Agile Practices:

Product Vision

Iteration Vision

Iteration review

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Quiz / #5Mental Calculation

A bat and ball cost 11 Euros,

The bat costs 10 euros more than the

ball.

How much does the ball cost?

Answer:

0.5 Euro

BIONICLE & “HUM, HUM” EXPERIENCES

“HUM, HUM”EXPERIMENT

EXPERIMENT

SDFJLKGJSFIOUFDASFDJLKJLKJLKJIBJKGASSDFMDFGJAQXLMKLPBSKMCADZERSYBFLFNHSJJAQPWCGVZSFTYELMDHSMKLPBSKMASFDGVZSFTYELMNHS JJAQ

PKFLWHZJJAQPWVZSFTYSKMASFCGVZSFTYENHSQPLMHHSCZXERY

• Find the 10 sequences of SS

• Digressive payments 0.55$-0.50$-0.45$-…..

3 CONDITIONSDE L’ETUDE

BIONICLE & “HUM, HUM” EXPERIENCESHUM HUM ! INDIFFERENCE SHREDDER PAPER

9.0

6.3 6.8

Hum Hum Shredder IndifferenceFeuille = 30ctsFeuille = 15cts

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« HUM HUM »EXPERIMENT: MOTIVATION

Importance of acknowledgment

Do you want to demotivate your team?: Ignore

their achievements

Indifference leads to the same effect as the paper

shredder!

From an economical point of view, the cost of

acknowledgement is very lowAgile practices:

• Celebration

• Iteration Review

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Quiz / #6Mental Calculation

In a lake, there is a patch of lily pads.

Every day, the patch doubles in size.

If it takes 48 days for the patch to

cover the entire lake, how long would

it take for a patch to cover half of the

lake?Answer:

47 days

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The Anchor

Differences between the « Bob’s » estimations et the « Chris’s » estimations

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The Anchor When a figure is introduced it becomes the point

of reference

Particularly when we don’t have a clear idea

about the value

The comparison inside the same category is

constant

Agile Practice:

Planning poker

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Quiz / #7 Joe

A) Joe seemed to have a good

marriage. He killed his wife to get the

life insurance.

B) Joe seemed to have a good

marriage. He killed his wife.

What is the most likely sentence?Answer:

B

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L’ANCRAGEEFFECT

ORIGAMI EXPERIMENT

• Amateur Creator

• Professionals

• Non- Creator

$0.23

$0.05

$0.27

Amateurs =>Amateurs

Non Creators =>Amateurs

Non creator => Prof.

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IKEA EFFECT • We over evaluate what we make

• Usually we are not conscious of this factor

• The client engagement in the product design

can activate the IKEA effect

Agile Practices:

Involvement of the

customers…can activate

the IKEA Effect

Frequent delivery & feed-

back mitigate the IKEA

effect

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Quiz / #8 Hitler

Adolf Hitler was born in 1892

Adolf Hitler was born in 1887

Which one of these two

sentences is correct?Answer:

1889Just to check the influence

of the typography ;-)

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L’ANCRAGEYou are all Dishonest

We are all Dishonest

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• Find the pair of numbers with

the sum = 10

• Calculate your results

• Go to the shredder

• Give the result

• Get the money

We are all dishonest

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We are all dishonest Lot of people are cheating

Influencing factors

Social proof (+ & -)

Remember regularly the reason to be honest

(signing the rules before, remembering the 10

commandments) (-)

Capability to rationalize our behavior (+)Agile Practices:

Team rules

Stand up meeting

Information radiator

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The two systems

System 1

Fast

Low energy consumption

Difficult to rewire

Learn by practice

Usually in control

Emotional

System 2

Slow

High energy consumption

Fast to learn

Learn by theory

Believe he is in control

Logical

Daniel Kahneman

SYSTEM 1

• Fast

• Instinctive

• Emotional

• Low energy consumption

• Difficult to rewire

• Learn by experience

• Is the real person controlling

SYSTEM 2

• Slow

• Analytical

• Logical

• High energy consumption

• Learn quickly

• Theoretical learning

• Thinks that he is controlling

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Conclusions Experiment

Doubt

Measure

Feed-back

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Couts $ Bénéfices $

Agent économique rationnel

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Conclusions • We are not rational economical agent

• Many decisions are unconsciously

irrational

• We have lot of cognitive biases

• We have naturally a good ability for

comparison and finding patterns

• In facing complexity , we have a tendency

to choose the easiest path (System 1 )

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Conclusions • When it is too easy :doubt

• Rely on empirical evidence

• Experiment , prototype, measure

• PDCA

• … Be AGILE

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& the confirmation bias?

Credits

• https://class.coursera.org/behavioralecon-002

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Questions?

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THANK YOU