Tackling Behavioral Biases in Midsize and Private Companies to Become More Agile, Competitive and Profitable

NEW YORK, Aug. 28, 2017 /PRNewswire/ -- Today, Deloitte University Press released a report, "Exercising judgment: How behavioral economics can help midsize companies become more agile," to help midsize and private companies understand that predispositions can manifest almost anywhere in corporate decision making. It also identifies the key behavioral challenges companies need to understand and overcome. One of the central perspectives of the report is that while an organization must have the agility to move quickly and react to economic changes to set midsize and private companies apart from larger competitors, every business is subject to human biases that can prevent progress and stifle growth.

According to Bob Rosone, managing director with Deloitte Growth Enterprise Services, Deloitte LLP; and Tim Murphy, research manager with the Center for Integrated Research, Deloitte Services LP, change management, cybersecurity and talent management, are three areas where behaviorial bias is highly relevant in midsize and private companies. Understanding and addressing these biases can help midsize and private organizations realize greater agility when competing in today's rapidly-evolving markets. The report shares real-world case studies and insights into how midsize and private companies can create improved behavioral business models to compete with their larger competitors.

"The organization that best understands its people and organizational performance is the one ready to innovate faster and more likely to capitalize on new opportunities," said Rosone. "Because midsize and private companies are more agile by nature and often take a longer view, they already have a significant benefit against short-term pressures."

Even though decades of research in the field of behavioral science suggests that these notions are deeply ingrained in all of us, Rosone and Murphy have found that midsize and private companies that understand and address behavioral biases can be more agile and have an advantage over their larger competitors. As the report's key learning for leaders, Rosone and Murphy highlight internal operational issues relevant to midsize and private organizations by placing the spotlight on how to circumvent these cognitive presumptions and achieve new levels of productivity.

"Leaders who can connect people, technology and performance will outpace their competitors," said Murphy. "Additionally, in order for an organization to fully capitalize on its agility, it's essential for leaders to identify, understand and address behavioral biases."

The full report is accessible here and Deloitte University Press' entire Behavioral Economics collection can be viewed here. DU Press publishes original articles, reports, and periodicals to advance the conversation on a broad spectrum of topics of interest to executives and government leaders. Explore more at www.dupress.com.

Deloitte Growth Enterprise Services delivers the resources and experience of the global leader with the personal touch of a trusted professional advisor, offering a distinctive client experience and delivering audit and assurance, tax, consulting, and risk and financial advisory services tailored to the needs of growing private and mid-market companies.

Deloitte Private is exclusively focused on serving private clients of all sizes and driven to address the opportunities and challenges unique to private businesses. Deloitte Private delivers audit and assurance, tax, consulting, and risk and financial advisory services tailored for private companies, including family-owned businesses, closely held (nonfamily) businesses, and private equity and venture-capital-backed businesses.

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