Wednesday 11 February 2009

Emotion not reason

The background to the global economic crisis is a salutary reminder that people are driven by emotion not reason. The most sophisticated analysts in the world managed to destroy 40% of the world’s wealth by ignoring this simple truth. Belatedly the Behavioural Economists are being consulted on how to predict future market events. They may not be been able to save the world from recession but they will ameliorate the effects.

Government seeks to influence the public through the provision of information, advice and guidance (IAG). For instance, rising levels of teenage pregnancies (up 2.7% in 2008) demonstrate current strategies are failing to change behaviours amongst target audiences. It is no surprise to Digital Analysts that the IAG model is flawed. The involvement of User Centred Design (UCD) practitioners in the development of web based and mobile media exposes the gap between users expressed desires and their behavior in the real world.

The danger for Government of adopting best practice in the business world is that it applies last year’s maxims. At a time when business is breaking up complex organisations under Transformational Government services are being aggregated. An admirable policy to provide personalized services built around citizens needs has been embraced as a means to reduce costs. The result is portals, such as Directgov and Business Link, are designed to meet the needs of organisations that fund them.

Ironically the technical infrastructure underpinning these portals has been created to support multiple channels. This makes it possible to realize the ambition of Transformational Government to develop e-channels which deliver personalized services. The lesson from the private sector is that conglomerates are not the most efficient businesses. Chaebols which manage restaurants, build washing machines and construct oil platforms cannot hope to focus on individual customers.

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