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Social Learning: How to Use It to Accelerate Adoption of Decision Governance

Let’s say that a new decision process for capital allocation needs to be introduced in a firm. Based on factors which accelerate social learning, what can be done to accelerate the adoption of the new process? By combining leadership advocacy, structured training, visibility of benefits, peer learning, risk reduction, and digital tools, a firm can accelerate the adoption of a new capital allocation process. These interventions ensure that employees not only understand the process but also see it as beneficial, easy to use, and socially reinforced.

This text is part of the series on decision governance. Decision Governance is concerned with how to improve the quality of decisions by changing the context, process, data, and tools (including AI) used to make decisions. Understanding decision governance empowers decision makers and decision stakeholders to improve how they make decisions with others. Start with “What is Decision Governance?” and find all texts on decision governance here.

1. Leverage High-Status and Prestigious Models

Senior executives and influential managers should publicly endorse and model the new capital allocation process. Employees are more likely to adopt changes when they see respected leaders actively using and advocating for the process.

  • Action: Ensure that C-suite executives, finance heads, and business unit leaders champion the new framework in meetings, reports, and internal communications.
  • Example: The CFO demonstrates the new process in key capital budgeting decisions and highlights successful outcomes in company-wide briefings.
2. Increase Social Reinforcement and Repeated Exposure

Employees are more likely to adopt new behaviors when they see them reinforced through multiple channels and experiences.

  • Action: Integrate the new process into ongoing training sessions, team discussions, and performance evaluations.
  • Example: Require managers to use the new process in quarterly planning and encourage discussions on its benefits in internal workshops.
3. Enhance Observability of the New Process and Its Benefits

If employees can see tangible benefits of using the new capital allocation process, they will be more likely to adopt it.

  • Action: Publicly showcase successful case studies of the new process improving financial outcomes.
  • Example: A high-profile investment decision made using the new framework is highlighted in internal newsletters and town halls with detailed financial results.
4. Utilize Peer Learning and Perceived Similarity

People are more likely to adopt changes when they see colleagues in similar roles successfully using them.

  • Action: Establish peer mentoring programs where early adopters guide others in applying the process.
  • Example: Finance managers who have successfully used the process lead informal discussions or “lunch and learn” sessions to share best practices.
5. Reduce Perceived Risk and Clearly Communicate Benefits

Reducing uncertainty around the new process and highlighting its advantages can encourage faster adoption.

  • Action: Offer hands-on workshops, clear guidelines, and decision support tools to ease the transition.
  • Example: A simulation tool allows managers to test capital allocation decisions under the new process in a risk-free environment.
6. Strengthen Social Networks and Frequent Interactions

Encouraging collaboration and open discussions helps reinforce new behaviors.

  • Action: Facilitate cross-departmental discussions on the new process in investment committees and project evaluation meetings.
  • Example: An internal forum or Slack channel is created where employees can share experiences and troubleshoot challenges.
7. Ensure Institutional Support and Policy Endorsement

Policies and incentives should reinforce the new process and make compliance expected.

  • Action: Tie performance metrics, bonuses, and decision-making authority to proper usage of the new allocation framework.
  • Example: Senior managers must demonstrate adherence to the process before gaining approval for large capital investments.
8. Leverage Digital and Algorithmic Amplification

Digital platforms and automation can reinforce the adoption of the new process.

  • Action: Embed the new framework into decision-making software and dashboards used by employees.
  • Example: Investment proposals must go through a workflow that follows the new allocation methodology.
Decision Governance

This text is part of the series on the design of decision governance. Other texts on the same topic are linked below. This list expands as I add more texts on decision governance.

Introduction to Decision Governance

  1. What is Decision Governance?
  2. What Is a High Quality Decision?
  3. When is Decision Governance Needed?
  4. When is Decision Governance Valuable?
  5. How Much Decision Governance Is Enough?
  6. Are Easy Options the Likely Choice?
  7. Can Decision Governance Be a Source of Competitive Advantage?

Stakeholders of Decision Governance 

  1. Who Is Responsible for Decision Governance in a Firm?
  2. Who are the Stakeholders of Decision Governance?
  3. What Interests Do Stakeholders Have in Decision Governance?
  4. What the Organizational Chart Says about Decision Governance

Foundations of Decision Governance

  1. How to Spot Decisions in the Wild?
  2. When Is It Useful to Reify Decisions?
  3. Decision Governance Is Interdisciplinary
  4. Individual Decision-Making: Common Models in Economics
  5. Group Decision-Making: Common Models in Economics
  6. Individual Decision-Making: Common Models in Psychology
  7. Group Decision-Making: Common Models in Organizational Theory

Role of Explanations in the Design of Decision Governance

  1. Explaining Decisions
  2. Simple & Intuitive Models of Decision Explanations
  3. Max(Utility) from Variety & Taste
  4. Expected Uncertainty to Unexpected Utility
  5. Perceptiveness & Experience Shape Rapid Choices

Design of Decision Governance

  1. The Design Space for Decision Governance
  2. Decision Governance Concepts: Situations, Actions, Commitments and Decisions
  3. Decision Governance Concepts: Outcomes to Explanations
  4. Slow & Complex Decision Governance and Its Consequences

Design Parameters of Decision Governance

Design parameters of decision governance, or factors that influence decision making and that we can influence through decision governance:

  • Factors influencing how an individual selects and processes information
  • Factors influencing information the individual can gain access to

Factors influencing how an individual selects and processes information in a decision situation, including which information the individual seeks and selects to use:

  1. Psychological factors, which are determined by the individual, including their reaction to other factors:
    1. Attention:
    2. Memory:
    3. Mood
    4. Emotions:
    5. Temporal Distance:
    6. Social Distance:
    7. Expectations
    8. Uncertainty
    9. Attitude
    10. Values
    11. Goals:
    12. Preferences
    13. Competence
  2. Social factors, which are determined by relationships with others:
    1. Impressions of Others:
    2. Reputation
    3. Social Hierarchies:
    4. Social Learning:

Factors influencing information the individual can gain access to in a decision situation, and the perception of possible actions the individual can take, and how they can perform these actions:

Change of Decision Governance

  1. Public Policy and Decision Governance:
  2. Compliance to Policies:
  3. Transformation of Decision Governance
  4. Mechanisms for the Change of Decision Governance