Rick Lee
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mins
May 22, 2023

"I’ll Be Back on Top in June"

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This lyric is from a signature tune by Frank Sinatra called "That’s Life." In my home growing up, Frank was not only the Chairman of the Board. He was also my Mom’s dream lover. For that reason, and given my abiding love for my Dad, I chose to dislike Sinatra.

When I took a job in Maine at age 19, I roomed with a guy from Florida who adored Frank. He insisted that I was being shortsighted by dismissing Sinatra's vocal artistry. He encouraged me to reconsider my bias. And he was right.

Change can be hard. It also encapsulates a bunch of economically jargony terms like status quo bias[1], endowment effect[2], switching costs[3], and loss aversion[4]. Each of these terms explores why humans are so resistant to modifying their behavior.

Research confirms this. According to Professor Katzenbach in a widely cited randomized controlled trial published in the Harvard Business Review (July, 2012)[5], 90% of those who have undergone heart bypass surgery or angioplasty revert to their unhealthy diets within six months of their medical procedure.

This, despite knowing it's against medical advice (AMA). In other words, change is difficult.

States like California and Oregon, frequently vote on referenda—referendums if you like—in November to reform or alter how the state operates[6]. These initiatives are rejected by the electorate two out of every three times. Again, change is hard.

In a classic study, when given a mug worth no more than $3, trial participants were only willing to part with the mug if the price exceeded $7[7]. Change, even when it costs us nothing, can be tough.

Whether it's about our diets, our government, our possessions, our software updates, or our iPhone improvements - you name it, most humans consider the cost of change not worthy of the benefit. "Good enough" too often becomes the enemy of greatness.

Which brings me to the stellar food provided by #Healthrageous to its customers. Our attention to detail is unparalleled. Our taste tests have consistently outperformed competitors that offer cheaper, inferior meals. Our added services to our MA Plan clients are unmatched by our competitors.

If you are an executive in an MA Plan, there is a tension baked-in between the desires of your members and the needs of your CFO. But just for one moment, step outside that and think about the disservice you might be imposing on your seniors when you apply the "good is good enough" reasoning to their meal benefits. Don't let status quo bias rule when the benefits of change are preferred by your members[8]. Consider how our comprehensive solution of #MadeEasyMeals can enhance the lives of those you serve.

Learn more at  For Health Plans, or Contact Us to get in touch.

Citations:

Footnotes

  1. Kahneman, D., Knetsch, J. L., & Thaler, R. H. (1991). "Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias." Journal of Economic Perspectives, 5(1), 193-206. [Link]
  2. Thaler, R. (1980). "Toward a positive theory of consumer choice." Journal of Economic Behavior & Organization, 1(1), 39-60. [Link]
  3. Farrell, J., & Klemperer, P. (2007). "Coordination and Lock-In: Competition with Switching Costs and Network Effects." In Handbook of Industrial Organization (Vol. 3, pp. 1967-2072). Elsevier. [Link]
  4. Tversky, A., & Kahneman, D. (1991). "Loss aversion in riskless choice: A reference-dependent model." The Quarterly Journal of Economics, 106(4), 1039-1061. [Link]
  5. Katzenbach, J. R., Steffen, I., & Kronley, C. (2012). "Cultural Change That Sticks." Harvard Business Review. [Link]
  6. Bowler, S., & Donovan, T. (1998). "Demanding choices: Opinion, voting, and direct democracy." University of Michigan Press. [Link]
  7. Kahneman, D., Knetsch, J. L., & Thaler, R. H. (1990). "Experimental Tests of the Endowment Effect and the Coase Theorem." Journal of Political Economy, 98(6), 1325-1348. [Link]
  8. Rogers, T., & Norton, M. I. (2011). "The Artful Dodger: Answering the Wrong Question the Right Way." Journal of Experimental Psychology: Applied, 17(2), 139-147. [Link]

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