Welcome to Darren Daly on demand, your most trusted resource to help you become better every day.

Here's your success mentor, Darren Hardy.

Do you think that you've mastered the art of leadership just because you read Sun Tzu's Art of War?

Do you think carrots and sticks are the alpha and the omega of motivating people?

It's time to ditch these antiquated playbooks. Let me show you how behavioral economics can help

nudge your team towards excellence and turn you into the Jedi Master of Leadership. So let me tell it to you straight.

People aren't always rational. Behavioral

economics, the loved child of psychology and economics, teaches us just that. Forget the old school

economic theory that suggests that you treat humans like perfectly logical robots. Your team

members are more like Homer Simpson than Spock.

So how do you lead a team of homers?

Let's take O-Power, for example.

The energy company simply nudged consumers by showing them how their energy use compared to their neighbors.

No discounts, no penalties, just a nudge.

The result?

A significant drop in energy consumption. Your first nudge,

use social proof to your advantage. Instead of dictating change, show how everybody else is

already doing what it is that you want them to do. It's brilliant. It works at home with your

kids as well. Remember the Save More Tomorrow program? Behavioral economist Richard Thayer and his

colleague created a behavioral finance strategy to help people save for retirement. The idea is to get

employees to commit saving a higher percentage of their future salary increases, thus increasing

their retirement savings over time without feeling the financial burden immediately.

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