The Daedalus Trust hosted its first Research Café on October 7th 2011 at Magdalen College in collaboration with the Brain Mind Forum. The purpose of the event was to bring together an interdisciplinary group of academics, business professionals, authors and others having a shared interest in the study of factors contributing to poor decision making and/or excessive risk taking by those in positions of power and leadership in political and organisational life.
The informal, café style meeting was opened by Nick Bouras, Professor Emeritus of Psychiatry at the Institute of Psychiatry – King’s College London and Chair of the Trust’s Research Advisory Group. Professor Bouras outlined the aims for the event and introduced three initial presentations by Lord David Owen, Daedalus Trustee; Professor John Stein of Magdalen College and Dr John Coates of Judge Business School, Cambridge.
Lord Owen referred to the suggestion, made in an article he co-authored with Jonathan Davidson of Duke University, that what the authors labelled ‘hubris syndrome’ might be considered to be an acquired personality disorder. Lord Owen also cited research in other areas of neuroscience providing strong indications that, whatever conclusions might be reached regarding hubris syndrome, the questions raised by the concept clearly complex area that calls for serious, interdisciplinary research.
Professor John Stein requested that consideration be given to the development of the human brain in the context of human social evolution. The neurology underlying possible conditions such as hubris syndrome is itself enormously complex and worthy of discussion with and beyond the neuroscientific community. Questions needing to be considered include those associated with the fact that people appear to like hubristic leaders and, more generally, with the question as to how reesrch might help us.
Dr John Coates’ research hypothesised that changed levels of both dopamine and testosterone are likely to be associated with changes in behaviour on the part of traders responding to positive or negative market trends and the postitions that they take. His hypothesis with regard to testosterone was borne out by a study in which he compared the hormone levels and profits and losses of individual traders at regular intervals during several days’ trading. He cited, as an example, the “Winner Effect” that suggests winning on a first occasion is associated with a rise in levels of testosterone. This is associated with an increased expectation that the chance of winning for a second time has also risen, encouraging greater risk taking on the part of the trader. He suggests that our institutional managerial and compensation schemes need to dampen rather than encourage such biologically-driven feedback loops.
Following the introductory presentations each participant was invited to join one of four café tables and to participate with others in addressing a question related to the issues that had been raised.
GROUP A: RAPPORTEUR – DR PETER GARRARD What are the most important factors (biological, psychological, social, organizational, cultural) which might exacerbate poor decision-making and increase excessive risk-taking by leaders?
GROUP B: RAPPORTEUR: MR GEOFF MARLOW (SoL-UK Director) Is hubris associated with particular forms of social organisation? Might some ways of organising increase or decrease the risk of hubris?
GROUP C: RAPPORTEUR: Ms DEBORAH BOOTH What processes (biological, psychological, social, organisational and cultural) might institutions be able to deploy to improve decision-making and decrease excessive risk-taking by leaders?
GROUP D: RAPPORTEUR: DR GRAHAM ROBINSON (SoL-UK Director) “What are the wider societal and institutional implications of hubristic behaviour in the current social, political and economic climate?”
SoL-UK is pleased to support Daedalus Trust in this work. We will be providing updates but if you would like further detailed information please go to the Daedalus Trust website.
