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O'Connor Persuading purchasers of our value - APS-COP 0706
1.
PERSUADING PURCHASERS
OF OUR VALUE An Organisational Psychologist Practitioner Forum Lead by Frank O’Connor of RAP Consulting, Wellington, New Zealand franko@rap.net.nz Adelaide, 30 June 2007 ©2007 O’Connor ~ Adelaide APS I/O RAP p 1
2.
WHAT MATTERS TO
CLIENTS AND WHAT IS OFFERED THEM • A survey of existing market representations and discussion with clients of organisational psychologists’ services shows a gap between what we offer to do and what they think they need or get • Closing the gap means the work of organisational psychologists is seen more clearly, which reduces effort needed to promote work, increases likelihood of good fees and helps our clients explain our value to their colleagues • In purchase decisions, client perceptions are more important than our technical merits ©2007 O’Connor ~ Adelaide APS I/O RAP p 2
3.
TOGETHER WE’LL INVESTIGATE… The
difference in expectation between • a purchasing client organisation – • the direct user of the services The difference between • what clients think they’ll get (and why it matters to them) • what clients think they got (and why, sometimes, it doesn’t matter to them) Trade-offs made by managers between • business results – • staying comfortable ©2007 O’Connor ~ Adelaide APS I/O RAP p 3
4.
USING PREVIOUS EXPERIENCES… We
will attempt clearer expressions of: • The results we expect our clients to receive • How these can be observed • What these are likely to be worth to our client • In financial, operational or emotional terms Throughout, we will focus on our clients’ most important question: "What is it you can do for me?" ©2007 O’Connor ~ Adelaide APS I/O RAP p 4
5.
A long time
ago, in a galaxy far, far away, a consultant was asked by a client to explain what was meant by some words in a proposal. The proposal said “working closely with your staff, we will identify the differences between effective practices and ineffective practices and investigate the reasons for the difference”. The client asked what “working closely” looked like. The lack of convincing answer meant that the client lost confidence in the consultant’s expertise. The consultant lost the bid ... and the client. ©2007 O’Connor ~ Adelaide APS I/O RAP p 5
6.
WHAT’S THE PROBLEM? We’ll
look at examples covering: • performance systems • selection tools • management training Each time, we’ll look as a client might, at: • The results we expect our clients to receive • How these can be observed • What these are likely to be worth to our client • In financial, operational or emotional terms “Buying professional services is rarely a comfortable experience” ©2007 O’Connor ~ Adelaide APS I/O RAP p 6
7.
“For one thing,
I feel I’m taking a personal risk. By hiring anyone, I am putting my affairs, or my company’s affairs, in the hands of someone else and have to give up some degree of control. This is my area of responsibility, and even though intellectually I may know I need outside expertise, emotionally it is not comfortable to put my affairs in the hands of others. Even if the matter is relatively routine, I will need convincing (beyond protestations of good intentions) that my problems will receive prompt and serious attention.” ©2007 O’Connor ~ Adelaide APS I/O RAP p 7
8.
“I’m feeling insecure.
Since I find it hard to detect which of you is the genius, and who is just good, I’m going to have to commit myself without feeling totally confident about my decision. What is more, I don’t yet know if I’ve got a simple problem or a complex one; that’s why I need you, the specialist, to help me. But I’m not sure I can trust you to be honest about that: It’s in your interest to convince me it’s complex. You professionals are always making mountains out of molehills. Nothing is ever easy.” Maister, Managing the professional service firm, NY Free Press 1993 ©2007 O’Connor ~ Adelaide APS I/O RAP p 8
9.
PERFORMANCE MANAGEMENT AND
DEVELOPMENT SYSTEMS Problem claim: • “The systems are cumbersome • Organisations don’t do anything with the data • Performance systems don’t integrate with other HR packages or solutions that organisations are using to create an integrated end-to-end solution • There is no way to trace performance over time” Does the client organisation experience these things as problems? Why does the organisation want to manage performance anyway? ©2007 O’Connor ~ Adelaide APS I/O RAP p 9
10.
THE PROFFERED SOLUTION An
improved system: • “The interface that will mean that people both engage with performance appraisal and provide variance in responding. The later point is crucial as so much of what I have seen sees everyone bunching at the upper end of the performance continuum.” • [So we need to] “… track performance over time visually. This means you will be able to see how someone has progressed and why. [and] … integrate data from various sources to contribute to ratings.” • [And we’ll be] “…approaching the evaluation of performance from a usability perspective” What results do we expect our clients to receive? Even if they do, what problem have we solved? ©2007 O’Connor ~ Adelaide APS I/O RAP p 10
11.
WHAT DO I
ACTUALLY GET? First, why do I want it? What is the expectation of • a purchasing client organisation – • the direct user of the services Second, what was (to be) delivered • what clients think they’ll get (and why it matters to them) • what clients think they got (and why, sometimes, it doesn’t matter to them) Third, what do I really need • business results – • staying comfortable How specific can we be with these needs? ©2007 O’Connor ~ Adelaide APS I/O RAP p 11
12.
“THE TRUE MEASURE
OF A GOOD SALESPERSON”? • “Hiring good sales staff in the current tight labour market has made securing the right people more difficult than ever. A candidate with experience is one thing, but a more scientific approach, using proven objective assessment methods, can radically improve the likelihood of hiring the right person.” “radically improve” on what? • “… a valuable new tool that makes recruiting or developing sales people easier and more cost-effective. The report provides in- depth insights into factors critical for top sales performance in a simple, easy-to-use format.” Insights? Ease of use? Let’s see… ©2007 O’Connor ~ Adelaide APS I/O RAP p 12
13.
THAT’S JUST WHAT
I NEED! The claimed benefits are: • “Improve Sales by identifying top sales performers • Reduce the costs of turnover in sales teams • Identify sales professionals who will fit best in your team, your organisation and your customers • Learn how businesses improved their sales capability • Take away practical tips on how to recruit and develop better sales people” What would these look like? What is delivered? – Training in using a personality assessment tool tailored to identifying characteristics of sales people correlated with some reported aspect of adequate performance ©2007 O’Connor ~ Adelaide APS I/O RAP p 13
14.
WHAT DO I
ACTUALLY GET? First, why do I want it? What is the expectation of • a purchasing client organisation – • the direct user of the services Second, what was (to be) delivered • what clients think they’ll get (and why it matters to them) • what clients think they got (and why, sometimes, it doesn’t matter to them) Third, what do I really need • business results – • staying comfortable How specific can we be with these needs? ©2007 O’Connor ~ Adelaide APS I/O RAP p 14
15.
“SOLUTIONS ORIENTED THINKING
FOR STRATEGIC DECISION MAKING” “VALUE ADDED BONUS! • You will be assessed with a psychometric test (DiSC®) and provided with a comprehensive report at no additional cost!” “FACILITATED BY: • XXX is a Consultant Psychologist experienced in the areas of organisational psychology, organisational behaviour and performance counselling among other areas • xxx believes that given enough energy, planning and passion, just about anything is possible • xxx is committed to work with individuals and organisations to facilitate behavioural change and enhanced performance” ©2007 O’Connor ~ Adelaide APS I/O RAP p 15
16.
I REALLY WANT
SOME OF THAT! The claimed objectives are: • “Improve your ability to develop solutions and make decisions for the growth of knowledge and the advancement of your organisation • Expand your problem solving and decision making skills beyond traditional analytical approaches • Understand how the ethics of a situation can affect decision making and problem solving” What would these look like? What is delivered? – Scores on a personality assessment tool – ??? What is the value added to the organisation? ©2007 O’Connor ~ Adelaide APS I/O RAP p 16
17.
WHAT DO I
ACTUALLY GET? First, why do I want it? What is the expectation of • a purchasing client organisation – • the direct user of the services Second, what was (to be) delivered • what clients think they’ll get (and why it matters to them) • what clients think they got (and why, sometimes, it doesn’t matter to them) Third, what do I really need • business results – • staying comfortable How specific can we be with these needs? ©2007 O’Connor ~ Adelaide APS I/O RAP p 17
18.
EIGHT REASONS FOR
CHANGE FAILURE Research shows culture to be the single greatest influence on improved organisational effectiveness • Not establishing a great enough sense of urgency • Not creating a powerful enough guiding coalition • Lacking a vision • Under-communicating the vision by a factor of ten • Not removing obstacles to the new vision • Not systematically planning for and creating short-term wins • Declaring victory too soon • Not anchoring changes in the corporation’s culture Kotter, J.P. & Heskett, J.L Corporate Culture and Performance. NY Free Press. 1992 Did they mean the “culture” we might measure? ©2007 O’Connor ~ Adelaide APS I/O RAP p 18
19.
THE CULTURE THAT
MATTERS TO DECISION MAKERS • The unwritten rules that give rise to specific behaviours in the majority of the staff Key Perceived Individual Composite Composite Unwritten Implications Interpretation Consequences Behaviour Rules Management Control: How do I stay out of trouble? • A few forces drive or inhibit the actions of the leaders: Career Progression: How do I get ahead? Reward Systems: How do I get more? ©2007 O’Connor ~ Adelaide APS I/O RAP p 19
20.
WHAT KIND OF
CULTURE ARE WE TRYING TO HELP? Culture: collective patterns of behaviour • …that persist over time, …acquired by new joiners as a rite of passage and …endure regardless of the departure of most individuals Four types • Collaboration – Participative, team-orientated, experience-sharing, partnering • Competence – Impersonal, orientated to excellence, intense, insightful, competitive • Control – Detached, command-orientated, task-centred, rules-based, impersonal • Cultivation – Belief-orientated, aspirational, purpose and values-driven, person- centred Are these types mutually exclusively and immutable? ©2007 O’Connor ~ Adelaide APS I/O RAP p 20
21.
Actuality
Collaboration Control Impersonal Personal Cultivation Competence Possibility ©2007 O’Connor ~ Adelaide APS I/O RAP p 21
22.
WHAT IS THE
“CULTURE” OF YOUR CLIENT? Existing culture makes some things easier and some things harder Mismatch examples, please How do we find out before making our proposals? Fact or opinion? What difference does it make? • The results we expect our clients to receive • How these can be observed • What these are likely to be worth to our client • In financial, operational or emotional terms To “business results” or to “staying comfortable”? ©2007 O’Connor ~ Adelaide APS I/O RAP p 22
23.
TEN YEAR OLD
FACTS • 60% - 70% of “reengineering” projects fail to deliver the expected improvement in business performance, regardless of overspend • 90% of surveys indicate that management and employee groups believe that culture must change in order to achieve their organisation’s objectives • The most common thing keeping CEO’s awake at night are people issues Source: PA Consulting Group ~ Leadership Survey 1996 ©2007 O’Connor ~ Adelaide APS I/O RAP p 23
24.
THE LEADERSHIP CHALLENGE Ensuring
I will do what is needed: • Communication – I have been told Awareness – I understand what I've been told Understanding • Involvement – I am contributing facts and ideas Contributing – I am helping to shape ideas Engagement • Commitment – I like the look of that: let's do it Support – I now realise that this is a very hard path: let's still do it Obligation – Not only is this a hard path, but it will affect me fundamentally: let's do it Dedication ©2007 O’Connor ~ Adelaide APS I/O RAP p 24
25.
WHERE ON THE
LEADERSHIP CHALLENGE IS YOUR CLIENT? Existing leadership makes some things easier and some things harder Mismatch examples, please How do we find out before making our proposals? Fact or opinion? What difference does it make? • The results we expect our clients to receive • How these can be observed • What these are likely to be worth to our client • In financial, operational or emotional terms To “business results” or to “staying comfortable”? ©2007 O’Connor ~ Adelaide APS I/O RAP p 25
26.
TEN YEARS LATER,
IS IT DIFFERENT? • “For any consulting organisation to claim that they are in the transformation business is unrealistic and grandiose. All anyone inside or outside the organisation can do is identify the nature, integrity, beauty, identity, and strengths of an organisation and do their best to develop, refine, and work to make things more efficient and effective. • “Determining where an organisation has been, where it is currently, and where it is primarily poised to go next is critically important before any ‘change’ attempt.” Schneider,1997 ©2007 O’Connor ~ Adelaide APS I/O RAP p 26
27.
MAKING EMOTIONAL CHANGE
TIPS AND TRAPS Senior managers involved in major change are invariably seriously effected ‘for good or ill’ by the emotional responses of staff to planned changes • They benefit from being prepared for both positive and negative – avoid being caught by surprise – shape the communications strategy – avoid unnecessary defensiveness – allow greater management control Never underestimate the emotional aspects of major change - there are always winners and losers • Managing change on both an emotional and rational level: – increases the chances of final project success and participation – reduces risk of being blown off-course by unexpected responses ©2007 O’Connor ~ Adelaide APS I/O RAP p 27
28.
FEELINGS ABOUT CHANGE
Anger Emotional Expression Convert opinion Support formers Sell rewards Denial Provide evidence Bargaining Testing Sell benefits Provide resources Depression/ Acceptance Train & develop Time ©2007 O’Connor ~ Adelaide APS I/O RAP p 28
29.
WHERE ON THE
EMOTIONAL ROLLERCOASTER IS YOUR CLIENT? Existing feelings makes some things easier and some things harder Mismatch examples, please How do we find out before making our proposals? Fact or opinion? What difference does it make? • The results we expect our clients to receive • How these can be observed • What these are likely to be worth to our client • In financial, operational or emotional terms To “business results” or to “staying comfortable”? ©2007 O’Connor ~ Adelaide APS I/O RAP p 29
30.
WHAT DIFFERENCE DO
I MAKE? What are the specific business results I expect my clients to receive, as a product of my work? • How these can be observed – Who will see what, and who cares? – What will be done differently, from Monday? – What won’t be okay anymore? • What these are likely to be worth to my client – What changes financially? – What changes operationally? – What changes emotionally? • What’s the balance between organisational and individual wins? To “business results” and to “staying comfortable” ©2007 O’Connor ~ Adelaide APS I/O RAP p 30
31.
“…for me, a
psychologist can choose to be a particular kind of scientist who applies relevant facts from that science to the world of organizations in order to enhance profitability for a client organization, or they can be a ‘clinical psychologist / counselor / coach / feel-good / psychobabble’ kind of individual who sounds good and feels good, and even quotes ‘evidence’ as a ‘scientist-practitioner’ We should not ‘grub around’ with minor or waffle- world, ‘pretend’ or ‘feel-good’ low-level HR work. We are built (or should be) for major organizational interventions. We are applied scientists bringing unique and specialized expertise to matters of corporate performance which can be influenced by ‘people’ interventions.” ©2007 O’Connor ~ Adelaide APS I/O RAP p 31 Paul Barrett, personal communication, 2007
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