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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