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Category: Business & Communities

HR doubles your money?

Published November 19, 2008 by Jo Jordan

Supermarket in São Paulo

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State of Retail 2008

On Monday, The Times published a summary of OC&C’s report State of Retail 2008.  As a typical Gen Xer, I love numbers and numbers abound in this article.

Rates of return are slim

They report the EBIT (earnings before interest and taxation) as a profit margin. None of the figures surprised me.  They are quite constant with figures achieved in other countries.  After all, the nature of an industry does define what we do and how we do it.

Grocery stores achieve 2.5-3.5%.  Books & stationery, Electricals and Music, video & gaming achieve similar margins.

Opticians, pharmacies and health & beauty achieve twice that rate at 7%, and clothing, footwear and accessories achieve slightly better at 9%.

What this tells us about work is this:  if we own a business, even a successful one, we have to sell a lot of stuff to make 1 pound profit!  The local convenience store or bookshop must sell 40 pounds to leave 1 pound profit in the hands of the owner.   The local clothes shop must sell about 12 pounds to keep 1 pound in the pocket of the owner.

Some do so much better than others

The article also gave a good comparison of the margins achieved by the top two retailers and the rest.  In almost every case, the top two retailers achieved TWICE the margins of the field.

What the report didn’t tell us were the “HR Costs/Revenue” ratios: how much of the sales dollar do large companies like TESCOs spend on HR?

It is clearly obvious that industries like consultancy where 20-35% of each sales dollar is paid in salaries, more money is spent on training, etc.  When the return on 1 pound on HR is 3 pounds in sales, we pay more attention to HR than when we spend 1 pound on salaries to make 30 pounds such as might happen in a supermarket.  Simply, in a supermarket other factors have a bigger impact on sales.

But when the margins are DOUBLE in one firm than another, then the question arises, WHY?

  • Does the firm have an advantage of size?
  • Does the firm operate in a more lucrative niche?
  • Are the management somehow superior to management in the other firm?
  • Are the management practices better?
  • And how does HR contribute to a better HR costs/Revenue ratio?  (Profit=Sales-Costs-HR Costs)

I do wish OC&C had give us the HR figures too!

UPDATE: For an HR Managers perspective on the Recession, I have written a summary on a new post.

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Uni degree, then what?

Published November 18, 2008 by Jo Jordan

Meeting up with psychology students around the world on Twitter

A psychology student, Trudy, commented on my post about Work Psychology: 2008 AD. I first ‘found’ Trudy using Twitter, the micro-blogging service, where you say what you are doing in 140 characters or less. I ‘followed ‘her there, and from there to her blog psychology in real life.

Gen Y are proactive

Trudy is an example of Gen Y: connected and proactively connecting to the world by writing about what she is doing now. Blogging & twittering illustrates an important issue for work psychologists. The world changes and we need to be up-to-date about the way we work, communicate, and interrelate. Work psychology is as much about work as it is about psychology.

Now Trudy doesn’t want to hear about her – she has her own voice! She would like to know what I do. So with permission of my client, here is a case study of a project currently on my desk.

Case study

A graduate, let’s call him Tom, lives and went to university in a remote regional capital.  Tom always had very clear work ambitions and read far beyond his university studies about his chosen industry. Unfortunately, this industry (industry not function) doesn’t operate in his home town and ‘getting into play’ means applying for jobs thousands of kilometers away where he is unknown and unsupported.

Undaunted, Tom is setting off to a trade meeting where he hopes to meet people and circulate his CV as a committed wannabe that someone should take on as an apprentice production manager. This is pretty proactive by any standard. Understandably though, he is anxious, in rather a diffuse way.

There is plenty advice about networking and job hunting on the internet. And it is valid. Look the part you want to play (preferably one level up). Have a smart CV stating your achievements briefly and with numbers. Speak to the needs of your targets (whom he has researched). Circulate with copies of your CV. Keep conversations focused and sum up what has been agreed. Follow up with an email and follow up again when you get home.

What does a work psychologist offer that is over-and-above this advice?

1.  We are on your side

We know that only 1 out of 20 students leave university with written goals and they achieve as much in life as the other 19 do together! A ROI of 2000%! We also know that 1 person out of 100 creates content on the internet, 9 comment, and 90 lurk. What distinguishes active, proactive people from the passive?

Actually nothing. Achieving goals is very easy. Setting goals is the difficult part and we cannot be continuously proactive about everything!

A psychologist helps you to assess what is reasonable to expect of yourself, taking into account your life as a whole, and most importantly, stays with you during the whole process. A mentor and supporter is critical to Tom’s professional success.

2.  We take the trouble to understand your task

When I was growing up, career advice was a matching process in which we find appropriated holes for pegs of various shapes.. In this century, we understand careers as “discovering and shaping the place where the self meets the world” (David Whyte). We no longer believe there are holes or pegs. Instead we encourage students to make the place where they interact with the world.

Trudy does this very well with her blog. Tom is making that place by attending the trade meeting, but can he do more?

3.  We share with you what we have learned in other industries

The last ten years has seen growing tension on many fronts. Indeed, many people see the credit crunch and Obama’s election as two sides of this coin. Any one watching the Obama election will know he used Facebook, Twitter and a website where supporters (and non-supporters) could log on, make their own profile, and talk directly to each other.

This is not just a political phenomenon. We have all used call-centres and so, we know about out-sourcing. What has been less visible to the public is a move from ‘push’ management to ‘pull’ management. What this means is that, just like in the Obama campaign, we have added a third stream to management.

We still have people-2-purpose, we still have people-2-resources. Now we also have people-2-people. The fun part of people-2-people systems is that we can take the initiative. Moreover, because people-2-people systems use platforms similar to Facebook, Gen Yers are very comfortable taking the initiative.

My suggestion to Tom is that he takes the initiative hugely and sets up a social media interface for his trade meeting. In practical terms, all he needs to do is spend a couple of evenings activating a community on Ning, a hashtag on Twitter, and start connecting with people attending the meeting.

What would he expect to gain?

  • Early contacts whom he can follow up in person

  • Better conversations among graduates in the same boat as himself

  • A place for employers to ‘come out’ and engage at a deeper level with ‘wannabes’

  • Reputation as a project manager in the industry

I would expect that as he worked on the project that his goals would refine themselves quite fast and that would maintain my interest and motivation! I would be quite forgiving of phone calls and DM that have the time zone calculation wrong! I would not think it impossible to create the ultimate space where the self meets the world: a special assignment as assistant to the CEO.

This is an ongoing assignment: will it work?

This may surprise you. It doesn’t have to work. Tom is going to the meeting anyway. He will walk around introducing himself anyway. Twittering, Facebook, Ning cost nothing but “intellectual surplus” [TV time] and if he gets bored with the project, or runs out of time, he doesn’t even have to clean up!

Modern day norms allow this. That is the nature of “pull” management. Take part if you wish, don’t if you don’t want to. The world is our oyster!

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5 signs our education system has got better

Published November 16, 2008 by Jo Jordan

Best Buy Store located in Shanghai, China

 

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Do you believe that the education system is better or worse than when you were at school?

Micheal Porter recently published a strategic plan for the recovery of the US economy.  It applies equally to the UK economy.  A key requirement is that our education system must get very much more rigorous and competitive.

We all like to criticize the educational system and claim that it is not what it once was.  I think, in business subjects at least, our education system is BETTER than it was when we went through university.  This is what we can expect of graduates

  1. Strategy.  They will know who Micheal Porter is and rattle off his work on 5 competitive forces, define the supply-chain, and appreciate how international competitiveness rests on hyper-competitiveness at home.
  2. Management science. They will have done some management science and be able do some basic process modelling with diagrams and excel spreadsheets.
  3. Social media. They are likely to be able to set up, with relative ease, basic social media facilties like networks and blog and work effectively in companies like Best Buy who use internet-mediated collaboration extensively.
  4. Social constructionism.  They are used to giving their opinions and are well schooled to accept there are many points-of-view to a single issue.
  5. Positive organizational scholarship.  They are increasingly exposed to the idea that ideas emerge from the group or situation and are not dependent on an all-powerful, all-knowing “boss”.

Is this enough though?

While I believe that our education system has got better, is it enough?  There are three areas that worry me about what our students learn.

  1. General knowledge including knowledge of science.   Students, reasonably in my opinion, are most interested in material that seem relevant to what they want to do in life.  Adolescents and young adults, won’t settle until we recognise their unique identity.  Nonetheless, how can any student in an educational system in 2008 not know of the CERN accelerator, the Obama election and the credit crunch?   That is the modern day equivalent of switching off the radio as Armstrong landed on the moon, when Martin Luther King spoke and or Sam Miller sold Trademe for 200 million pounds (you didn’t know that one!)  We need to be able pick up events of the day and bring them into our courses and to do that, teachers need time to follow events and time to redesign their classes.
  2. Time spent on cutting edge ideas. In seeming contradiction of the first point, students have a limited number of hours in their day and our textbooks are often old.  It is bizzare to be teaching them procedures that are no longer used. Having said that, why don’t we have an interactive museum that teaches them the history of work and business?  Is it not reasonable that any examing authority, including every university, review its curriculum annually and account for what is taken out and put in?  I believe these curricula should be public and available for any one to inspect and comment on the internet.
  3. Quantitative skills.  When we were students we studied statistics but only a small percentage of students can actually use the skills they were taught.  Workers on the Toyota assembly line use means, standard deviations and t-tests as part of their daily work.  Herein lies the call for more rigour in our education system.   We must use the skills we teach and if we think it is beyond us, we need to convey deep respect for those who do.

So those are my three issues, none of which are so difficult to implement.  They require no capital and no retraining – just leadership.

My optimistic view of the future

As we move towards networked organizations such as we see at Boeing and Best Buy, our graduates will be mapping out complex supply networks, resolving performance problems at source using sophisticated analyses, and proposing solutions to diverse audiences all of whom are experts in their own right. Students do get this experience working on non-educational projects on the internet.  It is time for us to bring this activity into the classroom too.

I am generally optimistic.  My expectation is that within a year or so, graduates will be routinely presenting a portfolio of work on the internet.  Alex Deschamps-Sonsino, London based interaction designer is an example.  Daryl Tay, young Singaporean social media evangelist, is another.  Students might also show off wikis and multimedia project via links or pages.

I think the young people of today are up to it and it is they who might drive the development of more rigorous education!

So what is your view?  Do you believe that our education system is better than in your day, and what are the key issues that need to be addressed to “allow our workers to compete with workers anywhere in the world”?

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Leadership parables

Published November 15, 2008 by Jo Jordan

Weekend special.  Leadership from the top or from the bottom?

Good pic for a lecture on leadership and organizational design.

obama1.jpg

obama2.jpg

Customized shoes by Van.

For those mulling over HR and the recession

Have we organized the work in the organization so every person on the edge can use their skills, and the situations that arise in their patch, to advance our cause?

The genius of the Obama campaign machinery is that they provided the resources to do a good job (communication channels, how-to-do manuals, moment-to-moment goals e.g. make 100 000 calls) and let people get on with it!

Let’s tell the stories of what works well and do more of it?

What are the great HR stories where we have helped managers focus the management system to (a) reduce management cost and (b) increase initiative and productivity?

And did we manage to pass on the gains to the workforce?

Mmmm, lets publish the success stories of  HR and the recession.  The press will do a fine job for the downside.

See you on the brightside?

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5 tips from the recession guru!

Published November 14, 2008 by Jo Jordan

Self-appointed recession guru

Do I dare call myself a recession guru?  Why not?  I spent most of life working in a regional centre given to trouble and strife!  If we weren’t rapidly readjusting to major political turmoil, we were adjusting to the effects of drought on agriculture which was our primary economy.  In a good year, the economy expanded 3%.  When the rains didn’t come, we went back 3%.

  • We got very good at scenario planning and not over-reacting.  We were brought up on the phrase: anyone can make money when the markets are going up.  A business person plans for the up and the down.
  • We stopped blaming people.  If weather is the problem, then plan for it!
  • We learned about the economy.  As an HR consultant, my business wasn’t hit in the year the economy went down.  It would feel the pain 2-3 cycles later.  Simply, psychologists don’t work with farmers very  much.  We work with people who supply the farmers and people who supply the suppliers.  It takes a little time for the effects to work through the levels.
  • We learned what the numbers meant.  For the record, a downturn of 7% will have accountants hyperventilating.  Quite often their firms are technically bankrupt and they should cease trading – but if every one is in the same boat, you breath fast and trade through!  Equally I can tell you with confidence that you can survive 100% inflation quite well. At 300% expect people to get seriously ill.  Relax.  We aren’t there yet!
  • And above all we learned to focus.  We learned to sack customers who didn’t pay on time!  It is disconcerting to shrink your revenue, grow your profit and play more golf.  But that is how it works!

Time management

BNET published a good article today on time management.  The centre piece of the article is the busy, busy person who is racing around being busy being busy.

Since I have come to live in the UK, I have been stunned by poor time management.  I am amazed by someone who delegates his time management to a subordinate (usually blokes delegating to gals?).   Beyond a junior levels of management, our tasks aren’t serial, they are interrelated.

Let me give you an example:  I email you asking to discuss something.  You email back to say yes and speak to your secretary.  I write to her (usually).  She consults you (or doesn’t).  She writes back with some questions about time.  I write back.  She confirms.

7 emails to do something you had the power to do in your first reply.  When I confirmed, that would be 3 emails.

The pre-email rule is that any piece of paper should come across your desk once and once only.  You should have been sufficiently clear about your priorities to make a decision whether or not the meeting with me was important to you and how our meeting would move your major project forward.

All else is dross.

HR and the recession

As HR practitioners, we have a major role in a recession:

  • Make sure we are calm ourselves.  Get the HR team taking exercise, working reasonable hours and secure about their own prospects.
  • Back up the people like accountants who are on the front line.  Spend time with them to make sure they are taking exercise, working reasonable hours and calm about their own prospects!
  • Get the conversations about the economy and the company humming.  Make sure managers understand the economy and talk to staff (I’ve heard of Royal Bank of Scotland managers unable to discuss credit derivatives with their staff – don’t be like that please!).  Resource the conversation and support it with social media.
  • Make sure people understand what factors the business must focus on to succeed and keep them focused!

Above all of course, we should be focused.

“Know your Number 1 priority. If you achieved nothing else in the next 12 months, what single achievement would most contribute to the success of your organisation?”

Can we answer this question ourselves?  How many people in the organization could state the No 1 priority for

  • the organization
  • their unit
  • their boss
  • themselves
  • each of their colleagues
  • their subordinates

Remember, any one can do business in good times.  It is the bad times that test our credentials.

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Better CV’s please!

Published November 12, 2008 by Jo Jordan

I’m waiting for my client to approve the first case study of Work Psychology 2008 AD and I thought I would ask this question.

Why in this fast moving world do we stress where people have come from?

Does it matter?  Isn’t it likely to be discriminatory anyway?

What I want to know is what they are going to do for me and how we will interact!

Compare our baby boomer world

Mike xxxxxx, CEO and founder of I……… Alliances, has joined ….. as category leader for Business Training. He is the most experienced LinkedIn classroom trainer in the world with over 200 deliveries resulting in over 3,000 people trained. Mike’s LinkedIn profile is in the global top 50.

Neil xxxxx is a leader in the specialist marketplace of supply chain management software. His 17-year success story includes four years as CTO of supply chain and logistics provider . . . . . as it grew from zero to $350 million in revenue.

etc. etc.

with Gen Y in UK

And it’s not for the money.  Ian Jeanes enjoyed being in recruitment despite the trials and tribulations that come with being in recruitment.

“HR HATE you, Managers despise you, receptionists would rather stick pins in their eyes than endure another ‘introductory sales call’ and Financial Controllers see us as an unnecessary cost.

CORRECT?

Well, there are always PROS and CONS in using a recruitment consultant, but what about the PROs and CONS of hiring a new person. Trawling through endless CVs from people who haven’t read the specification, or are looking to change direction and give the job a go but have done nothing to their CV to suggest this. What about those people who apply, then call, then email,, then follow up, then keep calling… and they’re not even that good? Well I CAN TELL YOU that having somebody take all that away from you is an amazing opportunity. It’s like pouring raw meat into shark infested waters and jumping in yourself…. however, this time, you’ve got recruitment consultant chainmail to protect you.

Recently for one role I scanned under 900 CVs . . .

Check out Branded Jeanes for upcoming HR talent!
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Work psychology: 2008 AD

Published November 11, 2008 by Jo Jordan

Do you know what work psychologists do?

Thirty-one years ago, I decided to study psychology.  And for 28 years, I have practiced as a work psychologist.  Can you imagine my surprise when some readers said this blog was their first encounter with my esteemed trade?  So what do we do?

What do we do all day?

I love being a work psychologist and I think it is important for you to know I go to my ‘office’ every day with a spring in my step, looking forward to the people I will meet during the course of the day.   Most of our lives are spent ‘on the road’.  We usually work at our clients’ factories and offices, and we need strong arms to carry around briefcases laden with confidential papers.  When you see us, we are likely to be taking part in some HR exercise — recruitment, selection, or team-building, say.  When you don’t see us, we will be reconciling paperwork, doing computer work, or talking to senior managers about the direction of the company, and ways to organize, lead, up skill, confront challenges, and look after each other.

Why do clients hire us?

We deal with the pulse of the organization.  Ideally, we want everyone to enjoy their work as much as we do.  There is fascination in what we do, but little mystery.  Our understanding of how organizations work has grown in leaps and bounds over the last 100 years.  The last ten years have been particularly interesting as the limits of old ‘mechanical’ organizations have been reached and we’ve begun to embrace the fluidity and flexibility of the internet.

The psychologist’s role is to bring to the party up-to-date information about the way work practices are changing around the world, hands-on experience of changes in other companies, and deep commitment to supporting you as you think through changes in the immediate and foreseeable future.

What is special about what we do?

Just looking at us work is not sufficient to see the value we add.  You can see us talking to people – lots of people do that!  You see the briefcases – a prop?

The key to what psychologists do is deep training and ongoing exposure to work situations around the world.  When we talk with you, we are not asking whether we like you.  Nor, are we are asking about things we want.

Our interest is in accurately understanding your motivation and your circumstances, reflecting them against the changing world of business and work, and helping you work through the mix of emotions you feel as you cast your story in terms of today’s economic conditions – globalization, credit crunch, and new technologies.

This is a complicated process.  Even in the simplest business, we have on the one hand the things we want, and one the other, ‘what’s out there’.  And that gap in knowledge is not all we cope with.  When we really want something, we feel fear and trepidation.  Our job is to stay with you while you work through your anxiety and take the first step towards what will ultimately be success and very deep satisfaction.

Psychologists understand this process, see it is normal, and are there to help steer you through all three questions: you, your opportunities, your emotions.

When we work in most modern businesses, 5, 10, 15, 10 000, 100 000 of us are going through the same process.  When I decide, for example, to pursue my story in certain ways, my actions change your circumstances.   The key to good organization is that the give-and-take between us as we follow our own dreams strengthens us as

When we work in most modern businesses, 5, 10, 15, 10 000, 100 000 of us are going through the same process.  When I decide, for example, to pursue my story in certain ways, my actions change your circumstances.   The key to good organization is that the give-and-take between us as we follow our own dreams strengthens us as individuals and as a group.  Therein, the discussions we hold with senior managers.

Some case studies next? 

Do let me know if I have made it any clearer what we do for a living!

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HRM: Can we meet the pace set by the Obama team?

Published November 7, 2008 by Jo Jordan

The bar has raised

Here is how times have changed.  In the early hours of Wednesday morning (British time), Barack Obama got the ‘verbal offer’ for the job as CEO of USA plc.

Friday lunchtime, and I picked up the link to Obama’s presidential-elect website, complete with easy to understand jobs page.

The challenge

How many of us could support a CEO in this way?  Have a CEO website page up and running withing 48 hours giving the vision, the opportunties, the press links, the opportunities and the discussion page for people to reply?

How many employees would dare to reply (a sign of their confidence in us)?

Anyone want to get together to have this skillbase ready for our CEO’s?

I would like to say that by Jan 1, any company who wants a similar service

  • to articulate the vision
  • to embed it on a readwrite website
  • to be able to launch within 48 hours of an appointment
  • to manage the website
  • to be trusted by their employees who are happy to add their visions

could get it from say, three, suppliers.

Who would those suppliers be?

UPDATE: For an HR Managers perspective on the Recession, I have written a summary on a new post.

PS Update October 31 2009 (11 months later).  I’ve had no takers.  I still believe that being able to launch a website in 48 hours to show employees what they can trust is a measure of an HR department.

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Buzzing with expectation?

Published November 4, 2008 by Jo Jordan

5 contemporary concepts for understanding why some groups buzz with expectation

Self-styled vagabond, Sam Brannon, asked a good question last weekend on Linkedin.  Are we in a state of learned helplessness?

I’m an inveterate shaper so I am always asking “is what we do important and are we doing the important things?” Because I ask these questions, it is possible I sense learned helplessness more than do others.   But, I am also much more interested in the the opposite of learned helplessness.

  • I love the crowd singing their local hero to victory.
  • I love the buzz of getting a group project done on time.
  • I love the feeling of belonging to an institution worth belonging to.

Indeed my love of that community buzz is key to my professional interest in work psychology and university teaching.  Sam’s post led me to list 5 contemporary concepts from psychology and management that, I think, are key to creating the spiral of group buzz and efficacy.

1 Collective efficacy

If we believe in each other, we add 5-10% on our effective results.  Collective efficacy is a simple yet powerful idea.  When the teachers in a school believe in each other, the school outperforms other schools who have equal resources!

Rule one:  The CEO needs to believe genuinely in his or her direct reports.  That process kicks off their belief in each other and in their direct reports, etc. etc.

P.S Faking doesn’t work.  The pre-requisite of leadership is genuine, heart-felt belief in one’s followers.

2 Solidarity

Rejection is enormously destructive.  Roy Baumeister, who blogs at Psychology Today,  has shown that being rejected by a computer (not even a person) is sufficient to stop us looking in a mirror.   Someone who feels rejected is not going to be feeling efficacious!

Rule two:  Don’t just walk around!  Walk around with a mission to create a sense of belonging.

P. S.  Be hyper-alert to the small minute and accidental ways in which we exclude people.  They are devastating to moral and self-confidence.

3 Personal Leadership

Social media (like LinkeIn) has awakened our sense of being at the centre of our own network.  Everyone is a leader.  The personal leader ‘school’ supports the development of individual leadership (see poet David Whyte).  I am also interested in organizations that recognise that everyone is a leader.

Rule three:  Tell our own ‘stories’ to show how the organization fits in to our personal destinies, and write an organizational story that depends upon our differences and uniqueness.

P.S.  A story that depends on us mimicking the boss defines us as irrelevant (a hole below the waterline for the organization!)

4 Positive psychology/positive organizational scholarship.

The work of Martin Seligman and David Cooperrider has shown the power of gratitude and appreciation.  Positive whatever-whatever sounds like touchy-feely stuff but it is pretty hard core.  Basically, it is an approach where we focus on what works and works well and we discard the rest.

There are good reasons why haven’t focused on what works well as a matter of course.  Simply, if we define leadership as one person knowing what is best, and telling the rest of us what to do, then we are always focusing on a gap – on something negative.

Rule four:  Scrap all the “gap” technology on which management and HRM was built.  Pinpoint what works and do more of it! Then keep the conversation there.

P.S.  Its scary to abandon the idea that we know best.  But when we get the hang of it,  we find out all the good stuff that is happening that we didn’t know about.

5 Globalization

Globablization has changed economics and shifted where and how we can make a profit.  We have to work harder now to create value that produces a penny of profit.  Working with this constraint produces fantastic results as we see in V.J. Prahalad’s value at the bottom of the pyramid.

The principle used by large companies to rethink their process is this: abandon the idea of trying to sell more and more at a better and better price.  Rather, ask what is needed at what price, and work backwards to what we can supply.  The ability to ask questions about the world outside the organizations is a key aspect of successful business teams.

Rule 5:  Forget about being a leader!  Ask how to develop a community who are interested in what we do.

P.S.  We do need to honour the community’s needs and trust it to honour ours (complete the circle).  When we don’t have this loyalty to each other, a buzz is not possible.  We simply don’t have the conditions for a high performing organization.  This is not the day!

[CSPPG : cheerful squirrels prepare parties toGether]

Everyday use of these concepts

I use all these ideas in running everyday projects, like university courses. I know students do better when they believe in each other.  My job, as I see it, is replacing their initial dependence on me, with, a strong belief in each other, a belief in their project of studying together in this year & in this place, and a deep pride in how they came to be here and how they will move on together.

That is the buzz of expectation that the whole world feels tonight with the US galvanized to get out and vote (or is just to get a free cup of coffee from Starbucks?).  That is the buzz we get when our favourite team makes the finals.  That is the buzz we get when you couldn’t stop us going to work even if you tried!

Have a winning week!

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5 businesses encountered this week (and it is only Tuesday)

Published November 4, 2008 by Jo Jordan

I love being a work psychologist

I became a work psychologist because I love learning about organizations and what people do. What makes a business tick?

It’s only Monday and here are five picks of whom I have encountered this week (and it is only Tuesday!)

Geographer who locates supermarkets (location, location, location)

Valuer of cars in Russia (great when it freezes and plenty of work until the insurance market matures)

Broker of Nepalese art (deep relationships with artists = supply chain management)

Furniture retailer in Sudan (steady as she goes – continuity and cost leadership)

Retail banker in Sri Lanka (get that customer served – be reliable and dependable)

What I do (my core competence, if you like)

HR always seems so obvious to people in the business.  If it works well, it becomes part of the “taken for granted” set of value assumptions in the underwater part of the cultural iceberg.

Non-formally trained business people take for granted what they do, twice over.  What they seems natural, it also seems childish not to know.

The fun of being a work psychologist is drawing out the assumptions business people have held for so long that they haven’t mentioned them or talked about them to anyone for a long time.

What is it like to have a conversation with a work psychologist?

I am having fun. What do business people gain from talking to me?

  • My interest is a mirror where they can see how their business runs.  They enjoy the experience and are reassured and steadied as they work in other areas that may be shaky.
  • Talking aloud to an appreciative listener allows them to put into words what they have been acting on, but not thinking or saying.  Often we don’t realize what we think until we say it aloud in the presence of someone else.
  • The principles of what they are doing are now out in the open where they can inspect them, consider them, and consider how relevant they will be in the future.  The valuer in Russia, for example, has trained valuers in distant city so he can take advantage of the current boom in valuing assets.  He also knows the boom will peak in a few years.  He is perfectly aware of both facts but may allow the situation to drift if he does not say what he knows aloud in front of someone else.

Why a psychologist and not someone else?

A business person talks to many people – their banker or their associates at the pub.  Why and how are we different?

  • We draw out the assumptions about HR.
  • We are trained to challenge gently, and reveal those long taken for granted assumptions that operate like the underwater part of an iceberg – essential to the visible business but deadly if forgotten.  A friend or banker is concentrating on what they need to hear, not on what the business person needs to hear themselves say.
  • We deliberately restate assumptions clearly so they are on the table for discussion and sharing with other people – new employees, bankers, and people we are talking to during times of change.  A business person talking to a psychologist in any setting, say a conference, a training room, an interview, should come away feeling invigorated.  They should feel clearer about what is important to them and confident that the important things are being attended to.

And it is only Tuesday!  This is a great job.  People are endlessly fascinating when they are talking about a job they love and do well.

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