Business Psychology in Practice - 1st Edition

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Business Psychology in Practice
 Business
Psychology in
Practice
Edited by

PAULINE GRANTMA, MSc, CPsychol

YSC Ltd

assisted by

SARAH LEWIS MA, MSc, CPsychol

Gemstone Consultancy Ltd

and

THOMPSON
DAVID PhD, CPsychol, AFBPS
Royal Mail

Association of Business Psychologists

W
WHURR PUBLISHERS
LONDON AND PHILADELPHIA
0 2005 Whurr Publishers Ltd
First published 2005
by Whurr Publishers Ltd
l 9 b Compton Terrace
London N 1 2UN, England and
325 Chestnut Street, Philadelphia PA 19106, USA
Reprinted 2006
All rights reserved. N o part of this publication may be
reproduced, stored in a retrieval system, or transmitted
in any form or by any means, electronic, mechanical,
photocopying, recording or otherwise, without the prior
permission of Whurr Publishers Limited.

l'his publication is sold subject to the conditions that it shall not, by

way of trade or otherwise, be lent, resold, hired out, or otherwise
circulated without the publisher's prior consent in any form of
binding or cover other than that in which it is published and
without a similar condition including this condition being imposed
upon any subsequent purchaser.

British Library Cataloguing in Publication Data

A catalogue record for this book

is available from the British Library

ISBN-10: 1 86156 476 7 p/b

ISBN-13: 978 186156 476 4 p/b

'Qpeset by Adrian McLaughlin, [email protected]

Printed and bound in the UK by Athenzum Press Ltd, Gateshead, Tyne & Wear.
Contents

Contributors X
Foreword XiX
Preface xxi

Part 1 Consulting ~

Chapter 1 Introduction 3
._ -

Pauline Grant

Chapter 2 What clients want 6

~- ._-

Charles Mead, Rachel Robinson

Chapter 3 Make or break - structuring the initial meeting 13

_ _-
~~~-
- ~ ~~
~~ ~

Anne Hamill

Chapter 4 The consulting project lifecycle 22

~ ~ ~ ~~~ ~~ ~ ~~ -

Siobhan McKuvunagh

Chapter 5 The consulting relationship

- ~~ ~
35
~~

Murk Loftus

Values-based consultancy 44
~- ~~ ~ - _ _ _ _ . _ _ ~

Sue Cluyton, Trevor Bentley

V
vi Business Psychology in Practice
~. -_ -~

Part 2 The organizational landscape

.. __ __ -
53
..-

Chapter 7
- -~
Introduction
~- __ _ _ ~ ~-
55
Pauline Grant

Chapter 8 A fairy-ish story 58

.~~ ~~ -

Pauline Grant

Chapter 9 Avoid being your own worst enemy! 66

~~ ___ ~. __
Malcolm Hatfield

Chapter 10 The political terrain

- -
76
Kylie Bains

Chapter 11 Team development - a case study based on

‘appreciative inquiry’ 88
~ ~

Sarah Lewis

Part 3 Prediction 99
~-
~

Chapter 12 Introduction 101

~ __ _.

David Thompson

Chapter 13 Themes of measurement and prediction 103

__ -~ ~~

David Thompson

Chapter 14 Assessment centres: getting more bang for your buck 113
. ~~ _-
Simon Brittain, Rob Yeung

Chapter 15 Technology and large-volume assessment 133

James Bywateq Helen Baron, Howard Grosvenor

Chapter 16 Practical issues in running international assessment

and development centres 145
__ _- -__
Helen Marsh, Penny Markell, Ellen Bard,
Mark Williams,James Bywater
Contents vii

Chapter 17 High-potential talent assessment 156

~~ . ~~ ~~

Maria Yapp

Chapter 18 Assessment in organizations at the crossroads 171

~~ ~ ~ ~

Malcolm Hatfield

Part 4 Releasing talent

. .
183

Chapter 19 Introduction 185

~

Sarah Lewis

Chapter 20 Releasing talent across an organization

~
189
Kate Oliver, Shane Pressey

Chapter 21 Teams: systems within systems 201

George Karseras

Chapter 22 Unleashing leadership and learning within

an international bank
.. ~
2 13
~

Ellie Boughton, Michael Burnett,

James Bywater,John Mahoney-Phillips

Chapter 23 Releasing talent through coaching 221

Sue Clayton

Chapter 24 Why chief executives hire coaches 227

Janey Howl

Chapter 25 A case history of releasing talent through coaching 235

_._
.
~

Christopher Ridgeway

Part 5 Business psychology applied to systems 241

Chapter 26 Introduction 243

Pauline Grant
 Business Psychology in Practice

Chapter 27 Best practice performance management in

today’s commercial reality 2 46
~ - ___ ____ ~

Nadine Burton

Chapter 28 The psychology of customer relationship

man agemen t 2 56
~~ - ~~

Jo Hennessy, Rod Vincent

Chapter 29 Improving options for managing risk? to

business and employee health 2 69
~

Kieran Duignan

Chapter 30 Psychological principles and the online

evaluation environment 2 80
~~

Joanne Share-Bernia

Part 6 Organizational change 291

Chapter 31 Introduction 293

Pauline Grant

Chapter 32 Organizational change - an historical overview 2 96

David Thompson

Chapter 33 ‘IJsing culture and climate profiling to

drive organizational change 300
Paul Brewerton

Chapter 34 Designing and implementing strategic

change programmes 322
Roy Drew

Chapter 35 The role of psychology in implementing

large-scale change with diverse cultures 331
Sylvana Storey
Chapter 36 ‘Why won’t they do what we..tell them?’
~ ~~~~~ ~
339
~

Richard Plenty

Part 7 Epilogue 353

Chapter 37 Business psychology - the key role of

learning and human capital
- ~- -
355
~

David A Lane, Amin Rajan

References 371
Index 387
 -~

Contributors

Kylie Bains joined organizational capability consultancy YSC Ltd in 1994

and is now a Director. Graduating in organizational psychology from
Queensland University, Australia, she worked in IT recruitment and in
product development and marketing for a UK business psychology firm
prior to joining YSC. She is responsible for YSC’s public relations in addi-
tion to her consulting role. She has a particular interest in political
behaviour inside organizations and how women achieve leadership suc-
cess in business.

Ellen Bard is a consultant at SHI, UK Ltd. After completing her Master’s

degree in organizational psychology at UMIST she worked for PSL, focus-
ing on selection and assessment. Her work at SHL involves the design,
implementation and delivery of assessment and development centres
through to following up with participants via feedback and coaching.

Helen Baron has many years’ experience in the design and implementa-
tion of effective employee selection and assessment systems, both paper
based and electronic. She is involved in training and consultancy to help
organizations audit their assessment procedures and formulate equal
opportunities policy. As a leading member of the SHI. research and devel-
opment team she developed many psychometric tests and published
widely in equal opportunities and selection issues. Now an independent
consultant, she continues her research and development work and pres-
ents in conferences internationally.

Trezwr J Bentley has many years’ experience as a personal and profes-

sional development coach with chief executives and executive teams. He
has a PhD in organizational development, and is a Fellow of CIMA and a
chartered member of CIPD. Trevor leads training programmes for execu-
tives and consultants in applying a Gestalt approach in the UK and

X
Contributors xi
_ _ ~ - ~. ~

Australia. His ‘inspirational leadership’ and ‘winning teams’ approaches

have guided his clients to significant business success. Trevor has written
over 30 books and numerous articles.

Ellie Boughton is the Regional Product Director, Asia Pacific in SHL where
for several years she has consulted in the UK, Europe and Asia Pacific. She
has created competency models for manufacturing, fast-moving consumer
goods, mining, retail sales and the public sectors. She studied psychology
in Sydney and gained a Master’s in organizational psychology from the
University of New South Wales. Specific interests include using 360-
degree competency questionnaires in development and how Internet
technology helps this process to be run more efficiently.

Paul Brewerton is managing director of business psychology consultancy

Blue Edge. Paul’s consulting work focuses on change and development at
individual, team and organizational levels and includes coaching, train-
ing, team building, diagnostic research and psychometric development.
He often works in the areas of organizational culture change and leader-
ship development, the two frequently going hand in hand. Recent
assignments included a global culture change programme for a mobile
telecommunications company, high-performance coaching for senior
executives in the technology sector, and delivery of the Cougar leadership
development programme across a range of industries. Paul authored
Organizational Research Methods.

Simon Brittain is a partner and director of Kiddy & Partners. He special-

izes in strategic talent management, assessment/development centre
design/implementation and one-to-one assessments for senior executives
and high flyers. His experience crosses a range of sectors including finan-
cial services, automotive, professional services, consultancy, FMCG and
hi-tech. Simon joined Kiddy & Partners from a major test publisher, prior
to which he worked with a number of consultancies and the Post Office
where he was a manager in the occupational psychology unit.

Michael Burnett joined SHL in 1999 and has managed the development
and deployment of a range of Internet, PC and pocket PC assessment
products. He is now director of production and operations. He previous-
ly worked in the UK software industry. At EDS, Michael managed a group
providing human factors, change management, training and integrated
logistics support to clients on some of the largest IT integration projects
in the UK for corporate and public sector clients. Following his gradua-
tion in psychology in 1978,Michael worked as a psychologist for the Royal
Air Force.
xii Business Psychology in Practice
~ . ~~- - ~~

Nadine Burton is a chartered occupational psychologist with consider-

able consulting experience. She has worked across a variety of sectors,
including financial services, retail, FMCG, manufacturing, government
and charitable bodies in the UK, Central and Eastern Europe and Canada.
Nadine specializes in designing and implementing rigorous yet pragmat-
ic assessment and development solutions for executives and managers.
Project work has included the identification of factors that drive effective
performance, executive selection, high potential talent assessment and
performance management. Nadine has been a director with two leading
UK business psychology firms.

James eywater has worked as a business psychologist since 1990, using

his background in finance and psychology to implement unique assess-
ment and development solutions for clients. He specializes in the banking
sector and in utilizing technology and the Internet to make the solutions
that he suggests scaleable for national and global clients.

Sue Clayton is lead partner of the space between (UK), a consultancy prac-
tice with an associated partnership in Australia. Sue's Gestalt style raises
awareness of individuals and teams to levels that dramatically improve
their contribution to the organization. She is co-founder and co-leader of
the not-for-profit partnership, Gestalt in Organizations, teaching Gestalt
to leaders, managers and professionals. Sue is a representative for the UK
on the board o f the Marion Woodman Foundation, an international char-
ity for developing women, based in the US. Having published four books
on people and organization development, she is now researching a PhD
on business leadership.

Roy Drew is a partner of Drew Associates, a business psychology practice

specializing in organizational design, development and change. He sup-
ports executive boards in the process of identifying, initiating and
implementing improvements in business performance by developing
those organizational capabilities demanded by corporate or operational
strategies. Roy's work in managing organizational change has incorporat-
ed major public to private sector transitions in transport, energy and
defence, strategic change assignments in manufacturing and financial
services and research on the organizational implications of technological
change for the Commission of the European Communities.

Kierun Duignan is principal of Enabling Space, and a member of the

Institution of Occupational Safety and Health, the Ergonomics Society, the
European Academy of Occupational Health Psychology and Personal
Construct Psychology Education and Training. He specializes in interac-
tions between the occupational health of employees and business
performance and contributes to assessing and managing risks as char-
tered psychologist, counsellor, registered ergonomist and safety
practitioner. He has written guides to career management, information
management and technology and auditing systems for managing occupa-
tional stress as well as a handbook on recruitment.

Pauline Grant is a Director of the organizational capability consultancy

YSC Ltd. Pauline qualified and worked as an educational psychologist
before moving into the corporate world. Now she consults to sectors
including finance, retail, construction and fast-moving consumer goods,
in some cases working internationally. Often the focus is development:
coaching individual leaders or top teams, workshops and consulting
around change. She also finds time to do pro bono work and chair an
ethics committee. She is the author of Careering Upwards and was the
first Vice-Chair and first conference speaker for the ABP.

Howard Grosvenor is a senior consultant at SHL UK. As well as delivering

the core components of SHL’s business (training, product and consult-
ancy), Howard has special responsibility for technology-based assessment
and the UK portfolio of ability tests. He has experience in both technical
and occupational psychology-focused roles. He has worked with a broad
range of clients on everything from the design and delivery of develop-
ment interventions to the implementation of online selection systems.

Anne Hamill is a Director of Strategis Ltd, a consultancy that equips peo-

ple to cope with rapidly changing work environments. She started her
career at ITRU (the Belbin unit), then spent 9 years working across virtu-
ally all sectors on government-financed research to identify the highest
performance in various job roles and design practical selection and devel-
opment tools. A past Chair of the Occupational Division of the BPS,
Anne’s key interests lie in enabling people to manage ambiguity and rapid
change and in creating self-directed, highly effective learners.

Malcolm Hatfield has worked for many years as a psychologist in business

with EMI, P&O, Chloride, Saville & Holdsworth and partnership, Hatfield
Jefferies and is now an independent consultant. He is widely experienced
in assessment at all levels from customer facing staff to CEOs and has
developed tests in the UK and the Middle East. His current interest is in
defining and managing the human requirement needed to support strate-
gic objectives in different types of organizations.
xiv Business Psychology in Practice

Jo Hennessy is a business psychologist specializing in the development of

people at work. A partner in Human Qualities, she previously headed exec-
utive development at Brathay & Penna Change Consulting. Her expertise
centres on large-scale development programmes and she has extensive
experience of identifymg the people requirements of a business change,
then applying interventions to facilitate the transition. She has worked
nationally and internationally in such areas as visionary leadership, motiva-
tional management and customer relationship management. Having begun
her career at SHL, she is also an expert in assessment methodologies.

Janey Howl is a leadership coach specializing in senior executives, top

teams and entrepreneurs. Recognition of the impact of personal issues on
organizational performance led Janey to qualify as a life coach. The result
is a considerable track record in successful client career transitions and
enhanced leadership capability. Howling Success Ltd (www.howlingsuc-
cess.co.uk) is committed to the creation of working lives with passion and
purpose. Workshop themes include ‘raise your game’, ‘sustainable devel-
opment’, ‘team performance’ and ‘manager as coach’. Howling Success
Ltd also provides master classes in coaching expertise for in-house devel-
opment staff.

George Karseras is a chartered occupational psychologist and change

manager in Atos KPMG Consulting’s change and programme management
business consulting team. George has built his internal reputation as an
expert in designing and facilitating launch events for AKC project teams.
He combines business psychology training, particularly systems thinking
and family therapy techniques, with project management and his experi-
ences as a sports psychologist to Premiership football to design and
facilitate highly pertinent, challenging and involving launch events for
newly engaged project teams across the AKC delivery network.

David Lane had an early career in banking and in legal practice, then edu-
cation and academia with periods as visiting professor at Syracuse and
Middlesex Universities and honorary posts at University College London
and City University London. He has acted as a professional coach for sen-
ior management and consultant on organizational development for major
corporations, and has provided research forum and benchmarking proj-
ects internationally. He has been a non-executive director and is currently
director of the Professional Development Foundation.

Sarah Lewis is managing director of Jemstone Consultancy Ltd, specializ-

ing in delivering team, management and individual development
activities. She is particularly interested in approaches that work through
an understanding of the power of cognitive processes to affect our behav-
iour through beliefs, values, stories and accounts. She is also interested in
the developing and emerging field of positive psycholog. She finds that
taking an appreciative inquiry approach to organizational, team or indi-
vidual issues draws on both these interests and is fun and effective.

Mark Loftus has many years’ consulting experience and expertise in the
fields of emotional intelligence and relationship development. After grad-
uating from Oxford University in philosophy and psychology, Mark
trained at the Institute of Psychiatry in London. In 1993 he co-founded
the Oxford Consulting Group, now OCG Ltd, a successful consultancy
inspiring change and vitality in individuals and organizations. In addition
to his role as managing director, Mark also leads OCG’s Assessment and
Talent Management practice and is a trusted coach to senior figures in
industry.

John Mahoney-Phillips is a chartered occupational psychologist and glob-

al head of Human Capital Performance for UBS, a leading financial
services firm. Working out of the corporate HR function he is responsible
for performance management, psychometric testing and assessment stan-
dards, staff surveys and succession/talent pipeline metrics. Previously
John was head of leadership and management development for UBS
Private Banking, and a managing consultant with SHL Group.

Penny Markell is a consultant at SHL UK Ltd. She worked in human

resources before taking her MSc and moving into occupational psycholo-
gy. Her work includes designing and implementing development and
assessment centres, more recently on a large international scale, as well
as conducting feedback and coaching sessions with participants.

Helen Marsh is a senior consultant at SHL UK Ltd. Her work involves the
design, delivery and project management of assessment and development
centres. Areas of particular interest and expertise include the develop-
ment of competency frameworks, simulation exercise design,
management development, feedback and coaching.

Siobhan McKavanagh, consultant with 7days Ltd, is an experienced

organization development, talent management and change management
specialist. She was a managing consultant and team leader for Ernst &
Young UK Ltd from 1996 to 2002, and also took an active role in the serv-
ice offers and thought leadership around HR transformation and
xvi Business Psychology in Practice
~ . ..-

e-HR. She previously worked for Hay Group after starting her career in
1989 with Coopers & Lybrand (PriceWaterhouseCoopers).

Charles Mead, Director of organizational capability consultancy YSC Ltd,

trained at Oxford and London Universities in experimental and occupa-
tional psychology. He worked as a corporate psychologist for RHR Inc and
then held senior HR positions in J. Walter Thompson, Booz Allen &
Hamilton and Nabarro Nathanson. For 7 years he was European
Personnel Director for Sotheby’s and from 1995 to 1998 he was head of
human resources for Coutts & Co. Charles’s main professional interests
currently are in performance management, leadership and motivation in
professional and financial services firms.

Kate Oliver has been working as a consultant occupational psychologist

since 1993, both in the UK and overseas. In this time she has worked with
many leading, blue-chip organizations to help them manage talent and
get the best from their people. She is a Partner in Human Qualities, where
she specializes in the use of embedded learning for leadership and orga-
nizational development. She has a particular interest in applying the skills
and techniques of occupational psychology in a commercial setting, to
achieve enhanced business results.

Richard Plenty is a business psychologist with particular interest in help-

ing to create sustainable high-performing organizations. He works with
top teams and human resources leaders on issues associated with culture
and change, often on a global scale. He is founding Director of ‘This Is...’,
a consultancy which works with organization leaders to help shape iden-
tity, vision and culture. Previous experience includes coordinating and
facilitating strategic change programmes in Europe, Asia and North
America with Shell International as an HR Leader and Organization
Development Manager. He is a guest lecturer on organizational issues at
King’s College, University of London.

Shane Pressey is a founding partner at Human Qualities. As an occupa-

tional psychologist, she has provided consultancy services for businesses
in all sectors for many years and has extensive experience of working with
international organizations. Her expertise centres on facilitating integrat-
ed team and individual development interventions. Particular areas of
interest include executive coaching and management team facilitation.
She has worked as a coach with many senior executives, helping them
explore their inner motivation and unlock their full potential, through
her supportive, challenging and business-focused interventions.