Psychometrics in business

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1 Psychometrics in business Lucy McGee OPP Ltd Summer 2009

2 How to be successful in finance! Success in a career in finance depends less on technical skills the further up the ladder you get, particularly for women. So how do I enhance essential interpersonal skills and readiness for senior leadership roles through the self-awareness psychometrics bring? It s all about YOU Coaching, successful partnering and building high-functioning teams are management imperatives on which many senior professionals are now being measured. How do I realise improved performance by using psychometrics with my people? It s all about YOUR TEAM Differentiating yourself in your career can be tough when promotion opportunities internally and in the external job market have come to a stand-still. How do I stand out as a finance professional by building my knowledge of business psychology? It s all about the value YOU can add

3 It s all about YOU The key questions How well do you know yourself? (strengths and gaps ) How well do you manage the impact you have on others? What s your authentic personal leadership style? Do you know what stresses you? How much insight do you have into how you behave under pressure? How effectively are you managing your own development?

4 It s all about YOU Johari window known by others tell known by self OPEN ask unknown by self BLINDSPOT unknown by others HIDDEN UNKNOWN

5 It s all about YOU What do leaders look like (a stereotype)? Extravert Dominant Emotionally stable / resilient Intelligent Influential, but trusting Practical, but able to see the big picture and work with the abstract Self-controlled, but able to flex ESTJ decisive, organised, systematic a driver

6 It s all about YOU Developing your own leadership style An introvert who connects and communicates A co-operator who knows when to draw the line A reactor who manages their emotions Intelligent Open to others ideas, but capable of independent thought A visionary who stays close to the facts Manages own impulses, and uses structure and process INFP values-led, people-centric, adaptable a catalyst

7 It s all about YOUR TEAM 97% of managers feel they know their people fairly well or better, but only 74% of workers agree Almost half (47%) of managers say they know a great deal or everything there is to know about their people, but only 23% of employees agree Almost half (45%) said that they don t trust their manager s instincts on staff decisions relating to them - or to others 71% of all line managers would change the people decisions they ve made if given a second chance Nearly one in four (39%) line managers said they still rely on gut instinct as a key factor when making any decisions about their people 25% admitted that whether they like someone personally was also a major influence

8 It s all about YOUR TEAM The more uncertainty in its task the more a group has to share. Essential to share Sharing barrier Shared uncertainty The need to share Some need to share No need to share Unshared Certainty Cooperation Uncertainty barrier Modes of working Simple puzzles Complex puzzles Levels of uncertainty Problems

9 It s all about YOUR TEAM is it a group or a team?

10 It s all about YOUR TEAM High performing teams excel at: Task: Process: Relationships: doing the work (setting objectives, planning, defining roles and responsibilities) how the team completes the task (communication, values, rules) nurturing the challenge and support (feedback, recognition, conflict management)

11 It s all about YOUR TEAM The ideal organisation varies for each person according to psychological preference: Sensing types value stability Intuitive types value change Intuitive types value change Thinking types value productivity ST teams value: Productivity, efficiency, profitability, maximisation of resources, empirical problem-solving, control, thoroughness and certainty. An organisation should provide stability and consistency and meet practical needs in a matter-of-fact way. NF teams value: Community, independent yet harmonious groups working on task and relationship levels, products which meet human aspirations, flexibility, enthusiasm and insight in problem-solving, decentralised responsiveness. An organisation should empower its members and be responsive to both internal and external human needs. SF teams value: Emotional wellbeing of employees, individuals supported appropriately, productivity, service orientation, clarity of role and function, good communication with an emphasis on the correct management of factual details. An organisation should provide a family-like atmosphere where friendliness prevails. NT teams value: Strategic planning, competition, big picture focus on the external market, setting of appropriate objectives and strategies, focus on global concepts and logical procedures. An organisation should concentrate on long-term outcomes and employ ingenious people focusing impersonally on efficient and effective problem-solving.

12 It s all about the value YOU can add People that had taken a psychometric test in the course of their career were twice as likely to find this kind of data important to them in making a range of decisions about people Almost three times as many more managers who have experienced psychometrics themselves now use them to help support their decisions about people (51 vs 19%) This group is also more likely to look for evidence in past behaviour than those who have not experienced a psychometric instrument in their career (68 vs 51%) whereas those who haven t experienced psychometrics simply rate people s reported experience and personal preference as their primary criteria

13 It s all about the value YOU can add Coaching, successful partnering and building high-functioning teams are management imperatives on which many senior professionals are now measured. So where do you start? Be data driven Work on yourself Find a language for discussing emotions Get good at giving feedback Appreciate the differences (really) Tune in and be alert to the signals around you Reflect, reflect, reflect

14 What s in the ICAEW Psychometrics in Business report? Report content: What is personality and why does it matter? How to measure personality and why bother? How to choose the right psychometric test Applying psychometrics in business and finance Managing yourself Finance roles and psychometrics The 10 golden rules of choosing psychometric instruments

15 It s all about YOU!

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