Posted by Shelly on 02 Aug 2011
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Evidence of ROI from Occupational Psychology Interventions

Organisations tell us that they want to see return on investment and to recognise the benefits they accrue from working with occupational psychologists. We have examined the impact on business results in five key areas. The most obvious benefits are qualitative e.g. increased motivation; however there are also considerable quantifiable benefits to profitability and bottom line outcomes from the work conducted by occupational psychologists. In this article, we explore some of the evidence for quantifiable benefits gained through Assessing Talent; Building Leadership; Coaching for Performance; Uniting Teams and Developing Positive Organisational Climate.

Assessing Talent

Most of us will be aware of the rigorous 12 week assessment process Lord Alan Sugar puts his prospective employees through before awarding the successful candidate a job. By employing the services of occupational psychologists, employers could get a robust assessment in one day. Businesses employ the services of occupational psychologists in the area of assessing talent in order to ensure they are selecting the best candidates for available posts. Tests are used to measure the ‘maximum performance’ an individual can reach under standard conditions, thus helping predict future job performance.

There is a myriad of evidence highlighting the benefits of using psychometric testing during assessment. This includes advantages such as attracting the best staff; making selection more objective; and helping to build teams, by selecting the best mix of individuals. Most large organisations are aware of this and use psychometric assessment as part of their recruitment processes; however some organisations may shy away from the idea of spending money on recruitment. Yet if they were aware of the potential costs of not using occupational psychologists in this area, they are likely to change their minds.

Utility Analysis is a process used to calculate the effectiveness of various management techniques and efficiencies in monetary terms. This has shown Systematic Staff Selection to be one of the most cost effective techniques.

Calculations are complex and unique to specific organisational factors. It has been estimated that the use of systematic selection techniques increases productivity of selected individuals, in financial terms, by an average of 40% of their salary. This varies from 20% for operational roles up to over 60% for senior roles. Therefore, if 10 middle managers, on £50K for example, are selected via an assessment centre they are likely to yield a financial benefit to the organisation of £250K per annum (i.e.: 50% of £50K x 10)

Naturally there are costs to weigh against this (the initial costs of selection, the variable costs associated with increased turnover, financial inflation over the period, the corporation tax to be paid on increased profit) but this remains a compelling argument.

Indeed, at Impact Consulting Psychologists, we have had much support from clients who recognise the financial benefits of using our services, and we are not alone in this. Kimberly-Clark found the cost of recruiting the wrong graduate would be equivalent to £37,000 per individual , furthermore Hogrefe reported that Nottingham City Transport saved £154,350 when they adopted a standardized testing process and used psychometric tests to assess candidate suitability for the role of bus driver.

Critical Thinking is one area of competence which is well recognised regarding its importance in a work context.

With globalisation and the fast pace of business, employees at all levels are having to deal with increasingly complex information. They have to make effective and quick decisions. Good decisions require paying attention to the most pertinent information, asking the right questions, and recognizing the difference between factual information and assumptions; this is critical thinking. Pearson Group found that training 25 managers or professionals in critical thinking would yield $720,000 a year.

Occupational Psychologists worth their salt will stay up to date with any research or development in the area of assessment. The psychometrics they use should be relevant to whatever job they are asked to help recruit for. There is no doubt that this gives companies who use occupational psychologists in this area a competitive edge.

Building Leadership

Occupational Psychologists work to bring out the very best in organisational leaders.
Many leaders realise that investment in leadership training and development is an investment in the future of an organisation.

Many of the benefits associated with leadership development include factors such as an increase in staff morale, better ability to develop a clear vision for the organisation, increased creativity etc. Many studies have also found quantifiable results.

Hiscox, a leading specialist insurance company provided a leadership development programme and demonstrated a 693 % return on investment. Benefits included more open and frequent communication, improved performance management and honest conversations with staff. There were also positive behavioural and cultural changes.

Leadership development efforts at a Fortune 100 high technology company provided clear qualitative benefits and in quantitative terms, the median value per participant was a ROI of 150%

The evidence strengthens the argument that leadership development and learning transfer is at the heart of future competitiveness for all organisations.

Coaching for Performance

Occupational Psychologists provide coaching on a one-on-one or team basis, providing an invaluable source of support and development for clients. We work within clear codes of practice including the code of practice of the British Psychological Society, the Association for Coaching, and the Society for Coaching Psychology, to ensure that clients are provided with a high quality professional service, offering reassurance for clients.

There is an increasing amount of evidence to highlight the benefits clients experience from coaching. In a study conducted by the Association for Coaching (2004), 58 % of people who invested in coaching reported better people management and 53% of people reported increased job motivation. While 48% of coachees stated improved work life balance and 42% reported improved job motivation.

In the same study, the Association for Coaching found that 38% of coach purchasers reported that coaching re-engages individuals and leads to increased productivity.

The World Health Organisation (WHO) has estimated that depression will be the number one health problem by 2020. Indeed, £17 billion per annum is lost to business through sick leave and absenteeism. Good coaching would help prevent these shocking outcomes.

Uniting Teams

Occupational Psychologists help enhance team effectiveness through a combination of diagnostic and developmental approaches. They analyse how teams work together strategically and operationally and often use development tools to promote understanding and appreciation of similarity, difference and personal styles.

Research in relation to the use of personality assessment in a team development context highlights the benefits to teams. Some reported benefits include improved communication, better conflict management and more effective problem solving and decision making. Indeed effective communication between team members is associated with better mental health within the team.

Members of teams that work well together experience lower levels of stress; are more effective and innovative, therefore more productive, which creates more profit in organisations.

Braham pointed to a recent study her firm had conducted on work they’d done with American Express. This showed that the blended sales team training programme led to increased sales among staff, equating to a 1599 % return on the cost of the course

Developing Positive Organisational Climate

Occupational Psychologists work with organisations to help develop their internal capacity to be as effective as possible. Current economic pressures are creating previously unseen levels of anxiety within business, creating highly stressful working environments. Research demonstrates that impaired work efficacy associated with mental health problems costs £15.1 billion a year, which is almost twice the estimated annual cost of absenteeism (£8.4 billion)

Stressful working environments encourage negative behaviours and invite excessive managerial control. Indeed, within the NHS, The Department of Health has estimated that the cost of bullying is over £325 million per year
Occupational Psychologists can help reverse the ‘downward spiral’ of stress and negative behaviour in order to create a positive environment for developing sustainable approaches to performance management.



Posted by Shelly on 25 Jul 2011
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Beating Anxiety

There is no doubt that anxiety is a major problem in the UK Workplace. According to the National Institute for Health & Clinical Excellence, the cost of work related mental illness to industry is £28bn, a massive figure. More than 13 million working days a year are lost because of work related stress, anxiety and depression (NICE, 2009)

Indeed ‘anxiety’ is an issue which clients frequently present at coaching sessions. It is not surprising that it is such a common problem with the many challenges we experience in life; money problems; bringing up children whilst holding down a full time job; losing a job; dealing with illness are just a few. Reflecting on recent traumatic events in the world can leave us all feeling anxious about what could happen next, the “what ifs”.

Anxiety can occur in many forms, some examples are, phobias, (described as a fear of specific things or situations, e.g. spiders, or flying); panic attacks (intense feelings of anxiety where people feel they are about to die); and generalised anxiety, where a mixture of worries and anxiety symptoms are experienced most of the time. Sometimes we use ‘anxiety’ to describe brief periods of nervousness or fear which we experience when faced with difficult experiences.

As Coaching Psychologists, we have worked with a number of clients who have experienced anxiety, in particular, phobias, panic attacks and generalised anxiety to help free them from its constraints. The techniques we use are derived from Cognitive Behavioural Therapy (CBT); however, rather than performing ‘therapy’ on clients, we use a form of coaching derived from CBT, Cognitive Behaviour Coaching (CBC).

CBC emphasises that how we react to events is largely determined by our views of them, not by the events themselves (Neenan & Dryden, 2008). In coaching, we work with individuals to examine and re-evaluate some of their less helpful views. We work with individuals to develop and try out alternative viewpoints and behaviours that may be more effective in aiding problem-solving or in approaching challenges from an objective point of view. The approach provides us with greater insight into how underlying emotional factors affect our behaviour. By offering this insight, the aim is to help individuals to change any self-defeating behaviour, thinking, attitudes or beliefs they may hold.

Case Studies

The outcome of our work has been extremely positive, e.g. we worked with a manager who experienced panic attacks every day. They were interfering with his life and his ability to live normally was severely impaired. After working with him using a number of CBC techniques, he reported that he was only experiencing attacks every 2 weeks; after the 3rd session, he experienced them once a month and at the final session they were gone. The sense of freedom reported by this person following the coaching was astounding. He reported that the coaching also helped him decide on his career choices; he has since returned to University and has successfully obtained a job in an organisation which fits with his values.

A client whose husband was relocating to Australia for a career move had a fear of flying. She knew she had to overcome this and had 6 months before they were due to leave. Coaching took place over a six month period, and combined Cognitive Behavioural Coaching with experiments between sessions. These involved taking trips to the airport to see planes, taking a short trip in the UK by plane, and then a longer trip to a European destination. The client was able to take the trip to Australia without a panic attack. She has subsequently taken several flights and is able to enjoy the experience.

Gratitude

Through all of our coaching, we encourage clients to focus on what is going well in their lives and being grateful for what they do have despite their individual challenges. The techniques we use have had an amazing success rate. Shelly Rubinstein, Managing Director of Impact Consulting says, ‘I would encourage anyone who is affected by anxiety to seek this kind of support; it has changed many peoples lives. It is so rewarding to hear of the sense of freedom experienced by clients after this coaching; it really does change people’s lives’.

If you would like to find out more about how we can help you beat anxiety, contact shelly@impactconsulting.co.uk



Posted by Allison on 19 Jul 2011
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“Leading Together” One Year Later – Clinical Leadership using a multi professional approach

Shelly Rubinstein, MD of Impact Consulting Psychologists, one of the collaborative of providers of the programme, presented her vision of clinical leadership in the future at the “Leading Together – one year later” follow up workshop. This explored the ongoing value of the Leading Together Programme; a multi professional programme aimed at developing leadership within the NHS. It examined the impact the programme had on individuals and their ability to transfer any learning into application in the workplace. The programme was independently evaluated by Innovas and feedback was presented during the workshop.

The day highlighted the success of the programme and the benefit in collaborating across professions and providers. It was satisfying to see several participants who had gained promotions, enriched their roles and changed the way they were working for the better. A participant reported that she had won funding for 12 months for £70k for an innovation process where she had to put a business case to 13 committees. She stated “I have done a few leadership programmes – this one pulled it together and I realised what I knew was being built on. I had done the work but not put it into practice – it helped me appreciate this.”

Shelly Rubinstein’s message was about the importance of paying attention to “people skills” in times of change. She highlighted the challenges facing high performing leadership teams. She outlined the lessons that had been learned by organisations which had gone through complex change. She advised on how to take Clinical leadership forward. Her final message was 3 key points:

1. Remain true to self – your values and beliefs.
2. Work on understanding others and collaborating with them.
3. Stay positive and it will “come good” it will help you and others.

The response to Shelly’s presentation gave rise to the following comments from the audience.

“We can see how important it is to get a win-win”

“Remain positive in difficult times”

“Understanding emotional intelligence has helped me – my self belief has increased”

“Leadership development is a key enabler in delivering quality”

“Being aware of the politics and what other people’s positions are their values qualities and styles are important”

“Now I put the others head on and see things how others see them –I look at the opposite of what my type is”

The presentation is available if you contact Shelly on

    shelly@impactconsulting.co.uk

Results demonstrated that one aspect of the programme that had the greatest impact was the understanding of personal style and how we interact with others using the Myers Briggs Type Indicator (MBTI). Impact Consulting Psychologists had facilitated this aspect of the programme and had provided feedback and a two hour coaching session prior to the programme which enabled delegates to integrate their increased personal awareness into their overall learning. Participants provided feedback which included the following comments:

‘… now in a role which is totally outside my clinical expertise – I gained the confidence to do this’
‘Made an impact on awareness of what can be changed and that everything is up for negotiation – don’t have to be stuck’
‘I have put together a successful business case. I changed the slant and presentation as now more politically aware and sensitive – therefore I was successful’
‘I have learned that creativity is about changing the way things have always been rigidly done’
‘On my return negotiated a new role at a higher level’

Presentations made by participants on their progress so far highlighted their experiences following the programme.

One participant reflected that she had been in a very challenging situation and due to the insight, support and skills she gained from the programme she has secured a role which plays to her strengths. She has subsequently won an award for patient services and has gained grant for original research. She shared with those present the impact that “Leading Together” had on her and how transferable her new skills are.
• Liberated her confidence.
• Gave better understanding of leadership style.
• Enabled her to realise her personal aspirations.
• Restored her energies and passion in NHS.
• Now celebrates success more openly.

This event was hosted by the NHS NW Leadership Academy.



Posted by Shelly on 05 Jul 2011
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Strengthening our resilience using positive psychology

We recently worked with the sales management team of a worldwide electronics and manufacturing company. Our client wanted to provide development for their sales managers to help them work together more effectively in a more emotionally intelligent way. Emotional Intelligence is our ability to recognize and regulate emotions in ourselves and in others. Higher levels of emotional intelligence have been shown to improve effectiveness for individuals and teams.

The client also wanted us to give managers tools they could use to strengthen their resilience. Impact Consulting worked with the team to help them to recognize their behaviour under pressure, and develop strategies to respond in the most effective way. We used a number of techniques to help managers question the way they see things, and turn their perception around to be more positive.

The workshop was extremely successful and the team reported a renewed energy and enthusiasm going forward, ready to face any challenges ahead.



Posted by Shelly on 10 May 2011
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How to get the most from a restructure

Impact Consulting has a wealth of experience in helping organizations to get the most from a company restructure. Using our psychological knowledge and expertise, we have helped staff and organizations to cope with the changes they face during a restructure, whilst also remaining positive and motivated. In this article, we explore a recent example, where we have helped our clients get the most from a restructure

Impact Consulting were approached by a large NHS Foundation Trust earlier this year. They explained that due to the changes taking place within the NHS, a number of providers would have to be integrated. They were planning a major restructure in order to cater for the merged organisations and wanted our assistance to ensure the process ran smoothly.

When the organisation had confirmed the new structure, we designed a series of assessment centres in order to select the most suitable candidates for the available posts. We know that this process provides a number of key benefits to the organisation and the employees involved. Research highlights the importance of ‘person-job fit’; if a person is well matched to a job in terms of their skills, abilities and personality, they will be happier in the role and feel more motivated at work. This in turn has an impact on the turnover rate thus saving the organsiation money. ‘The cost of an assessment centre needs to be compared with the potential cost of recruitment error (probably between £5000 and £50000, depending on the seniority and potential for business errors’ (Sterling, 2010, CIPD)

The process had a number of benefits for the employees involved in that it gave them an opportunity to identify their strengths and areas for development. Impact Consulting provided employees with an opportunity for developmental feedback, which helped them to produce a personal development plan to outline their goals going forward. For any individuals who were unsuccessful in obtaining a post following the restructure, the development sessions helped them to gain more clarity about their future career direction, as well as strategies for coping with changes.

The commissioner was delighted with the outcome of this work and the managers involved were enthused about working with and developing their new teams. They could clearly see the benefits of the approaches we adopted. Research estimates that use of systematic selection techniques increases productivity of selected individuals, in financial terms, by an average of 40% of their salary. This varies from 20% for operational roles up to over 60% for senior roles. Therefore, if 10 middle managers, on £50K for example, are selected via an assessment centre they are likely to yield a financial benefit to the organisation of £250K per annum (ie: 50% of £50K x 10). (Smith and Robertson)

‘Impact Consulting have been instrumental in informing and supporting our revised strategic direction. It now feels that the organisation has real clarity about its direction of travel and the energy level and commitment of the new HR function is amazing’



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