• More than psychometric tests. Of course all the professionals mentioned have particular expertise, and there are those, especially HR specialists, who have access to some of the same tools and techniques as a Business Psychologist. For example there are many trained to administer and interpret psychological tests and questionnaires. However when you deal with a Business Psychologist the full range of methods become available. You also get an individual who is able to develop a new tool if there is nothing suitable ‘off-the-shelf’. This is important because it’s difficult to manage other people, if you cannot measure what they do. And we know what to measure, and how to measure it.
• Who has questions for my answers? Tools are important, but the main way in which a Business Psychologist can add value to your business (or organisation) is not necessarily by designing a psychological test, or producing a new interview system, competency map, leadership programme, executive coaching framework, or change management schedule; but by knowing which questions to ask and solutions to apply. So not what Henry Kissinger (former US Secretary of State) said to the White House press corps about ‘questions for his answers’, but an intense desire to discover the real questions and to come up with the right answers.
• Diagnostic savvy. Sounds simple, but it is rather harder in practice. Other professionals are only concerned with part of the picture. Business Psychologists apply their diagnostic savvy to the complete ‘behavioural’ canvas. In particular how individuals perform, and can be helped to perform better; how people operate in teams, and how to stop team derailment; and how teams or groups fit into the organisational structure and culture. And of course, how organisational imperatives (such as the HR plan) are aligned with teams and individuals in order to make a business run as effectively as possible.
• Straight from the horse’s mouth. And finally the research base that makes business psychology unique also informs much of the thinking in HR and people management generally. So in using a Business Psychologist you are dealing with someone who understands the science that underpins people and performance issues – and compared to other professionals in the field, this is probably the biggest differentiator of them all.
• Team building.. For instance many readers will have encountered team building exercises, and may be familiar with, say,  Belbin’s Team Roles. This is a useful way of looking at teams, but it does little to get to grips with the ‘relationships’ between team members and the effects these have on performance, or how teams monitor their operations, or adapt to changing conditions. I’m afraid there’s a lot more to it than just using a questionnaire or two, and serious questions often need to be asked about the ‘health’ of relationships, and whether the culture of an organisation is helping or hindering team productivity.
• Competitive advantage. So if it’s a careful analysis of the structure of your business at a human level that’s important, coupled to a considered view of how to bring out the best in people (so they will deliver quicker, contribute more and stay longer), call a Business Psychologist. Who, by the way, will also be able to give you a sound business case for any interventions that are suggested.

For more information try: http://www.markparkinson.co.uk

*This is a joke… However there are behaviourists at work in this space, and whilst humans are animals, simple ‘training’ techniques are not the way to get people to engage with work! Pass me that carrot.

“Risk surrounds and envelopes us. Without understanding it, we risk everything and without capitalising on it, we gain nothing. This accessible book from Glynis Breakwell comprehensively explores the psychology of risk, examining how individuals think, feel and act, as well as considering the institutional and societal assessments, rhetoric and reactions to risk.

Featuring chapters on all the major issues in the psychology of risk including risk assessment, hazard perception, decision-making, risk and crisis management, risk and emotion, risk communication, safety cultures, the social amplification and social representation of risk and mechanisms for changing risk responses, Breakwell uses illustrations and examples to bring to life the significance of her research findings. She provides an innovative overview of current knowledge on the subject but also suggests that there are many fascinating questions still to be answered…”

http://www.inc.com/margaret-heffernan/common-startup-mistake-you-dont-want-to-make-timing.html

So you’ve got a great team, and a fantastic idea that fits like a dream into a gap in the market. Not only that, a financial wizard has produced a set of figures that suggest you can all retire in three to five years time. All you need now is some money. No problem. This is the most investable idea there’s ever been. Anyone could see that. You’re ready to talk to the angels. Stop!

Time for some homework

Do you know anything about the investors? And what do you know about pitching to entrepreneurs? The first bit is quite easy. Ask about the panel, and do some research on how they made their money. What makes them tick, and where do their interests and values lie? Also, do they have any specialist knowledge? Critically: Are you sure you know more than they do about your proposition? You certainly should do! Don’t imagine that you’re going to be able to wing it.

Look, this is a selling job, and the first thing to know about selling is you must know what you’re selling, and who you’re selling it to. Which brings me onto the second big question, if you’re going to be dealing with a panel of successful entrepreneurs, you need to know what entrepreneurs are like. Do you? Here’s a quick crash course.

Try: heart first, head second

First, entrepreneurs are usually energetic, passionate folk. Give  a pitch that suggests you’re really really interested in your business idea, and you have the drive and zap to see it through. Better still, tell them what your drive is. What gets your motor running? Remember: all that emotional stuff is processed by the brain before the dry logic of your market research, or the endless figures supporting your financial projections… You need to appeal to the heart first, the head second. This allows you to capitalise on the fact that entrepreneurs are intuitive thinkers, and that they genuinely trust their initial (emotional) reactions.

Get to the (jargon free) point

Next, most entrepreneurs are ‘do it now’ people. They have a need for immediacy and get bored with too much detail. What this means is that whilst you do have to have the facts and figures at your finger tips, your pitch must be quick and clear. Frankly if you can’t explain the basics of what you want to do, and what you want from them in 60 seconds, all the time in the world isn’t going to help. Get your message sorted out. You must make an immediate impact before you paint the rest of the picture.

Go for the vision thing

Entrepreneurs are interested in ‘difference’. They are comfortable with change and new ideas. Sell the difference – your USP – and explain how it fits into a bigger picture. Why? Well, isn’t this what it’s all about?  If you don’t have a vision of how you can make things change, and can’t explain how to scale up your proposition, it’s not going to be investable.

Create a potent message

Okay, where’s all this going? Simple. Likely as not you will be talking to some pretty savvy investors. They know what it’s like to have big dreams and even more ambitious goals. To want to make a difference. To be so fired up that little else seems to matter. So do it right:

• Idea. What’s the (big) idea and what’s the claim, i.e. what’s the business proposition and why is it different and better to what ever else is out there.
• Benefits. What are the three most compelling reasons that support your claim? This means what are the key benefits of your proposition. For example, what ‘problem’ is it actually solving? How will it change things for the customer?
• Validity. What evidence supports your claim? This can be in the form of (simple) stats, quotes from experts or customers, perhaps even a story. But give the listener a reason for wanting to hear more.

If you can do this and load your pitch with passion and sincerity, you might stand a chance. Oh, and by the way, what’s so special about you or your team, and why are you the only people who can make this thing fly? Precisely what is everyone putting in, and more to the point, what are you putting on the line? Commitment, commitment, commitment…

http://psychometricsforumblog.wordpress.com/2013/04/25/personality-neuroscience-unlocking-the-mystery-of-the-brain-in-order-to-understand-the-whole-person/

What’s interesting about the list, apart from the fact that it confirms some of the things I recognise in successful entrepreneurs, such as being far too busy to check the details (the analytical stuff), is that it mirrors research on dyslexic entrepreneurs. Research by Professor Julie Logan at Cass Business School, for example, suggesting that 20% of UK entrepreneurs are dyslexic, compared to a rate of 10% in the general population.

Strange coincidence, or perhaps a clue as to why there are so many dyslexic entrepreneurs? It might be that linear thinking, planning and self-organisation are not important to business creation. It would be fascinating to know.

HBR article: http://blogs.hbr.org/cs/2013/04/the_much-needed_skills_most_en.html

Julie Logan: http://www.youtube.com/watch?v=i0NQcljwdKI

http://edudemic.com/2013/03/the-truth-behind-out-of-office-replies/

Someone who does not see that there are gaps, or who jumps to a conclusion with too little (or inaccurate) information can blindly make decisions without realising what is missing or unclear. What this amounts to is that for judgement and decision making there are four basic types of people:

Over-confident: This is someone who has high confidence in their judgements even when their thinking is faulty. They believe that it’s better to make a decision, even if it’s the wrong one!

Development point: The positive side is that over-confident people take the initiative and get on with life. However they do need to ‘take five’ and learn to recognise when more information is needed. It’s all about thinking before acting!

1. How do you feel when you have to make a snap decision?

A Energised – It’s better to make a decision than no decision at all

B Decidedly queasy – I don’t like having to make a decision

C Confident – I’m pretty good at weighing things up quickly

D Resigned – I’m famous for making the wrong decision.

*

2. When deciding between a number of options, do you…

A Pick one and stick with it, even if it turns out not to be the best

B Want more and more information (you can never have too much)

C Dispassionately check out the options and move on

D Home in on the wrong one like a guided missile?

*

3. If you haven’t got enough information, how do you decide what to do?

A Gut instinct

B I can’t decide (you just said there isn’t enough information!)

C Go with what I calculate is the best bet

D Pick anything – it’ll all go pear shaped anyway.

*

4. You’re going to make an expensive purchase in a shop, do you…

A Just go in and buy it

B Come over all uncertain

C Check that it’s what you want, and then buy it

D Feel like you’re about to make another costly mistake?

*

5. It all goes horribly wrong, what do you do next time?

A Exactly the same!

B Nothing (there isn’t going to be a next time)

C Better research

D Take a lucky rabbit’s foot.

*

6. What’s happening in your head when making a really BIG decision?

A Surprisingly little

B A Headache

C A meticulous balancing of the pros and cons

D A feeling of déjà vu (and not a pleasant one!)

*

7. You have a number of things to do, how do you decide where to begin?

A First on the list

B Definitely look at the list, but it won’t be nearly long enough

C The most important thing on the list

D Gave up using lists years ago.

*

8. How would your best friend describe your judgement?

A Shoots wildly from the hip

B Never gets his gun out

C Hits the target, every time

D Judgement, what judgement?

*

Mostly A = Over-confident (Cobra)

Mostly B = Under-confident (Gazelle)

Mostly C = Accurate (Fox)

Mostly D = Inaccurate (Bull)

*

Note: This is a fun questionnaire! However it is based on sound research and I wrote it for a magazine a couple of years ago.

PS: This might be a little cheesy but don’t underrate the power of empathy.