rogue

Preventing Rogue Employees Circumventing the Board

Corporate boards can drive process to minimize rogue employees

 

Does your business have the governance structure in place to deal with a rogue employee? If you havent, then dealing with the fallout and getting the organization back on track and refocused on business will be slow and painful.

 

No longer is the outlier employee just the one kicking against management, stealing corporate intellectual property or actual property. Its the one destroying the company reputation on social media. Its the one sitting at home and trashing individual executives reputation using inappropriate language. Its the one setting up unauthorized and potentially damaging hashtags.

 

Those people responsible for the oversight of governance in your organization must be across every area where rogue employees can find a destructive playground.

 

Generally, its the board that has overall responsibility for oversight of the company being governed. Therefore, its important to make sure board members are empowered to take such responsibility and that they have the credibility to so. The board structure itself is important for achieving the goal.

 

Further, the information flows cannot be blocked by the CEO and executive team as that itself is a problem. The board needs to know whats going on; in fact, they have an obligation to know.

 

Once the structure is there, find out where the board members draw the proverbial line in the sand in terms of behavior, both in the workplace and in their personal life. Establish their ability to identify potential fires in the business and understand if they have the skills to extinguish them. Ensure they ask the right questions of business executives.

 

Experienced board members intuitively know when information is being withheld or massaged. Still, there should be checks and balances so that heading off your companys next potential crisis is not left solely to intuition.

 

The more the board members understand the strengths and behaviors they bring to their own roles, the better able they will be to ensure there is a robust strategy in place to handle rogue behavior.

 

You see, potentially 5 percent of your workforce includes employees that are a high-security risk. The cost of all types of fraud is a staggering 5 percent of turnover, per the 2014 Global Fraud Study by the Association of Certified Fraud Examiners (ACFE.) So, what’s the cost of rogue employee behavior to your business?

 

Simply identifying the personality type most likely to cross the line and the triggers that push them there could save you big dollars and your reputation. Or better yet, how do you help an employee to align their strengths to a given role and avoid rogue behavior altogether?

 

While larger businesses are investing more in cyber security and other monitoring programs, virtually nothing is being put toward identifying and monitoring costly employee behavior risks. The problem is that many of these insider threats are already in your business and the situation is gaining momentum without anyone being the wiser. The Global State of Information Security Survey 2015 recommends that 23 percent of the annual spend on business security should be directed to behavioral profiling and monitoring of employees.

Research also shows these problems are caused by human behavior:

  • Combinations of human behavioral factor outliers and external environmental factors (e.g. financial difficulty) trigger emotions causing negative behavior toward the company.
  • Combinations of employees with too similar or too different styles working in a high-risk environment cause internal control issues.

 

A key part of the solution could be the deployment of a validated personality discovery process, providing insights to hidden, hard-wired traits and a reliable prediction of where security or compliance risks exist.

 

Based on external research, employees with certain measurable behavioral traits are more likely to engage in rogue behavior when emotionally triggered:

  1. Innovative -bright mind, which turns into curious and devious thinking.
  2. Ambitious – desire for success, leading to cutting corners.
  3. Secretive – working under cover and not revealing key information.

The reality is that any person with a weak or temporarily broken character in the wrong team or facing external pressure can make flawed decisions, thus becoming the source of costly negative behavior. The employee behavior review using personality assessment should be uniformly applied to every employee in the business from the top down in order to distill the hot spot areas.

No one should be exempt from these assessments, whether they are new hires or part of the old guard. Include high-performing leaders down through the sales and operations teams to the disgruntled bookkeeper and, yes, board members.

Using behavioral insights, management can dynamically match employees with specific environmental conditions to determine their potential response. They can also discern the degree to which such responses could create rogue behavior and negative actions toward the business. Management can even apply these insights toward talent re-allocation, employee evaluation, team development and improved hiring.

Understanding behaviors and inter-relationships is not a soft area, unworthy of investment. On the contrary, it could be the key to delivering high-quality governance in any organization. Behavioral insights paired with oversight processes and procedures can and will deliver ongoing performance minimizes or eliminates breeding grounds for rogue behavior.

 

DNA Blog

 

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Own it! And Succeed

The more we understand our own personality and behavioral responses, the better able we are, both as individuals and teams, to work together effectively and avoid the blame game when things go wrong.

In his recent article, The Blame Game, Marc Corsini observes, When salespeople, professionals or executives are underperforming, they usually complain about others first.

Taking ownership of behavior

We all have our strengths and struggles. But those who understand and take responsibility for their behavior, will gain respect from others and have a healthy respect for themselves. Accepting personal responsibility is one of the most important factors in defining a person’s true character.

There is something liberating about being behaviorally aware. DNA Behavior’s Natural Behavior Discovery process offers significant insights into our “go to” behavior – our default reaction when under pressure, or when we make a mistake or lose focus among life events.

Sometimes, when we’re struggling or lose confidence, rather than asking for help, we blame others for our lack of performance or our mistakes. On occasion, we are the ones being blamed and fail to stand up to the accuser. But the reality is that such a response is immature. We need to take responsibility for our own behaviors and responses. Becoming behaviorally smart is as simple as completing a highly-validated psychometric questionnaire and receiving detailed personality insight, together with detailed information on how to build on our strengths and manage our struggles.

Further, becoming behaviorally smart through completing the DNA Behavior Natural Discovery process will also reveal other areas where it is important to take responsibility for our behavior. For example:

  1. How we lead others.
  2. How we communicate and wish to be communicated with.
  3. The environment within which we are more likely to flourish.
  4. How we perform on a consistent basis
  5. Our reaction to the financial markets when they fluctuate.
  6. How we approach decision making.
  7. How willing we are to take risk or not.
  8. Our biases (we all have them, but the key is knowing what they are and how to manage them).

In leadership, it’s likely that people will work more effectively if leaders understand them. Sounds simple! But without insight into personality, communication, strengths, and struggles, leaders can’t be successful.

When a leader is self-aware and has gained insights into how to manage others through understanding and managing behavior – success is the outcome.

To learn more, please speak with one of our DNA Behavior Specialists (LiveChat), email inquiries@dnabehavior.com, or visit DNA Behavior

 

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Fill Big Data’s Big Gap

The explosion of available information from social media, together with significant techniques for capturing this data, now provides financial advisors with a gold mine of information to help them identify and connect with clients.

Big Data gathering is only a starting point in terms of capturing user behavior. It delivers a glimpse of the client but leaves a significant gap and won’t offer enough insight to be able to advise or offer solutions to clients based upon their life goals.

DNA Behavior International fills the gap. With the use of behavioral psychological insights, revealed through a validated questionnaire, their powerful DNA behavioral intelligence, partnered with their Big Data Optimization program enriches firms employee and client data.

IBM in their Big Data and Analytics Hub ask these questions: Are you (financial advisor) generating targeted personalized offers for your clients? Do you know your customers and provide them with timely, relevant and optimized offers based on data-driven insights? By leveraging information about your clients’ behaviors, needs, and preferences, you can encourage high response rates from clients and enhanced relationships with them.

Client Insight for Wealth Management

When financial advisors use Big Data to enhance their service offering – what are they extracting from the data? How are they interpreting it? What is it saying about potential clients? Will clients be concerned that they are being advised based on their social media accounts alone?

Financial advisors who mine social media to serve client’s life events should know this does not reveal personality or bias. It doesn’t uncover decision making styles. It won’t predict a reaction to market mood. It won’t reveal influencing life events.

Advisors who are behaviorally smart understand there is a gap in Big Data mining. They know the importance of guiding clients with wisdom to self-discover who they are and their priorities to achieve financial wholeness. Financial DNA discovery delivers this self-discovery process. This strong, validated, structured approach reveals all dimensions of a client’s financial personality.
A partnership between behavioral analytics that reveal personality and big data offers financial advisors a significant key to identifying clients and delivering accurate advice.

As quickly as Big Data mining was the key to understanding customers now the added requirement is for financial advisors to be able to use cognitive and analytics to understand their clients.

 

Hugh Massie

 

Gauthier Vincent head of Deloitte’s US Wealth management consulting business is quoted in the Financial Times: Tools that help manage interactions with clients will soon be able to analyze data such as a client’s social media activity to work out their investment goals and advisers are thinking. There’s a lot of info out there I would love to have to create rich profiles of prospects so I can increase the odds of success when I [contact] them.

Well said – but Big Data will only ever become a significant tool for financial advisors when it shares its platform with a financial personality discovery process such as Financial DNA.

To learn more, please speak with one of our DNA Behavior Specialists (LiveChat), email inquiries@dnabehavior.com, or visit DNA Behavior.

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When ‘Brilliant’ Is Not Enough

The New York Times covers several aspects of the Uber CEO Travis Kalanick’s demise. It references the culture in the organization, speed of growth, shareholder concerns, and the aggressiveness of the leader.

In specific, it highlights Kalanick’s pattern of risk taking and references his lack of integrity. For example, the many years where Uber engaged in a worldwide program to deceive authorities in markets where its low-cost ride-hailing service was resisted by law enforcement or, in some instances, had been banned.

In other reads, Kalanick’s unhinged confidence and competitiveness are hailed as examples of what makes him such a brilliant entrepreneur. Yet he is prone to trash-talking and tantrums, further revealing that his position as a CEO/Manager is highly suspect.

These observations highlight the fact that he is not self-aware and will continue to simply get in the way of his own success. Had he been behaviorally smart, he would have known that while entrepreneurs clearly need the talent to start a business, they also need much more to grow into successful CEO/Managers.

Kalanick says this about himself, “I must fundamentally change as a leader and grow up.”

But when an entrepreneur has a pattern of risk-taking and lack of integrity then continues to present himself as bullet-proof, the behavior results in poor management. This is where genius can become insanity and entrepreneurship crosses over into illicit behavior.

Entrepreneur1

No single personality type makes up an entrepreneur – but there are wise steps that can be taken to manage the talents required to be a successful one. For example:

  • Managing creativity
  • Managing risk-taking
  • Developing innovation
  • Understanding personal EQ
  • Working with and through people

Highly innovative and creative individuals who see themselves as entrepreneurs (defined by Dictionary.com as those who identify a need—independent of product, service, industry or market) should take seriously the need to understand their personality before venturing into starting a business.

The DNA Behavior Natural Discovery Process is a highly-validated discovery platform that predicts behavioral responses through identifying personality traits, attitudes about money, risk tolerances, and behavioral biases. Independent research shows DNA Behavior’s behavioral intelligence solutions lead to:

  • Closing the 60% engagement black hole caused by the relationship gaps in employee and client interactions
  • Increasing the suitability of client solutions offered to 99.75%
  • Improved employee productivity by up to 40% and increased revenue by over 23% a year
  • Identifying the 5% of employees who are potentially rogue, costing 5% of revenue in losses per year

As Travis Kalanick mourns his ignominious fall from grace, one thing is for sure – when he starts a new venture (and he will) his first step should be to understand how to manage his behaviors. And maybe then he can begin to understand why he thought the number one commandment he set for Uber employees was – Always Be Hustlin. Not the smartest of values to build a business upon, but a very clear indicator of the person who birthed the phrase.

To learn more, please speak with one of our DNA Behavior Specialists (LiveChat), email inquiries@dnabehavior.com, or visit DNA Behavior.

Going Your Own Way on Blackboard

Fix or Finesse: Your Culture Needs Attention

Every organization has a culture – as a leader you need to know whether the culture is healthy or not. Toxic culture must be addressed but so should healthy culture to see if it needs tweaking.

Changing the culture in an organization can be a nightmare for a leader. If a change in leadership is because of a poor performing business, it can become incredibly frustrating for a new CEO to have to sideline results to focus on changing the culture.

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But here’s a thought; what is your culture? Would it stand up to scrutiny? Are your values open to scrutiny both in your personal and business life?

Investopedia defines Corporate Culture as “the beliefs and behaviors that determine how a company’s employees and management interact and handle outside business transactions. Often, corporate culture is implied, not expressly defined, and develops organically over time from the cumulative traits of the people the company hires.”

Success comes from understanding the behaviors and motivations of the people. Only then can cultural change have a hope of succeeding. Using a highly-validated discovery such as DNA Behavior Natural Discovery process, leaders can identify, in advance, the people’s ability to cope with cultural change and how it should be introduced and communicated. Only then can CEOs know that whatever they introduce will work.

Culture change requires strong, focused, versatile and decisive leadership. A person’s performance needs to be addressed in relation to their behaviors and personality, not necessarily to their ability. Knowing an individual’s personality traits in advance, and how, or if, they fit the proposed organizational culture and values, can make all the difference in terms of the success or failure of the proposed changes.

There are several keys for CEOs that will support their cultural change efforts.

  1. If no one is talking and boasting about the culture of the organization, it’s a sure sign there isn’t one, or if there is, it’s toxic.
  2. It starts at the top – often said, but rarely practiced. A leader who knows their own personality, their EQ, their communication style, their bias (yes, we all have them) and their own personal values, are more likely to be able to introduce cultural change than a leader who does not have this insight.
  3. Measure the current culture – maybe not everything needs to change.
  4. The use of a validated personality discovery process can quickly identify those able to manage cultural change and who are behaviorally smart enough to capture culture and vision quickly and run with it.
  5. Data that delivers accurate information about people can identify quickly those who can be used as ambassadors to manage the introduction of cultural change. (And it won’t always be the obvious employees)
  6. Hiring – audit your hiring processes – introduce a validated personality profiling system. Set a hiring benchmark. Don’t settle for second best. Re-training existing employees could be a more effective option.
  7. When introducing a cultural change training program, keep auditing it to ensure it’s relevant and working.
  8. CEOs – it’s important not underestimate the power of your regular communication with the business. Use your communication to acknowledge the people who have disproportionate influence in the organization and are working with you to introduce the cultural change.
  9. If there are hot spots and resistance to the cultural change, name and shame them.
  10. CEOs – remember to create a vision of what the future for the organization looks like after the cultural change.

In conclusion – here’s the prize: as the culture develops and individuals take responsibility for what happens in their work areas, problems are solved where they happen and by those affected. This frees up leadership to focus on the business and its opportunities.

To learn more, please speak with one of our DNA Behavior Specialists (LiveChat), email inquiries@dnabehavior.com, or visit DNA Behavior.

 

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What We’ve Learned From Bad Actors

As the debate around extreme vetting heightens in the US, the discussion is shifting from border controls to hiring practices. Many businesses are looking to improve their service offering through requiring hiring agents to identify, in advance, behaviors that could potentially bring down an organization. There have been too many examples over the years of rogue behavior, particularly in the financial sector, causing havoc and destruction to businesses and their customers. To name but a few:

  • Madoff
  • Lehman
  • Forbes
  • Corzine
  • Fannie Mae

Gone are the days when talent alone gets you a job. While this approach served organizations well in the past, Hirers are now being tasked with vetting for values; for indicators of malevolent behavior under pressure; for approach to money; for bias; for candidates, whose behavior is consistent with the organization’s beliefs, values and culture.

For example: In response to the many problems faced by the financial industry, FINRA set regulations in place to counter the growing numbers of cases involving illegal behavior on the part of executives in the industry. It stipulated that in addition to its normal oversight, it would be looking at:

  1. How businesses communicate and reinforce its culture directly, implicitly and through its reward system.
  2. What metrics are used to measure compliance with its cultural values?
  3. Implementation and consistent application of values throughout the organization.

HR departments, hiring organizations and executive search consultants are now under pressure to introduce #extremevetting using validated methods such as the DNA Behavior Natural Discovery Process, to reveal a range of behavioral strengths and limitations. Employers need HR departments and recruiters to get below the surface of candidates to reveal the behaviors that cannot easily be revealed through questioning. Employers are demanding a holistic personality approach, not just a range of complex questions and resumes to be the tools for selection, nor scanning their social media for clues.

While Big Data has a place, it cannot provide insight into the actual personality of individual prospective hires. People are unique; how they communicate, interact with each other, respond under pressure, manage their emotions, each of these will be different. Whatever the approach to building a picture of a candidate, a validated behavioral insights discovery procedure, such as the DNA Behavior Natural Discovery process provides 91% accuracy.

The cost of a bad hire is not the only driver of employers, the growing concern is will this employee fit the values and culture, or bring down my business? Further, recruitment agencies and executive search organizations are concerned with protecting the integrity of their own business by requiring clients to fit the role in terms of both skills and personality.

Many are now turning to the application of behavioral insights not just with candidates, but also through administering the DNA Behavior Discovery process with the client.

Recruiters assess the manager and culture of the organization to ensure their selected candidates are not just suitable for posts, not just a good fit, but that they know in advance how to communicate with managers and understand the values and culture of the organization.

Behaviorally smart organizations, whether recruiters or employers, define their values in cultural terms. And they now require interview processes to focus on whether the new hires will fit the desired culture without a steep learning curve to get up to speed. So, not just in terms of a candidate’s performance but their individual values and understanding of culture must align as well.

This #extremevetting approach when partnered with DNA Behavior and their Behavioral Intelligence Solutions is a behaviorally smart first step in the hiring process.

To learn more, please speak with one of our DNA Behavior Specialists (LiveChat), email inquiries@dnabehavior.com, or visit DNA Behavior.