Hiring / Recruitment

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Investment Committees through the Behavioral Intelligence Lens

Most investment committees have a very clear mission: Serve as stewards for assets of the organization they represent.

Recruiting the right people to do that is critical to the success of the Investment Committee. But how do we define “right”? Is it a professional background? Education? Investment knowledge? And where does the diversity lens come in, if at all? What about their inherent risk-tolerance and behavioral biases toward investments?

In a study by Vanguard’s Vanguard Investment Counseling & Research on Group Decision Making for Investment Committees, there are definitely biases (both investment behavioral biases and workplace behavioral style differences) that should be considered when forming a committee with such important responsibilities in an organization.

Group Decision Making for Investment Committees Source: Vanguard Research

Most investment committees focus on five critical decision-making areas:

  1. Establishing goals or objectives for the investment portfolio they are managing.
  2. Setting an investment policy-on everything from strategic asset allocation to rebalancing policy to performance metrics.
  3. Selecting managers to implement the portfolio’s investment policy.
  4. Evaluating short- and long-term investment performance-both for the portfolio and for individual managers.
  5. Selecting experts (e.g., a consultant) to guide the committee as necessary.

As you think about how your committee recruits and selects new members, are you making the most of the opportunity to broaden the search to include those who would bring a diverse and beneficial perspective to the group?

As the research shows, this can lead to a more effective team and, in turn, a better outcome for the committee’s main mission.

Using a Behavioral Finance approach can shed light on the risk-tolerance and behavioral bias of the Investment Committee Members who may possibly be more wired for a Newness Bias or the More Anchored Bias. There are several behavioral biases that can either create conflict for the Investment Committee or potentially a group-think bias that could create risk for the firm.

In selecting an expert to guide the committee as indicated in bullet point 5 – Selecting an Expert, using a behavioral discovery process can add a dimension of behavioral diversity to the important function of the Investment Committee by ensuring the group can function collaboratively and effectively while also preventing “Group think.” Find out more on using Behavioral Intelligence and how to recruit the right behavioral fit for this important role in the organization.

Millennial Stereotype Backlash2

Millennial Stereotype Backlash

Millennials number 83.1 million and represent more than one-quarter of the nation’s population. Source: 2015 U.S. Census Bureau.

Millennials have been variously described as enthusiastic, adaptable, entrepreneurial and skilled multitaskers – and as lazy, entitled and unmanageable job hoppers. What seems to have escaped the modern media machine in its zeal to define this influential generation is that they don’t appreciate being shoehorned and typecast. Particularly when it comes to the thing employers have come to count on them for facilitating technology’s integration into the workplace. They’re beginning to abhor working in a virtual vacuum. SOURCE: Chris Plummer in Ozy.

There are all sorts of ramifications to thinking that the Millennial generation is markedly different from every generation that has gone before them. Nothing could be further from the truth. The way they do life, their preferred social and living settings, their skills, attitudes and environment may be different, but the key is that people’s inherent behavior and talents are hard-wired. They remain the same regardless of generation.

In their report, “The Millennial Consumer Debunking Stereotypes,” the Boston Consulting Group highlights the following:

Not your typical Millennial: Disparate Personalities US Millennials are by no means homogeneous .understanding and recognizing these distinct segments and their nuances is essential for companies that hope to develop effective product offerings, marketing campaigns, channel strategies, and messaging. A one size fits all effort will fail to connect with every millennial segment.SOURCE

To support this thought, BCG offers the following graph and shows the segments into which they have placed millennials according to their responses to their survey.

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These responses go some way to revealing behaviors that demonstrate millennials are not and cannot be standardized.

Don’t just hire and manage Millennials – lead them. If ever a generation could benefit from the wisdom held by older generations it’s this one. This relationship, if handled well, could significantly change the way we do business. We have so much to learn from each other. Take position out of the equation and build great relationships and teams. Mix the generations. The only difference between your Millennial employees and the older ones is their digital proficiency. They don’t know anything different.

To Millennials, it’s normal to use mobile and social technologies. Where else would you go to access data, find out the latest ideas and trends, build networks, and share experiences.

Fundamentally, generations never change. They are born with inherent behaviors. A person’s natural instinctive behaviors are hard-wired into the brain based on genetics and their very early life experiences in the first 3 years of life. Research shows the neural pathways in the brain become substantially set by the time a person is 3 years old, and this is when their natural instinctive style is set. Of course, a person’s behavior in particular circumstances may change or be adapted based on experiences, education, values, and circumstances. However, such temporary behavioral shifts will be based on situational modification and are not hard-wired.

The generations are not so different:

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The Millennials are no different to any other grouping. If you want to attract them, focus on getting to know them and understanding what drives their decision-making. The vehicle they use to do business is inevitably going to change, but the essence of who they are and how they want to be treated will be no different from any other group.

Says TIME writer, Joel Stein, “millennials are just adapting quickly to a world undergoing rapid technological change they’re optimistic, they’re confident, and they’re pragmatic at a time when it can be difficult just to get by.” Source

Don’t shy away from hiring Millennials. Don’t be persuaded by negative press.

  • Some are positive and confident and know they can take on the world.
  • Others seek structure and look to leadership to provide a clear vision.
  • Still more want to be taken seriously and have a chance to share their thoughts and ideas.
  • Many want to be part of a team, but many others prefer to work alone.

How, I wonder, is that so very different from past and present work environments in which we see ourselves? Well, the truth is, it isn’t. The key is to reveal and understand inherent hard-wired behaviors. This insight will deliver a fundamental shift in thinking and enable organizations to focus on the relationship management across generations. In addition, this approach will deliver understanding into how businesses can “know, engage and grow” their clients and customers to provide customized life-long experiences that increase sustainable performance.

Millennials represent the first wave of digital natives to enter the workforce, and this does distinguish them. Organizations that have embarked on their own transformation urgently need this digital capital. They should eagerly look for ways to embrace Millennials and create the work environments where top talent can flourish across all generations. This will require nuanced strategies that reflect the reality of a multigenerational workforce: employees of all ages are complex individuals working in an environment that’s becoming more virtual, more diverse and more volatile by the day. SOURCE: Myths, exaggerations, and uncomfortable truths. The real story behind Millennials in the workplace IBM Institute for Business Value. Source

As a baby boomer, I say let’s embrace Millennials. They keep us up-to-date on anything happening in the world. They have opinions about our nation and the world. Let’s get to know them in a way that uncovers the treasure trove of talents they have. Let’s begin by accepting that every person, regardless of age, has hard-wired inherent behaviors all of which have a place in building a successful business.

To better understand each person’s unique Natural Behavior talents and how to maximize their value to your business, contact inquiries@dnabehavior.com for a free trial.

What Makes a Great Boss?

The ability of a leader to engage their team is a hot topic these days. The pressure of getting results can often make it difficult to do. Further, typically, many of the people in leadership positions are naturally results oriented people in their behavioral style. You do not see as many leaders who are naturally relationship oriented.

So, the key is how do the results oriented leaders adapt and engage their team on a relationship basis?

What Makes a Great BossA key to this is that the leader firstly understands their own strengths and struggles, and then knows the same of their team members. The team members need to feel understood and be managed uniquely, which means the leader has to adapt. This is what provides the more customized work place experience. The team will then feel appreciated and connected with.

However, there are many more things leaders have to do to in terms of their approach to leadership beyond behavioral awareness. Although, a behaviorally aware leader will more naturally be able to manage his or her team respectfully and meaningfully.

The following article in Inc magazine provides a great list of 10 things bosses can do to engage their employees once they have behavioral awareness – Click Here to Read the article.

The ability of a leader to engage their team is a hot topic these days. The pressure of getting results can often make it difficult to do. Further, typically, many of the people in leadership positions are naturally results oriented people in their behavioral style. You do not see as many leaders who are naturally relationship oriented.

So, the key is how do the results oriented leaders adapt and engage their team on a relationship basis?

A key to this is that the leader firstly understands their own strengths and struggles, and then knows the same of their team members. The team members need to feel understood and be managed uniquely, which means the leader has to adapt. This is what provides the more customized work place experience. The team will then feel appreciated and connected with.

However, there are many more things leaders have to do to in terms of their approach to leadership beyond behavioral awareness. Although, a behaviorally aware leader will more naturally be able to manage his or her team respectfully and meaningfully.

The following article in Inc magazine provides a great list of 10 things bosses can do to engage their employees once they have behavioral awareness: http://www.inc.com/jeff-haden/10-things-extraordinary-bosses-do-for-their-employees.html#!

The ability of a leader to engage their team is a hot topic these days. The pressure of getting results can often make it difficult to do. Further, typically, many of the people in leadership positions are naturally results oriented people in their behavioral style. You do not see as many leaders who are naturally relationship oriented.

So, the key is how do the results oriented leaders adapt and engage their team on a relationship basis?

A key to this is that the leader firstly understands their own strengths and struggles, and then knows the same of their team members. The team members need to feel understood and be managed uniquely, which means the leader has to adapt. This is what provides the more customized work place experience. The team will then feel appreciated and connected with.

However, there are many more things leaders have to do to in terms of their approach to leadership beyond behavioral awareness. Although, a behaviorally aware leader will more naturally be able to manage his or her team respectfully and meaningfully.

The following article in Inc magazine provides a great list of 10 things bosses can do to engage their employees once they have behavioral awareness – Click here to read the article.

5 out of 60 Cause Execution Blockages

As a leader have you ever looked into your business to discover where the execution blockages are? If you have done this, did you pinpoint the exact blockage points?

Of course, the blockage points are with specific people on your team or in the broader business. There only needs to be one square peg in a round hole for there to be a problem. It does not need to be many people out of place. However, it is often difficult to objectively see who is causing the blockages.

Last week we did an organizational review of a company with 60 employees. Our starting point was to have each employee complete their Business DNA Natural Behavior Discovery. Then we were able to apply talent benchmarks for each role to determine the optimal fit of each person. Our initial external view was that 5 people performing leadership and sales roles were a poor fit.

The leader then confirmed that these 5 people were performing below the required level and in one case a business unit was significantly under achieving its goals. The good news is that the problems were identified and a plan was developed to assign these valuable people to other roles whilst maintaining engagement.

To learn more about the processes you can use to increase employee engagement, please visit www.businessdnaresources.com or email inquiries@dnabehavior.com.

Management Principle: Misfits

In today’s work environments where staff members are promoted to managers and leaders because they were really good at their craft, we oftentimes miss the most important ingredient as to whether they can truly be successful in their new role. Do they really understand how to manage and motivate people? If the answer is “no,” then they may not be ready for the assignment. I hope you like today’s principle on misfits.

DNA Advisor Performance

Misfits. As organizational leaders, we observe people that are difficult to work with and conclude that we have “the wrong people on the bus.” And while that’s always a possibility, it’s not likely that this condition exists to the degree it’s claimed. If we match a person’s assessment results with job requirements, and complete the Human Resource vetting process, it’s more likely that there are other factors at play. Rather than punt and change out team members, professional leaders will discern the staff member’s needs and then methodically manage to cultivate for the right results. The process starts by understanding the strengths and struggles of human nature, and, by being familiar with the many different personality profiles. Effective leaders will then match the styles of their employees which yields genuine influence. Applying proper human incentive systems will cause a staff member to grow and take full responsibility for their domains with improved judgment and insight. Successful executives are those with the patience and determination to develop those who work under their care, converting misfits to champions.

Coaching questions: How many among your staff would you say are misfits? How can you more fully cultivate their behaviors to produce organizational champions?

Read more coaching principles from Dean Harbry on the Internal Innovations website.

Management Principle: Developing Others

Once again I assert that to be a professional manager one has to deviate from normal human behavior to do the right thing. Expecting others to “get it” by telling them what to do is extremely ineffective. However, learning how to skillfully ask the right question, and in a way that promotes thinking, is the most helpful and caring way to assist another person. I hope you like this week’s management principle.

Performance management, build relatonships, improve communication, strengths and struggles, human potential

Developing Others. The two questions I love to ask are: “Who likes to be told what to do?” and, “Whose thinking do you like best?” The unequivocal answers are “No-one,” and “My own!” This human condition creates a problem in the management process. The dilemma–how do we provide guidance and instruction for our staff in a way that they will adopt, favor and own the input? It’s guaranteed that if you are a telling boss, people will resist you. If you are a suggesting boss, they won’t respect or take you seriously. Those with true professional management skills know how to make people “think it” long before they have to say it. It’s a process of developing others through learner-based questions in a spirit of discovery. The amateur will say it takes too much time, but they will waste time and emotional energy by answering the same questions over and over again. Changing people won’t cure the problem-it’s an issue of management style. Good questions promote dialog, while bad questions tend to be interrogative in nature and shut down debate.

Coaching questions: How often do you use discovery-based questions to develop your staff? How can you improve?

Read more coaching principles from Dean Harbry on the Internal Innovations website.