CEOs in Crisis: The Influence of Leaders’ Performance Risks (Part 2)

Posted by Hogan Assessments on Fri, Sep 25, 2020

influence of Leaders’ Performance Risks

Some personality traits can pose risks to companies’ success. These traits, which Hogan calls derailers, tend to arise when people are stressed, fatigued, or bored (that is, when we do not exercise self-control). These are the most challenging elements of personality to work with, and they are the most damaging to our careers. Because crises such as the one we are currently experiencing cause almost constant stress, these characteristics are particularly notable right now.

The Leader in Times of Crisis Program

The Hogan Development Survey, or HDS, measures the 11 aspects of personality that can derail performance during times like these. As part of the Leader in Times of Crisis program, Hogan’s strategic partner Thuoper collaborated with the Bogotá Chamber of Commerce to study the personality traits of more than 200 CEOs in Colombia. The program’s main objective was help leaders achieve a higher level of strategic self-awareness, understand how to manage the crisis, and emerge stronger than before.

As part of the program, the CEOs completed Hogan’s personality tests — the Hogan Personality Inventory, the Hogan Development Survey, and the Motives, Values, Preferences Inventory — and attended a webinar during which Liliana López, CEO of Thuoper and expert in organizational leadership, explained the methodology and key personality characteristics for handling crisis effectively.

Subsequently, Thuoper’s research and development team analyzed the CEOs’ personality test results and found important patterns between their results and their companies’ economic sectors. This article, the second in a three-part series, will focus on how the CEOs scored on the HDS.

Financial

In the financial sector, we found that the greatest risk involves behaviors associated with the Colorful scale. People who score high on this scale seem gregarious, entertaining, and jovial, and they enjoy being the center of attention. The crucial risk with this scale lies in a tendency to exaggerate the facts and, as a consequence, create panic in the team. As is evident, this characteristic can be disastrous in a sector as delicate and with as much social impact as this.

Industrial

Among CEOs in the industrial sector, we found two main risk factors: Excitable and Reserved. People who score high on the Excitable scale work with passion and enthusiasm, but they can also become easily frustrated, irritated, upset, and inclined to abandon projects or remove support from people. The main problem is difficulty with emotional self-control, which can lead to hurt relationships or put projects, processes, or ideas at risk when they do not go as expected. An industrial sector CEO with these characteristics may have difficulties managing the current situation and effectively leading a team.

Those who score high on the Reserved scale, on the other hand, may appear mentally strong, distant, and unconcerned for other people’s feelings. For leadership to be effective, regular communication with the team (especially in critical circumstances) is essential, and CEOs who are high on the Reserved scale might tend to cut this communication under stress.

Health

The results from the health sector were very interesting. We found three primary risk factors: Bold, Mischievous, and Diligent. High scorers on the Bold scale tend to appear confident, fearless, self-promoting, and unable to admit mistakes or learn from experience. Obviously this is a very high-risk scale for this sector because the ability to learn from experience and correct mistakes is required (and to correct them, you must first admit them).

The Mischievous scale refers to seeming bright, charming, adventurous, risk inclined, and limit testing. If we look at it from this perspective, it can seem positive for this high-pressure sector. However, the risk factor lies in exceeding the limits and overlooking security protocols or basic nonnegotiable principles.

Finally, high scorers on the Diligent scale appear to be hardworking and detail oriented, with high performance standards for themselves and others. Like the Mischievous scale, this may sound positive; however, the risk factor is reflected in “paralysis” behaviors. That is, when this trait arises, the leader (or the team, under the leader’s direction) might not produce the necessary results, because they are not ideal.

Services

CEOs in the services sector also tended to score high on the Bold and Mischievous scales. Obviously, it will always be a risk to have difficulty with accepting feedback or with owning mistakes (Bold) and the possibility of blurring the limits in every sense of the word (Mischievous).

Technology

Technology sector CEOs tended to have high scores on the Bold and Imaginative scales. As it may be evident, arrogance is one of the most common personality traits of people under stress. The Imaginative scale refers to appearing innovative, creative, possibly eccentric, and sometimes self-focused. The risk factor stems from behaviors such as difficulty landing or executing ideas and difficulty communicating in a practical and easily understandable way. In circumstances like these, it is of great importance to work from practicality, because theorizing, analyzing, thinking and rethinking projects will not monetize what little you can.

Textiles

In the textiles sector, the Leisurely scale is the main risk. This refers to appearing friendly and cooperative but actually acting on personal priorities while resisting the priorities of others in a passive but stubborn way. Real and open synergy is a necessary condition for the survival of teams and companies, and behaviors such as being privately uncooperative can put synergy at risk. For leadership to be effective, it is important to control these types of scenarios.

Transportation

Turning to the transportation sector, we found behaviors associated with the Colorful scale to be the main risk factor. Just as in the financial sector, a high score on this scale can be a double-edged sword that leads to making one-sided decisions or generating panic in teams.

Tourism

Finally, in the tourism sector, we identified three main derailers: Cautious, Bold, and Diligent. The Cautious scale measures risk aversion, fear of failure, and avoidance of criticism. This scale can be challenging because it can lead to difficulties in making risky decisions or decisions without all the necessary information (which is every day in these new conditions).

It is important to emphasize that these are behaviors that arise only under stress, tiredness, or boredom, and do not determine leadership skills, but they can negatively influence results (both human and financial).

Please look out for the third installment of this series to learn about the motivators and values ​​of these CEOs.

*This post was authored by Sara Ruiz, Research and Development Talent Management Model Lead at THUOPER, Hogan’s authorized distributor in Colombia.

Topics: leadership development

Staying Creative in a Virtual World

Posted by Hogan Assessments on Tue, Sep 15, 2020

Staying Creative in a Virtual World

“Creativity is intelligence having fun” -Albert Einstein

Globally, since the pandemic began, we are working more hours, engaged in more meetings, sending even more emails, and finding the performance-like nature of video calls exhausting.  As many of us adapt to new environments, it can be difficult to find the time or energy for creativity. However, creativity is what’s needed most if our businesses and organizations are going to survive.

Creative leadership is one of the most critical and sought-after skills for leading in uncertain times. Read on for four tips to get you started in unleashing the creativity of you and your team in a virtual world.

#1  Rely on your Strengths

You don’t need to be a creative person to nurture a creative environment. The Leadership Forecast Series can help you identify your personal leadership strengths; and all of those strengths can be used to drive creativity on your team. Perhaps you are known for creating detailed and organized processes. If so, ensure your process contains a window for creative ideas that positively impact the overall result. Perhaps you’re a great listener. Set up a virtual listening tour with consumers, employees, or other stakeholders to gather their ideas on how to solve a challenging problem. Building a creative environment requires prioritizing creativity, not just being creative. Use the strengths you have to nurture a creative environment and outcome.

#2  Ask For It

When we need a higher degree of innovation, one strategy we can employ is to ensure we have creative people on the team. Hogan has identified a set of personality characteristics that are most likely to contribute to innovation. While people are one element, so is permissibility.  Studies have shown that simply asking people to be more creative can increase the number of ideas they produce. In a virtual world, along with asking for it, you need to create space. Some organizations are setting defined meeting hours, eliminating Friday meetings, or eliminating the video component to reduce exhaustion – specifically to give people more space and time to lean in on creativity. If creativity is needed for your team to win, you’ll need to value it and prioritize it. That means asking for it, setting clear goals, ensuring people have the time, and rewarding it when you see it.

#3   Get Out…

…of the house that is. The pandemic has many of us spending more time indoors than usual. However, research shows that a change of scenery and doing nothing are critical for creative thinking. Take control of your virtual environment by scheduling time to get out of the house for walks, gardening, or just sitting on the steps. Time doing nothing isn’t time wasted. It’s actually when the best ideas are formulated and stirred. The Institute for Advanced Studies, known for numerous scientific breakthroughs and a place where Albert Einstein spent a great deal of time on faculty, is known for nurturing creativity. They describe their environment as “simple…comfortable…quiet…and [full of] tranquility.”  If that doesn’t sound like your work environment, find time every day to create that level of quiet and tranquility for yourself, and encourage your team to do the same.

#4   Honor Your Curiosity

Nurture your creativity by following your curiosity. A new idea may not present itself in a fully formed state. Instead, it often starts out as a curiosity that leads to a path of innovation. So next time you are curious about something, honor it by following it. As kids we did this instinctually. We followed whatever was interesting at the moment. As we mature, many of us learn to ignore our curiosities in service to efficiency and productivity. “I don’t have time to look into that – I have to complete Project X.”  While that may be true, at least write down your curiosities when you have them so you can fully explore them later. Ignoring them may be ignoring the beginning of your next and most important innovation – for you or your business.

*This post was authored by Arlene Pace Green, Ph.D. – Executive Coach & Consultant, Enelra Talent Solutions, LLC, and member of the Hogan Coaching Network.

Topics: personality

Six Safety-Conscious Personality Traits for the Post-COVID Workplace

Posted by Hogan Assessments on Thu, Sep 10, 2020

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With many workers returning to their offices, preventing the spread of COVID-19 and protecting employee health is a top priority for business leaders. While initiatives like enhanced sanitation and social distancing policies are a must, the biggest threat to workplace health and safety is often overlooked by managers—recruiting safety-conscious staff.

The Hogan Safety Report, which scores candidates on several components of safety-conscious behavior, has identified six personality traits that recruiters should look for in new candidates.

Compliant

The Compliant scale measures a candidate’s willingness to follow rules and guidelines. Those scoring highly here follow rules effortlessly and tend to adhere closely to instructions set out by management. In the post-COVID workspace, it is important to have team members who respect new health and safety policies without exception. Compliant individuals are reliable and thoughtful additions to the team, following instructions closely to protect their own health and the health of their team.

Strong

People make mistakes when they are under pressure. Protective measures like social distancing are new concepts in the workplace, so employees will need to stay alert and maintain safety standards – even under stress. When it comes to health and safety, even small mishaps like forgetting to wipe surfaces can have a tremendous impact on others. High scorers on the Strong scale remain steady and composed under pressure and can navigate stressful situations without compromising on health and safety.

Poised

The Poised scale measures an individual’s ability to remain calm and level-headed in adverse situations. High scorers can manage their anger well and are less likely to lose their temper and make mistakes. New health and safety measures like hand-washing and wearing face masks may create obstacles in some professions, making daily activities more challenging at first. It is important to hire individuals who are well-equipped to deal with small ‘nuisances’ calmly without becoming frustrated and careless.

Vigilant 

The Vigilant scale is a robust predictor of safety-conscious behavior in candidates. Vigilant individuals are focused workers and are not easily distracted by their surroundings. Individuals that are concise and attentive to details are less likely to make mistakes that place their team at risk, which makes them valuable in the post-COVID workspace.

Cautious

The Cautious scale measures an individual’s risk-taking tendencies. Cautious scorers make sure to pause and evaluate their options before making risky decisions. Now more than ever, people are being encouraged to think twice about everyday activities and interactions, like shaking hands, to mitigate the risk of spreading COVID-19. Leaders will benefit greatly from hiring cautious and considerate candidates who think twice about how their actions impact their entire team.

Trainable

Finally, it is important to note that when faced with great change, humans make mistakes. As businesses reopen, the post-COVID workplace will present many new challenges for workers and training will be necessary. Trainable candidates are receptive to feedback and easily coached on new initiatives. Having team members who enjoy learning and are willing to correct their mistakes and take advice will be an asset to leaders moving forward. Trainable candidates will make the most out of this new approach to work and will be a positive and uplifting addition to the team.

“Unsafe employee behaviors can have many negative impacts on businesses, costing them billions and placing the health and safety of fellow employees at risk” says now-former Hogan CEO Scott Gregory. “This is particularly salient in a post-COVID business climate, where occupational health and safety is a major concern for employees and business leaders alike. When the health of your business and the general public is at stake, it is time to ensure you are hiring and coaching employees who will be attentive to their own, their co-workers’, and their customers’ safety. The key to this lies in personality.”

Topics: personality

How to Use Existing Resources to Address Difficult People Issues

Posted by Hogan Assessments on Wed, Aug 26, 2020

Difficult People Issues

Many of our clients use Hogan Assessments to support selection and talent development programs. Due to the pandemic, however, selection has (understandably) been cut back dramatically. Now, HR teams have to focus on more difficult people issues while learning and development programs may be put on hold.

However, we still speak to HR professionals and coaches on a daily basis about support for different types of people initiatives. Not surprisingly, at a time when leaders are making decisions in high-pressure circumstances, and with budgets tighter than ever, addressing difficult people issues is extra complicated. As a result, we are keen to encourage clients to use valuable resources that are already available to them.

Many have not thought about using existing resources to support pressing, often unavoidable interventions. Here are three of the most common situations where we have been able to recommend organizations take another look at the Hogan Assessment data they already hold.

Leaders Under Pressure

The last three months have caused unprecedented stress for those in senior positions, who have had to balance the future survival of their organizations with the welfare and motivation of their workforces. Many leaders are showing signs of derailers, or performance risks, which are starting to impede their effectiveness and create problems with relationships. But we have also seen many leaders who appear to thrive despite what is happening because they see present problems as new and interesting challenges. Revisiting Hogan Development Survey (HDS) scores can provide real insight for leaders about how their natural coping mechanisms may be showing up and help identify strategies to manage them.

Virtual Teams

While there was already a push to more remote working and less travel, teams meeting virtually with little or no face-to-face contact have increased exponentially. Some people enjoy the independence, while others miss the close collaboration. Some teams must completely adapt how they work to stand still, let alone become high performing. Collective Hogan data can help teams understand their collective strengths and skill gaps; how they are likely to communicate, innovate, and adapt; and how their culture and values might influence their approach.

Organizational Restructuring

We have been hearing about more cases of downsizing and mergers of departments and functions, which mean people are being displaced and roles are disappearing. Existing Hogan results can serve as additional objective data during times of difficult decisions. Hogan results provide information to help identify candidates who will be best placed to succeed in new roles with changed responsibilities and requirements. For those who find themselves in the really unfortunate position of losing their jobs, Hogan profiles can be used to support outplacement by helping to identify how people work through the emotional rollercoaster and by highlighting roles and environments that are likely to play to their strengths and values in future.

While the dynamics and focus may have changed, HR professionals and coaches are still supporting people on a daily basis. Hogan’s suite of tools identifies how people are likely to show up at their best and, in times of pressure, at their worst — providing insights during difficult, ambiguous, and complex times. It’s time to take another look at existing Hogan reports.

*This post was authored by Melvyn Payne, Commercial Director for Advanced People Strategies.

Topics: personality

CEOs in Crisis: The Influence of Leaders’ Everyday Strengths (Part 1)

Posted by Hogan Assessments on Thu, Aug 13, 2020

The Influence of Leaders’ Everyday Strengths

The new realities shaped by the disruptive and complex moment we are experiencing are completely different for each organization. This situation is forcing some companies to completely reinvent themselves, while others are unable to operate as needed. Others (the least common group, especially in Colombia) are seeing turnover grow at unexpected levels. The personality characteristics of the CEOs of the companies influence the consequences that each of the companies is experiencing as a result of the pandemic.

The Leader in Times of Crisis Program

In alliance with the Bogota Chamber of Commerce, Thuoper, one of Hogan’s strategic partners, built the Leader in Times of Crisis program to study the personality traits of more than 200 CEOs in Colombia. The program’s main objective was help leaders achieve a higher level of strategic self-awareness, understand how to manage the crisis, and emerge stronger than before.

As part of the program, the CEOs completed Hogan’s personality tests — the Hogan Personality Inventory, the Hogan Development Survey, and the Motives, Values, Preferences Inventory — and attended a webinar during which Liliana López, CEO of Thuoper and expert in organizational leadership, explained the methodology and key personality characteristics for handling crisis effectively.

Subsequently, Thuoper’s research and development team analyzed the CEOs’ personality test results and found important patterns between their results and their companies’ economic sectors. This article, the first in a three-part series, will focus on how the CEOs scored on the Hogan Personality Inventory, or HPI, which evaluates seven aspects of personality that tend to appear during everyday situations.

Financial

Among CEOs in the financial sector, we saw a pattern involving the Sociability and Inquisitive scales. Sociability refers to interest in frequent and varied social interaction — these are leaders who facilitate and promote communication and socialization in virtual spaces with their teams. Inquisitive refers to creativity and openness to new ideas, which is highly positive for this sector, as the sector is typically rigid without much change. This shows that they are leaders willing to rethink the way they do business and create new strategies different from the traditional ones.

Industrial

In the industrial sector, CEOs scored similarly on the Prudence, Inquisitive, and Learning Approach scales. Prudence has to do with self-control, being conscientious, and having a good work ethic. The CEOs’ overall results demonstrate that they can make good decisions guided by planning and structure, while balancing flexibility and challenging traditional paradigms. The Learning Approach scale describes a person’s learning style. In these particular results, CEOs demonstrate a good balance between learning through practical experience, which is key during times of uncertainty, and an interest in learning in academic spaces, which today are virtual. Curiosity, one of the characteristics measured by the Inquisitive scale, also plays a key role in this sector due to the creativity and willingness to rethink problems that this crisis requires.

Health

We found that Interpersonal Sensitivity, Prudence, and Learning Approach were the scales on which CEOs in the health sector scored highest. It is not a surprise to find that the Interpersonal Sensitivity scale appeared in this sector. This scale measures warmth and social ability, which are of great importance during this difficult time for humanity. Our analysis shows that CEOs of companies in this sector have the ability to transmit these skills as values ​​within their organizations.

Services

Our findings were equally as interesting within the services sector. We found that the Inquisitive and Adjustment scales prevailed among these CEOs. Adjustment is particularly important during these times, as it has to do with the ability to manage stress, control emotions, and listen to feedback. These results show that these CEOs have the ability to maintain a balance between acting with a sense of urgency, openly listening to feedback from the environment, and managing their emotions in the face of the crisis to avoid creating panic in their companies.

Technology

Technology CEOs’ most notable scores were on the Prudence, Inquisitive, and Interpersonal Sensitivity scales. For this sector, the importance of the Inquisitive scale is highlighted because it is the one that allows the industry to remain at the forefront under realistic and achievable parameters. The scale of Interpersonal Sensitivity is also striking in this sector, as one might think that technology companies would be removed from people and the human factor. This demonstrates the ability of these CEOs to integrate technology and innovation with the human side. From a team perspective, these CEOs should also be able to keep their teams engaged.

Textiles

In the textiles sector, we noticed a pattern in the leaders’ Inquisitive and Interpersonal Sensitivity scores. This sector will be one of the ones that will have to reinvent itself the most, given the new commercial and market conditions caused by the pandemic. Consumer habits are changing, and this turn will be even more marked post-pandemic, so curiosity will help these CEOs design new, nontraditional strategies.

Transportation

Among CEOs in the Transportation sector, scores on the Sociability and Prudence scales prevailed. This sector is one of those that will have significant reinvention challenges since it requires people to be face to face. Sociability will play a crucial role within organizational culture to keep employees involved and connected to each other.

Tourism

Finally, in the tourism sector, we obtained very interesting findings. Given that this is one of the sectors hit hardest by COVID-19, these CEOs are facing challenges never before imagined. We found their Ambition and Adjustment scores to be their main strengths. The Ambition scale predicts leadership, drive, competitiveness, and initiative — which are essential to getting out of a situation as complicated as the one many tourism companies find themselves in. These results indicate a good prognosis. Surely many of these organizations be strong enough to withstand the impact of this crisis once it has passed.

We invite you to stay connected with us for the second part of this series to learn about these CEOs’ behavioral risks, which could derail their companies’ survival goals in this time of crisis.

*This post was authored by Sara Ruiz, Research and Development Talent Management Model Lead at THUOPER, Hogan’s authorized distributor in Colombia.

Topics: leadership development

Accelerating Team Effectiveness in the COVID-19 World

Posted by Hogan Assessments on Thu, Aug 13, 2020

Team Effectiveness

Earlier this year, before the global pandemic, I returned to the office after an extended business trip. When I walked into the building, the environment felt different. The building was the same, the furniture was where it had been before, and my colleagues were still the same lovely people, but the atmosphere felt somewhat unfamiliar. It was because there had been a break in my routine. Humans are creatures of habit — we rely on routines to help us manage our busy schedules, remain productive, and keep us sane. When our routines change, we must adapt, create new strategies, or run the risk of being ineffective, unproductive, or even misaligned.

COVID-19 has significantly impacted team functioning. In our work with organizations during the pandemic, we have observed three common challenges that teams are facing today:

  1. Teams that were once co-located are now dispersed and working virtually.
  2. Teams have lost or added new team members due to layoffs and reorganization.
  3. Teams have been asked to put annual business plans aside and focus efforts on new priorities.

Regardless of the challenge your team is facing, spending time realigning the team’s values and norms, recommitting to desired behaviors, and remaining agile and adaptable can make all the difference in your team’s ability to remain effective and competitive. Spending this time together can help make the unfamiliar feel familiar again.

Accelerating Team Effectiveness

At Hogan, we believe that the following measures can accelerate your team’s long-term effectiveness.

Acknowledge the Impact

  • How has the global pandemic affected you personally?
  • How has the global pandemic affected your team?

Your team must first create a safe space for each member to accept that things have changed and acknowledge the impact that these changes have had, recognizing that the impact will differ for each team member. Additionally, the sudden departure from face-to-face team interactions to operating virtually has likely created challenges that the team must overcome. Be honest about the challenges and reaffirm trust by regularly setting aside time to have open and honest conversations.

Revisit Team Values and the Culture Values Create

  • What did our team culture look like before the pandemic?
  • What does it look like today?
  • What does it need to look like in the future?

Every team member has individual values that guide his or her actions. When most team members share the same values, the team is likely to experience increased cohesion. Values form the basis for the team’s culture and norms; therefore, culture is the sum of what we value. Using data from Hogan’s Motives, Values, Preferences Inventory (MVPI), your team can begin to explore values to determine the impact to the current team culture and discuss the culture the team would like to create in the future. While your individual and team values might not have changed as a result of the pandemic, the ways in which those values are being met might have.

Adjust Team Norms

  • What are our rules for interacting and communicating with one another?
  • What adjustments do we need to make to our team norms?

Over time, teams create norms and behavioral standards that accrue into a team’s culture and reputation. Often these norms operate at the unconscious level, guiding our daily behaviors. Teams operate more effectively when clear and consistent rules guide their interactions and processes. Using data from the Hogan Personality Inventory (HPI), your team can begin to explore behaviors that inform the team’s standards of operating and team culture.

Practice Adaptability

  • How do we need to pivot to meet the needs of the organization?
  • What might get in our way?

Organizations are making dramatic efforts to stay relevant during the global pandemic. Many are expanding parts of their business (e.g., manufacturing) and reskilling talent to support new priorities. Effective organizations and teams need to focus on driving and adapting business strategy to derive competitive advantage. As such, your team must respond to the changing needs of the business by rethinking its goals and priorities. But change can induce stress, and stress can cause counterproductive behaviors to emerge. Using data from the Hogan Development Survey (HDS), your team can begin to explore behaviors that could interfere with the team’s ability to manage change, drive results, and remain agile in the changing business environment.

In summary, given our current environment, it is critical for you to identify any challenges your team is facing. Are you a dispersed team, a newly formed team, or a team facing new or changing priorities? Once you are aware of the challenges, consider how you can apply the concepts we discussed in this blog. You’ll likely find that your team has strengths that can be leveraged and gaps that need to be addressed in order to accelerate effectiveness.

*This post was co-authored by Hogan’s Erin Laxson, Holly Paine Magnuson, and Jessie McClure.

Topics: teams

The Dark Side of Entrepreneurship: Avoiding Personal and Organizational Derailment

Posted by Hogan Assessments on Thu, Aug 13, 2020

Entrepreneurial Personality

Entrepreneurs tend to have a heroic status around the globe — and for good reason. Entrepreneurialism encourages individual proactivity, creativity, and economic vitality, yet a significant number of startups fail for many well-documented reasons. The organizational psychologist in me wonders: What does personality psychology have to say about derailed entrepreneurial enterprises?

As noted, entrepreneurs play a key role in keeping economies competitive. They are known for removing the old and inefficient and replacing it with the new and improved, which suggests that entrepreneurs are creative people. Michael Kirton’s work on creative problem-solving shows how entrepreneurial people often take an innovative approach by questioning assumptions, redefining the problem, and introducing different solutions.

The Dark Side of the Entrepreneurial Personality

But is there a downside to the entrepreneurial personality? In a study examining dark-side personality characteristics, 256 entrepreneurs, who were in the early stages of building technology companies in the United States, completed the Hogan Development Survey (HDS). The results showed that average scores were particularly high for the Leisurely, Mischievous, and Imaginative scales. On the upside, this indicates that others are likely to see entrepreneurs as people who march to the beat of their own drum, are willing to move quickly, break the rules, and think in novel or unusual ways. This aligns nicely with the literature on entrepreneurship and the characteristics of creative people in general. Furthermore, it reconfirms the reputation that entrepreneurs have in the world at large as rebels, disruptors, and innovators.

The HDS predicts how derailment is likely to take shape by pinpointing the Janus faces of positive personality characteristics. Entrepreneurs are likely to have an overemphasized sense of autonomy and a tendency to be stubborn or indifferent (high Leisurely). They are also susceptible to crossing the line that divides constructive rebelliousness from destructive recklessness (high Mischievous). Finally, they can go from proposing original ideas to suggesting ideas that may seem odd or rash (high Imaginative). Just like Icarus of the classic Greek fable, the entrepreneur’s greatest assets can become serious liabilities.

Derailment Among Entrepreneurs

What are the implications of this derailment pattern? The research of economist Danny Miller on the downfall of companies is instructive. Miller, the author of The Icarus Paradox: How Exceptional Companies Bring About Their Own Downfall, shows that when inventive entrepreneurs (he calls them pioneers) are in command, they bring about their own downfalls because they innovate too much and become what he calls escapists. This means a firm’s hot pursuit of technological advancement might lead an entrepreneur to introduce impractical or expensive products. Entrepreneurs are also prone to prematurely making their own offerings obsolete. Additionally, the organizational structure inside these firms can go from organic to chaotic. Miller identifies Minneapolis-based Control Data Corporation as emblematic of the pioneer-to-escapist trajectory. Now broken up, Control Data Corporation once excelled as a designer of supercomputers. Can pioneering entrepreneurs avoid the pull of this beaten downward path?

The first step to avoiding derailment is understanding how you are likely to derail in the first place. Hogan calls this “strategic self-awareness.” The key to self-improvement is understanding how you come across to others when at your best and at your worst. The second step is assembling a team that counteracts your counterproductive behaviors. Adam Lashinsky, author of Inside Apple: How America’s Most Admired—And Secretive—Company Really Works, says that enlightened team building was a pivotal reason for the mercurial Steve Jobs’s successful second tenure. The moral of the story is this: First, seek to understand how you are most likely to overdo your strengths, then seek to build a team with complementary strengths. Too much of a good thing can be a bad thing.

*This is a guest post authored by Jorge Fernandez, a member of the Hogan Coaching Network.

Topics: personality

Survival Skills: Who Will Succeed in the Automated Labor Market?

Posted by Hogan Assessments on Tue, Jul 28, 2020

Characteristics of Successful Employees

Automation has long been altering labor markets and eliminating jobs. Recent research suggests that up to 47% of U.S. jobs are at risk of becoming automated within the next 20 years.1 That percentage varies from country to country, but it consistently falls above the 40% mark. Although automation is largely thought to threaten low-skill jobs, advances in machine learning and artificial intelligence have made advanced-skill jobs, such as contract lawyer or diagnostician, vulnerable.

Companies have focused on reskilling existing employees — and not simply hiring new employees for new skills — for two related reasons. First, recruiting, hiring, and onboarding new employees with in-demand skills is an expensive undertaking. Second, as the rate of technological change increases, the skills companies need also change more quickly. In other words, the skills a company requires today can quickly become obsolete.

Characteristics of Successful Employees

We examined what characteristics help immunize people from technology-driven job loss and what skills experts believe will help people in the future labor market. The former helps identify what draws people to jobs more resistant to automation. The latter helps identify what people need to succeed in a variety of jobs, if needed.

Rodica Damian, PhD, who was part of Hogan’s Distinguished Speaker Series last year, found that people with five characteristics were more likely to choose less automatable jobs: intelligence, maturity (largely Conscientiousness), extraversion, job interests focused on arts and science, and lack of job interests focused on things and people.

The World Bank argues that people need three skills for the upcoming workforce: advanced cognitive skills, sociobehavioral skills (such as interpersonal skills and teamwork), and adaptability.2

The National Research Council’s task force on 21st century work skills identified a similar set of skills: cognitive skills (such as problem solving), interpersonal skills (such as teamwork), and intrapersonal skills (such as adaptability and self-management).3

A large focus of reskilling efforts concern identifying skill gaps that companies can fill using traditional training, such as for data science techniques. Although these types of skills are helpful, the characteristics suggested in our research tend to converge around three relatively stable characteristics: having good interpersonal skills, being able to learn new skills as needed, and being dependable and hardworking. These three characteristics are the basis of the Hogan General Employability Report, which uses decades’ worth of Hogan research to predict successful performance across multiple types of jobs and industries.

Identifying Candidates for Reskilling

When trying to identify people who will be successful when reskilling or transferring to new jobs, we recommend the following:

  • Go with a well-validated assessment – Many of the characteristics companies need are measured by personality or cognitive ability assessments. Understanding how these assessments predict meaningful outcomes helps guarantee you can make meaningful decisions.
  • Use an assessment that’s up-to-date and recently validated – Job characteristics change over time. Working populations change over time. The point of reskilling is to overcome older job characteristics. Recent validation studies help show that an assessment continues to predict performance. Recent norms help you better understand and compare people.
  • Look out for between-group differences – Reskilling or upskilling is an opportunity to give everyone a chance to succeed. A fair assessment can help ensure no group is left behind.

Click here to watch our on-demand webinar, “Future-Proofing Your Talent for Tomorrow’s Workplace.”

*This post was authored by Hogan’s Darin Nei, PhD, and Brandon Ferrell, PhD.

References

  1. Frey, C. B., Osborne, M. (2013). The Future of Employment. Oxford Martin Programme on Technology and Employment. https://www.oxfordmartin.ox.ac.uk/downloads/academic/future-of-employment.pdf
  2. World Bank. (2018). World Development Report 2019: The Changing Nature of Work. doi.org/10.1596/978-1-4648-1328-3
  3. National Research Council (US) Committee on the Assessment of 21st Century Skills. (2011). Assessing 21st Century Skills: Summary of a Workshop. National Academies Press. https://www.ncbi.nlm.nih.gov/books/NBK84218/

Parkinson’s Law in the Age of the Pandemic

Posted by Robert Hogan on Tue, Jul 28, 2020

Parkinson’s Law

C. Northcote Parkinson (1909—1993) was a British naval historian, lecturer, and novelist; he formulated his famous law in an essay in The Economist in 1955. Parkinson’s law was intended to describe the behavior of managers in the British Navy and British government, but it is also a pretty good description of work in most organizations. The July 11th, 2020 issue of The Economist provides an update of Parkinson’s astute generalization about organizational behavior.

The law itself states: “Work expands so as to fill the time available for its completion.” I think there are three psychological explanations for Parkinson’s law. The first is the human tendency to procrastinate, to put off doing things until the last minute. Procrastination itself has several causes including fear of failure, laziness, and, of course, passive aggression (“Don’t rush me!”). But the point is that procrastination is one way to explain Parkinson’s law. A second explanation for Parkinson’s law is the fact that if people complete a task promptly, they risk being assigned a second, and even more tedious, task. The reverse of this situation is, of course, “If you want to get something done, find a busy person.” A third explanation for Parkinson’s law is “impression management”; most people understand the importance of being seen to be working while at work. In this context, it makes sense to extend the duration of each task. Parkinson pointedly noted that managers help other managers look busy by shuffling papers back and forth for review, commentary, and alignment.

However, when people are working at home, there is a clear temptation for some to figure out the minimum level of effort they can get away with and still get by. There is no need to drag out each task; people can just do their work, spend the rest of the day doing as they please, and then turn in their work just before the deadline. For these people, The Economist suggests rewriting the law as follows: “For the unconcerned, when unobserved, work shrinks to fill the time required.”

For hard-charging people, working at home leads to a different outcome. Wracked by guilt and anxiety, they work even harder than before. For these people, the law reads: “For anxious home workers, work expands to fill all their waking hours.”

But Parkinson was talking about more than procrastination, he was talking about the fact that managers, in order to advance, argue that the size of their workload requires that they hire more people. They evaluate themselves, and they are evaluated, based on the number of their direct reports. But hiring more people doesn’t lead to greater productivity, just a larger payroll. In addition, like everyone else, managers need to appear busy. How does that work out during lockdown? The answer is to organize Zoom meetings. And this leads to a final revision of Parkinson’s law: “In lockdown, Zoom expands to fill all of the manager’s available time.”

The slackers will avoid the Zoom meetings and the hard charging people will attend all of them. Moreover, in order to be noticed at a Zoom meeting, people must be seen and heard, which makes Zoom meetings even longer than normal meetings. And ping-ponging between Zoom meetings is the digital version of the paper shuffling mangers engaged in during Parkinson’s day.

I close with two final points. First, the degree to which people work hard and are productive is a function of their personality not their work location. And second, smart businesspeople are already expressing doubts about the wisdom of working from home.

Topics: personality

Improving Diversity and Inclusion: Practical, Evidence-based Recommendations

Posted by Hogan Assessments on Tue, Jul 21, 2020

The protests against systemic patterns of racism and police brutality following George Floyd’s death, the success of female heads of state leading their countries through the global pandemic, and the recent United States Supreme Court decision prohibiting workplace discrimination based on gender identity or sexual orientation are just a few of the topics that are spurring discussions about diversity and inclusion (D&I) right now.

Improving Diversity and Inclusion

Although these current events have brought D&I to the forefront, this topic should not be new in the workplace — addressing D&I concerns should be a critical priority for all organizations. However, many organizations struggle to create diverse workplaces, especially at the highest levels, and to promote cultures that allow all employees to feel heard and included.1 Fortunately, organizations can leverage Hogan assessments to help address these concerns and create a more diverse and inclusive culture.

Defining Diversity and Inclusion

There are different ways to define D&I in the context of the workplace. These borrowed definitions are helpful ways for us to better understand what we are referencing when discussing diversity and inclusion2:

  • Diversity concerns all the ways people differ from each other. Though this is often limited to race, ethnicity, and gender, it more broadly includes age, nationality, religion, disability, sexual orientation, socioeconomic status, education level, marital status, language, and physical appearance. Diversity also includes differences in ideas, perspectives, and values.
  • Inclusion concerns creating working environments where everyone feels welcomed, respected, supported, and valued. Inclusive environments embrace diversity.

Why Should We Care about Diversity and Inclusion?

Both diversity and inclusion should be important to organizations as they seek to do the right thing, avoid legal recourse, and deliver key business outcomes. Given these reasons, it’s not surprising that the majority of survey respondents (75%) in a recent study by Pew Research consider it important for their organizations to promote diversity in the workplace.3

Even if there were no moral imperative or risk of legal challenges, organizations could not ignore the strong business case for creating a diverse workplace. As one example, some estimates suggest that organizations with higher levels of gender diversity can outperform organizations that lack female representation by up to 58%.4

The positive impact does not stop there. Organizations with more D&I practices tend to have lower levels of absenteeism and turnover and higher levels of organizational innovation and performance. However, even with these notable outcomes, many employees still say their organizations are not doing enough to create inclusive environments.

How Can Hogan Help Your Diversity and Inclusion Goals?

There are a few reasons you should consider using Hogan’s personality assessments in your D&I efforts. First, personality assessment promotes fairness in selection. Our research shows that personality is a strong predictor of performance without producing meaningful subgroup differences. This means we recommend solutions that can help you identify the best talent without discriminating against any group, thereby preserving diversity in applicant pools. Contrary to popular misconception, using personality for selection does not create a workforce of people who have the same personality profile. Hogan creates selection profiles that are specific for each job and would vary across jobs within the same organization. Within a job, we typically only screen on a few personality characteristics for which people will have diverse scores on scales in the profile range and even more so across other personality characteristics.

Second, you can use Hogan’s personality tools to identify and develop leaders who will promote diversity and inclusion. We analyzed data from more than 5,000 individuals to explore the components of Hogan’s personality inventories that predict supervisor ratings on behaviors, such as

  • discouraging discrimination and prejudice;
  • relating well to a variety of people;
  • recognizing the unique potential of each person;
  • showing respect, tolerance, and open-mindedness;
  • respecting views different from one’s own;
  • treating others with respect regardless of race, gender, appearance, religion, and beliefs;
  • valuing diverse perspectives;
  • displaying sensitivity to issues related to diversity and culture;
  • having the ability to see the world through the eyes of others; and
  • displaying sensitivity to the needs of others.

We meta-analyzed within-study correlations across 47 organizations and found that Adjustment, Interpersonal Sensitivity, Prudence, and Altruism had positive relationships with behaviors related to diversity and inclusion. Additionally, Excitable, Skeptical, Bold, Mischievous, Recognition, and Power had negative relationships with D&I behaviors. This suggests that people who are optimistic, perceptive, warm, conscientious, tolerant, open-minded, not defensive, trusting, modest, humble, honest, sympathetic, and concerned about helping others will work to foster an environment of inclusivity, regardless of race, age, gender, background, and ideas.

Implications

The importance of diversity and inclusion and the steps you need to take to make your workplace more diverse and inclusive cannot be outlined in a short blog. In fact, half-baked attempts at improving D&I initiatives can have negative impacts. An appropriate organizational culture is necessary to nurture diversity and inclusion. Some research suggests that organizational diversity structures alone, such as diversity policies, diversity training, and diversity awards, can cause white males to have illusory perceptions of fair decision-making procedures impacting minorities (i.e., a “we checked the box” attitude).5 This can lead to white males reacting harshly to claims of discrimination because they might assume all D&I issues have been addressed. Further, we haven’t even touched on the complexity of thinking about diversity in a global context.

While we cannot give you a silver bullet, we do provide these practical recommendations for consideration in your larger D&I initiatives:

  • First, use the Hogan Personality Inventory (HPI), Hogan Development Survey (HDS), and Motives, Values, Preferences Inventory (MVPI) to select and promote all employees to increase diversity, hire qualified candidates, and promote fairness in hiring. Using assessments that do not discriminate will lead to more diversity at all levels.
  • Second, use the HPI, HDS, and MVPI to select, promote, and develop leaders who will create a diverse and inclusive environment.
  • Finally, use the HPI, HDS, and MVPI to provide feedback to employees and enhance their awareness of biases they might have that could stifle D&I efforts.

For more information, make sure you check out our webinar on the topic. You can also listen to our recent The Science of Personality podcast episodes, “Women in Leadership” and “SCOTUS LGBTQ Decision and What It Means for Your Organization.”

*This post was authored by Amber Burkhart, Kimberly Nei, Chase Winterberg, and Jessica Walker.

References

  1. Jones, S. (2017, June 9). White Men Account for 72% of Corporate Leadership at 16 of the Fortune 500 Companies. Fortune. https://fortune.com/2017/06/09/white-men-senior-executives-fortune-500-companies-diversity-data/
  2. Kapila, M., Hines, E., Searby, M. (2016, October 6). Why Diversity, Equity, and Inclusion Matter. Independent Sector. https://independentsector.org/resource/why-diversity-equity-and-inclusion-matter/
  3. Horowitz, J. M. (2019, May 8). Americans See Advantages and Challenges in Country’s Growing Racial and Ethnic Diversity. Pew Research Center. https://www.pewsocialtrends.org/2019/05/08/americans-see-advantages-and-challenges-in-countrys-growing-racial-and-ethnic-diversity/
  4. Moran, G. (2017, January 23). How These Top Companies Are Getting Inclusion Right. Fast Company. https://www.fastcompany.com/3067346/how-these-top-companies-are-getting-inclusion-right
  5. Kaiser, C. R., Major, B., Jurcevic, I., Dover, T. L., Brady, L. M., & Shapiro, J. R. (2013). Presumed fair: Ironic effects of organizational diversity structures. Journal of Personality and Social Psychology, 104(3), 504–519. https://doi.org/10.1037/a0030838

Topics: DE&I

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