Competitive Advantage Through “Psychological Potential”

 

Partners of  Weyer und Hansen GbR  build the foundation for “ Wirtschaftsinstitut für Psychologisches Potenzial [Economic Institute for Psychological Potential] (WIPP)“ and Introduce: 

– how staff members can actively contribute to better performance of a company 

 

More and more companies tread a new path in human resources development by utilizing the psychological potential (PsyPot) of their staff. In short trainings, staff members learn how their “personal attitudes” specifically contribute to a better company performance. Success of this model is scientifically proven. 

 

Internationalization and globalization are changing the German economy. Companies have to adjust to the altered market conditions; competition will intensify over the coming years. Germany is still world champion in exports, appreciated as “country of ideas” and also scores internationally with technological innovations. These competitive advantages are not only to be retained but also expanded. Because of increased demands and a lack in highly qualified staff, though, this represents a great challenge for companies.

 

Recruiting As A Key Task

Hence, recruiting of qualified staff is a key question in human resources- and organizational development. But it is equally important to bring about their commitment to the company and fully utilize their potential. Compatibility of staff members and company is thereby of highest importance. Staff members who identify with their company, think in an entrepreneurial way and are confident in their work habits. They are contented about the tasks they are entrusted with and able to deliver high performance. Rounds of dismissal and budget cuts make it difficult for staff members to identify with their company. Many employees feel increasingly helpless and at best as a pawn in organizational decisions. As employees, they have the feeling of hardly being able to bear any influence or share responsibility in the success of the company. So, they hardly await the future with optimism and hope. It is of little surprise when studies prove the negative effects of this staff attitude on the financial key figures of a company.

While companies frequently invest extensively in professional trainings, an additional investment in positive attitude of their staff members is missed. Yet, it is the inner attitude of the individual staff members and their unique personalities that form the greatest and most important resources of a company. Whoever utilizes them optimally and pursues long-term corresponding processes in human resources- and organizational development, will be able to achieve crucial competitive advantages as compared to national and international standards – and react quicker to the continuous change, as well. Especially US-American scientists have done intensive research on resource-oriented methods and proceedings over the recent years.

 

Utilizing Staff Potential

Following the positive psychology’s arrival in human resources development, many international companies put an increasing emphasis on expanding the present strengths in their employees’ personalities. It is nearly impossible to change an employee’s personal traits within a development measure.  But – with attitudes or personal states it is a totally different situation. Scientists have identified four different factors which are described as “psychological potential”.

Psychological potential (PsyPot) describes the personality state of a person. This construct is characterized by:

• Self-efficacy: self-confidence and readiness to accept challenging tasks with the conviction of being able to actually master them by employing the necessary efforts – “I’ll do it”.

• Optimism: an expectation that life is holding good things – “the glass is half full”.

• Confidence: the conviction of being able to realize goals through perseverance and a wealth of ideas – “where there is a will, there is a way”.

• Stamina: the ability to continue in the face of problems, obstacles and setbacks – “now I know how not to do it“.

 

The psychological potential can be measurably influenced and altered within the framework of development measures. Different from “positive thinking” which had been propagated in various bestsellers over the past years, PsyPot is scientifically grounded and based on results of empirical studies. The recently developed questionnaire on measuring the psychological capital (Psychological Capital Questionnaire, PCQ) was tested in the USA for its significance. Data on reliability and validity of the four states (self-efficacy, optimism, confidence and stamina) showed to be excellent. In Germany, the test is currently in the validation phase.

 

Short and Selective Training

As opposed to the deeply rooted traits of a personality, the four identified states can be brought about through relatively short training modules as well as activities at the work place and focused micro-interventions. For that reason, PsyPot creates new possibilities within a selected human resources development and achieves new dimensions in performance enhancement. Various scientific studies prove that the psychological potential has a positive effect on a staff member’s performance, contentment and commitment towards the company.

Researchers also reached the conclusion that positive effects of PsyPot are independent from various other influencing factors like e.g. size of the company, type of industry, age, sex and education of staff members. Additionally, the positive effects of PsyPot surpass the positive effects of self-efficacy, optimism, confidence and stamina. That means that the simultaneous presence of the different personality states, i.e. PsyPot, achieves a synergetic effect which in turn has a positive influence on the performance of the staff – and thereby on the company’s key figures.

Renowned researchers in the USA have impressively demonstrated the positive influence of PsyPot on the sales figures of an organization. In each case, the scientists assumed that the staff members’ PsyPot correlates to the combined turnover by a factor of 0.45 and that an increase of 2 % can be achieved through PsyPot intervention. As an example, it was calculated for ten companies (Forbes Top Ten of the 200 Best Small Companies, turnover between $ 58 and 475 millions.) that on an average about $ 72 million of the yearly turnover can be attributed to the available PsyPot of the staff members. Regardless of the status quo, an increase of only 2 % of the PsyPot leads to an average increase in turnover of $ 1.44 millions per year and company.

 

Various Possible Applications

Hence, development of employees’ psychological potential is generally suited for improving performance in sales as well as in internal and external services. But also in the area of project management, PsyPot contributes to achieving successes. PsyPot plays a special role yet before and after a company’s critical situation, like e.g. downsizing and restructuring or when a number of products have reached the end of their life cycles. Precisely such situations make it harder for the individual staff member to personally identify with the company and maintain the positive attitude which employees – and companies – need in order to secure the “location Germany”.

More information on Wirtschaftsinstitut für Psychologisches Potenzial [Economic Institute for Psychological Potential] (WIPP) and application of PsyPot in companies can be obtained from Weyer und Hansen GbR, Training and Consulting, Prof. Birgit Weyer, M.Sc.,D.M., birgit.weyer@weyerundhansen.de (phone +49170 524 62 68) or Susanne Hansen, susanne.hansen@weyerundhansen.de (phone +49173 888 49 73). We are looking forward to hearing from you