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Business psychology at Deloitte

In the wake of the recession, Paul Thomson decided a new method was needed to restructure and reorganise Boards of Directors – so took the unusual step of employing a psychologist on his team.

Paul joined the public sector audit and advisory practice at Deloitte in 2008, and after conducting investigations into the causes of the credit crunch, almost immediately brought a psychologist on board.

“It was found that many board members did not lack expertise, rather it was their attitude which adversely affected their judgement,” he explained. “ After discovering that there was an almost 100 percent correlation between financial deficit and underperforming boards, I decided to create a system which was psychologist led rather than process led.”

Since employing a psychologist, Paul has worked with over 100 boards, mostly in the public sector. “It is a unique approach which involves us looking at individuals and focussing on their behaviour.”

“There might be a dominant chief executive or over-assertive non-executive director who is weakening the executives. While this process can be difficult, most boards respond well because they are keen to improve their own performance.

When asked about his teams’ response to his unique idea, Paul commented: “There were certainly a few raised eyebrows, but everyone on my team backed the decision, and now can really see the benefits of it.”

He now uses the system within his own department, with great success: “We have profiled most of the staff in the department, and using this information we have organised the team to ensure each member plays to his or her strengths.

“It has also been a financial successful practice – we have increased our departmental revenue by 100 percent in the past three years.”

Paul is now urging other boards to use the idea to ensure fairness and efficiency within their company: “ Businesses often don’t take time out to reflect, but think every organisation should review its leadership regularly.

“It is definitely a worthwhile investment for businesses who are conscious of the importance of board development.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .