Document Text Contents
Page 2
Managing the Psychological Contract
Page 130
CHAPTER 7
How Three Companies Use the
Psychological Contract
The focus now shi�s to how the personal deal can be used to enhance the
performance of organisations. In this chapter we will concentrate on how three
business organisations, Arup, CMS Cameron McKenna and Richer Sounds, use
the psychological contract to add value to their business performance.
These three organisations have been chosen for closer discussion for
a number of reasons. Firstly, each comes from a different sector – Arup is
primarily in engineering design, CMS Cameron McKenna is in legal services
and Richer Sounds is in retail. A second reason is that each organisation has
been independently evaluated to be a great place to work, from recent ratings
in ‘The Sunday Times Best 100 Places to Work’ survey.1 A third reason is that the
author knows something about these three organisations and has contacts with
them.
Each organisation will be described, followed by a description of its
psychological contract provided by a senior individual in the organisation.
The value and benefit each organisation believes it gains from its prevailing
psychological contract will be considered, as well as some of the implications
and challenges each company faces because of it.
The description of each organisation’s psychological contract in this chapter
is based on indepth conversations with at least one senior manager in each
business. While the descriptions are not based on robust empirical research, the
performance of each of these organisations in their respective marketplaces is
beyond reproach, with regard to people practices and financial performance.
ARUP
Arup is an international design and engineering firm which employs just
over 3000 staff in the UK and a further 4000 internationally. Operating
out of 70 international offices, Arup typically has over 10 000 engineering
1 ‘100 Best Companies to Work For’, The Sunday Times, March 2006 (London: Times
Newspapers)
Page 131
MANAGING THE PSYCHOLOGICAL CONTRACT114
projects running concurrently. Projects typically focus on design solutions,
predominantly in the building environment.
People in Arup pride themselves on being the creative force behind many
of the world�s most innovative and sustainable designs. Global landmarks to
which Arup has made a signi�cant contribution include the Sydney Opera
House, the Channel Tunnel Rail Link, Sea�le Library, Stonecu�ers Bridge in
Hong Kong and the Water Cube for the Be�ing Olympics.
Arup has three main global business areas: building, infrastructure and
consulting. However, it adopts a multi-disciplinary approach which means
that any given project may involve people from any or all of the sectors or
regions in which the �rm operates. Arup�s fundamental aim is to bring together
the best professionals to meet its clients� needs.
Arup was founded in 1946 by Sir Ove Arup, a powerful visionary, not only
for what the �rm stands for and what it delivers but also its ownership. Sir Ove
and his partners handed over the business to be held in trust for the bene�t
of its employees and their dependants. Without external investors, the �rm is
at liberty to make long-term investment decisions unhampered by short-term
pressures.
Arup has grown organically over 60 years to become an international
consulting �rm with exceptional scope. The skills base within Arup has grown
considerably beyond its original core of structural and civil engineering.
It now counts master-planning, economics, environmental and project
management, alongside business and management consulting skills. The ethos
of the �rm emphasises the importance of technical excellence and continuing
development.
THE ARUP PSYCHOLOGICAL CONTRACT
The psychological contract in Arup originates with Sir Ove Arup�s vision and
ideals, not just for innovative design, but for life. The Arup values are enshrined
in a document known as the �Key Speech� which he gave on 9 July 1970 to the
partners, about the future of their business. The Key Speech describes the core
values of the �rm, the six aims of the business and how they can be practically
brought to life in the way Arup does business.
The aims of the �rm are:
quality of work�
Page 260
About the Author
Michael Wellin is Director of Business Transformation Ltd, a niche consulting
�rm specialising in organisation change, team e�ectiveness and coaching.
He works primarily at board and partner level, delivering practical solutions
which enable people and organisations to be�er achieve their goals. Michael
has consulted to a wide range of organisations and sectors including companies
such as Arup, Ernst & Young, Ford, Reuters and Royal Mail.
One of his principals which underpins Michael�s workis that all of us
have enormous talent, and our challenge as we travel through life is to bring
out more of that talent for our and others� bene�t. Michael has over 20 years
successful consulting experience and a hallmark of his work is the creation
and application of innovative practical methods which help people and
organisations to leverage their talent.
In his earlier work he was one of the �rst users of Belbin�s team roles and
transactional analysis as vehicles for leadership and organisation change. In
the 1990s he created a framework of e�ective board behaviours, and a generic
framework of business behaviours � Talent Inventoryfi. Most recently he has
pioneered techniques to help organisations use and improve their psychological
contract, which culminated in the writing of his book.
Michael�s interest in the psychological contract was stimulated both by
his experiences of working in diverse business organisations across di�erent
sectors as well as his extensive personal world travel. Exposure to di�erent
cultures at national and organisation levels taught him that each culture has its
own subtle conventions about acceptable behaviour.
Before taking up consulting Michael received a very good grounding in
all aspects of human resources, working in the peronnel functions of large UK
and international organisations, including Fisons, BOC, ICL and Continental
Illinois National Bank. Michael brings to his work as a business psychologist
an understanding of people and their behaviour with a strong drive to achieve
business results.
He studied social psychology at Sussex University, and then pursued his
interest in business psychology by gaining an MSc in personnel management at
Page 261
City University Business School. In 1992 he was elected Chartered Occupational
Psychologist and Associate Fellow of the British Psychological Society.
Michael speaks at conferences and has wri�en several articles on people
issues in business. His previous book, Behaviour Technology, advocated many of
the people practices which are now common in organisations today.
He lives with his wife Ruth and son Zack in North London. As well as his
family he is passionate about things Indian and Nepali. He loves trekking in
high mountains, particularly the Himalayas, and also spends time with friends
and cultivating a Japanese garden.
Michael can be contacted at: [email protected]
Managing the Psychological Contract
Page 130
CHAPTER 7
How Three Companies Use the
Psychological Contract
The focus now shi�s to how the personal deal can be used to enhance the
performance of organisations. In this chapter we will concentrate on how three
business organisations, Arup, CMS Cameron McKenna and Richer Sounds, use
the psychological contract to add value to their business performance.
These three organisations have been chosen for closer discussion for
a number of reasons. Firstly, each comes from a different sector – Arup is
primarily in engineering design, CMS Cameron McKenna is in legal services
and Richer Sounds is in retail. A second reason is that each organisation has
been independently evaluated to be a great place to work, from recent ratings
in ‘The Sunday Times Best 100 Places to Work’ survey.1 A third reason is that the
author knows something about these three organisations and has contacts with
them.
Each organisation will be described, followed by a description of its
psychological contract provided by a senior individual in the organisation.
The value and benefit each organisation believes it gains from its prevailing
psychological contract will be considered, as well as some of the implications
and challenges each company faces because of it.
The description of each organisation’s psychological contract in this chapter
is based on indepth conversations with at least one senior manager in each
business. While the descriptions are not based on robust empirical research, the
performance of each of these organisations in their respective marketplaces is
beyond reproach, with regard to people practices and financial performance.
ARUP
Arup is an international design and engineering firm which employs just
over 3000 staff in the UK and a further 4000 internationally. Operating
out of 70 international offices, Arup typically has over 10 000 engineering
1 ‘100 Best Companies to Work For’, The Sunday Times, March 2006 (London: Times
Newspapers)
Page 131
MANAGING THE PSYCHOLOGICAL CONTRACT114
projects running concurrently. Projects typically focus on design solutions,
predominantly in the building environment.
People in Arup pride themselves on being the creative force behind many
of the world�s most innovative and sustainable designs. Global landmarks to
which Arup has made a signi�cant contribution include the Sydney Opera
House, the Channel Tunnel Rail Link, Sea�le Library, Stonecu�ers Bridge in
Hong Kong and the Water Cube for the Be�ing Olympics.
Arup has three main global business areas: building, infrastructure and
consulting. However, it adopts a multi-disciplinary approach which means
that any given project may involve people from any or all of the sectors or
regions in which the �rm operates. Arup�s fundamental aim is to bring together
the best professionals to meet its clients� needs.
Arup was founded in 1946 by Sir Ove Arup, a powerful visionary, not only
for what the �rm stands for and what it delivers but also its ownership. Sir Ove
and his partners handed over the business to be held in trust for the bene�t
of its employees and their dependants. Without external investors, the �rm is
at liberty to make long-term investment decisions unhampered by short-term
pressures.
Arup has grown organically over 60 years to become an international
consulting �rm with exceptional scope. The skills base within Arup has grown
considerably beyond its original core of structural and civil engineering.
It now counts master-planning, economics, environmental and project
management, alongside business and management consulting skills. The ethos
of the �rm emphasises the importance of technical excellence and continuing
development.
THE ARUP PSYCHOLOGICAL CONTRACT
The psychological contract in Arup originates with Sir Ove Arup�s vision and
ideals, not just for innovative design, but for life. The Arup values are enshrined
in a document known as the �Key Speech� which he gave on 9 July 1970 to the
partners, about the future of their business. The Key Speech describes the core
values of the �rm, the six aims of the business and how they can be practically
brought to life in the way Arup does business.
The aims of the �rm are:
quality of work�
Page 260
About the Author
Michael Wellin is Director of Business Transformation Ltd, a niche consulting
�rm specialising in organisation change, team e�ectiveness and coaching.
He works primarily at board and partner level, delivering practical solutions
which enable people and organisations to be�er achieve their goals. Michael
has consulted to a wide range of organisations and sectors including companies
such as Arup, Ernst & Young, Ford, Reuters and Royal Mail.
One of his principals which underpins Michael�s workis that all of us
have enormous talent, and our challenge as we travel through life is to bring
out more of that talent for our and others� bene�t. Michael has over 20 years
successful consulting experience and a hallmark of his work is the creation
and application of innovative practical methods which help people and
organisations to leverage their talent.
In his earlier work he was one of the �rst users of Belbin�s team roles and
transactional analysis as vehicles for leadership and organisation change. In
the 1990s he created a framework of e�ective board behaviours, and a generic
framework of business behaviours � Talent Inventoryfi. Most recently he has
pioneered techniques to help organisations use and improve their psychological
contract, which culminated in the writing of his book.
Michael�s interest in the psychological contract was stimulated both by
his experiences of working in diverse business organisations across di�erent
sectors as well as his extensive personal world travel. Exposure to di�erent
cultures at national and organisation levels taught him that each culture has its
own subtle conventions about acceptable behaviour.
Before taking up consulting Michael received a very good grounding in
all aspects of human resources, working in the peronnel functions of large UK
and international organisations, including Fisons, BOC, ICL and Continental
Illinois National Bank. Michael brings to his work as a business psychologist
an understanding of people and their behaviour with a strong drive to achieve
business results.
He studied social psychology at Sussex University, and then pursued his
interest in business psychology by gaining an MSc in personnel management at
Page 261
City University Business School. In 1992 he was elected Chartered Occupational
Psychologist and Associate Fellow of the British Psychological Society.
Michael speaks at conferences and has wri�en several articles on people
issues in business. His previous book, Behaviour Technology, advocated many of
the people practices which are now common in organisations today.
He lives with his wife Ruth and son Zack in North London. As well as his
family he is passionate about things Indian and Nepali. He loves trekking in
high mountains, particularly the Himalayas, and also spends time with friends
and cultivating a Japanese garden.
Michael can be contacted at: [email protected]
