What is Goodwill?

Goodwill refers to the intangible assets that make a business valuable beyond its tangible assets like equipment, patents, people, or inventory. It includes elements such as brand reputation, market position/share, company culture, and customer relationships. Goodwill matters because it influences the market’s perception of a business’s worth, often adding significantly to its valuation.

Does the System Matter?

While financial experts readily acknowledge the importance of goodwill, the “way the work works” (a.k.a. “the system”) almost never gets its due attention. But just as goodwill contributes to a company’s valuation, the way the work works can significantly affect an organisation’s effectiveness, costs, profitability, and employee satisfaction.

Why Overlook The Way the Work Works?

Goodwill gets its importance primarily because it appears on a balance sheet and contributes to a company’s market valuation. The way the work works doesn’t have such a direct presence in financial reporting, making it easier to overlook. This lack of visibility largely renders it irrelevant. In fact, the way the work works often acts as an intangible asset that can yield long-term benefits. Or as a boat anchor that produces significant dysbenefits.

How to Measure the Way the Work Works?

While it’s challenging to quantify the value of effective work methods, metrics like productivity, quality, employee retention, and customer satisfaction can serve as indicators. Businesses might choose to identify Key Performance Indicators (KPIs) that align with their objectives to assess this aspect accurately. Assuming that the way the work works is even on businesses’ radar at all.

Can Intangibles Translate to Tangibles?

The way the work works can absolutely translate into tangible results, similar to goodwill. Effective work methods can lead to higher productivity, better quality of output, staff morale, and increased customer satisfaction—all of which, in turn, improve a company’s financial performance.

Is It Time to Take Action?

The onus lies on business leaders to recognise the importance of the way the work works and implement strategies for its improvement. Companies that take this aspect seriously will find themselves better equipped to meet challenges and seize opportunities in the market.

In a nutshell, the way the work works may not feature on a balance sheet, but its impact on business success is undeniable. By understanding and optimising the way the work works, organisations can enhance an intangible asset that has long-lasting, tangible benefits.

Why Choose Organisational Psychotherapy?

You’re facing challenges within your organisation—perhaps in team dynamics, communication, or overall culture. It’s tempting to look for quick fixes like workshops or team-building events. But for a lasting impact, consider an avenue often overlooked: organisational psychotherapy. This isn’t just another line item in the budget; it’s a premium investment into the future of your organisation.

What’s the ROI?

When we talk about return on investment, the first thing that comes to mind are numbers, metrics, and KPIs. But how do you measure:

• The morale of your employees.
• The match (or mismatch) between collective assumptions and beliefs and “success”.
• The harmony within your teams?

Organisational psychotherapy dives deep into the psychological and emotional aspects of your work environment. The ROI here is a more cohesive, more motivated organisation that contributes to productivity, innovation, and better financial performance.

Does It Suit All Types of Organisations?

Regardless of your industry or size, the issues that organisational psychotherapy tackles are universal. Whether you’re a tech startup grappling with rapid scaling or a long-standing manufacturing firm facing generational shifts in the workforce, the principles apply. Psychotherapists trained in organisational behaviour are adept at tailoring their methods to suit your specific needs.

What Are the Steps Involved?

Investing in organisational psychotherapy isn’t an overnight fix; it’s a journey. Here’s a simplified breakdown of the repeating OP cycle:

1. Assessment: Surfacing and reflection on existing assumptions and beliefs.
2. Dialogue: Open conversations within and across all levels of the organisation.
3. Implementation: Applying therapeutic methods to enact change.
4. Review: Assess the impact and make necessary adjustments.

It’s not about a one-size-fits-all solution but rather a tailored and continually adjusting strategy using proven methods to bring about desired changes.

How to Get Started?

Choosing the right psychotherapist for your organisation is crucial. Look for practitioners with a track record in organisational settings. Often they will offer initial consultations to assess fit both ways.

Your investment in organisational psychotherapy goes beyond just finance—it’s an investment of time and openness from everyone in the organisation. But the long-term benefits far outweigh the costs, making it a premium investment for your organisation’s future.

Summary

In an environment that’s increasingly volatile and competitive, organisations can’t afford to overlook the shared assumptions and beliefs that drive the culture, behaviours and performance of the organisation. Organisational psychotherapy doesn’t put a bandage on your problems; it delves into the root causes and offers lasting solutions. So, when planning for the future, this is one investment you’ll want to seriously consider.