PSY FPX 6730 Assessment 1 Entry and Contracting: Analysis of ABC Bank 

Abstract

ABC has engaged a consultant to create an ultimately self-sustaining leadership development program. This report will also conduct an analysis of a consulting agreement for ABC Bank and a discussion of topics and questions before commencing the project. Lastly, there will be a list of best practice approaches that can be applied to create a foundation of trust between the client, ABC Bank, and the consultant.

Entry and Contracting Analysis of the Sample Consulting Contract

Having gone through the ABC contract, there are some areas of clarification I believe need to be covered. I believe the problem that most comes to mind for me is the problem of participation. There is a leadership issue from the top of the hierarchy; however, the consultant in the “Needs from the Client” section of the contract states that management “has agreed to position participation in this project as valuable but voluntary” (Capella University, 2023).

If Bob and Pam are already persuaded that the whole organization must have a leadership development program, why would the consultant have to promote this as optional? This also questions how business objectives under the contract can be met if there are clearly issues of compliance that need to be resolved. One manager was just let go due to poor ethics that had a ripple effect within the organization. What impresses me in this case is that there is no mention of ethics training to avoid what transpired with the previous manager on the ethics offenses.

Topics to Discuss Before the Completion of the Contract Drafting

Referring once more to that clause in the contract that specifies this process is voluntary, my problem here is that there’s no wording where it says that the executive team themselves need to have the training; they require it according to my observation at the executive team meeting. In this executive leadership meeting, several comments and exchanges among leaders were problematic; this can be a project weakness if the executive leaders are against the project prior to the project’s commencement. With all of that in mind, the very first point of clarification I look for that I do not see in the contract is this:

Entry and Contracting

• Should the executive leadership have to first undergo the training so they know what it is that they would be teaching the leaders in the organization?

My second question relates to the grays of workplace discriminatory behavior that I have witnessed in the executive team meeting. In order to put this into perspective, del Carmen Triana et al. (2019, p. 2424) tell us that “perceived workplace gender discrimination will negatively relate to work outcomes that are advantageous for an employee’s success in the organization.” Knowing this, during the team meeting, Bertha, the compliance manager, mentioned that her team has the will to impose new regulations but will require closer affinity with Paul, the senior lending department manager, and his team. Paul proceeds to minimize Bertha’s remark and “jokes that Bertha is being pushy” since the room erupted in laughter when Bertha was not smiling (Capella University, 2023).

One would wonder whether diversity training would have to be added in this upcoming training. To receive insight into why diversity training is important and what it consists of, Fujimoto and Härtel (2017, p. 1123) say that “current training programs include training on employees’ understanding to make use of different perspectives, acquiring cultural competence, knowledge, and communication skills, and diversity-specific training (e.g., sexual orientation awareness, gender, disability) as well as knowledge of Equal Employment Opportunity laws and other legislation.” With the aforementioned scenario in view, some of the other questions that I believe are important for the successful accomplishment of this project are.

Entry and Contracting

• Will there be a workplace discrimination training component as part of the leadership development project?
• Will there be a compliance training component integrated into the leadership development program?
• Will there be a diversity training component as part of the leadership development program?

Best Practices for Building Trust While Constructing a Sample Contract

Consultants will be unable to be successful without gaining trust with clients that runs throughout the project from start to completion and beyond. Through these trusting relationships, both parties can depart with a complete, tried, and reusable process, and on the part of the consultant, the chance of getting additional projects and recommendations for more work. It is with it to look for best practices on how such channels of trust can be established. Some of these best practices will be described in this section on how trust between client and consultant can be developed.

An article by Nikolova and Möllering (2015, p. 233) gives readers the result of a study that asserts “the creation of trust is constituted by three social practices.” To place “trust” in a relative context, Nikolova and Möllering (2015, p. 233) have described the term as “a psychological state comprising the intention to accept vulnerability based upon positive expectations of the intentions or behavior of another.” These social practices for constructing trust between consultant and client are as follows:

PSY FPX 6730 Assessment 1 Entry and Contracting: Analysis of ABC Bank 

• “Signaling ability and integrity” (2015, p. 233).
• “Demonstrating benevolence” (2015, p. 233).
• “Establishing an emotional connection” (2015, p. 233).

The article goes on to elaborate on how these practices recognize “not just the client’s detached perception but the co-creation of a cognitive and affective trust basis for the relationship” (2015, p. 233). Based on the above, evidence of vulnerability on both sides also supports such necessary trust bonds. Strengthening its relevance, Nikolova and Möllering (2015, p. 233) also elucidate embracing vulnerability wherein a model was developed using “three significant antecedents of perceived trustworthiness that enable trust—ability, benevolence, and integrity (ABI).” The ABI model is regrettable in its lack of incorporating how trust occasionally requires a leap of faith, but these are a good starting point for both sides to establish long-term trust.

Conclusion

The ABC Bank understands that in order for it to sail through its internal challenges, it will require some leadership development programs, among other forms of training. Because the bank believes that it has reached a crossroads with all that it is going through, the recruitment of an external consultant by Bob, the CEO, and Pam, the Human Resources Director, is important to the long-term health of the bank. Despite some fear and uncertainty on the part of some of the other executive management, I believe the consultant will prevail here.

No one seems to want to share the same fate as Jerry, the ex-manager, for failing to comply and demonstrating poor leadership. This is yet another reason why this program cannot be voluntary but must be mandatory for leaders at all levels. ABC Bank can only hope that it will benefit from a self-replicating and cyclical leadership development program with room for improvement as the people and business begin to change.

PSY FPX 6730 Assessment 1 Entry and Contracting: Analysis of ABC Bank

Fujimoto, Y., & EJ Härtel, C. (2017). Organizational diversity learning framework: going beyond diversity training programs. Personnel Review, 46(6), 1120-1141. https://doi.org/10.1108/PR-09-2015-0254

Nikolova, N., & Möllering, G. (2015). Trusting as a ‘leap of faith’: Trust-building practices in client-consultant relationships. Scandinavian Journal of Management. 31(2), 232-245.