Instilling a sustainable and valuable motivational force in your firm - Leaders who imbue their firms with the purpose, habits and incentives that lead to Phi will have a sustainable competitive advantage that benefits clients, firms themselves, and society as a whole
Mimmi Kheddache Jendeby, Vice President and Senior Research Strategist at State Street Center for Applied Research
09
June
2017
|
13:40
Europe/Amsterdam

PHI - The hidden variable in performance

At CFA's Future of Finance event, Middi Kheddache Jendeby introduced 'Discovering Phi, Motivation as the Hidden Variable of Performance.'

The State Street Center for Applied Research and CFA Institute have discovered a hidden variable of performance with a statistically significant relationship to long-term organizational performance, client satisfaction, and employee engagement. They named it Phi, which is derived from the motivational forces of Purpose, Habits, and Incentives that govern our behaviors and actions. What have they discovered?

A one point increase in Phi is associated with:

  • 28% greater odds of excellent organizational performance
  • 55% greater odds of excellent client satisfaction
  • 57% greater odds of excellent employee engagement

Opportunity

There is a significant opportunity for the industry to improve, since only 17% of respondents were rated high Phi. When the Phi of the investment professional, the investment firm, and their clients align, this represents the greatest potential for sustainable organizational performance.

Actions

  • Lead and Inspire
  • Reevaluate the firm's Mission
  • Avoid Short-Termism

Instilling a sustainable and valuable motivational force in your firm - Leaders who imbue their firms with the purpose, habits and incentives that lead to Phi will have a sustainable competitive advantage that benefits clients, firms themselves, and society as a whole.

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About Mimmi Kheddache Jendeby

Mimmi Kheddache Jendeby is Vice President and Senior Research Strategist at State Street Center for Applied ResearchMimmi holds a Bachelor's Degree in Economics as well as a Master’s Degree in Industrial and Financial Economics from the University of Gothenburg; School of Business, Economics and Law. Mimmi also holds a Bachelor's Degree in Work and Organizational Psychology from the University of Gothenburg; Dept of Psychology.