In the upcoming weeks we will take a deeper dive into the Big 5 model. What are the advantages? Why did we select this model for the Treasurer Test?
Treasurer Test & Big 5: Introduction
The roots of the Treasurer Test lie in the desire to improve selection. A proper recruitment decision is based upon many variables. Often these variables are not objectively measurable: very often apples and oranges are compared. Research shows that knowledge, skills and personality are sound predictors of job success, can be measured objectively and compared to peer groups. This is to inform you about the Big 5 typology that measures personality.
A personality can be defined as a relatively stable set of traits resulting in consistent behavior in various situations and different from behavior of others in the same situation. In the typology there are five clusters of traits defined. Very often the acronym OCEAN (or CANOE) is used to remember the names of each cluster. Below we will describe them and include an example of a trait, projected on potential tasks of a treasurer:
- Openness for new experiences. Being innovative, having original ideas can be relevant for treasurers in a build-up situation.
- Conscientiousness: goal oriented, organized. A treasurer who is methodical plans, creates a structure and shows predictable behavior.
- Extraversion: energy focused externally or internally. A convincing treasurer will focus on influencing others, making sure they will align with the goals of the CFO and/or the treasury team.
- Agreeableness: focus on others (also altruism). A treasury manager who scores high on empathy will easily sense the emotions and feelings of his team.
- Neuroticism: emotional stability. If a treasury interim director is unfazed, he will not be affected by the crisis situation he might have to act in.
As this is an introduction, we will not create a comprehensive overview but do want to stress the following; Big 5 does not put people in blue or red boxes but makes sound comparisons with peer groups according to statistically sound gauss curves. This is also the reason academic institutes like to use the model. The traits and scores are without value. High or low scores are only relevant if a specific behavior is desired. Big 5 works with a self-assessment, which is the best method to measure but will never result in an absolute truth.
In following articles we will elaborate on relevant Big 5 questions like “why Big 5 and not another typology?”, “what are the traits measured and why are these relevant” and “what do we see in the Big 5 results of the peer group?”. We are open for questions and input and will continue to provide further information.
On behalf of Team Treasurer Test,