The Four Mindsets

Introduction

Before we begin to turn to the Four Mindsets™, it's important that we understand a few common concepts that underpin learning in this book. These relate to the psychological contract, the changing management landscape today and the concept of a mindset.

The psychological contract — what is it and why is it so important?

Every manager should understand the concept of the psychological contract. This unwritten contract has the ability to enhance, or destroy, everything you do. It's all about people and, as a manager, everything you do should relate to people!

To understand the psychological contract, let's first look at what we mean by ‘contract'.

A contract is simply an agreement made between two parties. Contracts are usually formal, requiring a signature, and state clearly what needs to be done or agreed to. For example, an employment contract lists the intentions and expectations of both employee and employer. It is a formal, signed document.

A psychological contract is also concerned with intentions and expectations between parties but is not formal. Rather, it is based on people's perceptions that typically relate to the give and take (or informal negotiations) between two individuals — issues surrounding what is right and wrong, how people should work together, what is fair and what is not, loyalty and trust.

The psychological contract is far more powerful than the employment contract. The employment contract will not unlock potential and high performance, ...