trust, innovation and weak ties

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    TRUST, WEAKTIESANDINNOVATION

    Andrew Maxwell Ph.D.

    May 19th, 2014

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    Increasingly sourced from, andshared with, weak ties1

    Managed through informal relation-

    ships and incomplete contracts2

    Requires new approach to managingrelationship risk

    3

    Innovation

    We discuss how to enable organizations to catalyze innovation by

    changing how they manage relationships from reducing risk

    through controls to managing risk through trust

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    10:15 Introductions

    10:25 Linking trust, weak ties and innovation

    10:45 Individual reflection

    11:00 Review of online exercise

    11:05 Examples

    11:10 Group report back

    11:30 Feedback and discussion 11:55 Wrap up and next steps

    12:00 Lunch

    Agenda

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    Close working relationships Frequent communication

    Co-ordinated management

    Aligned objectives

    Overlapping knowledge / experience

    Strong ties are the traditional source ofinnovative ideas and idea validation

    Strong Ties are characterized by:

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    Informal relationships Infrequent communication

    Limited co-ordination of objectives

    Complementary knowledge and experience

    Increasingly recognized as the source of new

    knowledge

    As a consequence, weak ties are becoming an

    increasingly important source of innovation

    Weak Ties are characterized by:

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    Is a willingness to be vulnerable to the actions ofanother party, without any direct means of

    controlling their behaviors

    It contrasts with contracts (controls) that specify:

    outcome expectations and what each party will do

    how performance measured, and consequences

    Facilitates managing incomplete contracts

    Reduces transaction costs

    Encourages multiple simultaneous relationships

    Accelerates knowledge exchange and actions

    Trust

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    Reduces concerns about misappropriation ormisuse arising from knowledge exchange

    Improves knowledge sharing, enabling rapid

    identification of relevant opportunities Reducing the verification costsassociated with

    knowledge exchange

    Facilitating higher rates of knowledge absorption,increasing likelihood of use / resource deployment

    Limits concerns about unanticipatedoutcomes

    Building trust based relationships withthose with whom you have weak ties:

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    Challenging for organizations to reduce their

    reliance on contracts to manage relationship risk

    However, controls may inhibit relationship forming

    Perceived to be risky to rely on trust

    Relies on individuals ability to assess trustworthiness

    Need to discuss risks of not forming relationships

    Transforming organization to rely ontrust, rather controls, is challenging

    TrustControl

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    Trust develops over time

    Initial trust level based on trust proxy (i.e. background)

    Subsequently trust levels based on behaviors in

    development of a dyadic (two way) relationship

    Individuals audit manifestations of trust behaviors

    that build, damage or violate trust

    Organizational design and interaction context

    influence individual trust behaviors

    Specific trust behaviors stimulate trust responses by

    other party that can build or damage trust

    Becoming a relationship trust auditor

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    Lewicki and Bunker (1995)

    Level of trust changes over time

    Knowledge

    based trust

    Competence

    based trust

    Identification

    based trust

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    Behavioral manifestations that build trust

    Dimensions

    Trustworth

    y

    Consistency Displays of behavior that confirm previous promisesBenevolence Exhibits concern about well-being of others

    Alignment Actions confirms shared values and/or objectives

    Dimensions

    Trustworth

    y

    Consistency Displays of behavior that confirm previous promisesBenevolence Exhibits concern about well-being of others

    Alignment Actions confirms shared values and/or objectives

    Capability Competence Displays relevant technical and/or business ability

    Experience Demonstrates relevant work/training experience

    Judgment Confirms ability to make accurate and objective decisions

    Dimensions

    Trustworth

    y

    Consistency Displays of behavior that confirm previous promisesBenevolence Exhibits concern about well-being of others

    Alignment Actions confirms shared values and/or objectives

    Capab

    ility Competence Displays relevant technical and/or business ability

    Experience Demonstrates relevant work/training experience

    Judgment Confirms ability to make accurate and objective decisions

    Tr

    usting

    Disclosure Shows vulnerability by sharing confidential information

    Reliance Willingness to be vulnerable through task delegation

    Receptiveness Demonstrates coachability and willingness to change

    Dimensions

    Trustworth

    y

    Consistency Displays of behavior that confirm previous promisesBenevolence Exhibits concern about well-being of others

    Alignment Actions confirms shared values and/or objectives

    Capab

    ility Competence Displays relevant technical and/or business ability

    Experience Demonstrates relevant work/training experience

    Judgment Confirms ability to make accurate and objective decisions

    Trusting

    Disclosure Shows vulnerability by sharing confidential information

    Reliance Willingness to be vulnerable through task delegation

    Receptiveness Demonstrates coachability and willingness to change

    Co

    mmunication

    Accuracy Provides truthful and timely information

    Explanation Explains details & consequence of information provided

    OpennessOpen to new ideas or new ways of doing things

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    Trust Mistrust

    Suspicion DistrustIntent

    alignswithbenevolence

    Action dont meet expectations

    Trust damaging

    Trustviolatin

    g

    Trust, building, damaging & violating

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    10:15 Introductions

    10:25 Linking trust, weak ties and innovation

    10:45 Individual reflection

    11:00 Review of online exercise

    11:05 Examples

    11:10 Group discussion

    11:30 Feedback to workshop and discussion 11:55 Wrap up and next steps

    12:00 Lunch

    Agenda

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    Identify trust behaviors manifest by weaktiesthat have built or damaged trust

    1

    Rank these behaviorsfrom building trustto damaging trust2

    In groups, discuss key behaviors anddiscuss the impact of organizational design3

    Present insights to the workshop, to helpidentify organizational implications4

    Workshop activities

    Exercise 1/2 as individuals, exercise 3/4 as groups

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    Manifestations

    Build Trust Damage Trust Violate Trust

    Trustworth

    yConsistency

    Displays of behavior that

    confirm previous promises

    Shows inconsistencies between

    words and actions

    Fails to keep promises and

    agreements

    BenevolenceExhibit concern about well-being of others

    Shows self-interest ahead ofothers well being

    Takes advantage of others whenthey are vulnerable

    AlignmentActions confirms shared valuesand/or objectives

    Exhibits behaviors sometimesinconsistent with declared values

    Demonstrates lack of shared valuesand willingness to compromise

    Capability

    Competence Displays relevant technicaland/or business ability

    Shows lack of context specificability

    Misrepresents ability by claiming tohave non-existent competence

    ExperienceEvidence of relevant workand/or training experience

    Relies on inappropriateexperience to make decision

    Misrepresents experience

    JudgmentConfirms ability to makeaccurate and informeddecisions

    Relies inappropriately on thirdparties or erroneous information

    Judges others without giving themthe opportunity to explain

    Trus

    ting

    DisclosureShows vulnerability by sharingconfidential information

    Shares confidential informationwithout thinking ofconsequences

    Shares confidential informationlikely to cause damage

    Reliance

    Shows willingness to be

    vulnerable through delegation

    Reluctant to delegate, or

    introduces controls onsubordinates performances

    Is unwilling to rely on

    representation by others, ordismisses participation

    ReceptivenessDemonstrates coachabilityand willingness to change

    Postpones implementation ofnew ideas or deflecting

    Refutes feedback or blames others

    omm

    unication

    AccuracyProvides truthful and timelyinformation

    Unintentionallymisrepresents ordelays information transmission

    Deliberately misrepresents orconceals critical information

    ExplanationExplains details andconsequence of informationprovided

    Ignores request for explanations Dismisses request for explanations

    OpennessOpen to new ideas or newwa s of doin thin s

    Does not listen or ignores newideas

    Shuts down or undermines newideas

    Behavioral Trust Dimensions

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    How do trust behaviors build, or damage trust

    Online exercise http://padlet.com/american_rob/2dvi1f2uo3

    Reflect on your own experiences (past 6 months),

    specifically with weak ties linked to new initiatives

    Were they trust building or damaging?

    Mark scale and provide an example of each behavior

    Think about: why these behaviors built or damaged trust

    What you, or your organization, might change

    Bring your insights back to the group

    Individual exercise (trust behaviors)

    O i ti l T t Di ti

    http://padlet.com/american_rob/2dvi1f2uo3http://padlet.com/american_rob/2dvi1f2uo3http://padlet.com/american_rob/2dvi1f2uo3http://padlet.com/american_rob/2dvi1f2uo3http://padlet.com/american_rob/2dvi1f2uo3http://padlet.com/american_rob/2dvi1f2uo3http://padlet.com/american_rob/2dvi1f2uo3
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    Organizational Trust Diagnostic

    Trust Dimension: TRUSTWORTHY

    Think about the behaviors of those in your organization with whom you have weak ties. Place an X on

    the line to represent where you think their behavior falls on each trust dimension. Provide an example.

    DISPLAYS OF BEHAVIORS

    THAT BUILD TRUST

    DISPLAYS OF BEHAVIORS

    THAT DAMAGE TRUST

    Confirming previous

    promises

    Exhibiting concern about

    the well-being of others

    Demonstrating shared

    values and/or objectives

    Name:__________________________ Organization:_________________________________ Email:________________________________

    CONSISTENCY

    BENEVOLENCE

    ALIGNMENT

    Showing inconsistencies

    between words and actions

    Demonstrating self-interest

    ahead of others well-being

    Exhibiting behaviours that are

    inconsistent with declared values

    Would you be willing to be contacted so that we can do further research on this topic? YES/NO Andrew Maxwell

    Example:

    Example:

    Example:

    O i ti l T t Di ti

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    Organizational Trust Diagnostic

    Trust Dimension: CAPABILITY

    Think about the behaviors of those in your organization with whom you have weak ties. Place an X on

    the line to represent where you think their behavior falls on each trust dimension. Provide an example.

    DISPLAYS OF BEHAVIORS

    THAT BUILD TRUST

    DISPLAYS OF BEHAVIORS

    THAT DAMAGE TRUST

    Displaying relevant ability

    Providing evidence of

    relevant experience

    Demonstrating accurate &

    well considered decisions

    Name:__________________________ Organization:_________________________________ Email:________________________________

    COMPETENCE

    EXPERIENCE

    JUDGMENT

    Showing a lack of context-

    specific ability

    Relying on inappropriate

    experience to make decisions

    Relying inappropriately on third

    parties or erroneous information

    Would you be willing to be contacted so that we can do further research on this topic? YES/NO Andrew Maxwell

    Example:

    Example:

    Example:

    O i ti l T t Di ti

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    Organizational Trust Diagnostic

    Trust Dimension: TRUSTING

    Think about the behaviors of those in your organization with whom you have weak ties. Place an X on

    the line to represent where you think their behavior falls on each trust dimension. Provide an example.

    DISPLAYS OF BEHAVIORS

    THAT BUILD TRUST

    DISPLAYS OF BEHAVIORS

    THAT DAMAGE TRUST

    Showing vulnerability by sharing

    confidential information

    Showing willingness to be

    vulnerable through delegating

    Demonstrating coachability

    and willingness to change

    Name:__________________________ Organization:_________________________________ Email:________________________________

    DISCLOSURE

    RELIANCE

    RECEPTIVENESS

    Sharing confidential information

    without thinking of consequences

    Being reluctant to delegate, or

    introducing controls on

    subordinates' performance

    Postponing implementation of new

    ideas or deflecting

    Would you be willing to be contacted so that we can do further research on this topic? YES/NO Andrew Maxwell

    Example:

    Example:

    Example:

    Organi ational Tr st Diagnostic

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    Organizational Trust Diagnostic

    Trust Dimension: COMMUNICATION

    Think about the behaviors of those in your organization with whom you have weak ties. Place an X on

    the line to represent where you think their behavior falls on each trust dimension. Provide an example.

    DISPLAYS OF BEHAVIORS

    THAT BUILD TRUST

    DISPLAYS OF BEHAVIORS

    THAT DAMAGE TRUST

    Providing truthful and

    timely information

    Explaining details and

    consequence of information

    provided

    Being open to new ideas or

    new ways of doing things

    Name:__________________________ Organization:_________________________________ Email:________________________________

    ACCURACY

    EXPLANATION

    OPENNESS

    Unintentionally misrepresenting

    or delaying information

    transmission

    Ignoring requests for

    explanations

    Not listening or ignoring new

    ideas

    Would you be willing to be contacted so that we can do further research on this topic? YES/NO Andrew Maxwell

    Example:

    Example:

    Example:

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    Trust behaviors are influenced by:

    Individual personality, experience and context Corporate culture and organizational design

    Organizational design fosters or constrains

    manifestations of trust behaviors

    Are there aspects of your organization design that

    cause the positive or negative behaviors observed: Rewards systems, recruitment, recognition

    Workload prioritization and promotion Organization structures, policies and procedures

    Leadership, culture and consequences

    Bring the group reflection back to the workshop

    Group exercise

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    Increasing reliance on weak ties requires trust

    displaying and trust auditing behaviors

    Trust behaviors similar across different relationships

    Trust behaviors a function of individual and context

    Controls can damage or enable trust

    Good organizational design promotes trust behaviors

    Remove controls that constrain trust behaviors

    Understanding role of trust, how it is manifest, and

    organizational implications important steps in

    leveraging weak ties to catalyze innovation

    Wrap up slide

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    Andrew Maxwell

    Fox School of Business

    Temple University

    [email protected]

    416 433 9805

    http://www.slideshare.net/AndrewMaxwellPhD/iri-conferencev2

    Thank you

    mailto:[email protected]:[email protected]