trust, weak ties and innovation
DESCRIPTION
Exploring the relationship between trust, weak ties and innovationTRANSCRIPT
If innovation is the top priority – why are so many companies bad at it?
• Most CEOs don’t understand what innovation is
• Most organizations don’t measure it
• Most leaders don’t realize they limit innovation
• Most people don’t comprehend what to change
Innovation is about changing
• Your products, customers and your business models
• Your people, distributors and your supply chains
• Your culture, attitude to risk and your processes
• Your partners and your partner relationships
• Your behaviors and your decisions
Trust, weak ties and innovation
Dr. Andrew MaxwellAssociate Professor, Entrepreneurial EngineeringDirector Bergeron Entrepreneurs in Science & TechnologyLassonde School of Engineering, York UniversityChief Innovation Officer, Canadian Innovation Centre
• Changing decision processes that led to prior success Christensen, C.M. (1997) The Innovator’s Dilemma
• Sourcing innovation from outside the organization Chesbrough, H. (2003) Open Innovation
• Partnering with smaller, less established, organizationsGranovetter, M. (1973) The strength of weak ties
• Modifying role of leadership to one of catalyzing and coaching
Hamel. G. (2002) Leading the revolution
• Changing how individuals in organizations behave
Kotter, J. (1985) Leading change, why transformation efforts fail
Changing organizational design necessitates
• Decision processes are faster, and accountability is spread through organization
• Organizational culture incents risk taking, experimentation and a portfolio approach
• Communication is accurate, timely and frequent• Information flows are two way, rapid and
transparent • Reliance on cross functional teams and
developing new relations with external partners • Relationships within the organization and with
partners embed higher levels of trust
Characteristics of innovative organizations
“..willingness to be vulnerable to actions of another party, without direct means of controlling their behaviors”• Reduces concerns about misappropriation or
misuse arising from knowledge exchange • Accelerates knowledge sharing/absorption,
enabling rapid identification of relevant opportunities
• Reduces transaction and verification costs associated with knowledge exchange
• Speeds relationship development by facilitating incomplete contracts with multiple partners
Relationship Trust:
“..willingness to be vulnerable to actions of another party, without direct means of controlling their behaviors”• Reduces concerns about misappropriation or
misuse arising from knowledge exchange • Accelerates knowledge sharing/absorption,
enabling rapid identification of relevant opportunities
• Reduces transaction and verification costs associated with knowledge exchange
• Speeds relationship development by facilitating incomplete contracts with multiple partners
Relationship Trust:
Increasing evidence that innovative companies are those able to build relationships with companies with weak ties:• Characterized by informality, infrequent
communications, and complementary knowledge• Limited track record reduces perceived ‘reliability’• Difficult to participate in standard agreements• Outcomes from relationship difficult to quantify or
predict
Importance of weak ties
• Standard approach is to minimize risk, without asking:• What are risks of delaying, or not making, a decision• What are the costs of managing relationship• Expensive to include all possibilities in contract
• Contracts to manage process - timely and expensive• Alternative - use trust… but not a skill we develop:• How do you decide who to trust, and how much?• How do you persuade them to trust you?
• Requires understanding of trust development process• Relies on personal development skills
What they don’t teach you in business school
• Trust evolves due to individual behaviors influenced by:- Individual personality; previous relationship experience
- Corporate culture, processes and organizational design• Manifestations of specific behaviors influence trust:
- One party displays trust behavior, reciprocated by other - Each behavioral manifestation audited by other party- Specific trust behaviors build, damage or violate trust
• Achieving specific trust levels enables relationship• Damaged or violated trust can destroy relationship
(although damaged trust can be repaired)
Trust development process
Lewicki and Bunker (1995)
Level of trust changes over time
Knowledge based trust
Competence based trust
Identification based trust
Types of trust behaviors
Trustworthy Capable
Trusting Communicative
Types of trust behaviors
Trustworthy Capable
Trusting Communicative
ConsistencyBenevolence
Alignment
CompetenceExperienceJudgment
Disclosure Reliance
Receptiveness
AccuracyExplanationOpenness
Behavioral manifestations that build trustTrust Dimensions
Trustworthy
Consistency Displays of behavior that confirm previous promisesBenevolence Exhibits concern about well-being of others
Alignment Actions confirms shared values and/or objectives
Trust DimensionsTrus
tworthy
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 abilityExperience Demonstrates relevant work/training experience
Judgment Confirms ability to make accurate and objective decisions
Trust DimensionsTrus
tworthy
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 abilityExperience 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
Trust DimensionsTrus
tworthy
Consistency Displays of behavior that confirm previous promises
Benevolence 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
Trusting
Disclosure Shows vulnerability by sharing confidential information
Reliance Willingness to be vulnerable through task delegation
Receptiveness Demonstrates ‘coachability’ and willingness to changeCo
mmunication
Accuracy Provides truthful and timely informationExplanation Explains details & consequence of information providedOpenness
Open to new ideas or new ways of doing things
Organizational Trust DiagnosticTrust 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
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:
©
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
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:
©
Organizational Trust DiagnosticTrust 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
Showing vulnerability by sharing confidential information
Showing willingness to be vulnerable through delegating
Demonstrating ‘coachability’ and willingness to change
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:
©
Organizational Trust DiagnosticTrust 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
Providing truthful and timely information
Explaining details and consequence of information
provided
Being open to new ideas or new ways of doing things
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:
©
Organizational Trust DiagnosticTrust Dimension: COMMUNICATIVE
Research Project• Now working with teams in global organizations to:• Identify innovation challenges• Audit trust behaviors• Analyze how trust behaviors damage innovation• Prescribe remedies
• Intent is to publish tools, examples and remedies that can be broadly applied
Becoming Innovative
One Behavior at a time