Trust, weak ties and Innovation (IRI ROR)
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This document discusses trust behaviors that are important for innovation. It notes that innovative companies are able to build relationships with weak ties, characterized by informality and complementary knowledge. However, current organizational practices make it difficult to establish relationships with weak ties. The document outlines a workshop where participants will learn to audit trust behaviors, identify trust damaging behaviors in their own organizations, and discuss how to encourage more trust building behaviors. It then discusses different types of trust behaviors and how specific behaviors can build, damage, or violate trust in a relationship. The goal is for organizations to focus on and develop trust building behaviors to facilitate innovation.
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Trust, weak ties and Innovation (IRI ROR)
- 1. Trust, weak ties and innovation Dr. Andrew Maxwell Associate Professor, Entrepreneurial Engineering Director Bergeron Entrepreneurs in Science & Technology Lassonde School of Engineering, York University Dr. Robert McNammee Assistant Professor, Strategic Management Managing Director Innovation and Entrepreneurship Institute Fox School of Business, Temple University
- 2. Workshop activity: Becoming a trust auditor • At the end of the presentation, you will understand: • Why trust behaviors are important for innovation • How to audit trust behaviors in others • How to identify trust damaging behaviors • We will ask you to identify a trust damaging behavior you have observed in your organization • We will then ask you to post the behavior and join a group to discuss how you can go about changing your organization to encourage more trust behaviors CAUTIONARY WARNING TRYING TO CHANGE BEHAVIORS IN YOUR ORGANIZATION CAN BE HARMFUL TO YOUR CAREER
- 3. Weak ties recognized as a source of innovation 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’ • Relationship outcomes difficult to quantify or predict • Current organization practices make it difficult to establish and sustain relations with weak ties Changing how individuals in organization behave
- 4. Changing organizational design necessitates • 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, organizations Granovetter, 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
- 5. What do innovative organizations look like? • Decision processes are faster, and accountability is spread through organization • Organizational culture incents risk taking, experimentation and learning from failure • 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
- 6. Focus on behaviors that build Relationship Trust Trust defined as willingness to be vulnerable to actions of another party, without direct means of controlling their behaviors High levels of relationship trust: • reduce 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
- 7. How to develop relationship trust • Most organizations have controls and policies that: • Delaying making a decision • Introduce delays and transaction costs • Make it challenging to work with new partners • Most managers exert authority by: • Discouraging risk taking • Refusing to delegate • Alternative is to rely on trust… but this is challenging: • Who should you trust, and how much? • When should you trust, and with what? • How do you persuade them to trust you?
- 8. Understanding trust development process • Trust evolves due to individual behaviors influenced by: - Individual personality; previous relationship experience - Management priorities, signals and examples - Corporate culture, processes and organizational design • Specific trust behaviors influence relationship trust: - One party displays trust behavior, reciprocated by other - Each behavioral manifestation audited by other party - Specific trust behaviors build, damage or violate trust • Relationship trust develops over time • Damaged or violated trust can destroy relationship (although damaged trust can be repaired)
- 9. Trust level change over time: allows evolution of relationship Knowledge based trust Competence based trust Lewicki and Bunker (1995) Identification based trust
- 10. Types of trust behaviors Consistency Benevolence Alignment Competence Experience Judgment Trustworthy Capable Disclosure Reliance Receptiveness Accuracy Explanation Openness Trusting Communicative
- 11. Behavioral manifestations that build trust Trust Dimensions Trust Dimensions Trustworthy 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 change Communication Accuracy Provides truthful and timely information Explanation Explains details & consequence of information provided Openness Open to new ideas or new ways of doing things 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 Reliance Willingness to be vulnerable through task delegation Receptiveness Demonstrates ‘coachability’ and willingness to change Trustworthy Consistency Displays of behavior that confirm previous promises Benevolence Exhibits concern about well-being of others Alignment Actions confirms shared values and/or objectives
- 12. Impact of specific behaviors on relationship trust Trust damaging Trust violating Shows inconsistencies between words and actions Fails to keep promises and agreements Shows self-interest ahead of others’ well being Takes advantage of others when they are vulnerable Exhibits behaviors sometimes inconsistent with declared values Demonstrates lack of shared values and willingness to compromise Competence Displays relevant technical and/or business ability Shows lack of context specific ability Misrepresents ability by claiming to have non-existent competence Experience Evidence of relevant work and/or training experience Relies on inappropriate experience to make decision Misrepresents experience Judgment Confirms ability to make accurate and informed decisions Relies inappropriately on third parties or erroneous information Judges others without giving them the opportunity to explain Disclosure Shows vulnerability by sharing confidential information Shares confidential information without thinking of consequences Shares confidential information likely to cause damage Reliance Shows willingness to be vulnerable through delegation Reluctant to delegate, or introduces controls on subordinates’ performances Is unwilling to rely on representation by others, or dismisses participation Receptiveness Demonstrates ‘coachability’ and willingness to change Postpones implementation of new ideas or deflecting Refutes feedback or blames others Accuracy Provides truthful and timely information Unintentionally misrepresents or delays information transmission Deliberately misrepresents or conceals critical information Explanation Explains details / consequence of information provided Ignores request for explanations Dismisses request for explanations Openness Open to new ideas or new ways of doing things Does not listen or ignores new ideas Shuts down or undermines new ideas damaging Consistency Displays of behavior that confirm previous promises Shows inconsistencies between words and actions Benevolence Exhibit concern about well-being of Shows self-interest ahead of others’ well being Alignment Actions confirms shared values and/or objectives Exhibits behaviors sometimes inconsistent with declared values Capability Competence Displays relevant technical and/or business ability Shows lack of context specific ability Experience Evidence of relevant work and/or training experience Relies on inappropriate experience to make decision Judgment Confirms ability to make accurate and informed decisions Relies inappropriately on third parties or erroneous information Trusting Disclosure Shows vulnerability by sharing confidential information Shares confidential information without thinking of consequences Reliance Shows willingness to be vulnerable through delegation Reluctant to delegate, or introduces controls on subordinates’ performances Receptiveness Demonstrates ‘coachability’ and willingness to change Postpones implementation of new ideas or deflecting Communication Accuracy Provides truthful and timely information Unintentionally misrepresents or delays information transmission Explanation Explains details / consequence of information provided Ignores request for explanations Openness Open to new ideas or new ways of doing things Does not listen or ignores new ideas Dimension Trust building Trustworthy Consistency Displays of behavior that confirm previous promises Benevolence Exhibit concern about well-being of others Alignment Actions confirms shared values and/or objectives Capability Competence Displays relevant technical and/or business ability Experience Evidence of relevant work and/or training experience Judgment Confirms ability to make accurate and informed decisions Trusting Disclosure Shows vulnerability by sharing confidential information Reliance Shows willingness to be vulnerable through delegation Receptiveness Demonstrates ‘coachability’ and willingness to change Communication Accuracy Provides truthful and timely information Explanation Explains details / consequence of information provided Openness Open to new ideas or new ways of doing things
- 13. Normative trust behaviors in organizations • Organizations develop acceptable normative behaviors • These behaviors are based on: • Examples of others in the organization • Policies and procedures • Incentives and rewards • Individuals within an organization manifest consistent trust behaviors across multiple relationships: • Vertically and laterally • Strong ties and weak ties Means when teaching you to become a trust auditor, you can identify examples from any relationship
- 14. 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 CONSISTENCY Example: BENEVOLENCE Example: ALIGNMENT Showing inconsistencies between words and actions Demonstrating self-interest ahead of others’ well-being Exhibiting behaviours that are inconsistent with declared values Example: Would you be willing to be contacted so that we can do further research on this topic? YES/NO Andrew Maxwell ©
- 15. Organizational Trust Diagnostic 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 Example: EXPERIENCE Example: JUDGMENT Showing a lack of context-specific ability Relying on inappropriate experience to make decisions Relying inappropriately on third parties or erroneous information Example: Would you be willing to be contacted so that we can do further research on this topic? YES/NO Andrew Maxwell © Trust Dimension: CAPABILITY
- 16. Organizational Trust Diagnostic 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 Example: RELIANCE Example: 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 Example: Would you be willing to be contacted so that we can do further research on this topic? YES/NO Andrew Maxwell © Trust Dimension: TRUSTING
- 17. Organizational Trust Diagnostic 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 Example: EXPLANATION Example: OPENNESS Unintentionally misrepresenting or delaying information transmission Ignoring requests for explanations Not listening or ignoring new ideas Example: Would you be willing to be contacted so that we can do further research on this topic? YES/NO Andrew Maxwell © Trust Dimension: COMMUNICATIVE
- 18. Nest step: creating a multi-company study • Now working to identify teams in global organizations interested in changing their rate of innovation: • Identify innovation challenges • Audit trust damaging (and building) behaviors • Analyze root cause of these behaviors • Prescribe specific organizational remedies • Provide an analysis of team/company specific actions • Offer 2 day workshop to share outcomes and results • Publish tools, examples, and recommendations that can be shared with the IRI community Andrew.maxwell@lassonde.yorku http://tinyurl.com/k2jzag5
- 19. Becoming Innovative One Behavior at a time
Editor's Notes
- This is another option for an overview using transitions to advance through several slides.
- This is another option for an overview using transitions to advance through several slides.
- This is another option for an overview using transitions to advance through several slides.
- Companies wanting to innovate must learn how to rely on trust to mitigate risk and address these issues Senior management molded by their environment and experience: where speed/risk taking viewed as negatives Traditional approach to risk mitigation relies on formal processes, established relationships and contractual controls However, unintentionally increases risk of being disrupted: slows down decision making and information flows discourages risk taking and experimentation inhibits new partnership formation and technology sources stifles innovative technology and business opportunities
- Called the universal lubricant
- Real challenge is ”moving at the speed of trust” persons trust behaviors – a natural skill that allows you to develop personal relationships How to audit trust behaviors How to display trust behaviors How to repair damaged trust
- Is a context dependent staged process over time Initial relationship trust based on proxy (i.e. background) Certain controls enable trust development: while others make it more difficult for trust to develop
- Is a context dependent staged process over time Initial relationship trust based on proxy (i.e. background) Certain controls enable trust development: while others make it more difficult for trust to develop